SECP Enables IBAN-Based Digital Verification for Financial Services

The Securities and Exchange Commission of Pakistan (SECP) has introduced a digital Know Your Customer (KYC) system, allowing IBAN-based customer verification for financial services. This initiative aims to make access to capital markets and insurance services easier and more efficient.

Under the new measures, the SECP has amended the Anti-Money Laundering Regulations 2020. This change permits investors and customers to be verified through their bank account’s International Bank Account Number (IBAN) details, removing the need for repeated biometric verification and additional documents when opening new accounts in the stock market.

Securities brokers, insurance companies, non-banking finance companies (NBFCs), and Modaraba firms will now be able to verify customers using their registered bank accounts. The SECP stated that all financial transactions will be conducted exclusively through customers’ verified personal bank accounts, enhancing transparency and traceability in financial activities.

The revised regulations also incorporate modern biometric verification methods, including facial recognition technology. SECP Chairman Dr. Kabir Sidhu highlighted that investment accounts linked with blocked identity cards issued by NADRA can now be immediately frozen, emphasizing the use of technology to make investment processes safer, simpler, and more transparent.

This move is part of the SECP’s broader efforts to leverage technology for modernizing Pakistan’s financial ecosystem, promoting digital access, improving ease of doing business, and ensuring secure and reliable customer verification.