The Securities and Exchange Commission of Pakistan (SECP) has put forward major amendments to the AML/CFT/CPF Regulations, 2020, such as IBAN and biometric verification for the digital onboarding of investors.
This includes the introduction of IBAN-based verification, the mandatory use of verified bank accounts or e-wallets, and a multi-biometric authentication system.
Under the proposed framework, IBAN verification conducted through SECP-approved entities, such as the National Clearing Company of Pakistan Limited (NCCPL) via RAAST, will be recognised as valid proof of identity, provided that all AML requirements are met.
Investors will be approved to conduct transactions solely through IBAN-verified bank accounts or e-wallets, thereby improving traceability and reducing the risks associated with unauthorised transactions.
Additionally, the amendments propose a multi-biometric verification system that includes facial recognition, which is aligned with the systems of the National Database and Registration Authority (NADRA), to further improve identity authentication.
The SECP has made it clear that Regulated Persons (RPs) will retain full responsibility for KYC, due diligence, transaction monitoring, and compliance with AML regulations.
The draft amendments have been released for public consultation and can be accessed on the SECP’s website for feedback within a period of 14 days.
SECP focuses on market consultation for T+1 settlement
Earlier, SECP began a consultation with stakeholders regarding the T+1 settlement cycle at the Pakistan Stock Exchange (PSX).
This consultation, which was expected to conclude following the Eid holidays, would concentrate on identifying the challenges of implementation and evaluating the effects of T+1 on liquidity, investor engagement, operational preparedness, and heightened capital requirements, as stated in the SECP press release.
