SECP Plans New Way to Verify Investors Online Using IBAN, E-Wallets and Face ID

The Securities and Exchange Commission of Pakistan (SECP) has proposed new rules to introduce IBAN-based and biometric verification for digital onboarding of investors, aiming to strengthen transparency and reduce financial crime risks.

In addition, the regulator plans to introduce multi-biometric verification, including facial recognition aligned with NADRA systems, to strengthen identity authentication.

The framework allows IBAN verification through SECP-approved entities, including the National Clearing Company of Pakistan, using systems such as RAAST for validation.

Under the proposed amendments to AML regulations, investors will be required to use verified bank accounts or e-wallets linked through IBAN for all transactions, improving traceability and limiting unauthorized activity.

The move is designed to enable fully digital onboarding while maintaining strict anti money laundering safeguards and compliance standards.

SECP clarified that regulated entities will remain responsible for customer verification, due diligence, transaction monitoring, and compliance with AML requirements.