The Securities and Exchange Commission of Pakistan has proposed comprehensive amendments to its Anti-Money Laundering, Countering the Financing of Terrorism, and Countering Proliferation Financing Regulations 2020, introducing International Bank Account Number-based verification and multi-biometric authentication as part of a wider effort to enable fully digital investor onboarding while simultaneously strengthening the country’s safeguards against illicit financial flows. The proposed framework represents one of the most substantive updates to Pakistan’s capital markets compliance infrastructure in recent years, addressing the dual imperative of making investment more accessible through digital channels and ensuring that those channels remain secure and traceable.
Under the draft amendments, investors would be able to verify their identity through International Bank Account Numbers using Securities and Exchange Commission of Pakistan-notified entities, including the National Clearing Company of Pakistan Limited via the instant payment system Raast. Such verification, once completed, would be accepted as valid proof of identity subject to compliance with broader Anti-Money Laundering requirements. The framework further mandates that investors conduct all transactions exclusively through International Bank Account Number-verified bank accounts or electronic wallets, a measure designed to improve the traceability of financial flows and minimise the risk of unauthorised or opaque transactions that have historically been difficult to monitor under paper-based or loosely verified account structures.
The proposed amendments also introduce multi-biometric authentication into the digital account opening process, with facial recognition technology integrated directly with the database of the National Database and Registration Authority to enhance identity verification standards at the point of onboarding. This layer of biometric confirmation adds a meaningful safeguard to a process that has previously relied on more easily falsifiable documentary checks, and its integration with NADRA’s records ensures that the identities being verified are matched against the country’s most authoritative source of citizen identification data. Despite the significant shift toward automation and digital verification that the amendments represent, the Securities and Exchange Commission of Pakistan has made clear that regulated entities will retain full responsibility for customer due diligence, know-your-customer protocols, transaction monitoring, and overall compliance with Anti-Money Laundering obligations, ensuring that technology augments rather than displaces the accountability of licensed intermediaries. The draft has been released for public consultation, with stakeholders invited to submit feedback within 14 days through the regulator’s official website.
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