The Securities and Exchange Commission of Pakistan (SECP) has introduced a new IBAN-based digital verification system aimed at reducing paperwork and making the account opening process faster for investors and financial service users.
Under the new initiative, financial institutions will be able to verify customers through their bank account details, allowing a more efficient and technology-driven approach to customer identification. The move is expected to support faster digital onboarding while improving accessibility to financial services across Pakistan.
The regulatory changes come through amendments to the Anti-Money Laundering, Combating the Financing of Terrorism, and Countering Proliferation Financing (AML/CFT/CPF) Regulations, 2020. These amendments allow regulated entities to use customers’ International Bank Account Numbers (IBANs) as part of their Know Your Customer (KYC) verification process.
The updated framework applies to a wide range of financial institutions regulated by SECP, including securities brokers, futures brokers, insurance companies, takaful operators, non-banking finance companies (NBFCs), and Modarabas.
According to SECP, the initiative is designed to accelerate digital account opening procedures, improve customer experience, and strengthen Pakistan’s financial ecosystem through technology-based solutions. By reducing manual documentation requirements, the system aims to make financial services more convenient for individuals and businesses.
The regulator believes that digital verification will also contribute to greater financial inclusion by making it easier for new customers to access investment and financial products. Faster onboarding processes can encourage more people to participate in capital markets and use formal financial services.
The introduction of IBAN-based verification is part of Pakistan’s broader efforts to modernize its financial sector and promote digital transformation. Financial institutions have increasingly adopted technology solutions to improve efficiency, enhance compliance, and provide smoother services to customers.
Industry experts say that reducing administrative barriers can help increase investor participation and improve the overall ease of doing business. Digital KYC systems can also help institutions maintain regulatory compliance while offering quicker services to customers.
The SECP has emphasized that the latest reforms will support a more efficient and transparent financial environment. By integrating digital tools into regulatory processes, Pakistan aims to build a modern financial system aligned with global practices.
The new verification mechanism represents another step toward creating a paperless financial services framework, where technology can improve convenience, security, and accessibility for investors and businesses across the country.
