SECP tightens AML net

April 24, 2026 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has proposed sweeping amendments to its anti-money laundering framework, introducing IBAN-based verification and multi-biometric authentication to enable fully digital onboarding of investors while strengthening safeguards against illicit financial flows.

The proposed changes to the AML/CFT/CPF Regulations, 2020 would allow investors to verify their identity through International Bank Account Numbers (IBANs) using SECP-notified entities, including the National Clearing Company of Pakistan Limited (NCCPL) via the instant payment system Raast.

Such verification would be accepted as valid proof of identity, subject to compliance with broader AML requirements.

Under the draft framework, investors would be required to conduct transactions exclusively through IBAN-verified bank accounts or e-wallets, a move aimed at improving traceability and minimizing the risk of unauthorized or opaque transactions.

The amendments also introduce multi-biometric authentication, including facial recognition integrated with the database of the National Database and Registration Authority, to enhance identity verification standards in digital account opening.

Despite the shift toward automation, the SECP said regulated entities will retain full responsibility for customer due diligence, know-your-customer (KYC) protocols, transaction monitoring, and overall compliance with AML obligations.

The draft has been released for public consultation, with stakeholders invited to submit feedback within 14 days via the regulator’s website.

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