ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has introduced a simplified digital verification system that will allow investors to open accounts using their bank’s International Bank Account Number (IBAN), doing away with much of the paperwork that has long discouraged ordinary citizens from entering the capital markets.
The move comes on the back of amendments made to the Anti-Money Laundering (AML) Regulations, 2020, which the regulator says are meant to make investing easier without compromising on transparency or security.
Under the revised framework, securities brokers, insurance companies, non-banking finance companies (NBFCs) and Modarabas will now be able to verify customers directly through their IBAN, sparing investors the hassle of repeated documentation and biometric verification every time an account is opened.
Officials at the SECP say all transactions will henceforth be routed through verified bank accounts, a step they believe will tighten oversight and make it far easier to track the flow of money through the system. The new rules also make room for modern biometric tools, including facial recognition, to add another layer of security to identity verification.
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SECP Chairman Dr Kabir Ahmed Sidhu, speaking about the reforms, said they were designed to make investing “easier, safer and more transparent” for the general public. He added that any account linked to a blocked NADRA identity card could now be frozen instantly, a measure aimed at curbing misuse before it can cause damage.
Officials associated with the initiative are hopeful that the simplified process will draw greater participation in both the capital markets and the insurance sector, especially from first-time investors who, until now, had been put off by the lengthy and often cumbersome account-opening procedures.
