With new biometric verification regulations by the State Bank of Pakistan (SBP) coming into effect, millions of Pakistanis could be losing access to their digital bank accounts and wallets starting today.

 

According to reports, the move aimed at streamlining account opening and onboarding processes while strengthening anti-money laundering and counter-terrorism financing efforts, effectively ends the 60-day period earlier offered to account holders to complete biometric verification.

 

Under the new framework, customers who have not completed biometric verification by October 25 could face blocking of their accounts, including immediate service disruptions and the inability to send or receive funds.

 

The SBP’s updated rules issued July, require all banks, digital banks, microfinance banks, development finance institutions and electronic money institutions to make biometric verification the primary method for customer identification.

 

The central bank’s ‘Consolidated Customer Onboarding Framework’ now applies to both in-branch and remote onboarding for individuals and entities, covering local and foreign currency accounts.

 

The framework mandates a unified approach to customer due diligence, regardless of how the account was opened. These requirements are mandatory for all SBP-regulated entities, including banks, DFIs, microfinance banks, digital banks, and electronic money institutions.

 

Earlier, financial institutions were given three months to comply with the new requirements designed to enhance the integrity of the country’s financial system.

 

With no deadline extension announced, experts warn that tens of millions of accounts could be affected, including foreign currency and Roshan Digital Accounts.