Citizens who have not yet completed biometric verification of their bank accounts and digital wallets may face service disruptions starting October 25, when new regulations introduced by the State Bank of Pakistan (SBP) in July come into effect.
The regulations, introduced through the BPRD Circular No.1 of 2025, mandated simplification of account opening and customer onboarding processes by all institutions under the regulatory ambit of the SBP, including banks, DFIs, MFBs, digital banks and EMIs. According to the circular, issued on July 25, all SBP regulated entities (REs) are required to “streamline the account opening/customer onboarding process and improve customer experience.”
One of the new requirements introduced was that biometric verification of the account or wallet operator should become the primary verification method for all digital accounts and wallets. The current system had allowed operators to take up to 60 days to complete biometric verification before a debit block was imposed on their account.
With the new regulations coming into effect from October 25, industry sources have expressed fears that potentially tens of millions of account holders who have not completed biometric verification could lose the ability to operate their accounts. They also expressed concern that the regulations could prevent people who operate foreign currency accounts from sending or receiving remittances.
The central bank and financial institutions were given three months to comply with the requirements, which form part of customer due diligence and incorporation-related requirements under the SBP’s Anti-Money Laundering, Anti-Terrorist Financing and Proliferation Financing Regulations.
The scope and applicability of SBP regulations relating to digital accounts and wallets were expanded in the ‘Consolidated Customer Onboarding Framework’ introduced in July, and the change now “covers both branch-based and remote onboarding, and is applicable for opening of accounts/wallets for individuals and entities (legal entities/arrangements), including local currency and foreign currency accounts, and mentions “Roshan Digital Accounts” and applies to all “SBP Regulated Entities (REs) including Banks, DFIs, MFBs, Digital Banks and EMIs”.
The new framework also requires a “consolidated approach,” regardless of whether the onboarding process was done in the branch or remotely. Under the previous framework, launched in 2022, NADRA Verisys was allowed to be used for verification at the time of account opening, while biometric verification had to be completed within 60 days.
However, as per the 2025 framework, biometric verification will be the primary method for “customers with CNIC/NICOP/POC/ARC/POR cards prior to relationship establishment/account/wallet opening”.
