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Biometric verification of bank accounts becomes mandatory

State Bank of Pakistan
State Bank of Pakistan

KARACHI: State Bank of Pakistan has issued instructions to all banks and financial institutions to conduct biometric verification of their account holders.

In this regard, the central bank has issued the instruction so for. The biometric will be completed in three phases. The first phase will be completed by November 30, 2018 while third and last phase will be completed by June 30, 2019.

Infokhazana.com had reported on such upcoming notification three days back. Sources in the banking industry told Infokhazana.com that there are only seven million biometrically verified accounts out of 50 million existing accounts. Read this for more information.

The notification said the SBP had been endeavoring to prevent the possible use of the banking sector for money laundering, terrorist financing and other illicit activities.

The banks and the DFI’s have been instructed to maintain the accounts with the information of the account holders.

“The monitoring mechanism in place at banks/DFIs should be adequately resourced and strengthened to ensure that the transactions being conducted in the accounts are consistent with the banks/ DFIs’ knowledge of their customer, business, risk profile and the source of funds,” stated the notification.

Moreover, with the view to further strengthen the measures already in place and mitigate the money laundering and terrorist financing risks, banks/DFIs are advised to immediately take following steps:

Ensure optimal utilization of biometric technology and carry out biometric verification of the existing customers (if already not done) as per following timelines and thresholds:

Priority Category of Customers Threshold Timeline
High Priority Listed /Public Limited Companies Account turnover exceeding PKR 1,000 million for any of the calendar year 2016, 2017 or for a period since January 1, 2018 to September 30, 2018. 30th November 2018
Private Limited. Companies Account turnover exceeding PKR 500 million for any of the calendar year 2016, 2017 or  for a period since January 1, 2018 to September 30, 2018.
All customers except Public/Private Limited Companies Account turnover exceeding PKR 250 million for any of the calendar year 2016, 2017 or for a period since January 1, 2018 to September 30, 2018.
Medium Priority Listed /Public Limited Companies Account turnover from PKR 500 million to PKR 1000 million for any of the calendar year 2016, 2017 or for a period since January 1, 2018 to September 30, 2018. January 31, 2019
Private Limited. Companies Account turnover from PKR 250 million to PKR 500 million for any of the calendar year 2016, 2017 or for a period since January 1, 2018 to September 30, 2018.
All customers except Public/Private Limited Companies Account turnover from PKR 100 million to PKR 250 million for any of the calendar year 2016, 2017 or for a period since January 1, 2018 to September 30, 2018.
Normal All other accounts not covered in the above categories 30th June 2019

 

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