The State Bank of Pakistan (SBP) has directed exchange companies to implement facial recognition technology for customer verification, supplementing existing thumb and fingerprint scans. This move introduces a dual biometric system aimed at enhancing security, transparency, and efficiency in foreign exchange transactions.
According to an SBP circular, the Ministry of Interior and Narcotics Control has instructed that facial recognition be integrated into all biometric verification services obtained through the National Database & Registration Authority (NADRA). The directive will come into effect from January 1, 2026.
The central bank has asked exchange companies to put in place the necessary administrative and technical measures to ensure timely compliance with the new requirement. Currently, companies use NADRA’s real-time system to verify customer thumbprints and fingerprints before processing any foreign exchange transactions. They are also mandated to retain CCTV footage for six months as part of ongoing compliance and security measures.
The addition of facial recognition is expected to create a uniform verification process across the sector, further reducing the risk of identity fraud and improving trust in Pakistan’s currency market. Officials from various exchange companies indicated that the implementation will build on existing biometric systems, allowing for a seamless transition while maintaining robust security standards.
This regulatory update reflects the SBP’s continued commitment to leveraging technology in strengthening financial oversight, mitigating fraud risks, and improving the overall integrity of the foreign exchange ecosystem in Pakistan.
The dual biometric system aligns with global best practices in financial security and is part of broader efforts to modernize compliance processes within the country’s financial and banking sectors, ensuring both consumer safety and operational transparency.
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