KARACHI: The State Bank of Pakistan (SBP) on Tuesday extended the deadline for banks to install biometric machines by three months for verification of particulars at the time of opening bank account.
A notification issued by the central bank said that it has extended the deadline for installation of biometric machines at branches till March 31, as it was expired on December 31, 2015.
The installation of biometric machines is an effort to strengthen regulations regarding anti-money laundering and combating the financing of terrorism (AML/CFT).
On June 8, 2015, the SBP had amended the regulations to streamline account opening procedure and directed the banks and development financial institutions (DFIs) to accept initial deposit at the time of submission of necessary documents by their prospective customers.
The SBP directed the banks and DFIs to make use of biometric technology at branch level for verification of particulars of prospective customers.
The financial institutions have been advised that the initial deposit receipt should be issued with disclaimer that account would be opened after completing necessary due diligence, including Nadra verification through verisys or biometric technology.
“A temporary account number shall be generated, which will be validated after completion of due diligence process,” the SBP said.
The initial deposit should be credited to the customer’s designated account only. “No transaction in the account, issuance of cheque book / ATM Card or any other instrument is allowed until completion of the verification of identity of the customer,” the banks have been directed.
However, in case, the biometric thumb impression of the customer (verified from Nadra) is taken by the bank, the account may be activated instantly subject to satisfactory due diligence, the guidelines said.
The bank branches have been directed to maintain the list of those customers / accounts where the business needed to be closed on account of negative verification.