SBP asks exchange firms to deploy BVS until January

KARACHI: State Bank of Pakistan (SBP) on Thursday asked the exchange companies to implement the biometric verification system (BVS) by January 30, 2022 in a bid to control the undesirable foreign currency outflows and strengthen the regulatory regime for these firms.

All exchange companies (ECs) and the exchange companies of ‘B’ category (ECs-B) have been advised to deploy BVS as provided by National Database and Registration Authority (NADRA) at their outlets for biometric verification after November 5, the SBP said in a circular sent to the exchange firms.

However, any relaxations and extensions in the timeline would only be allowed to the companies that approach the SBP with genuine reasons along with an explicit time bound implementation plan, it added.

“Moreover, NADRA has informed that going forward, the android-based BVS could also be integrated with the core applications of ECs/ECs-B. Therefore, all the ECs/ECs-B are required to continue their coordination with NADRA to ensure that the integrated system is implemented within the stipulated timeline of June 30, 2022,” said the circular.

The representatives of the exchange companies said so far no company has deployed the BVS system at their respective outlets. They have requested the SBP to continue the NADRA’s E-Sahulat System.

“NADRA is not fully prepared to facilitate the implementation of the biometric verification system… it is likely to complete the process within the span of 45 days,” Malik Bostan, chairman, Exchange Companies Association of Pakistan (ECAP) told The News.

He said the introduction of biometric certification has helped reduce the demand for dollars, making the rupee stabilise against the greenback.

“Around 90 percent customers are not buying dollars; only 10 percent are purchasing the US currency,” he said. “Daily dollar buying from the open market has declined to $1 million from $3-4 million previously.”

The exchange companies were required to implement the BVS latest by October 22 after the central bank made it mandatory for the money changers to conduct biometric verification for all foreign currency sale transactions equivalent to $500 and above, as well as outward remittances.

This move came following the SBP’s measures to place a check on the huge demand and curb the flight of dollars to Afghanistan.

The SBP had requested NADRA to facilitate the EC sector in the implementation of BVS. However, given the technical challenges currently faced by ECs, NADRA proposed to offer an android based BVS for ECs/ECs-B, the circular said.

The SBP, on the request of ECAP, has allowed the ECs to accommodate customers by using the services of another facility of NADRA named E-Sahulat till the implementation of android based BVS ie November 5, 2021, it added.

“The SBP forwarded the technical requirements, received from NADRA, to ECs/ECs-B with an objective to ensure implementation of BVS within given timelines. However, going forward,

we understand that any technical and financial matter related to implementations of BVS is the sole discretion of NADRA and respective ECs/ECs-B,” the SBP said.

“Therefore, ECAP or individual ECs/ECs-B may like to approach NADRA directly for any technical/financial issues, regarding implementation and procurement of systems, devices etc.”