State Bank of Pakistan has issued a directive requiring exchange companies to implement facial recognition technology as part of customer verification procedures, adding to existing thumb and fingerprint scans. The move introduces a dual biometric verification system aimed at enhancing security and transparency in foreign exchange operations. The directive, issued through an official circular, aligns with instructions from the Ministry of Interior and Narcotics Control to incorporate facial recognition into all biometric verification services provided through Nadra. The requirement will be enforced starting January 1, 2026.
Exchange companies in Pakistan currently utilize Nadra’s real-time system to verify customer fingerprints and thumbprints before completing foreign exchange transactions, a process mandated by SBP to ensure compliance and prevent fraudulent activity. Firms are also obliged to retain CCTV footage for six months to maintain oversight and support any necessary investigations. The inclusion of facial recognition technology is intended to unify verification processes across the sector, creating a stronger security layer that reduces the risk of identity-related fraud and unauthorized transactions in the currency market.
Officials from various exchange companies noted that while biometric verification has been a standard practice for years, integrating facial recognition will require both administrative and technical adjustments. Companies will need to deploy compatible hardware, update verification software, and train staff to operate the enhanced system efficiently. SBP has emphasized the importance of timely compliance, urging exchange operators to implement the necessary infrastructure and protocols ahead of the January deadline. The addition of facial recognition represents a technological shift in how financial transactions are validated in Pakistan, reflecting global trends toward multi-factor biometric security in financial services.
The dual biometric system is expected to significantly improve transaction integrity by ensuring that customer identity verification is more robust, accurate, and resistant to manipulation. By leveraging Nadra’s secure infrastructure, facial recognition will work in tandem with existing fingerprint and thumbprint scans to create a comprehensive verification process. Analysts highlight that this technological update not only strengthens the security framework for currency exchanges but also promotes customer confidence by minimizing potential exposure to identity fraud. With Pakistan increasingly embracing digital security solutions, this initiative underscores the central bank’s commitment to modernizing financial verification practices through advanced biometrics and secure technology integration.
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