State Bank of Pakistan Mandates Facial Recognition for Foreign Exchange Transactions from 2026

The State Bank of Pakistan (SBP) has instructed exchange companies to implement facial recognition technology for customer verification, complementing existing thumb and fingerprint scans. This dual biometric system is intended to enhance security and transparency in foreign exchange transactions.

According to an SBP circular, the Ministry of Interior and Narcotics Control has mandated that facial recognition be integrated into all biometric verification services provided through NADRA. The new requirement is set to take effect from January 1, 2026.

The central bank has advised exchange companies to establish the necessary administrative and technical measures to ensure timely compliance with the new regulations. Currently, exchange companies use NADRA’s real-time system to verify customer thumbprints and fingerprints before processing foreign exchange transactions, as previously required by the SBP. They are also obligated to retain CCTV footage for six months to maintain records of transactions.

The introduction of facial recognition aims to standardize the verification process, strengthen security measures, and reduce the risk of identity fraud in Pakistan’s currency market, ensuring greater confidence in foreign exchange operations.