Karachi: The National Clearing Company of Pakistan Limited (NCCPL) has issued a notice to all Authorized Intermediaries (AIs) and Clearing Members (CMs), detailing upcoming changes required for the adoption of the NADRA VERISYS facility, now transitioning to a more secure Point-to-Point (P2P) BPVN system as notified by NADRA. This update aims to enhance compliance with the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) framework.

The migration to the P2P BPVN system is driven by the need for enhanced security and reliability in verifying the identities of customers, as part of measures to comply with AML/CFT regulations. The Securities Brokers (SBs), through the Pakistan Stock Broker Association (PSBA), have expressed concerns over the practical and technical challenges, as well as the significant costs associated with adopting the new VERISYS facility. These concerns were communicated in a letter to the Securities and Exchange Commission of Pakistan (SECP).

According to information available from the Pakistan Stock Exchange (PSX), following discussions among PSBA, SECP, and NCCPL, it has been decided that identity verification conducted by NCCPL using the NADRA VERISYS as the Centralized KYC Organization (CKO) will be acknowledged by SBs, though the extent of this reliance will be limited to validation of identity documents.

NCCPL has successfully integrated a provision within the KYC Information System (KIS) that allows AIs to verify the NADRA VERISYS status of their customers efficiently. This new feature aims to streamline the process and mitigate some of the challenges anticipated by SBs. Additionally, NCCPL has provided detailed guidelines in Annexure A to assist all stakeholders in transitioning to the updated system smoothly.

This development is a crucial step towards maintaining the integrity of financial transactions and enhancing compliance measures within Pakistan’s financial sector.