Pakistan to Make Facial Recognition Mandatory for All Forex Transactions by 2026

Pakistan to Make Facial Recognition Mandatory for All Forex Transactions by 2026

Pakistan’s foreign exchange sector is headed for a major digital upgrade. The State Bank of Pakistan (SBP) has announced that beginning 1 January 2026, every foreign currency transaction will require facial recognition verification, marking one of the country’s biggest biometric security reforms.

SBP Introduces Dual-Biometric Verification for All Currency Deals

Under the new rules, Exchange Companies (ECs) will no longer depend solely on NADRA’s thumbprint-based identity checks. Instead, all customers will go through dual-modality biometric verification, combining:

Fingerprint scanning

Facial recognition

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The change comes after the Ministry of Interior and Narcotics Control instructed NADRA to add facial recognition capabilities to its identity verification system. SBP has now aligned exchange companies with this updated national standard.

Why Pakistan Is Adding Facial Recognition

SBP says the upgraded system will help:

Prevent identity theft and impersonation

Close loopholes in the current authentication process

Reduce illegal forex trading

Improve market transparency

Facial recognition is being added on top of the already mandatory biometric process under Chapter 7 of the Regulatory Framework for Exchange Companies, turning the existing checks into a more comprehensive digital security shield.

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Exchange Companies Face a Strict Implementation Deadline

Currently, exchange companies already use real-time fingerprint verification through NADRA and store six months of CCTV footage for compliance.

However, integrating facial recognition will require new hardware, software, and system upgrades.

SBP has instructed all ECs to begin preparations immediately to ensure full readiness before the January 2026 deadline.

A Big Step Toward Biometric-Driven Financial Security

By mandating facial recognition for forex transactions, Pakistan is moving closer to global fintech security standards, where biometric identity verification is becoming the norm.

The policy signals a broader shift toward stronger digital oversight and improved risk control across the country’s financial sector.