AGL 37.99 Decreased By ▼ -0.03 (-0.08%)
AIRLINK 215.53 Increased By ▲ 18.17 (9.21%)
BOP 9.80 Increased By ▲ 0.26 (2.73%)
CNERGY 6.79 Increased By ▲ 0.88 (14.89%)
DCL 9.17 Increased By ▲ 0.35 (3.97%)
DFML 38.96 Increased By ▲ 3.22 (9.01%)
DGKC 100.25 Increased By ▲ 3.39 (3.5%)
FCCL 36.70 Increased By ▲ 1.45 (4.11%)
FFBL 88.94 No Change ▼ 0.00 (0%)
FFL 14.49 Increased By ▲ 1.32 (10.02%)
HUBC 134.13 Increased By ▲ 6.58 (5.16%)
HUMNL 13.63 Increased By ▲ 0.13 (0.96%)
KEL 5.69 Increased By ▲ 0.37 (6.95%)
KOSM 7.32 Increased By ▲ 0.32 (4.57%)
MLCF 45.87 Increased By ▲ 1.17 (2.62%)
NBP 61.28 Decreased By ▼ -0.14 (-0.23%)
OGDC 232.59 Increased By ▲ 17.92 (8.35%)
PAEL 40.73 Increased By ▲ 1.94 (5%)
PIBTL 8.58 Increased By ▲ 0.33 (4%)
PPL 203.34 Increased By ▲ 10.26 (5.31%)
PRL 40.81 Increased By ▲ 2.15 (5.56%)
PTC 28.31 Increased By ▲ 2.51 (9.73%)
SEARL 108.51 Increased By ▲ 4.91 (4.74%)
TELE 8.74 Increased By ▲ 0.44 (5.3%)
TOMCL 35.83 Increased By ▲ 0.83 (2.37%)
TPLP 13.84 Increased By ▲ 0.54 (4.06%)
TREET 24.38 Increased By ▲ 2.22 (10.02%)
TRG 61.15 Increased By ▲ 5.56 (10%)
UNITY 34.84 Increased By ▲ 1.87 (5.67%)
WTL 1.72 Increased By ▲ 0.12 (7.5%)
BR100 12,244 Increased By 517.6 (4.41%)
BR30 38,419 Increased By 2042.6 (5.62%)
KSE100 113,924 Increased By 4411.3 (4.03%)
KSE30 36,044 Increased By 1530.5 (4.43%)

KARACHI: The State Bank of Pakistan (SBP) has revised the customers’ digital onboarding framework aimed at providing clarity regarding regulatory expectations in respect of digital onboarding.

The framework predominantly covered the opening of digital accounts by banks/MFBs as well as introducing three types of Asaan digital accounts which allow limited transactional activity and can be opened with simplified Know Your Customer (KYC) and Customer Due Diligence (CDD)requirements. This includes Asaan Digital Account (ADA), Asaan Digital Remittances Account (ADRA) and Freelancer Digital Account (FDA).

However, during our ongoing engagement with the banking industry, the SBP has observed with serious concern that many of the banks/MFBs are collecting unnecessary information and documents from customers, especially for the opening of ADA, ADRA, or FDA, which is not only causing unnecessary delays in account opening process but also hampering the customer’s seamless digital onboarding experience. Besides, the user’s experience through the account opening process of most of the banks/MFBS needs significant improvement.

Therefore, in order to provide clarity regarding regulatory expectations in respect of digital onboarding, especially for ADA, ADRA, and FDA, the subject framework has been revised and is enclosed herewith. Banks/MFBs have been asked to ensure compliance with the fresh instructions and failure to which may result in a necessary enforcement action(s) under relevant provisions of the law.

SBP devises ‘Customers’ Digital Onboarding Framework’

As per the revised framework, banks/MFBs will ensure compliance with CDD requirements and perform complete Know Your Customer (KYC), Customer Due Diligence (CDD), and Enhanced Due Diligence (EDD for the opening of ADA, ADRA, and FDA. Banks/MFBs, as part of CDD, may conduct KYC of the customer through a recorded video call facility based on their internal risk assessment and compliance framework. For high-risk customers requiring Enhanced Due Diligence (EDD) in line with AML/CFT/CPF Regulations, a video KYC/ interview is mandatory.

As per the amended framework, banks/MFBs will put in place the necessary technological infrastructure and operational controls to ensure data integrity, privacy, security, and confidentiality of customers’ particulars/ documents, collected and transmitted through their mobile applications/websites and other digital channels. banks/MFBs, in this regard, will ensure to adopt the minimum controls and procedures mentioned in Annexure - D of this framework.

The State Bank has developed a “customers’ digital onboarding framework” for banks/ MFBs which inter alia elaborates the basic parameters for the opening bank accounts for Resident Pakistanis through digital channels. The framework on Customers’ Digital Onboarding invariably requires all the banks and Microfinance Banks (MFBs) to implement the same by December 31, 2021.

Copyright Business Recorder, 2022

Comments

Comments are closed.