KARACHI: Pakistan Banks Association (PBA), under the guidance of the State Bank of Pakistan, has launched “Shared Electronic Know Your Customer (e-KYC) Platform” aimed at bringing more efficiency in KYC and onboarding process.

Accordingly SBP has advised the banks to join the “shared e-KYC platform”, and appoint the dedicated staff to run this platform appropriately.

The “shared e-KYC platform” has been built on Distributed Ledger Technology (DLT) whereby customer’s KYC/CDD related information will reside with the banks only, without the need for a central entity to house this critical customers’ data. Further, to protect the rights of the banks’ customers, the data will be accessed only with their explicit consent.

State Bank, over the years, has strengthened the Anti-Money Laundering, Combating the Financing of Terrorism (AML/CFT) regime including processes for “Know Your Customer (KYC)” and “Customer Due Diligence (CDD)”. To further streamline the KYC and CDD processes, SBP has allowed banks to rely on third party financial institutions for performing effective and efficient KYC or CDD.

According to SBP, with the objective to bring further efficiency in KYC and on-boarding process, PBA, under the guidance of SBP, has undertaken the development of a “shared e-KYC platform”.

This new platform will provide a number of benefits to banks including; timely exchange and updating of customers KYC or CDD information across the banking industry through a secure digital channel, standardization of KYC or CDD data, enhancing customer on boarding experience and cost savings for the banks.

Given the importance and utility of this platform, both for banks and their customers, SBP has advised the banks to join the “shared e-KYC platform”, and dedicate required financial, technological and human resources for its timely and effective implementation.

Copyright Business Recorder, 2023