The State Bank of Pakistan (SBP) has decided to validate the bank accounts in Pakistan by biometric verification. The need for the verification surfaced after the investigation teams from FIA and JIT identified numerous fake accounts with millions and billions of money.
SBP is going to issue a notification somewhere in the next week in which they will provide all the details and process regarding the biometric verification. It means it is safe to speculate that all non-verified accounts will be blocked once the banks are through with their procedure of verification.
There are almost 50 million bank accounts in Pakistan, however, not all accounts were opened with biometric verification as SBP had advised banks to use this technology after June 2015.
SBP clarified that new account holders will be exempted from the verification process and explained that “Only those accounts opened before 2016 will go through the newly stated verification process”.
All banks will be included in the process and there will be no exemption whatsoever regarding foreign or local currency accounts, and current or savings accounts.
Although Pakistan has improved its ranking on the global Anti-Money Laundering (AML) list, International financial institutions like Financial Action Task Force (FATF) are not happy with Pakistan’s effort to curb the money laundering.
The fake accounts provide an easy solution for money launderers, where they use the account to transfer and hide the black money to evade taxes, hence damaging the country’s economy.
With the proper use of technology, Pakistan can easily uproot this menace which will not only result in the prosperity but will also reduce the curse of corruption in the country.