Pakistan Launches Contactless Biometric Verification for Banking

Richard Marley
September 10, 2021
3 minutes read
411

Pakistan has become one of the first countries in the world to implement biometric verification technology on a national level.

Pakistan’s National Database and Registration Authority (NADRA) has announced the launch of contactless biometric verification services for the banking and payments industry. This move has made Pakistan one of the first countries in the world to implement the technology on a national level.

According to a statement issued on Thursday (9 September 2021), the biometric verification service was introduced by the State Bank of Pakistan’s (SBPs) Governor, Dr Reza Baqir, at the NADRA headquarters.

With the use of a digital app in smartphones, NADRA will verify the identity of each account holder through their biometric data. With the introduction of remote biometric verification technology, the government agency aims to digitise the banking system and ease the ID verification difficulties brought by the pandemic.

The authority further added that initially, the service has been made available to five SBP-nominated banks for a pilot run. Once all formalities have been completed, other banks and fully licensed EMIs (Electronic Money Institutions), will also be included in this arrangement. After the pilot has been successfully completed, the biometric verification service will be extended to all banks and EMIs.

Speaking on the occasion, Dr Baqir stated, “This new mobile-based verification service for banks and EMIs is in line with SBP’s financial inclusion initiative while creating opportunity for rapid onboarding using remote identification and e-KYC features”.

Adding to this, he asserted the importance of e-KYC processes in reducing operational costs and easing pressure on the banking sector induced by COVID-19.

NADRA Chairman Tariq Malik addressed the public and stated, “This new technology makes contactless fingerprint acquisition and matching possible using a smart mobile phone, providing an alternative to conventional methods of conducting digital financial transactions that may require specialised equipment or visits to bank branches.”

Capitalising on NADRA’s initiative, banks and EMIs intend to start offering new digital banking services to their customers, enabling them to onboard customers remotely and perform biometric verification prior to accepting transactions. The service will be facilitated through the use of mobile phone cameras for identity verification.

On September 1st 2021, NADRA launched a similar mobile verification service called Pak ID – an app that captures biometric information such as fingerprints and facial features, and scans necessary documents required for processing citizen ID cards.

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Latest News

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ASIC Expands its Team to Enhance Cryptocurrency Regulations
Australia’s financial regulator has enhanced the size of its crypto team. The crypto regulatory measures include their application for financial services licenses and show that specific crypto platforms have particular liquidity in reserve.

After shifting popular blockchain from a proof-of-work (PoW) to a proof-of-stake (PoS) system, ASIC, Australia’s financial regulator, has increased the size of its crypto team.

U.S. Security and Exchange Commission Chairman Gary Gensler stated that PoS-based tokens might be classified as securities.

The decision of ASIC to keep PoS tokens for example Ethereum, Cardano and Solana under its remit will further clarify the situation and enable crypto regulations to be more effective. To cope with the latest regulatory reforms, the crypto exchange must either delist the tokens or start complying with robust crypto laws.

Such moves may force a few crypto firms to manage their operating models. Even the largest stablecoin of the crypto market, Tether, has been caught in a controversy created over the failure of holding enough dollar reserves to back the stablecoin.

The crypto regulatory measures include their application for financial services licenses and show that these platforms have particular liquidity in reserve.

The final decision by the regulator has not been issued yet. Greg Yanco, the executive director for marketers, said that ASIC won’t be a “cheerleader for crypto assets.”

SEC Newgate carried out research the last November. It showed that 44% of Australian retail investors reported holding crypto. Out of these investors, only 20% viewed crypto as high-risk.

The chairperson of ASIC responded and said that the regulators were “concerned that there are limited protections for crypto-asset investments given they have become increasingly mainstream and are heavily advertised and promoted. There is a strong case for regulating crypto-assets to better protect investors.”

According to Yanco, until the last year, cryptocurrency was not such a high priority. Still, due to the decline of cryptocurrency in the previous few years and investors wiped out around the globe, ASIC expanded its team. It made crypto one of its “core strategic projects.”

Suggested Read: Regulatory Authorities to File a New Bill to Secure the Citizens from Cyber Criminal Activities

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All the digital service providers particularly financial companies, educational institutions, and immigration departments are at high risk of document fraud. The criminals use forged documents to claim funds, admissions to universities, or entry to foreign countries. By implementing standards of forensic forgery detection, all online businesses can secure their onboarding system with very less risks of scams. The forensic authentication of documents involves scientific techniques to verify the identities of users leaving no room for criminals.

How Forensic Document Verification is Carried Out?

Forensic document verification involves incorporation of scientific rules in examining the authenticity of records. There are experts in this field who carry out all the operations using specialized methods. Nowadays, the use of forensics is rising, especially in courts where no document is accepted without authentication. By using several techniques like handwriting identification, ultraviolet light sources, microscopes, photography, and infrared imaging in the laboratories, a document is verified. All the major jurisdictions have formed dedicated institutions which overlook the process of document verification. The American Board of Forensic Document Examiners (ABFDE) is the primary authoritative body responsible for monitoring forensic operations in the US, and any person carrying out these activities anywhere in the country must be a member of this board.

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The prevailing traditional methods of document verification have encouraged criminals to exploit loopholes in systems inflicting financial losses on users. In the recent past, several cases have surfaced where scammers try to manipulate documents resulting in credit card fraud, illegal immigration, fake admissions to international universities, and many others. Let’s have a look at some of the high-profile cases of document fraud in different countries.

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European Police conducted a raid this year dismantling a criminal network involved in forgery and dissemination of counterfeit documents. The gang was using fake identities and helping people to apply for immigration in several European countries. The Police have seized 362 forged documents including ID cards, residence permits, passports, and asylum papers which were used in carrying out illicit activities. The law enforcement authorities have stated that criminals had support from other countries and investigations are still going on to catch all culprits.

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Canada

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Documents are considered the foremost source of verifying the identity of any person. Any type of fraud related to official records can inflict serious consequences on individuals and businesses. It is crucial for online service providers to implement stringent measures to ensure Know Your Customer (KYC) compliance for their users. By implementing document forensic technology, the legitimacy of documents can be checked using advanced ways of securing digital businesses. It will not only help in countering criminals but also ensure global compliance.

What Shufti Pro Offers?

Shufti Pro’s state-of-the-art identity verification services can help online businesses implement a robust solution against document fraud. Combating financial crimes through efficient record authentication will secure the identities of users and ensure compliance with global regulatory standards. Powered by thousands of AI algorithms Shufti Pro’s KYC solution uses advanced techniques like OCR and forensic document examination to verify documents in real-time. It generates output in less than a second with 98.67% accuracy.

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Pakistan Launches Contactless Biometric Verification for Banking

Forensic Document Verification – A New Standard

How Forensic Document Verification is Carried Out?

High-Profile Crime Cases of Document Fraud

Gang Arrested for Printing Fake Documents in Greece

Criminal Network Busted for Distributing Fake Documents

Regulatory Authorities Monitoring Document Fraud

Canada

Australia

Document Forgery Forensic Authentication – Ensuring KYC Compliance

What Shufti Pro Offers?

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Let’s prove your customer’s

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