The State Bank of Pakistan has introduced a major policy to enhance transparency and security in the country’s foreign currency market. SBP makes NADRA verification mandatory for all exchange companies and money changers starting from the new year.
Under the new rule, individuals buying or selling foreign currency must have their identities verified through the National Database and Registration Authority (NADRA) system. This step is aimed at curbing illegal transactions, undeclared dealings, and potential money laundering in the currency market.
According to the SBP, this initiative will ensure that all currency transactions are recorded digitally, providing a secure and transparent system for monitoring. Digital records will allow authorities to quickly identify and investigate suspicious activities.
Banking experts and economists have welcomed the move. Legal professionals say SBP makes NADRA verification a significant step toward aligning Pakistan’s currency exchange operations with international standards. The policy is expected to strengthen oversight and improve the overall security of the financial system.
The central bank emphasized that the policy is part of a broader effort to modernize financial transactions and enhance regulatory compliance. By linking currency transactions to NADRA, SBP makes NADRA a central tool in reducing risks and ensuring accountability in the foreign exchange market.
Exchange companies and money changers are now required to integrate NADRA verification systems into their operations. The SBP has assured that technical guidance and support will be provided to help businesses comply with the new requirement.
Experts predict that this digital verification process will increase trust in the currency market and protect consumers from fraudulent activities. The SBP’s move signals a strong commitment to transparency, security, and modernization in Pakistan’s financial sector.
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