The Securities and Exchange Commission of Pakistan (SECP) has tasked the Central Depository Company of Pakistan (CDC) to develop and implement a centralized digital onboarding platform to streamline the investment process.
The platform, Centralized Gateway Portal, will offer a uniform digital onboarding process and standardized KYC requirements, along with one-time KYC information processing. CDC is expected to build and launch the portal in three months.
Through the platform, SECP regulated entities (securities brokers, futures brokers, asset management company, insurers and their distribution agents, securities and futures advisors and investment advisors) will only be required to submit their KYC information and documents once.
Meaning, they will not need to re-submit any KYC information to open another account irrespective of asset classes.
“This will significantly facilitate customers, remove duplication and streamline the customer onboarding process. The portal also aims to take advantage of advancements in technology and offer a user-friendly and efficient digital onboarding mechanism, while reducing turnaround time for opening of accounts. It is also expected to bring efficiency in anti-money laundering/counter financing of terrorism compliance by centralized identity verification, screening of customers and assisting the intermediaries in risk rating of their customers,” according to the SECP.
Pakistan is home to an active Islamic investment industry. As at the end of 2022, 34.6% of non-banking finance company assets were Shariah compliant. These include assets across mutual funds, pension funds, real estate investment trust schemes and Modarabas.