The Presidents/ Chief Executives
All Banks

Dear Sir/Madam

Implementation of Shared Electronic Know Your Customer (e-KYC) Platform

1. State Bank of Pakistan (SBP), over the years, has strengthened the AML/CFT regime including processes for “Know Your Customer (KYC)” and “Customer Due Diligence (CDD)”. To further streamline the KYC/CDD processes, SBP has allowed banks to rely on third party financial institutions for performing effective and efficient KYC/CDD.
   
   
2. With the objective to bring further efficiency in KYC and onboarding process, Pakistan Banks Association (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/ CDD information across the banking industry through a secure digital channel, standardization of KYC/ CDD data, enhancing customer onboarding experience and cost savings for the banks.
   
   
3. The “shared e-KYC platform” has been built on Distributed Ledger Technology (DLT) whereby customer’s KYC/ CDD related information shall 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.
   
   
4. Given the importance and utility of this platform, both for banks and their customers, banks are advised to join the “shared e-KYC platform”, and dedicate required financial, technological and human resources for its timely and effective implementation.