Pakistan financial watchdog tightens banking regulations amid rising fraud concerns

Pakistan’s financial watchdog has announced new and stricter regulations for commercial banks and digital payment platforms after a recent surge in reported fraud and cyber-theft cases affecting customers. Under the updated guidelines, banks are required to enhance real-time transaction monitoring, customer identity verification, and automated alerts for suspicious activities, while digital wallets and fintech firms must implement robust data encryption standards to protect user accounts. Officials from the State Bank of Pakistan emphasised that the measures are designed to strengthen public trust in formal financial services, reduce illicit activities in the banking sector, and ensure safer digital transactions as usage continues to grow nationwide. Consumer advocacy groups welcomed the move but urged continuous enforcement and consumer education to maximise impact.