Compliance Requirements for Civil Servants

FBR has issued rules titled Sharing of Declaration of Assets of Civil Servants Rules 2023, allow banks to seek asset details of civil servants.

In exercise of the powers conferred by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Board of Revenue is pleased to make the following rules, the same having been previously published vide Notification No. S.R.0.76(I)/2023 dated the 26th January, 2023, as required by sub-section (3) of section 237 of the said Ordinance.

The banks shall require to seek information of civil servants in a prescribed manner as per Annexure given in rules.

However before generating request seeking information from the FBR for Customer Due Diligence (CDD), the banks shall take following steps –

• the bank shall determine in writing the reasons for which CDD requires that the information from FBR is to be accessed

Compliance Requirements for Civil Servants

(1) The bank shall use a pre-notified, secured and single authorized email address and the email account shall be under control and responsibility of the head of compliance of the bank in terms of its authorization, use and security of data being shared.

The authorized email account shall be used for request or receipt of simplified declarations as envisaged under sub-rule (3) of rule 3.

(2)       The bank shall communicate to the FBR the credentials of a maximum of four Focal Persons (officials) authorized to communicate with FBR through the authorized email.

The following information shall be furnished by the bank in respect of focal persons: –

(i) Complete names;

(ii) CNICs;

(iii) designations;

(iv) office address;

(v) office phone numbers;

(vi) mobile numbers; (vii) fax;

(viii) authorized email address; and

(ix) a two-factor authentication method to determine that the email has been sent by the designated officials of the bank.

(3) The authorized officials of the bank shall submit a declaration to the FBR that he shall maintain secrecy of the information that shall be provided to, and it shall not be divulged to any person.

(4) The bank shall promptly communicate any change of Focal Persons’ credentials above and shall not allow to use the secured email until the credentials have been communicated to the FBR.

Moreover, the “Sharing of Declaration of Assets of Civil Servants Rules, 2023 have allowed all commercial banks to seek and get declaration of asset details of the civil servants from the Federal Board of Revenue (FBR) before they open their bank accounts.

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