Responsibilities of Banks in getting information of 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

Responsibilities of Banks in getting information of Civil Servants 

(1) The bank shall abide by sub-section (7) of section 216 of the Ordinance in respect of information received from FBR.

(2) The bank shall provide bi-annual feedback on the use of information received by the bank as well as on the outcome of CDD in terms of success of new accounts opened and how the information helped the bank in establishing its client relationship.

Case-wise feedback to be provided by 31st July and 31′ of January of every year of preceding six months’ information requests made by the bank.

(3) The bank shall retain the hard copies of documents as mentioned in subrule (1) of rule 5 and shall produce to the State Bank of Pakistan (SBP) for the purpose of compliance audit of the steps required under sub-rule (1) of rule 5.

(4) The compliance audit shall be undertaken by the SBP once a year unless specifically asked by FBR on case to case basis.

Annexure

Prescribed Certificate of Rule [5 (1)(c)]

Declaration

I declare that I am a serving civil servant in BS___________________ with the following particulars:

Name:

CNIC:

Employee No:

Parent Department:

Present Department / Place of posting:

 

Signed:

Dated:

Countersigned (Bank Officer)

Verified and signed before me
Dated:

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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