Benami accounts: FBR asks PBA to update KYC/CDD requirements

Islamabad: The Federal Board of Revenue (FBR) has asked the banks to include a positive statement in all the ‘Know Your Customer/Customer Due Diligence’ (KYC/CDD) prescription about the beneficial owner of bank account, and the amendment should be made part of the KYC/CDD requirements and policies – a news source reported.

Read: Banks told to share benami accounts data within 15 days

This request was forwarded in a letter to the Pakistan Banks Association Secretary by FBR Chairman Shabbar Zaidi on Tuesday. He said that the board considered PBA’s suggestions that present KYC/CDD requirements, as prescribed by the State Bank of Pakistan, have already achieved the desired goal of identifying benami properties and their beneficial owners.

However, he said that, keeping in view the restrictive nature of ‘Benami Law’, it is preferred that there should be a positive statement in all KYC/CDD prescription that the account holder/depositor is the beneficial owner of the sums deposited or transactions undertaken in a bank account.

Read: FBR looking to obtain details of benami accounts

He added that according to the FBR, the current KYC/CDD requirements do not meet this standard. So the PBA would also agree that the aforesaid amendment should be made a part of the KYC/CDD prescription.

He reiterated that there will severe consequences under the Benami Law, not only for the beneficial owner of the Benami accounts, but also for the person maintaining or holding such accounts.

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