ISLAMABAD: The Federal Board of Revenue (FBR) announced rules for seeking information from banks about account holders’ deposits, credit card payments and cash withdrawals.
Through SRO773 it is now compulsory for banks to provide information of profit on debt and particulars of account holders.
Through the Finance Act 2020, the Income Tax Ordinance was amended to comply with the Financial Action Task Force recommendations.
The banks will provide account holders’ details — CNIC, NICOP, passport number, NTN, name, title of account, resident/non-resident status, address, telephone number, account opening date, account number (IBAN), amount deposited in a month or amount of cash withdrawal during a month, amount of tax deducted and profession/business/occupation of the account holder.
They will submit monthly information on account holders’ deposits statement, credit card payments statement, cash withdrawal statement, profit on debt statement and any information or data as required by the board from the banks.
Every bank officer will furnish to the board an annual profit on debt statement as specified for the immediately preceding calendar year within three months of the end of the preceding calendar year.
Under the record keeping for due diligence procedures, the FBR has directed the reporting financial institutions to keep record of the steps undertaken and any evidence relied upon for the performance of the due diligence procedures and measures to obtain such records for at least five years after the end of the period within which the reporting financial institution must submit information required to be reported.
The annual domestic reporting date for filing of common reporting standards reports by reporting financial institutions shall be May 31 of each year.