Beneficial owners of Benami accounts to face consequences: FBR

ISLAMABAD: After refusal of Pakistan Banking Association (PBA) for updating Know Your Customer (KYC) requirements on account of beneficial owner in the light of Benami law, the FBR has warned of having dire consequence for the beneficial owners of accounts and also for those maintaining such accounts under the Benami law, The News reported.

In a letter written to the secretary PBA, FBR Chairman Shabbar Zaidi stated that there could be 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.

The letter from the FBR chairman communicated that the Board fully takes into account suggestions that present KYC/CDD (Know Your Customers/Customers Due Diligence) requirements as prescribed by the State Bank of Pakistan (SBP) achieve the desired goal identified in letter dated August 8, 2019. However, keeping in view the restrictive nature of ‘Benami law’ it is desirable that there should be a positive statement in all KYC/CDD prescription that: “The account holder/depositor is the beneficial owner of sums deposited in a bank account/transactions undertaken in a bank account.”

“We consider that aforesaid statement does not form part of KYC/CDD requirement. It would be agreed by PBA that aforesaid amendment be made part of the KYC/CDD prescription,” the FBR chairman stated.

He added, “We reiterate our comments that there are 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.”

Although, the Benami law has already enacted, but the FBR had not yet fully made it operational. However, the tax machinery had started collecting the required data that would help to make this law operational in effective manner in months ahead. With the approval of the cabinet, the benches under Benami law were approved and could be notified any time after receiving of official minutes of the cabinet meeting.

Bookmark the permalink.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  • RSS Newsnreleases

    • Green Thumb acquire vertically integrated cannabis business in Rhode Island 02-Aug-2021
      VANCOUVER, BRITISH COLUMBIA: Green Thumb Industries Inc., a leading national cannabis consumer packaged goods company, has closed on the acquisition... Continue reading The post Green Thumb acquire vertically integrated cannabis business in Rhode Island appeared first on NewsnReleases.
    • Smiths Group selling Smiths Medical for $2.3 billion 02-Aug-2021
      LONDON, UK: Smiths Group plc has entered into an agreement for the sale of Smiths Medical to Trulli Bidco Limited,... Continue reading The post Smiths Group selling Smiths Medical for $2.3 billion appeared first on NewsnReleases.
    • Dolfines SAS acquires 8.2 France 02-Aug-2021
      MONTIGNY LE BRETONNEUX, FRANCE: Dolfines SAS, an independent specialist in engineering and services for the renewable and conventional energy industry,... Continue reading The post Dolfines SAS acquires 8.2 France appeared first on NewsnReleases.
    • Fertiglobe acquires 15% Stake in EBIC for $43 million 02-Aug-2021
      AMSTERDAM, NETHERLANDS: OCI N.V. announced Fertiglobe has agreed with a KBR-led consortium (NYSE: KBR), which includes Mitsubishi, JGC and Itochu,... Continue reading The post Fertiglobe acquires 15% Stake in EBIC for $43 million appeared first on NewsnReleases.
    • SSE sells stake in Scotia Gas Networks for £1.225 billion 02-Aug-2021
      LONDON, UK: SSE Plc has agreed to sell its entire 33.3% stake in gas distribution operator Scotia Gas Networks Ltd... Continue reading The post SSE sells stake in Scotia Gas Networks for £1.225 billion appeared first on NewsnReleases.