ISLAMABAD: The Federal Board of Revenue (FBR) has directed 29 banks to freeze debit operations on 150 bank accounts linked to jewellers after identifying repeated violations of anti-money laundering and counter-terrorism financing regulations.
The FBR’s Directorate of Designated Non-Financial Businesses and Professions (DNFBPs) issued separate orders against the reporting entities following detailed reviews. According to the Directorate, the jewellers repeatedly failed to meet obligations under the Anti-Money Laundering Act, 2010, the AML/CFT Regulations for DNFBPs, 2020, and other supervisory requirements.
Banks Directed to Restrict Account Operations
The Directorate instructed banks to identify all accounts owned, operated, or beneficially held by the listed entities. Furthermore, banks must immediately block all debit transactions while continuing to accept credit deposits.
The restrictions cover cash withdrawals, fund transfers, cheque payments, pay orders, ATM and debit card use, internet and mobile banking transactions, inter-bank transfers, and account closures. However, banks may process these transactions only after receiving written approval from the Directorate.
Banks must also avoid opening new accounts or establishing fresh banking relationships with the listed entities while the restrictions remain effective. They were required to submit compliance reports detailing account information and implementation records.
Restrictions Aim to Ensure Regulatory Compliance
The Directorate clarified that the measures are administrative and do not represent asset seizure or forfeiture. Instead, they aim to ensure compliance with Pakistan’s AML/CFT framework.
The restrictions will continue until the affected entities address regulatory shortcomings, including DNFBP registration, submission of monitoring documents, onsite inspections, and required records. Meanwhile, the All Pakistan Sarafa Gems and Jewellers Association has scheduled a meeting within the coming week to discuss the issue.
