FBR chairman asks banks to collect details of benami accounts themselves
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Federal Board of Revenue (FBR) Chairman Shabbar Zaidi on Monday asked all banks in the country to collect details of 'benami' accounts of their bank account holders themselves, instead of the FBR doing so.
According to a statement issued by the FBR, Zaidi wrote a letter to the heads of the banks and asked them to collect the details under the Benami Transaction (Prohibition) Act 2017.
The board, as per the statement, does not want to contact account holders directly "so that people's trust in FBR can be maintained".
According to the FBR, information provided regarding the benami accounts will be kept confidential.
"Under the Benami Transaction (Prohibition) Act 2017, [the] FBR is responsible for identifying benami accounts," the statement read, adding: "If FBR and banks work together, better results can be achieved."
The board noted the importance of the cooperation of banks and requested that they submit all information related to benami accounts to the FBR within 15 days.
Earlier this month, the FBR had initiated proceedings against citizens who failed to declare their benami properties under the Assets Declarations Scheme, which expired on July 3.
In March, FBR officials said that the act had been implemented to stop transactions being conducted through benami accounts, the numbers of which run into hundreds of thousands.
The term benami refers to the practice of holding property/assets in the name of one person for the benefit of another. However, benami is often aimed at concealing ownership of assets acquired through illegal means, defrauding creditors, and/or evading payments of government fees, charges or taxes.
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Comments (36) Closed
Jul 22, 2019 03:15pm
A tough call and an uphill task.
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Jul 22, 2019 03:17pm
Heavy fine should be imposed on banks for each benami account detected by FBR itself. FBR should be indicating only to the bank in case it detects such an account instead of grabbing the owner. The banks will start complying immediately.
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Jul 22, 2019 03:22pm
Heavy fine should be imposed on banks on detection of each benami account by the FBR. Banks are supposed to ensure genuine bank accounts.
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Jul 22, 2019 03:27pm
Why ask bank Mr. Chairman? Just ask politicians.....they are all corrupt....
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Jul 22, 2019 03:28pm
And why will the banks do that? Thay have to save their own interests and profits.
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Jul 22, 2019 03:42pm
FBR taking over mandate of SBP.
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Jul 22, 2019 03:52pm
in many cases banks have been party to the money launderers facilitating opening of such accounts
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Jul 22, 2019 04:18pm
FBR needs to do its jobs, it should not ask banks to do their jobs. Then question arises, what are they paid for?
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Jul 22, 2019 04:19pm
It is not in the interest of banks to do this.
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Jul 22, 2019 05:02pm
It is just the beginning of the financial rationalisation that the country needs urgently.
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Jul 22, 2019 05:10pm
The big chunks of corrupt politicians and rulers are already known to FBR, please now let the people know about the recovery, and or otherwise the plea bargain details.
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Jul 22, 2019 05:10pm
Only in Pakistan
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Jul 22, 2019 05:48pm
If FBR is serious everything is possible.Since our system is weak and infected with corrupt practices,no one will implement it and the Government will be loser and servants will be gainer.
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Jul 22, 2019 06:04pm
Want to know how many Benami accounts are by Nawaz Sharff and Zardari family members.
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Jul 22, 2019 06:09pm
There is no such thing as a Benami account. Every account has a name, only the name on the account does not match the person who is operating the account. The account may be in the name of the wife, mother-in-law, children, servants or someone else. The Bank employees know fully well who the real owner of the account is but have no reason to rat out their big customer to the FBR. The big customers help the bank manager meet the performance indicators like amount deposited at the branch. If the Bank Manager starts cooperating with the FBR, soon all the customers will run away, the branch will close and the employees will be out of jobs.
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Jul 22, 2019 06:10pm
Absolutely right! Who else is going to do it? The banks opened all the accounts, so they must have all the information. If they don't, then sort the account balances in descending values, and go after the biggest balances first. It is very easy. Otherwise, just appropriate the money and send it to the government, and announce that the accounts have been closed and the money's given to the government. Then you will see a tsunami of all those affected rushing to the banks beating their chests, claiming their accounts. That's when you get all the information, bio-metric data, DNA samples (if required!), and every bit of information. Then you update the population database and give it to the government. Now, you can track activities with full transparency. If there is a will, you will find a way!
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Jul 22, 2019 06:28pm
A quixotic approach by all accounts because despite promulgation of Benami transaction (prohibition) Act since 2017, nothing was done either by FBR or the banks to audit or stop mushrooming of such account running in millions now. How can chairman FBR, expects now that the same banks will spend extra resources to do his job? It is no secret that opening of such accounts despite enactment of above Act continued unimpeded, clearly showing connivance between the bank & the beneficiary, and now expecting it to take U-Turn voluntarily, does not make sense. The chairman FBR should by exerting his authority make the bank equal partner in this sordid financial criminal activity & deal within the ambit of law against those involved.
He definitely needs to implement the law on the those who have been accruing illegal benefits from such practices but at the same time should not give a free chit of non culpability to those providing material assistance to such crime to occur w/ impunity.
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Jul 22, 2019 06:32pm
Actually most of these institutions were doing such businesses under the auspices of the concerned mafias sitting in our set ups. Even Money exchangers were not having records of any exchange transaction with the consent of these organisations with political interference.
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Jul 22, 2019 06:44pm
Banks do not have an incentive to work with FBR. They know how corrupt this organization is.
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Jul 22, 2019 06:49pm
Once again no home work. So much hue and cry about every detail is with FBR. Benami account holders must be stupid if they are keeping their funds in that account till to day. Approach of bank will be definitely different from FBR. I think FBR is short of man power . May be representative of FBR can sit with each branch representative and scrutinize accounts of balance more than 1.00 million. Keep people posted number of benami account freezed and amount recovered thereon.
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Jul 22, 2019 07:54pm
Without bank’s cooperation, benami a/c can’t be created or operated
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Jul 22, 2019 08:04pm
@haider shaikh, The bank can track its data in a better way, so it is a good step.
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Jul 22, 2019 08:05pm
@Newborn, It i a matter of national security, banks can't keep tax evaded or stolen money
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Jul 22, 2019 11:23pm
Like asking the foxes to guard the chickens...
Gordon D. Walker
Canada
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Jul 22, 2019 11:58pm
Working is not the habit of government officials. It will take some time before people of FBR start doing their job honestly and diligently. One wonders why should they put so much energy in their work as they are likely to get their salary and perks in time at the end of month. Shabbar Zaidi is very hard working ,intelligent and competent person. He can not do every work by himself. Already he is working very hard. He is in the habit of working on fast track and in private audit firm, bright competent young boys were with equal force helping him to accomplish any task. Here the situation is different . In FBR or in fact any government organization employees most of the time discussing about their pay scales, promotion and attitude of their boss or the person who matters. This is common practice and is evident in all grades of government employees. No body discuss about their work for which they are paid. This is the mind set and it will be difficult to change it.
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Jul 22, 2019 11:58pm
Thanks to Home Service Biometric verification by Bank Managers themselves.
This time the benami accounts in the name of poor illiterate peons, gatekeepers, sweepers, cleaners, domestic servants are even Biometric Verified within the comfort of these empires.
FBR, whats next?
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Jul 23, 2019 12:02am
Just grill every single BANK MANAGER.
They are the real facilitators!
Stop fooling around FBR. You know every bank manager is a party and a witness to such fictitious accounts.
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Jul 23, 2019 12:02am
How does Bank knows which accounts are operated as benami?
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Jul 23, 2019 12:56am
FBR is asking the very institution that created them in the first place. None of this is possible without banks full involvement. Why would back provide accurate information?
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Jul 23, 2019 01:48am
What's in it for the banks to spend time and money on behalf of the government...
Gordon D. Walker
Canada
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Jul 23, 2019 02:09am
Great move
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Jul 23, 2019 02:58am
There is no benami accounts in the banks. All accounts holders have their names printed on the cheque books.
FBR does not have resources to deal with so called benami bank accounts.
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Jul 23, 2019 03:11am
How can bank who facilitated or closed eye in creating bank account will collect and supply honest report.
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Jul 23, 2019 04:07am
@haider shaikh, in the developed world banks do that
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Jul 23, 2019 03:58pm
Banks will be a complicit if they don't act
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Jul 23, 2019 11:27pm
The fake benami accounts already caught , of prominent politicians and their henchmen, what is being done about them? Searching for proof? Lesser mortals would be punished without trial but what the purpose of the FBR , which is expert in hounding tax payers and people in general, is, is not clear.
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