ISLAMABAD: The federal government restricted the Federal Board of Revenue (FBR) from seeking suspicious transactions and written-off loans reports from banks, in the recently-approved mini-budget.
The condition has been abolished through an amendment into the Income Tax Ordinance 2001, an official said on condition of anonymity.
Earlier this week, the State Bank of Pakistan asked the financial institutions to ensure that customers’ confidential data should not be disclosed to un-authorized officials. As per sources, the government barred the FBR from obtaining details from banks to resolve litigation issues.
“Section 33-A of the Banking Companies Ordinance, 1962, inter alia, requires that bank / financial institution shall not divulge any information relating to the affairs of its customers except in circumstances in which it is, in accordance with law, practice and usage customary among bankers, necessary or appropriate for a bank to divulge such information,” the SBP said in a statement. “It has, however, been observed that the above directives envisaged under the law are not being meticulously followed.”