Excellent IMF clause : Federal govt servants must disclose assets to open bank accounts

[HAIDER]

Federal govt servants must disclose assets to open bank accounts​

Mubarak Zeb Khan Published February 3, 2023 Updated about an hour ago

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ISLAMABAD: Acceding to another demand of the International Monetary Fund (IMF), the government has finally allowed banks access to asset declarations of civil servants of BS17-22 as a prior condition for the opening of bank accounts as part of good governance and anti-corruption measures.
Banks will access the asset data of federal employees in the first phase at the time of opening bank accounts, a senior tax official told Dawn on Thursday. The conditionality is expected to extend to provincial employees as well in the next phase.
The official further said that access to assets has no revenue implications. This is a due diligence measure under the anti-money laundering act 2010. However, the banks will keep the information confidential from the public and will not release it at any cost to the general public.
It was an IMF structural conditionality that was agreed upon in the year 2018 that banks are allowed access to the asset declaration of civil servants. In this regard, the Federal Board of Revenue engaged banks before finalising the rules for the purpose.
On the second day of the make-or-break talks with the IMF, the FBR notified rules to be called the Sharing of Declaration of Assets of Civil Servants Rules 2023 through SRO80 of 2023. These rules will apply to federal employees only except the members of the judiciary and armed forces.

IMF set this condition in 2018; information to be kept confidential

Normally, banks ask for a source of income at the time of opening a bank account. In the case of salary, the bank asks for a salary slip as proof. However, in the case of other than salary incomes, the civil servant will declare his/her basic particulars through a one-pager to the bank officer.



The bank officer will then send it to FBR for verification of the assets whether the same has been declared in the declaration of the federal employee or not. A complete set of procedures is notified for this whole correspondence between banks and FBR.
FBR will share a simplified version of the declaration, based on the fields agreed with the State Bank of Pakistan, made by a civil servant in his electronic declaration filed with FBR.
As per the rules, the head of compliance of the bank will use a single authorised email address for the request or receipt of a simplified declaration. Each bank will notify four persons for making correspondence with the FBR for seeking data.
To keep the data confidential, the authorised officials of the bank will submit a declaration to the FBR that he/she will maintain the secrecy of the information that will be provided, and it will not be divulged to any person.
After receiving a request for information, FBR will provide simplified or abridged information, within five working days, through the authorised email. The FBR can deny a request only in exceptional cases, including when the asset declaration has not been filed, the civil servant is not covered under this Ordinance, or for any other similar reason that the FBR is unable to provide the requested information.
The FBR will notify the bank of the decision and the reason for the refusal, within five days from receipt of the request. In case of dispute, FBR’s decision will prevail, being the custodian of information.
The bank will provide bi-annual feedback on the use of information received by the bank as well as on the outcome of customer due diligence in terms of the success of new accounts opened and how the information helped the bank in establishing its client relationship.
Published in Dawn, February 3rd, 2023

 

[Imran Khan]

Everyone including military

 

[Olympus81]

Everyone including military

And their spouses, children, siblings.

Sabko nanga karo!

 

[SoulSpokesman]

There is always possibility of benaami assets, no?

Regards

 

[DrWatson775]

Federal govt servants must disclose assets to open bank accounts​

Mubarak Zeb Khan Published February 3, 2023 Updated about an hour ago

LISTEN TO ARTICLE1x1.2x1.5x
ISLAMABAD: Acceding to another demand of the International Monetary Fund (IMF), the government has finally allowed banks access to asset declarations of civil servants of BS17-22 as a prior condition for the opening of bank accounts as part of good governance and anti-corruption measures.
Banks will access the asset data of federal employees in the first phase at the time of opening bank accounts, a senior tax official told Dawn on Thursday. The conditionality is expected to extend to provincial employees as well in the next phase.
The official further said that access to assets has no revenue implications. This is a due diligence measure under the anti-money laundering act 2010. However, the banks will keep the information confidential from the public and will not release it at any cost to the general public.
It was an IMF structural conditionality that was agreed upon in the year 2018 that banks are allowed access to the asset declaration of civil servants. In this regard, the Federal Board of Revenue engaged banks before finalising the rules for the purpose.
On the second day of the make-or-break talks with the IMF, the FBR notified rules to be called the Sharing of Declaration of Assets of Civil Servants Rules 2023 through SRO80 of 2023. These rules will apply to federal employees only except the members of the judiciary and armed forces.

Normally, banks ask for a source of income at the time of opening a bank account. In the case of salary, the bank asks for a salary slip as proof. However, in the case of other than salary incomes, the civil servant will declare his/her basic particulars through a one-pager to the bank officer.



The bank officer will then send it to FBR for verification of the assets whether the same has been declared in the declaration of the federal employee or not. A complete set of procedures is notified for this whole correspondence between banks and FBR.
FBR will share a simplified version of the declaration, based on the fields agreed with the State Bank of Pakistan, made by a civil servant in his electronic declaration filed with FBR.
As per the rules, the head of compliance of the bank will use a single authorised email address for the request or receipt of a simplified declaration. Each bank will notify four persons for making correspondence with the FBR for seeking data.
To keep the data confidential, the authorised officials of the bank will submit a declaration to the FBR that he/she will maintain the secrecy of the information that will be provided, and it will not be divulged to any person.
After receiving a request for information, FBR will provide simplified or abridged information, within five working days, through the authorised email. The FBR can deny a request only in exceptional cases, including when the asset declaration has not been filed, the civil servant is not covered under this Ordinance, or for any other similar reason that the FBR is unable to provide the requested information.
The FBR will notify the bank of the decision and the reason for the refusal, within five days from receipt of the request. In case of dispute, FBR’s decision will prevail, being the custodian of information.
The bank will provide bi-annual feedback on the use of information received by the bank as well as on the outcome of customer due diligence in terms of the success of new accounts opened and how the information helped the bank in establishing its client relationship.
Published in Dawn, February 3rd, 2023

Armed forces officers conveniently excluded from this by the way. Go figure

 

[epebble]

And their spouses, children, siblings.

Sabko nanga karo!

Best method: Have IMF representatives run the Government Finance IT. That way IMF has access to life cycle of every rupee earned, borrowed and spent by the government. That should solve many problems in a short time.

Armed forces officers conveniently excluded from this by the way. Go figure

Pakistan is a State owned by the Armed forces. Laws applicable to the State do not apply to the Armed forces. Analogous to the Creator-Created difference.

 

[PakFactor]

Excluding Judiciary and Armed Forces.... these need to be at the very top. Including everyone's immediate and extended relatives, and not forgetting the dead one's either. This is a good measure but somewhat half-assed.

 

[SeaMermaid]

Looks like the Washington Consensus is being enforced by IMF on Pakistan to get new funds

1. Fiscal policy discipline, with avoidance of large fiscal deficits relative to GDP;
2. Redirection of public spending from subsidies ("especially indiscriminate subsidies") toward broad-based provision of key pro-growth, pro-poor services like primary education, primary health care and infrastructure investment;
3. Tax reform, broadening the tax base and adopting moderate marginal tax rates;
4. Interest rates that are market determined and positive (but moderate) in real terms;
5. Competitive exchange rates;
6. Trade liberalization: liberalization of imports, with particular emphasis on elimination of quantitative restrictions (licensing, etc.); any trade protection to be provided by low and relatively uniform tariffs;
7. Liberalization of inward foreign direct investment;
8. Privatization of state enterprises;
9. Deregulation: abolition of regulations that impede market entry or restrict competition, except for those justified on safety, environmental and consumer protection grounds, and prudential oversight of financial institutions;
10. Legal security for property rights.

Washington Consensus - Wikipedia

en.wikipedia.org

@epebble @walterbibikow @Skull and Bones

 

[Bouncer]

Armed forces officers conveniently excluded from this by the way. Go figure

Its a national security risk. Do you want to end up like Iraq, Syria or Libya??

 

[Skull and Bones]

Bhaiyaji, hamam me sab nange hai.

 

[epebble]

Looks like the Washington Consensus is being enforced by IMF on Pakistan to get new funds

1. Fiscal policy discipline, with avoidance of large fiscal deficits relative to GDP;
2. Redirection of public spending from subsidies ("especially indiscriminate subsidies") toward broad-based provision of key pro-growth, pro-poor services like primary education, primary health care and infrastructure investment;
3. Tax reform, broadening the tax base and adopting moderate marginal tax rates;
4. Interest rates that are market determined and positive (but moderate) in real terms;
5. Competitive exchange rates;
6. Trade liberalization: liberalization of imports, with particular emphasis on elimination of quantitative restrictions (licensing, etc.); any trade protection to be provided by low and relatively uniform tariffs;
7. Liberalization of inward foreign direct investment;
8. Privatization of state enterprises;
9. Deregulation: abolition of regulations that impede market entry or restrict competition, except for those justified on safety, environmental and consumer protection grounds, and prudential oversight of financial institutions;
10. Legal security for property rights.

Washington Consensus - Wikipedia

en.wikipedia.org

@epebble @walterbibikow @Skull and Bones

So, IMF is 'civilizing' Pakistan in economic sense. Unfortunately, transplanted civilizations don't root well if the native soil is not receptive.

 

[SaadH]

Most of the assets are offshore, won't make an of iota of difference. If IMF were really serious they would have called for controls at the destination of the Laundered loot, i.e. US, EU, Dubai, Cayman Islands et al.

 

[Clutch]

Its a national security risk. Do you want to end up like Iraq, Syria or Libya??

Yes that would be awesome.... There needs to be a revolution.

Beggars can't be Choosers.

 

[ghazi52]

.,.,
The IMF had 4 demands:
1. Flexible Exchange Rate
2. New Taxes to fulfill revenue shortfall.
3. Electricity & Gas Prices increase
4. Past 6 months electricity bills - prices increase.

 

[VCheng]

.,.,
The IMF had 4 demands:
1. Flexible Exchange Rate
2. New Taxes to fulfill revenue shortfall.
3. Electricity & Gas Prices increase
4. Past 6 months electricity bills - prices increase.

All suggestions are correct for the circumstances, and for Pakistan's own fiscal benefit.