Government/semi-government entities: SBP relaxes condition of obtaining identity documents

The State Bank of Pakistan (SBP) has relaxed the condition of obtaining photocopies of identity documents of directors in case of government/semi-government entities for banking relationship. Amending the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations for banks & DFIs, the SBP in its circular BPRD Circular No 38 of 2016, said that AML/CFT Regulations requires banks/DFIs to obtain photocopies of identity documents of all the directors and persons authorised to open and operate the account while establishing banking relationship with limited companies/corporations.
In this regards, the SBP has clarified that the condition of obtaining photocopies of identity documents of directors of limited companies/corporations is relaxed in case of government/semi-government entities, where banks/DFIs should obtain photocopies of identity documents of only those directors and persons who are authorized to open and operate the account.
However, banks/DFIs will validate identity information including CNIC numbers of other directors from certified copies of ''Form-A/Form-B'' and ''Form 29'' and verify their particulars through NADRA Verisys. The Verisys reports should be retained on record in lieu of photocopies of identity documents. According to SBP, the amendment is being updated as Note: 9 of Annexure-I to AML/CFT Regulations. Previously, the SBP has relaxed the NTN condition for opening of bank account. As per previous directives the requirement of obtaining NTN depends upon availability/issuance of NTN by tax authorities.
The requirement of NTN should not be the reason for refusal of banking services to the customers, especially, where bank account is a prerequisite for obtaining NTN as per the FBR''s criteria. Banks/DFIs should facilitate their customers in opening bank accounts and subsequently obtain NTN when issued by the FBR.