KARACHI: The State Bank of Pakistan (SBP) has directed banks not to refuse banking services like opening of new account just owing to non-availability of National Tax Number (NTN).
The SBP, through a circular, revised regulations on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (AML/CFT) regarding the requirement of NTN.
Under the AML/CFT Regulations which requires banks/DFIs to obtain NTN, wherever applicable, in case of establishing banking relationship with sole proprietors.
The SBP clarified that 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 FBR’s criteria.
“The banks/DFIs should facilitate their customers in opening bank accounts and subsequently obtain NTN when issued by the Federal Board of Revenue (FBR),” SBP said.
The SBP has received certain complaints that several banks are not opening bank account due to unavailability of NTN, which is mainly issued by the FBR.
Sales tax registration or NTN are included in the list of minimum documents to be obtained from various types of customers under AML/CFT Regulations for sole proprietors along with other documents. According to BPRD Circular Letter No 35 of 2016, issued on November 22, 2016, the AML/CFT Regulations require banks/DFIs to obtain NTN, wherever applicable, in case of establishing banking relationship with sole proprietors.
However, the SBP clarified that the requirement of obtaining NTN depends upon availability/issuance of NTN by tax authority, ie, the Federal Board of Revenue. “Therefore, 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,” the SBP said.
