Reporting rules unveiled: banks will be required to submit deposits statement

The Federal Board of Revenue on Thursday issued the "Banking Companies Reporting Requirements" rules under which every bank will be required to submit to the Board a monthly accountholders deposits statement of persons who have deposited Rs 1 million or above in a month. The FBR has issued SRO.115(I)/2014, here.
According to the notification, the information may not be provided by the banking company officer in respect of a person who holds National Tax Number and has also filed return of income for the immediately preceding tax year. Under the rules, the banks shall provide information under section 165A of the Income Tax Ordinance through Account Holders Deposits Statement, Credit Card Payments Statement, Written-Off Loans Statement, currency transactions report and suspicious transactions report.
Every banking company officer shall furnish to the Board a monthly Account Holders Deposits Statement and Credit Card Payments Statement as specified in Form 'A' and Form 'B' respectively, for immediately preceding calendar month within seven days of the end of the preceding calendar month.
Every bank shall furnish to the Board a monthly Credit Card Payments Statement regarding information of persons, who have made credit card payment of Rs 100,000 or more during a month and every banking company officer shall furnish to the Board an annual Written-off Loans Statement about loans written-off exceeding Rs 1 million or more during the year.
The information and online access required to be provided under clause (a) of sub-section (a) of section 165A, shall be provided, by the reporting banking company, through online access to its central database containing details of its account holders and all transactions made in their accounts, rules added.
Following is the text of the SRO.115(I)/2014: In exercise of the powers conferred by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the Income Tax Rules, 2002 the same having beer previously published vide Notification No S.R.O. 1035(1)/2011, dated the 4th December, 2013 as required by sub-section (3) of the said section, namely: In the aforesaid Rules, in Part III, after Chapter VIII, the following new Chapter shall be inserted, namely:-
"CHAPTER VIIIA
Banking Companies Reporting Requirements
39A.This chapter contains rules for banking companies reporting requirements for the purpose of section 165A of the Ordinance.
39B
Definitions - (1) In this Chapter, unless there is anything repugnant in the subject or context.
"Account Holders Deposits Statement" means Account Holders Deposits Statement specified in Form 'A';
"Banking Company Officer" means a senior officer stationed at the head office and nominated by a banking company to co-ordinate with the Board for provision of any information and documents required by the Board; "Credit Card Payments Statement" means Credit Card Payments Statement as specified in Form B.
"Currency Transactions Report" means currency transactions report generated and submitted by a banking company to the Financial Monitoring Unit under the Anti-money Laundering Act, 2010 (VII of 2010). "information" includes Account Holders Deposits Statement, Credit Card Payments Statement, Written Off Loans Statement, currency transactions report, suspicious transactions report, details of any information or data of account holders through online access to central database of the banking company or any other information as required by the Board from the banking company; "reporting banking company" means a banking company required under section 165A of the Ordinance to provide to the Board all the information and documents electronically or otherwise, mentioned in the said section: "suspicious Transactions Report" means suspicious transactions report generated and submitted by a banking company to the financial Monitoring Unit under the Anti-Money Laundering Act, 2010 (VII of 2010): and "Written off Loans Statement" means Written off Loans Statement as specified in Form 'C'; Furnishing of information. The information, required to be furnished under section 165A of the Ordinance (other than information required under clause (a) of sub-section (1) of section 165 A) shall be provided, by the reporting banking company, in the manner as specified in Account Holders Deposits Statement, Credit Card Payments Statement, Written Off Loans Statement, currency transactions report and suspicious transactions report.
The information and online access required to be provided under clause (a) of sub-section (a) of section 165A, shall be provided, by the reporting banking company, through online access to its central database containing details of its account holders and all transactions made in their accounts.
The information other than information provided in sub-rule (1) and (2), shall be provided by the reporting banking company as specified in a notice issued in terms it section 165A(2) of the Ordinance.
39D. Authorised Persons Banking company officer shall be nominated by the reporting banking company not later than thirty days of coming into force of rules contained in this chapter.
Where a banking company officer is not nominated within the time allowed as specified in sub-rule (1), the President or any Principal Officer of the reporting banking company, stationed at the head office, shall be treated as banking company officer.
The information required to be reported to the Board shall be provided by the banking company officer to the Chairman, Federal Board of Revenue or any officer authorised, by the Chairman in this behalf. Provided that the officer authorised by the Chairman shall not he below the rank of Member of the Board
39E. Time of furnish information Every banking company officer shall furnish to the Board a monthly Account Holders Deposits Statement and Credit Card Payments Statement as specified in Form 'A' and Form 'B' respectively, for immediately preceding calendar month within seven days of the end of the preceding calendar month.
Every banking company officer shall furnish to the Board an annual Written off Loans Statement as specified in Form 'C' for immediately preceding calendar year within three months of' the end of the preceding calendar star.
Every banking company officer, shall furnish to the Board a copy of each currency transactions report and suspicious transactions report generated by it at the time it is submitted to the Financial Monitoring Unit under the Anti-Money Laundering Act, 2010 (VII of 2010).
Every banking 'company officer, shall furnish to the Board any information and documents in addition to those mentioned in sub-rules (1) to (3), within the time allowed by the Board.
39F. Exclusions The information may not be provided by the banking company officer in respect of a person who holds National Tax Number and has also filed return of income for the immediately preceding tax year. The information regarding the person mentioned in sub-rule (1) may be provided to the reporting banking company by the Hoard, on of every month.