Amendments to Benami bill: SBP seeks to help protect banks through court firewall

The State Bank of Pakistan (SBP) has proposed that any action under the Benami Transactions (Prohibition) Bill 2016 for obtaining bank record or entry and search of premises of a banking company or impounding of its record or conduct of an inquiry shall be subject to prior permission in writing of the special court. Sources told Business Recorder here on Saturday that SBP has written a letter to the Chairman Standing committee on Finance on the issue of Benami Transactions (Prohibition) Bill 2016.
The SBP has proposed amendments to the Benami Transactions (Prohibition) Bill 2016. According to the SBP, refers to meeting of the Senate Standing Committee on Finance held on November 24, 2016 whereby discussion on the Benami Transactions (Prohibition) Bill 2016 was held and it was desired from SBP to propose specific amendments to the bill for consideration of the committee within a week.
In this regard, it is submitted that as per section 18, 19, 20 and 21 of the bill, any authority under the Act shall have power to call for information from (among others) SBP and banks, power to enter and search premises, power to impound documents/computers and conduct inquiry against any person, documents or books of accounts etc. These provisions carry implications especially with respect to banking companies which possess confidential bank record/information Therefore, in order to ensure confidentiality of bank record/information, it is proposed that the following provision may be inserted in the bill as Section 21A:
Proposed section 21A: Action in case of banking company.- Action under section 18, 19, 20 & 21 for obtaining bank record or entry and search of premises of a banking company or impounding of its record or conduct of an inquiry shall be subject to prior permission in writing of the special court, the SBP added.
Meanwhile, Senate Secretariat has informed the Federal Board of Revenue (FBR), referred to the letter dated December 5, 2016, received from the State Bank of Pakistan, containing amendment proposed by the SBP to the bill to provide for prohibition of Holding property in Benami [The Benami Transactions (Protection) Bill, 2016; as passed by the National Assembly and referred to the Committee for consideration and report, as per direction given by the Committee in its last meeting held on November 24, 2016, at Parliament House, Islamabad.
The Federal Board of Revenue is requested to furnish their comments on the above said amendment to Senate Secretariat, well before the next meeting of the committee scheduled to be held on 21st December, 2016, at Parliament House, Islamabad, to consider the said bill, the Senate Secretariat added.