ISLAMABAD (Kashmir English): In a major step to curb tax evasion and money-laundering, the federal government has decided to give the Federal Board of Revenue (FBR) direct access to taxpayers’ bank accounts.
An updated, integrated information-sharing system between FBR and the commercial banks will allow real-time monitoring of high-risk accounts. Now it will be easy for the FBR to take action on suspicious transactions.
Under the Finance Bill 2025, commercial banks will be legally bound to share consolidated data of account holders with the FBR.
This includes details of accounts maintained across multiple banks, enabling authorities to cross-check declared income with actual financial activity, large transactions, and detect any hidden wealth.
Discrepancies between tax returns and bank records
If discrepancies are found between tax returns and bank records, legal action will become mandatory. The FBR has assured that all information will remain confidential and will be used solely for tax enforcement purposes.
Meanwhile, a high-level committee comprising officials from the Ministry of Finance, FBR, and State Bank of Pakistan, has been formed to finalise the legal framework for the new system.
Once operational, the network will also include the Securities and Exchange Commission of Pakistan (SECP), private banks, and licensed money exchange companies.
This interlinked database aims to check illicit financial flows by tracking large transactions, identifying beneficial ownership, and ensuring no suspicious transfer escapes regulatory scrutiny.
According to sources, the move is also part of efforts to address International Monetary Fund (IMF) concerns over Pakistan’s anti-money laundering framework.
