Federal Board of Revenue (FBR) has asked banks to share details of 'Trust Activities' including identification of persons on the behalf of which such activities are undertaken by the banks. Sources told Business Recorder here on Tuesday that the FBR Chairman Shabbar Zaidi has written a letter to the CEOs of the banks in this regard.

According to the FBR, banks in Pakistan may engage in 'Trust Activities' whereby they hold assets on behalf of individuals, trusts, retirement benefit funds and other institutions. The 'assets' so acquired are not reflected in the 'financial statements' of the banks, however relevant 'Off Balance Sheet' details are duly reflected in the financial statements. In order to comply with various compliance requirements, including FATF, it is imperative for FBR to have appropriate details of such transactions including identification of persons on behalf of whom such 'trust activities' are undertaken, the FBR maintained.

"We therefore suggest you to share the details of such 'trust activities' conducted by the bank 'during' the financial year ended on December 31, 2018 with us," Shabbar Ziadi added.

Copyright Business Recorder, 2019