FBR restricts 150 jewelers' accounts over non-compliance

July 14, 2026 (MLN): The Federal Board of Revenue's (FBR) Directorate of Designated Non-Financial Businesses and Professions (DNFBPs), Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT), has directed banks to freeze operations of 150 bank accounts belonging to jewellers reporting entities over persistent non-compliance with anti-money laundering regulations.

In a letter, addressed to chief compliance officers of 29 banks, separate orders had been passed against the listed reporting entities after due consideration of the facts and circumstances of each case, citing serious and persistent non-compliance with obligations under the Anti-Money Laundering Act, 2010, AML/CFT Regulations for DNFBPs, 2020, and notices, directions and supervisory requirements issued by the Directorate.

The Directorate said the AML/CFT Regulatory Authority is empowered under Section 6A(2)(h) of the AML Act, 2010 to impose sanctions on reporting entities for regulatory violations, while Rule 4(1)(b) of the AML/CFT Sanctions Rules, 2020 authorises it to impose conditions, limitations or restrictions on a reporting entity's business or product offerings.

Banks have been directed to identify all accounts maintained, operated or beneficially owned by the listed entities and impose immediate restrictions on their operation, permitting credit transactions while restricting all debit transactions, including withdrawals, transfers, cheque payments, pay order issuance, ATM/debit card usage, internet and mobile banking debit transactions, inter-bank transfers and account closures, except with prior written permission of the Directorate.

Banks have also been barred from opening or maintaining any new account or banking relationship in the name of the listed entities while the restrictions remain in force, and have been asked to submit a compliance report by July 9, 2026, specifying account titles, account numbers/IBANs, branches, account type and status, and the date and time of implementation.

Banks with no accounts maintained in the name of any listed entity have been asked to intimate the Directorate by the same date.

The Directorate clarified that the restrictions are administrative and regulatory measures intended solely to secure compliance under the AML/CFT framework, and shall not be construed as attachment, seizure, forfeiture or vesting of funds, with banks to continue accepting credits into the restricted accounts.

The restrictions will remain in force until further written directions are issued and may be withdrawn upon satisfactory rectification of the identified non-compliances, including voluntary registration as a DNFBP, submission of Off-Site Monitoring Questionnaires, facilitation of full-scope onsite inspection, and furnishing of required records and information.

Failure to comply may attract regulatory or enforcement action under the AML Act, 2010, the AML/CFT Sanctions Rules, 2020 and other applicable law.

According to the All Pakistan Sarafa Gems and Jewellers Association, a meeting is scheduled to be held within a week to deliberate on the matter.

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