In an extensive regulatory crackdown on compliance failures within the precious metals sector, the Federal Board of Revenue’s anti-money laundering wing has ordered the restriction of operations for one hundred and fifty bank accounts belonging to various gold and jewelry entities. This directive was officially issued by the Directorate of Designated Non-Financial Businesses and Professions, which oversees the anti-money laundering and countering financing of terrorism frameworks. The administrative measures target a substantial number of unregistered or non-compliant gold dealers and merchants who have continuously failed to align their business practices with domestic financial transparency guidelines.
The enforcement action was formally communicated via a directive sent to the chief compliance officers of twenty-nine commercial banks operating across the country. The instructions highlight that separate regulatory orders were finalized against each of the targeted entities after a comprehensive review of individual cases. According to the regulatory authority, these businesses demonstrated persistent, long-term non-compliance with statutory requirements outlined under the Anti-Money Laundering Act of 2010 and the subsequent regulatory guidelines of 2020 designed specifically for Designated Non-Financial Businesses and Professions. Multiple formal warnings, supervisory notices, and directives issued by the regulatory body were reportedly ignored by the designated jewelry entities prior to this enforcement action.
To carry out the directive, the regulator has authorized financial institutions to locate all accounts registered, managed, or beneficially owned by the listed jewelers. Banks must enforce immediate restrictions on these accounts, allowing credit entries to proceed normally while strictly blocking all debit transactions. This conditional freeze prevents affected businesses from performing cash withdrawals, fund transfers, check settlements, pay order processing, automated teller machine transactions, online banking payments, or inter-bank transfers. Account closures are also strictly prohibited unless direct, written authorization is provided by the regulatory directorate. Additionally, financial institutions are barred from establishing any new banking relationships or opening fresh accounts in the name of these non-compliant entities.
The regulatory authority emphasized that these restrictions function solely as administrative and regulatory enforcement tools to compel compliance within the broader anti-money laundering framework. The freeze is not to be interpreted as an official asset forfeiture, seizure, or permanent confiscation of client funds, which is why banks will continue to accept inbound credit transactions. The operational restrictions will remain active until the Directorate issues official written clearances. To lift the debit blocks, affected jewelers must resolve their outstanding regulatory failures, which includes completing voluntary registration as a Designated Non-Financial Business and Profession, submitting required off-site monitoring surveys, allowing on-site inspectors to review physical operations, and providing the necessary bookkeeping records.
The sudden freezing of accounts has sent shockwaves through the local bullion market, prompting an urgent response from trade representatives. In reaction to the directive, the All Pakistan Sarafa Gems and Jewellers Association announced its plans to host a centralized meeting within the week to evaluate the situation and coordinate a path forward. Many sector stakeholders have voiced concerns over the operational hurdles of immediate debit freezes, while regulatory authorities reiterate that the measures are vital to ensuring the financial integrity of the country. Failure by institutions or jewelers to cooperate with the ongoing guidelines may result in further legal, financial, or operational penalties under the prevailing anti-money laundering laws of the country.
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