SBP issues new guidelines on freezing bank accounts
Key takeaways
- The directive, issued in compliance with an order of the Islamabad High Court (IHC), requires all banks to ensure that account freezing or debit blocks are imposed strictly in accordance with the law.
- Under the new guidelines, banks cannot freeze or restrict bank accounts without proper legal authority and due verification.
- The SBP directed all banks to establish appropriate internal mechanisms to ensure compliance with the new instructions and prevent unlawful restrictions on customers’ accounts.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize KARACHI: The State Bank of Pakistan (SBP) has issued new guidelines directing banks not to block or freeze customers’ accounts without a valid legal basis or authorization from a competent authority.
The directive, issued in compliance with an order of the Islamabad High Court (IHC), requires all banks to ensure that account freezing or debit blocks are imposed strictly in accordance with the law.
Under the new guidelines, banks cannot freeze or restrict bank accounts without proper legal authority and due verification. The SBP also instructed financial institutions to ensure that precautionary restrictions do not unnecessarily harm account holders.