The State Bank of Pakistan (SBP) has received complaints from various quarters including legislators that some banks deny them consumer facilities or general banking services on the basis of different factors including their status as Politically Exposed Persons (PEPs). Such denial of services is highly undesirable and against the SBP’s instructions issued vide BPRD Circular Letter No. 21 dated August 19, 2008 that prohibits discrimination on the basis of specific occupation, trade, region, gender and other factors while providing financial services in normal course of business.

2. While certain categories of customers are generally treated as high-risk under international and local standards and practices, banking relationships can be maintained with, and financial services provided to, all customers under reasonable controls and in compliance with applicable regulations. The AML/CFT Regulations also allow usual banking relationships and business transactions with high risk customers, under proper checks and controls.

3. Therefore, it is reiterated that the banks/DFIs should not discriminate any customer merely on the ground that the relationship with him/her requires extra care and caution as per banking practices and standards. Banks/DFIs should ensure strict compliance with the above-mentioned BPRD Circular Letter for the provision of financial services to all segments of the society in line with applicable regulations. Banks/DFIs should take adequate measures, and disseminate necessary instructions down the line to all their branches and business locations, to address the issues of undesirable discrimination.

4. For efficient resolution of grievances/complaints against such discriminatory practices, all banks/DFIs are advised to put in place an internal mechanism for speedy handling of such complaints. For this purpose, banks/DFIs shall nominate a focal person at senior level for coordinating with aggrieved customers and attending their complaints. Similarly, a special unit of the Consumer Protection Department (CPD) of SBP will look into the issues not resolved by banks/DFIs. The contact details of the unit are given below:

The Joint Director
Special Unit, Consumer Protection Department,
State Bank of Pakistan,
I.I. Chundrigar Road Karachi
Phone number: 021-99221935
Fax number: 021-99218160
Email address: [email protected]

5. Please convey nomination of your bank/DFI’s focal person to the Director, CPD as per attached format within seven working days of the date of issuance of this Circular Letter.

(Encl: As above)