As you are aware that in order to strengthen the public finances, the Federal Government has promulgated the Cash Management & Treasury Single Account (CM & TSA) Rules, 2020 in conjunction with Public Finance Management Act (PFMA), 2019. The CM & TSA Rules, 2020 are applicable on all offices of the Federal Government i.e. Ministries, Divisions, their Executive Departments, Attached Departments, Subordinated Offices and Other Office(s) or Department(s) declared as such by the Federal Government.
2. In terms of Rule 4 (2) of the CM & TSA Rules, 2020, all commercial banks are required to conduct regular KYC on the existing bank accounts, maintained by the Federal Government offices, on prescribed format set out in Annexure-A of the Rules ibid. Further, the commercial banks shall not open account of Federal Government Offices (as cited above) except under the authority of Finance Division as provided under Section 31 of the PFMA, 2019. With regards, to closure of Federal Government accounts maintained with commercial banks, it is reiterated that Finance Department, SBP has already issued detailed instructions vide FD Circular No.4 of 2020 for compliance purposes.
3. Please find annexed copies of the PFMA, 2019 and CM & TSA Rules, 2020 to meticulously comply with the requirements of related provision of the Act and Rules. Any deviation from the stipulated requirements of Act and Rules shall be subject to penal action under relevant provisions of the law.
4. Please acknowledge receipt.
1. Public Finance Management Act (PFMA), 2019
2. Cash Management & Treasury Single Account Rules, 2020
3. KYC form for Government Accounts-Annexure A.