The Misconception
Many people believe that the Federal Investigation Agency (FIA) is responsible for blocking or freezing bank accounts in Pakistan. This is a misconception. The FIA cannot track individuals and their transactions on a day-to-day basis. The FIA typically handles significant cases and does not involve itself in smaller matters unless necessary.
Common Reasons for Account Blocking
1. Basic Bank Accounts (BBA)
Basic Bank Accounts (BBA) are a major reason for account blocking. For instance, when you start a job and open an account using the company’s letterhead, the declared source of income for that BBA might be pocket money, an internship, or a basic job salary. However, as individuals progress to freelancing, opening e-commerce stores, or buying and selling USDT, their transaction volume increases significantly.
This disparity between the declared source of income and the actual transaction volume raises red flags in the bank’s compliance department. To alleviate their burden, the branch manager might state that the customer is unresponsive, leading to the account being blocked due to an outdated source of income.
How to Avoid It:
- Register your new store or business.
- Declare the new business as a source of income in your respective bank.
- Ensure that the bank can verify that increased transactions are due to the declared business.
2. Chain Disputes
Another common reason for account blocking is chain disputes. Bank accounts are not designed for daily small transactions such as purchasing bubble gum or paying at a kiosk; this is what credit/debit cards and POS systems are for. When individuals use their bank accounts for these minor transactions, they may unknowingly transact with individuals who have complaints against their accounts. This can lead to all related accounts being blocked.
Most people don’t know that in a chain dispute, you can leave the disputed amount in the account and withdraw the remaining via cheque. For example, if the recent transaction is of 10 thousand and it gets locked, you can withdraw the remaining amount.
How to Handle It:
- Communicate with the branch manager in writing or through official email to get specific reasons for the blocked account.
- In chain disputes, you can leave the disputed amount in the account and withdraw the remaining amount via cheque.
- Pressure the branch manager by indicating that you might close your account if the issue isn’t resolved.
- Email the complaints department of the State Bank with written proof from the branch manager to expedite resolution.
- Avoid sending money to personal accounts; prefer business accounts for transactions.
- Only send money to personal accounts of people you know well.
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3. Dealing with the FIA
The scenario where the FIA blocks an account is different. The bank and the account holder will receive letters indicating a complaint with proof, leading to the FIA blocking the account to backtrack transactions.
How to Handle It:
- Hire a lawyer to represent you in court.
- Understand that the FIA does not typically block everyday accounts.
- Avoid using the Raast payment network; use IBFT (Inter Bank Funds Transfer).
- Keep your source of income updated and registered.
- Use business accounts for transactions.
Preventive Measures
To stay safe and avoid having your bank account blocked:
- Keep your source of income updated.
- Register your business and use business accounts for transactions.
- Avoid misconceptions about the FIA’s role.
- Handle chain disputes promptly with proper documentation.
- Be cautious with whom you transact and prefer established business channels for significant transactions.
How to Handle Account Blocking
If your account gets blocked:
- Contact your bank’s branch manager for clarification and resolution.
- Provide necessary documentation to update your account information.
- Consider escalating the issue to the bank’s complaints department or the State Bank of Pakistan.
- If dealing with an FIA-related block, seek legal assistance promptly.
Conclusion
To stay safe and avoid having your bank account blocked, it’s crucial to keep your source of income updated, register your business, and use business accounts for transactions. Avoid misconceptions about the FIA’s role and handle chain disputes promptly with proper documentation. Always be cautious with whom you transact and prefer established business channels for significant transactions.
FAQs
What is the main reason for bank account blocking in Pakistan?
The main reasons include discrepancies in declared income sources, chain disputes, and significant transactions that raise compliance flags.
Can the FIA block my everyday bank account?
The FIA typically does not block everyday bank accounts; it handles significant cases with substantial evidence of wrongdoing.
How can I prevent my bank account from being blocked?
Keep your source of income updated, register your business, use business accounts for transactions, and avoid minor disputes by using credit/debit cards for small purchases.
What should I do if my account gets blocked?
Contact your bank’s branch manager, provide the necessary documentation, escalate to the complaints department if needed, and seek legal assistance for FIA-related blocks.