Fear of FATF: Madaris bank accounts, transactions face unannounced ban?

Many Deobandi religious seminaries have complained they cannot even open new bank accounts and face ban-like situation on transactions amid the mounting pressure from the Financial Action Task Force (FATF) on the government of Pakistan.

FATF wants Pakistan to streamline its financial systems to avoid being included in its black list.
Clerics complained that some 20,000 seminaries have to face with an unannounced ban on transactions made through banks. They said seminaries cannot even open new bank accounts. The situation is so bad that they have been left with no option but to receive cash donations, and ironically, contribute to grey economy.
Cleric Mansoor Ahmed, the administrator of Madressah Taleem-ul-Quran Humamorah, in Bagh district, said that the bank account of his seminary had been seized about six months ago.
“The manager of the bank informed me that the account had been seized on an order from the head office and he was trying to make it operational again. Since then I have visited the bank many times, but have not been allowed to draw the deposited amount, which is over rupees 200,000,” said Maulana Ahmed.
“I have never received any foreign funding or donation. And the bank is not giving me the reason for seizing the account,” he said.
Wifaq-ul-Madaris official said the matter remains unresolved even after they took it up with PM during meeting
“In the past we preferred to get donations through bank accounts and even if someone gave us cash we used to deposit it in the bank and provide a receipt to him/her. However, we have now started receiving donations in cash. I have tried to open a new account but unfortunately no bank is willing to open an account in the name of a seminary,” he said.
The cleric Ahmed is not the only person who has been facing difficulties due to the unannounced ban.
The spokesman for Wifaq-ul-Madaris (WuM), Abdul Quddus, said that almost every seminary was facing a similar situation.
“There are 20,000 seminaries registered with the WuM, and a large number of them have lodged complaints with us that their bank accounts have been closed. A number of seminaries have been trying for the last over one year to open new accounts.
“Though the banks dutifully receive the applications, they never open the accounts. I also faced the same problem and after one and a half years requested the bank to give me in writing that the account could not be opened. But the manger refused to give me anything in writing,” he said.
Mr Quddus said the matter was taken up with Nawaz Sharif, when he was prime minister. The interior ministers of the Pakistan Muslim League-Nawaz government, Chaudhary Nisar Ali Khan and Ahsan Iqbal, were also approached but to no avail.
“A few months back Prime Minister Imran Khan called us for a meeting. Though the religious circles were against the meeting, we decided to meet him. During the meeting we took up the matter of banks with the premier, but even then it could not be resolved,” he said.
When contacted, the media coordinator for the Ministry of Religious Affairs, Imran Siddiqui, said the interior ministry should be requested to look into the matter because his ministry dealt only with Haj, interfaith harmony and other religion-related issues.
State Minister for Interior Shehryar Khan Afridi and Interior Secretary Azam Suleman Khan could not be contacted despite repeated attempts over several days.
There are Deobandi seminaries which have remained allied with hatemongering sectarian extremist outfits that were proscribed by the government. Many were blamed for terrorism and militancy and Talibanisation.