Document background
The Bank Gift Letter is a crucial document in Pakistan's banking system, used when an individual wishes to make a monetary gift to another person through banking channels. This document is particularly important in Pakistan's dual banking system, which operates under both conventional and Islamic banking principles. The letter serves multiple purposes: it documents the donor's clear intention to give a gift (essential under Islamic law's concept of Hiba), provides the bank with proper authorization for the transfer, and ensures compliance with banking regulations, anti-money laundering laws, and tax requirements. Banks in Pakistan require this letter to process gift transfers, particularly for significant amounts, and it must include specific declarations regarding the source of funds, relationship between parties, and compliance with Islamic principles. The document is designed to protect all parties involved - the donor, recipient, and the bank - while ensuring regulatory compliance.
