SBP dictates rules on foreign currency accounts of exporters

The State Bank of Pakistan (SBP) has issued a set of directives for all the banks regarding opening and maintenance of exporters’ special foreign currency accounts.

“The foreign currency accounts can only be opened by genuine exporters, fed with prescribed portion of export proceeds and utilized by the exporters for permissible/legitimate purposes related to exports only,” stated SBP in a statement.

"Authorized dealers (banks) must follow their standard operating procedures for opening and maintenance of such accounts and ensure compliance of all related Know Your Customer (KYC) and Customer Due Diligence (CDD) requirements/ foreign exchange regulations,” SBP added.

The SBP warned to initiate regulatory action under Section 23K of the Foreign Exchange Regulation Act, 1947, in against the respective authorized dealer.