SBP guidelines for private foreign currency accounts

KARACHI: State Bank of Pakistan (SBP) has issued guidelines for authorised dealers in foreign exchange regarding operations of private foreign currency accounts.

SBP, in a circular issued here on Wednesday, advised the dealers to strictly observe the following conditions.

a) All applicable SBP instructions including Prudential Regulations regarding AML/ KYC should be strictly followed.

(b) As already advised in Para 1(iii), Chapter VI of FEM, the Corporate Bodies/ Legal entities cannot generate funds from the kerb market for deposit in their foreign currency accounts.

(c) It is reiterated that personal foreign currency accounts of any nature should not be used for commercial and business purposes.

(d) Further, in case of any deposit of foreign currency notes of more than USD 10,000 (or equivalent in other currencies) in a single day, the account holder shall be required to present the original receipt of acquisition. The Authorised Dealer shall keep on record the copy of such receipt.

Attention of authorised dealers is invited to Chapter VI of Foreign Exchange Manual (FEM) in terms of which authorised dealers may, without prior approval of the State Bank, open with them foreign currency accounts as detailed therein and other applicable SBP rules and regulations.