Transactions with Iran: banks to submit monthly statements

The State Bank of Pakistan on Tuesday directed all the commercial banks to submit details of all transactions with Iran, to meet the condition of Asian Union Clearing Union (ACU). Sources in banking industry told Business Recorder that SBP has asked all authorised dealers in foreign exchange of all commercial banks that details of all transactions, including import/export payments, will be submitted to State Bank on monthly basis.
In this regard, Exchange Policy Department of SBP has sent Circular EPD No 2, along specific form, for detailed summary to all authorised dealers in foreign exchange on April 5, 2011. According to the SBP, this instruction as been issued under the ACU mechanism, and all dealers are required to submitted details of transactions with Iran, according to describe format.
The details will be submitted to Chief Manager, SBP-SBP (Bank) Karachi, on monthly basis, with caption of ''Details of Transactions to/from Iran under ACU Arrangement''. The State Bank has also instructed dealers that transaction details with Iran should be submitted from November 2010 and onward to chief manager. In addition, foreign exchange dealers should also advise all of their constituents for necessary compliance, SBP said.
Under the ACU agreement, foreign exchange dealers are required to provide total value of transactions, either sent or received, along with name of Iranian bank, where the Nestro account is being maintained by Pakistani bank. The details of transfer made to or payment received from ACU dollar/euro account will provide through State Bank under ACU mechanism at end of every month.
In case of import and export transactions, the details which the SBP needs, under ACU agreement, on monthly basis include letter of credit or contract number and date, amount of L/C or contract, amount of current payment, detail of commodities with quantity, name and address of Pakistani importers, name and address of Iranian exporter, name and address of Iranian bank, reason of payment and detail of delivery (code) as per ''Harmonised Commodity Description and Coding System''.