Finance Ministry issues rules for Foreign Currency Account

In order to curb money laundering, the Ministry of Finance has issued rules for depositing remittances in foreign currency accounts from abroad.

The rules called Foreign Currency Account Rules issued by the Ministry of Finance said that remittances from overseas banking channels could be credited to the foreign currency account but the amounts paid for exports from Pakistan and services rendered in or from Pakistan would not be credited to the foreign currency account.

According to the Ministry of Finance, the proceeds of securities issued to non-residents will not be able to credit the foreign currency account.

The Ministry of Finance says that a foreign currency account will be able to credit money through transfer from other individual foreign currency accounts.

Under the rules prescribed by the Ministry, a foreign currency account shall not be credited with any foreign exchange purchased from an authorized dealer, exchange company, or money changer except as allowed by the State Bank of Pakistan through general and special permission under any law.

However, foreign currency brought in from abroad and duly declared at the point of entry into Pakistan with Pakistan Customs may be credited in the account.

Further proceeds realized on account of profit, return, and the principal amount of investment made in any foreign currency-denominated or foreign currency linked scheme of Government of Pakistan may be credited into the account.

The ministry further said that there shall be no restriction on cash withdrawals or transfers from the foreign currency account.