AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

In order to further facilitate overseas Pakistanis, the State Bank of Pakistan (SBP) has allowed Authorized Dealers (ADs) to conduct Business to Customer (B2C) and Customer to Business (C2B) transactions through foreign correspondent entities.
However, ADs will be required to obtain approval from the SBP before finalization of addition in agreement or entering into a new agreement with the foreign correspondent entity.
The SBP has also advised ADs to ensure screening of all sending/receiving persons/entities against relevant resolutions of United Nations Security Council (UNSC), Schedules of Anti- Terrorism Act, 1997 etc.
According to a SBP circular issued Tuesday, in order to further facilitate overseas Pakistanis, ADs are now allowed to effect B2C and C2B transactions through foreign correspondent entities under their existing/new home remittance agency arrangements subject to inclusion of respective ceilings along with terms & conditions.
However, before finalization, ADs are required to forward draft of all addendum/new agency agreements to SBP, which will provide its input, if any, on the draft addendum/new agreement but the ultimate responsibility to adequately safeguard their interest would remain on the ADs.
Under C2B transactions, remittances can be received by electricity companies, gas companies, Telecoms, educational institutions and universities accredited by HEC, super stores, hospitals, etc, in their consumer accounts from overseas Pakistani individuals.
In addition, reputed real estate builders/developers and housing societies can send remittances from overseas Pakistani individuals on account of purchase/installment of property such as residential plots, flats and buildings, etc, excluding remittances for equity/participation in an enterprise.
Resident individuals can receive remittances from known International Government and other organizations by resident pensioners on account of pension up to Rs. 250,000 per individual per month.
Similarly, resident individuals can receive up to $1,500 per individual per month from reputed overseas IT firms and online platforms on account of freelance of computer and information systems services.
As per terms & conditions, ADs shall ensure foreign correspondent entities have a robust infrastructure and the capacity to comply with legal/regulatory requirements pertaining to AML/CFT.
All transactions will be account credit only, which will be disbursed in PKR only. Cash disbursement is not permissible for any of these transactions. Exporters of freelance services will be allowed to repatriate up to 35 percent of the export earnings through their PKR denominated bank account in Pakistan for outward remittances.
ADs will ensure that these proceeds would be utilized only for payment of commission/discount to the overseas agents/buyers and to use the same to meet other expenses such as promotional publicity, import of Hardware/Software, foreign consultant''s fee, etc.
Banks have been advised for not executing transactions which fail to fulfill KYC/CDD/CFT/AML requirements and develop systems/controls to determine whether an STR has to be filed with FMU or not as per existing defined procedures.
All ADs will enter into separate agreements with commercial entities to ensure efficient execution of responsibilities and mechanism to resolve disputes between customers and businesses in case of delay of payments, etc.
The banks have been directed to ensure that the amount of remittances is credited/paid to/on behalf of the beneficiary within timeframe. In case where the amount of remittance is not credited/paid to/on behalf of the beneficiary, the beneficiary will be entitled to a compensation of sixty five (65) paisa per thousand rupees per day for the number of days credit/payment on account of delay.
According to the SBP, all other instructions on the subject will remain unchanged. Furthermore, the ADs failure to comply with the above mentioned instructions may attract regulatory penalty under Section 23K of the Foreign Exchange Regulation Act, 1947.

Copyright Business Recorder, 2018

Comments

Comments are closed.