Treasure Magazine

Treasure Magazine

SBP issues more guidelines for Exchange Companies

4 min read
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KARACHI: In order to enhance documentation and transparency and to further strengthen the regulatory regime for ECs/ECs-B, it has been decided to amend the applicable regulations relating to the business of ECs/ECs-B. Accordingly, the relevant instructions in the following Paras of Exchange Companies Manual stand amended as under:

Para 9 (i) (f) Chapter 3 of Exchange Companies Manual For all foreign currency sale transactions equivalent to USD 500/- or above Exchange Companies will retain copies of identification documents i.e., Computerized National Identity Card (CNIC) /National Identity Card for Overseas Pakistanis (NICOP)/ Pakistan Origin Card (POC) / Passport (having valid visa on it or any other proof of legal stay of a foreigner in Pakistan) after having seen the document in original. In addition, Exchange Companies shall also carry out biometric verification of Pakistani Nationals for all such transactions and maintain the record thereof. Exchange Companies will also obtain supporting documents related to the purpose (as stated by the customer) of FCY sale transactions, exceeding USD 1,000 or equivalent in other currencies.

Para 9 (i) (h) Chapter 3 of Exchange Companies Manual  Exchange Companies may sell foreign currency to individuals while ensuring the following limits: i. Maximum limit per person per day for buying foreign currency (in the form of cash or outward remittance) from all ECs/ECs-B, is USD 10,000 or equivalent in other foreign currencies. ii. Maximum limit per person per calendar year for buying foreign currency (in the form of cash or outward remittance) from all ECs/ECs-B, is USD 100,000 or equivalent in other foreign currencies. For this purpose, the Exchange Companies shall obtain an undertaking from individual customer at the time of each sale transaction exceeding USD 1,000/- (or equivalent in other currencies) that they have not already reached the limit of USD 100,000/- per calendar year or USD 10,000/- per day from all ECs/ ECs-B and these limits will not be breached after the current transaction.

Para 9 (iii) (f) Chapter 3 of Exchange Companies Manual Exchange Companies shall retain copies of identification documents i.e., Computerized National Identity Card (CNIC)/National Identity Card for Overseas Pakistanis (NICOP)/Pakistan Origin Card (POC)/Passport (having valid visa on it or any other proof of legal stay of a foreigner in Pakistan) for conducting transfers/ remittances transaction regardless of the amount. The name, address and identification document number of the customer shall also be mentioned on the receipt after due verification and with stamp of “orginal seen”. In addition exchange companies shall also carry out biometric verification of Pakistani Nationals for all transactions and maintain record thereof. Exchange companies will also obtain supporting documents related to the purpose (as stated by the customer) of outward remittance transactions, exceeding USD 1,000 or equivalent in other currencies.

Para 9 (iii) (h) Chapter 3 of Exchange Companies Manual

For all outward remittance transactions, Exchange Companies shall ensure the limits mentioned in the para 9(i)(h) above as per manner defined therein.

Para 12 (i) (c) Chapter 8 of Exchange Companies Manual

For all foreign currency buy and sale transactions equivalent to USD 500/- or above, Exchange Company of ‘B’ Category will obtain and retain Computerized National Identity Card (CNIC) /National Identity Card for Overseas Pakistanis (NICOP)/ Pakistan Origin Card (POC) / Passport (having valid visa on it or any other proof of legal stay of a foreigner in Pakistan) after having seen the document in original, In addition, Exchange Companies of ‘B’ Category shall also carry out biometric verification of Pakistani Nationals for all such sale transactions and maintain the record thereof. Exchange Companies of ‘B’ Category will also obtain supporting documents related to the purpose (as stated by the customer) of FCY sale transactions, exceeding USD 1,000 or equivalent in other currencies.

Para 12 (i) (e) Chapter 8 of Exchange Companies Manual

Exchange Companies of ‘B’ Category may sell foreign currency to individuals while ensuring the following limits:

i.              Maximum limit per person per day for buying foreign currency (in the form of cash or outward

remittance) from all ECs/ECs-B, is USD 10,000 or equivalent in other foreign currencies.

ii.             Maximum limit per person per calendar year for buying foreign currency (in the form of cash or outward remittance) from all ECs/ECs-B, is USD 100,000 or equivalent in other foreign currencies.

For this purpose, the Exchange Companies of ‘B’ Category shall obtain an undertaking from individual customer at the time of each sale transaction exceeding USD 1,000/- (or equivalent in other currencies) that they have not already reached the limit of USD 100,000/- per calendar year or USD 10,000/- per day from all ECs (including ECs-B) and these limits will not be breached after the current transaction.

3.            Exchange Companies and Exchange Companies of ‘B’ category will not conduct any

transaction with their customers on an authority letter. Further, it is also reemphasized that Exchange Companies and Exchange Companies of ‘B’ category shall perform transactions only from authorized outlets of the company and shall not provide delivery services to the customers.

4.            All above instructions are applicable with immediate effect, However, for implementing the

requirements for annual ceiling of purchase of foreign exchange (FCY cash and outward remittances) by individuals, the purchases made during the remaining days of December 2021, will be counted towards the annual limit for calendar year 2022.

5,            Failure to comply with these instructions shall attract regulatory action under the relevant

provisions of the Foreign Exchange Regulation Act, 1947.

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