FE circular
news desk
KARACHI
The State Bank of Pakistan (SBP) has allowed non-resident individuals holding Pakistan Origin Card (POC) to open foreign currency account.
The central bank on Tuesday said that as per FE circular # 02, dated August 05, 2020, a non-resident individual is eligible to open foreign currency account. The SBP clarified that an individual non-resident, holding Pakistan Origin Card (POC) is also eligible to open FCVA.
Accordingly, the existing Para 2 sub-para (i (a)) of the above Circular has been replaced with the following: “Individual non-resident Pakistani and non-resident holding Pakistan Origin Card (POC).”
Consequently, all the provisions of FE Circular 2 of 2020 applicable to individual non-resident Pakistani shall also be applicable to non-resident holding Pakistan Origin Card (POC).
Moreover, in terms of Para 7, Chapter 22 of the Foreign Exchange Manual, Authorized Dealers are required to report inward remittance transactions, except for family maintenance and exports, exceeding USD 10,000/- on Form “R” to SBP.
In this regard, it is advised that instead of asking the customer to provide duly filled in Form ‘R’, the bank receiving remittances in FCVA exceeding USD 10,000, or equivalent thereof, may digitally obtain the information, required for filling Form “R”, from the customer/remitting bank, if not already available in the transaction detail, for the purpose of reporting of transactions to the SBP.
Through another circular, the SBP clarified that non-resident holding POC also eligible for opening Rupee Value Account (NRVA). Consequently, all the provisions of FE Circular 01 of 2020 applicable to non-resident Pakistani shall also be applicable to non-resident holding Pakistan Origin Card (POC).
