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It
has come to the notice of
the State Bank that higher denominated Rupee Traveller Cheques
issued by the banks are being advertised and used as a mode
of settlement, primarily for undocumented transactions, instead
of the purpose for which they are created i.e. to facilitate
travel and/or travel related purposes. Therefore, the possibility
of the use of these higher denominated Rupee Traveler Cheques
to facilitate Money Laundering cannot be ruled out. This situation
is highly undesirable and cannot be allowed to continue from
a regulatory perspective. The following guidelines are, therefore, being issued for strict
compliance by the banks in this respect.
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i)
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The
banks henceforth shall not issue Rupee Traveller Cheques
in denomination exceeding Rs.10,000.
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ii)
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The
banks shall immediately recall all unissued / unsold
Rupee Traveller Cheques of denomination exceeding
Rs 10,000 from their stockists or agents and intimate
the said position within one week from the date of
issue of this circular to the Director, Banking Policy
Department.
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iii)
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The
holders of Traveller Cheques of denomination exceeding
Rs 10,000 shall be given six months time to encash
or change these Traveller Cheques into denominations
of Rs 10,000 or lower. The banks shall issue public
notices directing all Rupee Traveller Cheque holders
to return the unused Rupee Traveller Cheques of denomination
exceeding Rs.10,000 for change/refund within the above
period.
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iv)
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While
advertising the Rupee Traveller Cheque for sales promotion
in press / media, the banks shall emphasize its utility
only for travel or travel related purposes.
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v)
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The
banks shall ensure that before handing over Rupee
Traveller Cheque to any purchaser, his/her signatures
must be obtained on the Rupee Traveller Cheque.
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vi)
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The banks shall ensure that at the time of issuance
of Rupee Traveller
Cheques for a cumulative amount
higher
than
Rs 10,000/-, proper identification of the purchaser
i.e. National Tax Number, National Identity Card,
Address should be obtained and placed on record.
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vii)
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The
name of the person(s), to whom Rupee Traveller Cheques
totaling Rs 500,000 and above have been issued in
sequential order, shall be reported immediately to
Director, Banking Policy Department |
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viii)
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The
banks shall accept for payment only those Rupee Traveller
Cheques which bear the signature of the purchasers
and which are countersigned by the holder in front
of concerned branch/bank official as per the standard
practice for such instruments.
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ix)
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The
banks shall report to State Bank of Pakistan the details
regarding outstanding Rupees Traveller Cheques in
the footnote to their weekly “statement of position”
under Section 36 (3) of SBP Act, 1956 under code No.
91.00. |
Any
violation of the above instructions shall attract the penal
provisions under section 83 of the Banking Companies Ordinance,
1962.
Please
acknowledge receipt.
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