Circulars/Notifications  

 EPD Circular Letter No.10/ Policy. 24 /2005
June 8, 2005 

All Exchange Companies


Dear Sirs,

Remittance Business by Franchisees

In terms of EPD Circular Letter No. 1/EPP.1(95) EC-Policy-2004 dated February 12, 2004 Exchange Companies were allowed to enter into Franchise Arrangements with suitable counterparties.

It has been observed that certain Franchisees are allowed by the Exchange Companies to deal in the business of remittance besides undertaking the sale/purchase of foreign currencies. Such franchisees are also requesting banks to open their foreign currency (FCY) and PKR accounts with the intention to operate the same for Cash and Remittance Transactions.

It is clarified that all franchisees, who have been allowed by their respective franchisers, under necessary approval from SBP, to deal in FCY outward/ inward remittances must route their remittance transactions only through their respective franchisers and not directly from their FCY Accounts. Franchisees are only allowed to deposit / withdraw cash from their respective foreign currency accounts.

All the Heads/Chief Executives of the Exchange Companies are advised to take requisite measures to ensure compliance of above instructions by their respective franchisees.

Yours faithfully

(Syed Samar Hasnain)
Senior Joint Director



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