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.