An
Act to regulate certain payments, dealings in foreign exchange
and Securities and the import and export of currency and bullion.
WHEREAS it is expedient in the economic and financial interest
of Pakistan to provide for the regulation of certain payments,
dealings in foreign exchange and securities and the import and
export of currency and bullion;
It
is hereby enacted as follows: -
1.
Short title, extent and commencement. (1)
This Act may be called the Foreign Exchange Regulation Act, 1947.
(2)
It extends to the whole of Pakistan and applies to all citizens
of Pakistan and persons in the service of Government wherever
they may be.
(3)
It shall come into force on such date as the Federal Government
may, by notification in the official Gazette, appoint in this
behalf.
2.
Interpretation.
In
this Act, unless there is anything repugnant in the subject or
context:-
(a)
"Appellate Board" means a foreign Exchange Regulation
Appellate Board constituted under sub-section (1) of section 23C;
(aa)
?Authorised Dealer? means a person for the time being authorised
under section 3 to deal in foreign exchange;
(ab)
?authorized money changer? means a person for the time
being authorized under
section 3A to deal in foreign currency notes, bank notes,
coins and travellers cheques.
(b)
"Currency" includes all coins, currency notes,
bank notes, postal notes, money orders, cheques, drafts, traveler’s
cheques, letters of credit, bills of exchange and promissory notes;
(c)
"Foreign Currency" means any currency other than
Pakistan currency;
(d)
"Foreign Exchange" means foreign currency and
includes any instrument drawn, accepted, made or issued under
clause (8) of section 17 of the State Bank of Pakistan Act, 1956,
all deposits, credits and balance payable in any foreign currency,
and any drafts, traveler’s cheques, letters of credit and
bills of exchange, expressed or drawn in Pakistan currency but
payable in any foreign currency;
(e)
"Foreign Security" means any security issued
elsewhere than in Pakistan and any security the principal of or
interest on which is payable in any foreign currency or elsewhere
than in Pakistan;
(f)
"Gold" includes gold in the form of coin, whether
legal tender or not, or in the form of bullion or ingot, whether
refined or not;
(g)
"Pakistan currency" means currency which is expressed
or drawn in Pakistan rupees;
(h)
"Owner", in relation to any security, includes
any person who has power to sell or transfer the security, or
who has the custody thereof or who receives, whether on his own
behalf or on behalf of any other person, dividends or interest
thereon, and who has any interest therein, and in a case where
any security is held on any trust or dividends or interest thereon
are paid into a trust fund, also includes any trustee or any person
entitled to enforce the performance of the trust or to revoke
or vary, with or without the consent of any other person, the
trust or any terms thereof, or to control the investment of the
trust moneys;
(i)
"Prescribed" means prescribed by rules made under
this Act;
(j)
"State Bank" means the State Bank of Pakistan;
(k)
"Security" means shares, stocks, bonds, debentures,
debenture stock and Government securities, as defined in the Securities
Act, 1920, deposit receipts in respect of deposits of securities,
and units or sub-units of unit trusts, but does not include bills
of exchange or promissory notes other than Government promissory
notes;
(l)
"Silver" means silver bullion or ingot, silver
sheets and plates which have undergone no process of manufacture
subsequent to rolling and uncurrent silver coin which is not legal
tender in Pakistan or elsewhere;
(m)
"Transfer" includes, in relation to any security,
transfer by way of loan or security.
3.
Authorised Dealers in Foreign Exchange.
(1) The State Bank may, on application made to
it in this behalf, authorize any person to deal in foreign exchange.
(2)
An authorisation under this section:-
(i)
may authorize dealings in all foreign currencies or may
be restricted to authorizing dealings in specified foreign currencies
only;
(ii)
may authorise transactions of all descriptions in foreign
currencies or may be restricted to authorizing specified transactions
only;
(iii)
may be granted to be effective for a specified period,
or within specified amounts.
(3)
An authorised dealer shall in all his dealings, in foreign
exchange comply with such general or special directions or instructions
as the State Bank may from time to time think fit to give, and,
except with the previous permission of the State Bank, an authorised
dealer shall not engage in any transaction involving any foreign
exchange which is not in conformity with the terms of his authorization
under this section.
(4)
An authorized dealer shall, before undertaking any transaction
in foreign exchange on behalf of any person, require that person
to make such declarations and to give such information as will
reasonably satisfy him that the transaction will not involve,
and is not designed for the purpose of, any contravention or evasion
of the provisions of this Act or of any rules, directions or orders
made thereunder, and where the said person refuses to comply with
any such requirement or makes only unsatisfactory compliance therewith,
the authorised dealer shall refuse to undertake the transaction
and shall, if he has reason to believe that any such contravention
or evasion as aforesaid is contemplated by the person, report
the matter to the State Bank.
3A.
Authorized money changers in foreign exchange:-
(1)
The State Bank may, on application made to it in this behalf,
and on payment of a fee prescribed by it, from time to time, authorize
any person to deal in foreign currency notes, bank notes, coins
and travellers cheques.
(2)
The power
conferred under sub-section (1) shall be exercised on the basis
of criteria prescribed, and recommendations made, by a committee
consisting of such official and non-official representatives as
may be nominated by the State Bank.
(3)
An authorization
made under this section may be for a specific period of time,
which may be renewed thereafter.
(4)
An authorized
money changer shall, in all his dealings under the authorization,
comply with such general or special directions or instructions
as the State Bank may, from time to time, think fit to give including
those for supply of data, the rate and code of conduct in doing
business. Failure to comply with the instructions may lead to
suspension of the licence or other actions as necessary.
3B
Cancellation of authorization: -
Without
prejudice to the provisions of section 23B, if an authorized dealer
or money changer commits a contravention of any term of authorization
or uses it for any purpose other than the purpose, or after the
expiry of the period, for which it was given or contravenes or
attempts to contravene or abets the contravention of the provisions
of , or the general or special directions or instructions or permissions
issued by the State Bank from time to time under any provisions
of, this Act or any rules made thereunder or engages in transactions
not in conformity with the terms of authorization or fails to
comply with any of the provisions of this Act or any rules, directions,
instructions, or permissions made, issued or given thereunder
or in the public interest it is necessary so to do or there otherwise
exist reasons appearing sufficient to the State Bank, after giving
a reasonable opportunity of being heard to the authorized dealer
or money changer cancel the authorization.
Provided
that, if, in the opinion of the State Bank, any delay would be
prejudicial to the public interest, the State Bank may, at the
time of giving an opportunity as aforesaid or at any time thereafter
and pending the hearing as aforesaid, if any, by order suspend,
for a period specified in the order, the authorization either
wholly or to such extent as may be so specified.
4.
Restrictions on dealing in Foreign Exchange.
(1)
Except with the previous general or special permission
of the State Bank, no person other than an authorised dealer shall
in Pakistan, and no person resident in Pakistan other than an
authorised dealer shall outside Pakistan, buy or borrow from,
or sell or lend to, or exchange with, any person not being an
authorised dealer, any foreign exchange.
(2)
Except with the previous general or special permission
of the State Bank, no person whether an authorised dealer or otherwise,
shall enter into any transaction which provides for the conversion
of Pakistan currency into foreign currency or foreign currency
into Pakistan currency at rates of exchange other than the rates
for the time being authorized by the State Bank.
(3)
Where any foreign exchange is acquired by any person other
than an authorised dealer of any particular purpose, or where
any person has been permitted conditionally to acquire foreign
exchange, the said person shall not use the foreign exchange so
acquired otherwise than for that purpose or, as the case may be,
fail to comply with any condition to which the permission granted
to him is subject, and where any foreign exchange so acquired
cannot be so used or, as the case may be, the conditions cannot
be complied with, the said person shall without delay sell the
foreign exchange to an authorised dealer.
(4)
Nothing in this section shall be deemed to prevent a person
from buying from any post office, in accordance with any law or
rules made thereunder for the time being in force, any foreign
exchange in the form of postal orders or money orders.
5.
Restrictions on payments.
(1)
Save as may be provided in and in accordance with any general
or special exemption from the provisions of this sub-section which
may be granted conditionally or unconditionally by the State Bank,
no person in, or resident in, Pakistan shall—
(a)
make any payment to or for the credit of any person resident
outside Pakistan;
(b)
draw, issue or negotiate any bill of exchange or promissory
note or acknowledge any debt, so that a right (whether actual
or contingent) to receive a payment is created or transferred
in favour of any person resident outside Pakistan;
(c)
make any payment to or for the credit of any person by
order or on behalf of any person resident outside Pakistan;
(d)
place any sum to the credit of any person resident outside
Pakistan;
(e)
make any payment to or for the credit of any person as
consideration for or in association with—
(i)
the receipt by any person of a payment or the acquisition
by any person of property outside Pakistan;
(ii)
the creation or transfer in favour of any person of a right
whether actual or contingent to receive a payment or acquire property
outside Pakistan;
(f)
draw, issue or negotiate any bill of exchange or promissory
note, transfer any security or acknowledge any debt, so that a
right (whether actual or contingent) to receive a payment is created
or transferred in favour of any person as consideration for or
in association with any matter referred to in clause (e).
(2)
Nothing in sub-section (1) shall render unlawful—
(a)
the making of any payment already authorized, either with
foreign exchange obtained from an authorized dealer under section
4 or with foreign exchange retained by a person in pursuance of
an authorization granted by the State Bank;
(b)
the making of any payment with foreign exchange received
by way of salary or payment for services not arising from business
in, or anything done while in Pakistan.
(3)
Nothing in this section shall restrict the doing by any
person of anything within the scope of any authorization or exemption
granted under this Act.
(4)
For the purposes of this section, "security"
also includes coupons or warrants representing dividends or interest
and life or endowment insurance policies.
6.
Blocked accounts.
(1)
Where an exemption from the provisions of section 5 is
granted by the State Bank in respect of payment of any sum to
any person resident outside Pakistan and the exemption is made
subject to the condition that the payment is made to a blocked
account—
(a)
the payment shall be made to a blocked account in the name
of that person in such manner as the State Bank may by general
or special order direct; and
(b)
the crediting of that sum to that account shall, to the
extent of the sum credited, be a good discharge to the person
making the payment.
(2)
No sum standing at the credit of a blocked account shall
be drawn on except in accordance with any general or special permission
which may be granted conditionally or otherwise by the State Bank.
(3)
In this section "blocked account" means an account
opened as a blocked account at any office or branch in Pakistan
of a bank authorized in this behalf by the State Bank, or an account
blocked, whether before or after the commencement of this Act,
by order of the State Bank.
7.
Special accounts.
(1)
Where in the opinion of the Federal Government it is necessary
or expedient to regulate payments due to persons resident in any
territory, the Federal Government may, by notification in the
official Gazette, direct that such payments or any class of such
payments shall be made only into an account (hereinafter referred
to as a special account) to be maintained for the purpose by the
State Bank or an authorized dealer specially authorized by the
State Bank in this behalf.
(2)
The credit of a sum to a special account shall, to the
extent of the sum credited, be a good discharge to the person
making the payment:
Provided
that where the liability of the person making the payment is to
make the payment in foreign currency, the extent of the discharge
shall be ascertained by converting the amount paid into that currency
at such rate of exchange as is for the time being fixed or authorized
by the State Bank.
(3)
The sum standing to the credit of any special account shall
from time to time be applied—
(a)
where any agreement is entered into between the Federal
Government and the Government of the territory to which the aforesaid
notification relates for the regulation of payments between persons
resident in Pakistan and in that territory, in such manner as
the State Bank, having regard to the provisions of such agreement,
may direct; or
(b)
where no such agreement is entered into, for the purpose
of paying wholly or partly, and in such order of preference and
at such times as the Federal Government may direct, debts due
from the persons resident in the said territory to persons resident
in Pakistan or in such other territories as the Federal Government
may by order specify in this behalf.
8.
Restrictions on import and export of certain currency and
bullion.
(1)
The Federal Government may, by notification in the official
Gazette, order that, subject to such exemptions, if any, as may
be contained in the notification, no person shall, except with
the general or special permission of the State Bank and on payment
of the fee, if any, prescribed bring or send into Pakistan any
gold or silver or any currency notes or bank notes or coin whether
Pakistan or foreign.
[Explanation.—The
bringing or sending into any part or place in the territories
of Pakistan of any such article as aforesaid, intended to be taken
out of the territories of Pakistan without being removed from
the ship or conveyance in which it is being carried, shall nonetheless
be deemed to be bringing or as the case may be sending, into the
territories of Pakistan of that article for the purposes of this
section.]
(2)
No person shall, except with the general or special permission
of the State Bank or the written permission of a person authorized
in this behalf by the State Bank, take or send out of Pakistan
any gold, jewelry or precious stones, or Pakistan currency notes,
bank notes or coin or foreign exchange.
(3)
The restrictions imposed by sub-sections (1) and (2) shall
be deemed to have been imposed under section 16 of the Customs
Act, 1969, without prejudice to the provisions of section 23 of
this Act, and all the provisions of that Act shall have effect
accordingly.
9.
Acquisition by Federal Government of foreign exchange.
The
Federal Government may, by notification in the official Gazette,
order every person in, or resident in, Pakistan-
(a)
who owns or holds such foreign exchange as may be specified
in the notification, to offer it, or cause it to be offered for
sale to the State Bank on behalf of the Federal Government or
to such person, as the State Bank may authorize for the purpose,
within such time as may be specified in the notification and at
such price as the Federal Government may fix, being a price which
is in the opinion of the Federal Government not less than the
market rate of the foreign exchange when it is offered for sale;
(b)
who is entitled to assign any right to receive such foreign
exchange as may be specified in the notification, to transfer
that right to the State Bank on behalf of the Federal Government
on payment of such consideration therefor as the Federal Government
may fix:
Provided that the Federal Government may by the said notification
or another order exempt any person or class of persons from the
operation of such order:
Provided further that nothing in this section shall apply
to any foreign exchange acquired by a person from an authorized
dealer and retained by him with the permission of the State Bank
for any purpose.
(1)
No person who has a right to receive any foreign exchange
or to receive from any person resident outside Pakistan a payment
in rupees shall, except with the general or special permission
of the State Bank, do or refrain from doing any act with intent
to secure—
(a)
that the receipt by him of the whole or part of that foreign
exchange or payment is delayed, or
(b)
that the foreign exchange or payment ceases in whole or
in part to be receivable by him.
(2)
Where a person has failed to comply with the requirements
of sub-section (1) in relation to any foreign exchange or payment
in rupees, the State Bank may give to him such directions as appear
to be expedient for the purpose of securing the receipt of the
foreign exchange or payment as the case may be.
11.
Power to regulate the uses, etc.,
of imported gold and silver.
The
Federal Government may, by notification in the official Gazette,
impose such conditions as it thinks necessary or expedient on
the use or disposal of or dealings in gold and silver prior to,
or at the time of, import into Pakistan.
12.
Payment for exported goods.
(1)
The Federal Government may, by notification in the official
Gazette, prohibit the export of any goods or class of goods specified
in the notification from Pakistan directly or indirectly to any
place so specified unless a declaration supported by such evidence
as may be prescribed or so specified, is furnished by the exporter
to the prescribed authority that the amount representing the full
export value of the goods has been, or will within the prescribed
period be, paid in the prescribed manner.
(2)
Where any export of goods has been made to which a notification
under sub-section (1) applies, no person entitled to sell, or
procure the sale of, the said goods shall, except with the permission
of the State Bank, do or refrain from doing any act with intent
to secure that—
(a)
the sale of the goods is delayed to an extent which is
unreasonable having regard to the ordinary course of trade, or
(b)
payment for the goods is made otherwise than in the prescribed
manner or does not represent the full amount payable by the foreign
buyer in respect of the goods, subject to such deductions, if
any, as may be allowed by the State Bank, or is delayed to such
extent as aforesaid:
Provided
that no proceedings in respect of any contravention of this sub-section
shall be instituted unless the prescribed period has expired and
payment for the goods representing the full amount as aforesaid
has not been made in the prescribed manner.
(3)
Where in relation to any such goods the said period has
expired and the goods have not been sold and payment therefor
has not been made as aforesaid, the State Bank may give to any
person entitled to sell the goods or to procure the sale thereof,
such directions as appear to it to be expedient for the purpose
of securing the sale of the goods and payment therefor as aforesaid,
and without prejudice to the generality of the foregoing provision,
may direct that the goods shall be assigned to the Federal Government
or to a person specified in the directions.
(4)
Where any goods are assigned in accordance with sub-section
(3), the Federal Government shall pay to the person assigning
them such sum in consideration of the net sum recovered by or
on behalf of the Federal Government in respect of the goods as
may be determined by the Federal Government.
(5)
Where in relation to any such goods the value as stated
in the invoice is less than the amount which in the opinion of
the State Bank represents the full export value of those goods,
the State Bank may issue an order requiring the person holding
the shipping documents to retain possession thereof until such
time as the exporter of the goods has made arrangements for the
State Bank or a person authorized by the State Bank to receive
on behalf of the exporter payment in the prescribed manner of
an amount which represents in the opinion of the State Bank the
full export value of the goods.
(6)
For the purpose of ensuring compliance with the provisions
of this section and any orders or directions made thereunder,
the State Bank may require any person making any export of goods
to which a notification under sub-section (1) applies to exhibit
contracts with his foreign buyer or other evidence to show that
the full amount payable by the said buyer in respect of the goods
has been, or will within the prescribed period be, paid in the
prescribed manner.
13.
Regulation of export and transfer of securities.
(1)
No person shall, except with the general or special permission
of the State Bank,—
(a)
take or send any security to any place outside Pakistan;
(b)
transfer any security or create or transfer any interest
in a security to or in favour of a person resident outside Pakistan;
(c)
transfer any security from a register in Pakistan to a
register outside Pakistan or do any act which is calculated to
secure, or forms part of a series of acts which together are calculated
to secure, the substitution for any security which is either in,
or registered in Pakistan, of any security which is either outside
or registered outside Pakistan;
(d)
issue, whether in Pakistan or elsewhere, any security which
is registered or to be registered in Pakistan, to a person resident
outside Pakistan.
(2)
Where the holder of a security is a nominee, neither he
nor any person through whose agency the exercise of all or any
of the holder's rights in respect of the security is controlled
shall, except with the general or special permission of the State
Bank, do any act whereby he recognises or gives effect to the
substitution of another person as the person from whom he directly
receives instructions, unless both the persons previously instructing
him and the person substituted for that person were, immediately
before the substitution, resident in Pakistan.
(3)
The State Bank may, for the purpose of securing that the
provisions of this section are not evaded, require that the person
transferring any security and the person to whom such security
is transferred shall subscribe to a declaration that the transferee
is not resident outside Pakistan.
(4)
Notwithstanding anything contained in any other law, no
person shall, except with the permission of the State Bank,
(a)
enter any transfer of securities in any register or book
in which securities are registered or inscribed if he has any
ground for suspecting that the transfer involves any contravention
of the provision of this section, or
(b)
enter in any such register or book, in respect of any security,
whether in connection with the issue or transfer of the security
or otherwise, an address outside Pakistan except by way of substitution
for any such address in the same country or for the purpose of
any transaction for which permission has been granted under this
section with knowledge that it involves entry of the said address.
(5)
For the purposes of this section,
(a)
"holder" in relation to a bearer security means
the person having physical custody of the security; provided that,
where a bearer security is deposited with any person in a locked
or sealed receptacle from which the person with whom it is deposited
is not entitled to remove it without the authority of some other
person, that other person shall be deemed to be the holder of
the security;
(b)
"nominee" means a holder of any security (including
bearer security) or any coupon representing dividends or interest
who, as respects the exercise of any rights in respect of the
security or coupon, is not entitled to exercise those rights except
in accordance with instructions given by some other person, and
a person holding a security or coupon as a nominee shall be deemed
to act as nominee for the person who is entitled to give instructions
either directly or through the agency of one or more persons,
as to the exercise by the holder of the security or coupon of
any rights in respect thereof and is not, in so doing, himself
under a duty to comply with instructions given by some other person;
(c)
"security" also includes coupons or warrants
representing dividends or interest, and life or endowment insurance
policies;
(d)
"a person resident outside Pakistan" includes
a foreign national for the time being resident in Pakistan, and
a company registered in Pakistan which is controlled, directly
or indirectly, by a person resident outside Pakistan.
14.
Custody of securities.
(1)
The Federal Government may, by notification in the official
Gazette, order every person by whom or on whose behalf a security
or document of title to a security specified in the order is held
in Pakistan to cause the said security or document of title to
be kept in the custody of an authorized depository named in the
order:
Provided that the State Bank may by order in writing permit
any such security to be withdrawn from the custody of the authorized
depository subject to such conditions as may be specified in the
order.
(2)
No authorized depository may part with any security covered
by an order under sub-section (1) without the general or special
permission of the State Bank except to, or to the order of, another
authorized depository.
(3)
Except with the general or special permission of the State
Bank, no authorized depository shall-
(a)
accept or part with any security covered by an order under
sub-section (1) whereby the security is transferred into the name
of a person resident outside Pakistan, or
(b)
do any act whereby he recognises or gives effect to the
substitution of another person as the person from whom he directly
receives instructions relating to such security unless the person
previously so instructing him and the person substituted for that
person were immediately before the substitution resident in Pakistan.
(4)
Except with the general or special permission of the State
Bank, no person shall buy, sell or transfer any security, or document
of title to a security, covered by an order under sub-section
(1) unless such security or document of title has been deposited
in accordance with the order.
(5)
Except with the general or special permission of the State
Bank, no capital moneys, interest or dividends in respect of any
security covered by an order under sub-section (1) shall be paid
in Pakistan except to or to the order of the authorized depository
having the custody of the security.
(6)
For the purposes of this section: -
(a)
"authorized depository" means a person notified by the
Federal Government to be entitled to accept the custody of securities
and documents of title to securities, and
(b)
"security" shall include coupons.
15.
Restrictions on issue of bearer securities.
The
Federal Government may, by notification in the official Gazette,
order that except with the general or special permission of the
State Bank no person shall in Pakistan issue any bearer security
or coupon or so alter any document that it becomes a bearer security
or coupon.
16.
Acquisition by Federal Government of foreign securities.
(1)
Subject to any exemptions that may be contained in the
notification, the Federal Government may, if it is of opinion
that it is expedient so to do for the purpose of strengthening
its foreign exchange position by notification in the official
Gazette:—
(a)
order the transfer to itself of any foreign securities
specified in the notification at a price so specified, being a
price which is, in the opinion of the Federal Government not less
than the market value of the securities on the date of the notification,
or
(b)
direct the owner of any foreign securities specified, in
the notification to sell or procure the sale of the securities
and thereafter to offer or cause to be offered the net foreign
exchange proceeds of the sale to the State Bank on behalf of the
Federal Government or to such person as the State Bank may authorize
for the purpose, at such price as the Federal Government may fix,
being a price which is in the opinion of the Federal Government
not less than the market rate of the foreign exchange when it
is offered for sale.
(2)
On the issue of a notification under clause (a) of sub-section
(1): –
(a)
the securities to which the notification relates shall
forth-with vest in the Federal Government free from any mortgage,
pledge or charge, and the Federal Government may deal with them
in such manner as it thinks fit;
(b)
the owner of any of the securities to which the notification
relates and any person who is responsible for keeping any registers
or books in which any of those securities are registered or inscribed,
or who is otherwise concerned with the registration or inscription
of any of those securities, shall do all such things as are necessary
or as the Federal Government or the State Bank may order to be
done, for the purpose of securing that—
(i)
the securities
and any documents of title relating there-to are delivered to
the Federal Government and, in the case of registered or inscribed
securities, that the securities are registered or inscribed in
the name of the Federal Government or of such nominee of the Federal
Government as it may specify, and
(ii)
any dividends or interest on those securities becoming
payable on or after the date of the issue of the notification
are paid to the Federal Government or its nominee as aforesaid
and where in the case of any security payable to bearer which
is delivered in pursuance of the said notification, any coupons
representing any such dividends or interest are not delivered
with the security, such reduction in the price payable therefor
shall be made as the Federal Government thinks fit:
Provided
that where the price specified in the notification in relation
to any security is ex-dividend or ex-interest, this sub-clause
shall not apply to that dividend or interest or to any coupon
representing it.
(3)
A certificate signed by any person authorized in this behalf
by the Federal Government that any specified securities are securities
transferred to the Federal Government under this section shall
be treated by all persons concerned as conclusive evidence that
the securities have been so transferred.
17.
Restriction on settlement.
(1)
No person resident in Pakistan shall, except with the general
or special permission of the State Bank, settle any property,
otherwise than by will, upon any trust under which a person who
at the time of the settlement is resident outside Pakistan, elsewhere
than in territories notified in this behalf by the State Bank,
will have an interest in the property, or exercise, other than
by will, any power for payment in favour of a person who at the
time of the exercise of the power is resident outside Pakistan
elsewhere than in such notified territories.
(2)
A settlement or power as aforesaid shall not be invalid
except in so far as it confers any right or benefit on any person
who at the time of the settlement or the exercise of the power
is resident outside Pakistan, elsewhere than in territories notified
by the State Bank.
(1)
Except with the general or special permission of the State
Bank, no person resident in Pakistan shall do any act whereby
a company, which is controlled by persons resident in Pakistan
ceases to be so controlled.
(2)
Except with the general or special permission of the State
Bank, no person resident in Pakistan shall lend any money or security
to any company, not being a banking company, which is by any means
controlled, whether directly or indirectly, by persons resident
outside Pakistan elsewhere than in the territories notified in
this behalf by the State Bank.
In
this sub-section "company" includes a firm, branch or
office of a company or firm.
19.
Power to call for information.
(1)
The Federal Government or the State Bank may, at any time
by notification in the official Gazette, direct owners subject
to such exceptions, if any, as may be specified in the notification,
of such foreign exchange or foreign securities as may be so specified,
to make a return thereof to the State Bank within such period,
and giving such particulars, as may be so specified.
(1A)
The Federal Government may, by notification in the official
Gazette, direct citizens of Pakistan resident in Pakistan, or
any class of such citizens, to make within such time, and giving
such particulars, as may be specified in the notification, a return
of any immovable property or any industrial or commercial undertaking
or company outside Pakistan, held, owned, established or controlled
by them or in which they have any right, title or interest.
(2)
The Federal Government may by order in writing require
any person to furnish it or any person specified in the order
with any information, book or other document in his possession,
being information, book or document which the Federal Government
considers it necessary or expedient to obtain and examine for
the purposes of this Act and may, at any time, by notification
in the official Gazette, direct that the power to make such order
shall for such period as may be specified in the direction, be
exercised by the State Bank.
(3)
On a representation in writing made by a person authorised
in this behalf by the Federal Government or the State Bank and
supported by statement on oath of such person that he has reason
to believe that a contravention of any of the Provisions of this
Act has been or is being or is about to be committed in any place
or that evidence of the contravention is to be found in such place,
a district magistrate, a sub-divisional magistrate or a magistrate
of the first class, may, by warrant, authorize any police officer
not below the rank of sub-inspector.
(a)
to enter and search any place in the manner specified in
the warrant; and
(b)
seize any books or other documents found in or on such
place.
Explanation.—In
this sub-section, "place" includes a house, building,
tent, vehicle, vessel or aircraft.
(3A)
A police officer authorized under sub-section (3) may search
any person who is found in or whom he has reasonable ground to
believe to have recently left or to be about to enter such place
and to seize any article found in the possession of or upon such
person and believed by the police officer so authorized to be
evidence of the commission of any offence under this Act.
(3B)
A police officer authorized under sub-section (3) shall
conduct any search under that sub-section or under sub-section
(3A) in accordance with the provision relating to search in the
Code of Criminal Procedure, 1898.
(4)
The provisions of Section 122 and Sub-sections (1), (2)
and (3) of Section 150 of the Income Tax Ordinance (XXXI of 1979),
shall apply in relation to information obtained under Sub-section
(2) of this Section as they apply to the particulars referred
to in that Section and for the purposes of such applications.
(a)
the said sub-section (3) shall be construed as if in clause
(a) thereof there was included reference to a prosecution for
an offense under section 23 of this Act, and
(b)
persons to whom any information is required to be furnished
under an order made under sub-section (2) of this section shall
be deemed to be public servants within the meaning of that section.
19A.
Power to enter and inspect.—
(1)
Without prejudice to the provisions of section 19, any
person authorized in writing by the Federal Government or the
State Bank or any adjudicating officer in this behalf may, for
the purpose of making an inquiry or adjudication proceedings which
he considers necessary for the purposes of this Act, enter any
place and call for and inspect any accounts, books or other documents
kept in such place.
(2)
No person shall obstruct or hinder any person in the exercise
of his powers under sub-section (1).
20.
Supplemental provisions.
(1)
For the purposes of this Act and of any rules, directions
or orders made thereunder—
(a)
until the State Bank by general or special order otherwise
directs, any person who has at any time after the commencement
of this Act been resident in Pakistan shall be treated as still
being resident in Pakistan and if such direction is given in relation
to any such person the State Bank may by the same or a subsequent
direction, declare the territory in which he shall be treated
as being resident;
(b)
in the case of any person to whom clause (a) does not apply
the State Bank may by general or special order declare the territory
in which he shall be treated as being resident;
(c)
in the case of any person resident in Pakistan who leaves
Pakistan, the State Bank may give a direction to any bank that
until the direction is revoked, any sum from time to time standing
to the credit of that person and any security held on his behalf
at any office or branch of that bank in Pakistan specified in
the direction, shall not be dealt with except with the permission
of the State Bank;
(d)
any transactions with a branch of any business, whether
carried on by a body corporate or otherwise, shall be treated
in all respects as if the branch were a body corporate resident
where the branch is situated;
(e)
the making of any book entry or other statement recording
a debit against a branch of any business in favour of the head
office or any other branch of that business shall be treated as
the acknowledgement of a debt whereby a right is created in favour
of a person resident where the head office or other branch is
situated.
(2)
Nothing in this Act relating to the payment of any price
or sum by the Federal Government shall be construed as requiring
the Federal Government to pay that price or sum otherwise than
in Pakistan currency or otherwise than in Pakistan.
(3)
The State Bank may give directions in regard to the making
of payments and the doing of other acts by bankers, authorized
dealers, travel agents, carriers, whether common or private, stock
brokers and other persons who are authorized by the State Bank
to do anything in pursuance of this Act in the course of their
business, as appear to it to be necessary or expedient for the
purpose of securing compliance with the provisions of this Act
and any rules, orders or directions made thereunder.
21.
Contracts in evasion of this Act.
(1)
No person shall enter into any contract or agreement which
would directly or indirectly evade or avoid in any way the operation
of any provision of this Act or of any rule, direction or order
made thereunder.
(2)
Any provision of, or having effect under, this Act that
a thing shall not be done without the permission of the Federal
Government or the State Bank, shall not render invalid any agreement
by any person to do that thing, if it is a term of the agreement
that that thing shall not be done unless permission is granted
by the Federal Government or the State Bank, as the case may be;
and it shall be an implied term of every contract governed by
the law of any part of Pakistan that anything agreed to be done
by any term of that contract which is prohibited to be done by
or under any of the provisions of this Act except with the permission
of the Federal Government or the State Bank, shall not be done
unless such permission is granted.
(3)
Neither the provisions of this Act nor any term (whether
expressed or implied) contained in any contract that anything
for which the permission of the Federal Government or the State
Bank is required by the said provisions shall not be done without
that permission, shall prevent legal proceedings being brought
in Pakistan to recover any sum which, apart from the said provisions
and any such term, would be due, whether as a debt, damages or
otherwise, but –
(a)
the said provisions shall apply to sums, required to be
paid by any judgement or order of any Court as they apply in relation
to other sums; and
(b)
no steps shall be taken for the purpose of enforcing any
judgement or order for the payment of any sum to which the said
provisions apply except as respects so much thereof as the Federal
Government or the State Bank, as the case may be, may permit to
be paid; and
(c)
for the purpose of considering whether or not to grant
such permission, the Federal Government or the State Bank, as
the case may be, may require the person entitled to the benefit
of the judgement or order and the debtor under the judgement or
order, to produce such documents and to give such information
as may be specified in the requirement.
(4)
Notwithstanding anything in the Negotiable Instruments
Act, 1881, neither the provisions of this Act or of any rule,
direction or order made thereunder, nor any condition, whether
express or to be implied having regard to those provisions, that
any payment shall not be made without permission under this Act,
shall be deemed to prevent any instrument being a bill of exchange
or promissory note.
22.
False statements.
No
person shall, when complying with any order or direction under
section 19 or when making any application or declaration to any
authority or person for any purpose under this Act, give any information
or make any statement which he knows or has reasonable cause to
believe to be false, or not true, in any material particular.
23.
Penalty and procedure.
(l)
Whoever contravenes, attempts to contravene or abets the
contravention of any of the provisions of this Act or of any rule,
direction or order made thereunder other than the provisions of
sub-sections (2), (3) and (5) of section 3, sub-section (3) of
section 4, section 10, sub-section (1) of section 12 and sub-section
(3) of section 20 or any rule, direction or order made thereunder
shall notwithstanding anything contained in the Code of Criminal
Procedure, 1898, be tried by a Tribunal constituted by Section
23A, and shall be punishable with imprisonment for a term which
may extend to two years or with fine or with both, and any such
Tribunal trying any such contravention may, if it thinks fit,
and in addition to any sentence which it may impose for such contravention,
direct that any currency, security, gold or silver, or goods or
other property in respect of which the contravention has taken
place shall be confiscated.
(2)
Notwithstanding anything contained in the Code of Criminal
Procedure, 1898, any offense punishable under this section shall
be cognizable and nonbailable for such period as the Federal Government
may from time to time, by notification in the official Gazette,
declare.
(3)
A Tribunal shall not take cognizance of any offence punishable
under this section and not declared by the Federal Government
under the preceding sub-section to be cognizable for the time
being or of an offence punishable under Sections 122 and 150 of
the Income Tax Ordinance, 1979 (XXXI of 1979), as applied by Section
19, except upon complaint in writing made by a person authorised
by the Federal Government or the State Bank in this behalf.
Provided that where any such offence is the contravention
of any of the provisions of this Act or any rule, direction or
order made thereunder which prohibits the doing of an act without
permission and is not declared by the Federal Government under
the preceding sub-section to be cognizable for the time being,
no such complaint shall be made unless the person accused of the
offence has been given an opportunity of showing that he had such
permission.
(3A)
A person authorized under sub-section (3) to make a complaint
in writing shall, if he is not already a public servant within
the meaning of section 21 of the Pakistan Penal Code (Act XLV
of 1860), be deemed to be a public servant within the meaning
of that section.
(4)
Where the person guilty of an offense this Act is a company
or other body corporate every director, manager, secretary and
other officer thereof who is knowingly a party to the offence
shall also be guilty of the same offense and liable to the same
punishment.
23A.
Tribunal, its powers etc.
(1)
Every Sessions Judge shall, for the areas within the territorial
limits of his jurisdiction, be a Tribunal for trial of an offence
punishable under section 23.
(2)
A Tribunal may transfer any case for trial to an Additional
Sessions Judge within its jurisdiction who shall, for trying a
case so transferred, be deemed to be a Tribunal constituted for
the purpose.
(3)
A Tribunal shall have all the powers of a Magistrate of
the First Class in relation to criminal trials, and shall follow
as nearly as may be the procedure provided in the Code of Criminal
Procedure, 1898, for trials before such Magistrate, and shall
also have powers as provided in the said Code in respect of the
following matters, namely:
(a)
directing the arrest of the accused;
(b)
issuing search warrants;
(c)
ordering the police to investigate any offence and report;
(d)
authorizing detention of a person during police investigation;
(e)
ordering the release of the accused on bail.
(3A)
For the purposes of sub-section (3), the Code of Criminal
Procedure, 1898 (Act V of 1898), shall have effect as if an offence
under this Act were one of the offences referred to in sub-section
(1) of section 337 of the Code.
(4)
All proceedings before a Tribunal shall be deemed to be
a judicial proceeding within the meaning of sections 193 and 228
of the Pakistan Penal Code, and for the purposes of section 196
thereof, and the provisions relating to the execution of orders
and sentences in the Code of Criminal Procedure, 1898, shall,
so far as may be, apply to orders and sentences passed by a Tribunal.
(5)
As regards sentences of fine, the powers of a Tribunal
shall be as extensive as those of a Court of Session.
(6)
The State Bank of Pakistan or any other person aggrieved
by a judgement of a Tribunal may, within three months from the
date of the judgement, appeal to the High Court.
(7)
Save as provided in the preceding sub-section, all judgements
and orders passed by a Tribunal shall be final.
23B.
Authorisation of Adjudicating officers and their powers
etc.
Authorisation
of Adjudicating officers and their powers etc.—(1) The Federal
Government may, by notification in the official Gazette, authorise
in relation to any area specified in the notification any officer
of the State Bank to act as the Director of Adjudication, an Additional
Director of Adjudication, a Senior Deputy Director of Adjudication,
a Deputy Director of Adjudication and an Assistant Director of
Adjudication (in this Act referred to as the Adjudicating Officer).
(2)
Subject to such conditions and limitations as the Federal
Government may impose, an Adjudicating Officer may exercise the
powers and discharge the duties conferred or imposed on him by
this Act and shall also be competent to exercise the powers and
discharge the duties conferred upon any Adjudicating Officer subordinate
to him:
Provided
that, notwithstanding anything contained in this Act or the rules
made thereunder, the State Bank may, by general or special order,
impose such conditions or limitations on the exercise of such
powers or discharge of such duties as it thinks fit.
(3)
The State Bank may, by notification in the official Gazette,
and subject to such limitations or conditions, if any, as may
be specified therein, empower.
(a)
any Additional Director of Adjudication or Senior Deputy
Director of Adjudication or Deputy Director of Adjudication or
Assistant Director of Adjudication to exercise the powers of the
Director of Adjudication under this Act;
(b)
any Senior Deputy Director of Adjudication or Deputy Director
of Adjudication or Assistant Director of Adjudication to exercise
any of the powers of an Additional Director of Adjudication under
this Act;
(c)
any Deputy Director of Adjudication or Assistant Director
of Adjudication to exercise any of the powers of a Senior Deputy
Director of Adjudication under this Act; and
(d)
any Assistant Director of Adjudication to exercise the
powers of a Deputy Director of Adjudication under this Act.
(4)
Save as provided in sub-sections (5) and (6), if any person
contravenes or attempts to contravene or abets the contravention
of the provisions of sub-sections (2), (3) and (5) of section
3, sub-section (3) of section 4, section 10, sub-section (1) of
section 12 or sub-section (3) of section 20 or any rule, direction
or order made thereunder, he shall be liable to such penalty not
exceeding five times the amount or value involved in such contravention
or five thousand rupees, whichever is more, as may be adjudged
by the Director or Additional Director of Adjudication or any
other Adjudicating Officer having jurisdiction under sub-section
(8) to take cognizance of such contravention, and, if he persists
in such contravention, or where the contravention or default is
a continuing one, to a further penalty which may extend to two
thousand rupees for every day during which the offence or, as
the case may be, the contravention or default continues.
(5)
If any authorised dealer.
(a)
In any return or other document or declaration or in any
information required or furnished by or under, or for the purpose
of, any provision of this Act, willfully makes a statement or
permits the making of a statement which is false in any material
particular, knowing it to be false or not true, or willfully omits
to make a material statement; or
(b)
fails to submit or furnish any return, statement, declaration
or other document or information required to be furnished by or
under, or for the purpose of, any provision of this Act in the
form and by the date prescribed by the State Bank for the time
being without sufficient cause;
he shall be liable to a penalty not exceeding five thousand
rupees and, where the contravention or default is a continuing
one, with a further penalty which may extend to two thousand rupees
for every day during which such contravention or default continues.
(6)
If any authorised dealer sells foreign exchange to a person
not entitled to buy such foreign exchange or sells foreign exchange
in an amount exceeding the limit, or otherwise than for the purpose,
permitted by the State Bank either generally or in a particular
case in pursuance of the powers conferred on it under this Act,
he shall be liable to a penalty not exceeding five times the amount
or value of the foreign exchange so sold, and where the penalty
so imposed is not paid within three days from the date of the
order of the Adjudicating Officer, he shall, unless the penalty
has meanwhile been recovered from him under section 23J, be liable
to a further penalty not being less than the amount or value of
the foreign exchange as aforesaid for every day during which such
default continues.
(7)
For the purpose of this section, amount or value shall
mean.
(a)
in the case of foreign exchange, the Pakistan rupee equivalent
of the same calculated at the rate of exchange authorised by the
State Bank as on the date on which an opportunity of making a
representation is given under sub-section (9) or where no such
rate has been authorised, the rate determined by the State Bank
on the said date;
(b)
in the case of goods, their value in rupees if declared
in Pakistan currency or where it is expressed in foreign exchange
Pakistan rupee equivalent of the same calculated in accordance
with clause (a); and
(c)
in case of any right to receive foreign exchange or to
receive from any person resident outside Pakistan a payment in
rupees or gold or silver or security or other property of any
description, the sale proceeds which, taking all circumstances
into consideration, such right, gold, silver, security or other
property can, in the opinion of the Adjudicating Officer, fetch
on the date referred to in clause (a).
(8)
For imposing a penalty under sub-sections (4), (5) and
(6), the jurisdiction and powers of the Adjudicating Officers
shall be as follows: -
(a)
the Director of Adjudication and an Additional Director
of Adjudication may deal with all cases without any limit on the
amount or value involved in any contravention:
(b)
a Senior Deputy Director of Adjudication and a Deputy Director
of Adjudication may deal with a case where the amount or value
involved in any contravention on the date referred to in clause
(a) of sub-section (7) does not exceed twenty thousand rupees;
and
(c)
an Assistant Director of Adjudication may deal with a case
where the amount or value involved in any contravention on the
date referred to in clause (a) of sub-section (7) does not exceed
ten thousand rupees:
Provided
that the State Bank may, by notification in the official Gazette,
reduce or extend the jurisdiction and powers of any particular
Adjudicating Officer or class of Adjudicating Officers.
(9)
For the purpose of determining whether a person has contravened
any of the provisions of sub-section (4), (5) or (6), the Adjudicating
Officer shall hold an enquiry in the manner prescribed, if any,
after giving such person a reasonable opportunity for making a
representation in the matter and if, on such inquiry, he is satisfied
that the person has committed any contravention, he may impose
the penalty provided for in this section.
(10)
All doubts with regard to the jurisdiction of an Adjudicating
Officer shall be referred to the Director of Adjudication and
his decision thereon shall be final.
(11)
The Director of Adjudication, on his own motion or on the
application of any party to the adjudication proceedings and after
notice to the State Bank and other parties, if any, and after
hearing such of them as desire to be heard, may at any stage withdraw
any adjudication proceedings pending before any Adjudicating Officer
and adjudicate it either himself or transfer it to any other Adjudicating
Officer subordinate to him and competent to dispose of the same
or retransfer the same for adjudication to the Adjudicating Officer
from whom it was withdrawn; and the Director of Adjudicating or,
as the case may be, any other Adjudicating Officer or the Adjudicating
Officer, or if the Adjudicating Officer who is seized of the matter
as aforesaid vacates office for any reason and another person
is authorised to act in his stead such person, shall not, by reason
of the said withdrawal or transfer or retransfer or vacation of
office, as the case may be, be bound to recall and re-hear any
witness who has given evidence before the withdrawal or transfer
or re-transfer or vacation of office and may act on the evidence
already recorded by or produced before the Adjudicating Officer
from whom the proceedings are so transferred or re-transferred
or in whose stead he has been so authorised to act as Adjudicating
Officer.
(12)
Subject to provisions of appeal under section 23C, no Court
or other authority shall call, or permit to be called, in question
any proceeding or order of the Adjudicating Officer or the legality
or propriety of anything done or intended to be done by the Adjudicating
Officer under this Act.
23C.
Appeal to Appellate Board.-(1) The Federal Government may,
by notification in official Gazette, constitute as many appellate
boards, each to be called the Foreign Exchange Regulation Appellate
Board, as it may consider necessary, and where it establishes
more than one Appellate Board, shall specify in the notification
the territorial limits within which each one of them shall exercise
jurisdiction.
(2)
An Appellate Board shall consist of a person who is, or
has been or is qualified for appointment as a Judge of a High
Court or a District Judge or an Additional District Judge.
(3)
Any person aggrieved by any order of the Adjudicating Officer
made under sub-section (4) or sub-section (5) or sub-section (6)
of section 23B may, within thirty days of such order, prefer an
appeal to the Appellate Board within whose jurisdiction the order
is passed:
Provided that no appeal shall lie from an interlocutory
order which does not dispose of the entire case before the Adjudicating
Officer:
Provided further that the Appellate Board may entertain
an appeal after the expiry of the said period of thirty days but
not later than sixty days from the date of the aforesaid order
if it is satisfied that the appellant was prevented by sufficient
cause from filing the appeal in time.
Explanation.—For
the purposes of this sub-section, the expression "any person
aggrieved" shall include the Federal Government and the State
Bank.
(4)
No appeal shall be admitted for hearing unless the appellant
deposits in cash with the Appellate Board the amount of penalty
or, at the discretion of the Appellate Board, furnishes security
equal in value to such amount of penalty.
(5)
The Appellate Board may make such inquiry as it may consider
necessary, and after giving the appellant an opportunity of being
heard if he so desires, pass such order as it thinks fit, confirming,
altering or annulling the order appealed against:
Provided
that no order enhancing any penalty shall be passed unless the
person affected thereby has been given an opportunity of showing
cause against it and of being heard in person or through a counsel:
Provided further, that if the sum deposited by way of penalty
under sub-section (3) exceeds the amount directed to be paid by
the Appellate Board, the excess amount shall be refunded to the
appellant.
(6) The decision of the Appellate Board
shall be final and no court, tribunal or other authority shall
call, or permit to be called, in question any proceedings or order
of the Appellate Board or the legality or propriety of anything
done or intended to be done by the Appellate Board under this
Act.
23D.
Assistance to the Adjudicating Officers.—All officers
of the Federal Government or a Provincial Government, including
those of Customs, Federal Investigation Agency, Police, Pakistan
International Airlines, Local Authorities, Port Trust, and all
officers engaged in the collection of land revenue or taxes of
any description or employed by a corporation owned or controlled
by the Federal Government or a Provincial Government, either directly
or indirectly, are hereby empowered and required to assist the
Adjudicating Officers in the discharge of their functions under
this Act.
23E.
Powers of Adjudicating Officer and the Appellate Board
to summon witnesses, etc.
(1)
Without prejudice to any other provision contained in this
Act, the Adjudicating Officer and the Appellate Board shall have
all the powers of a civil court under the Code of Civil Procedure,
1908 (Act V of 1908) while trying a suit, in respect of the following
matters, namely:-
(a)
summoning and enforcing the attendance of any person and
examining him on oath;
(b)
requiring the discovery and production of any document;
(c)
requisitioning any public record or copy thereof from any
court or office;
(d)
receiving evidence on affidavits;
(e)
issuing commissions for the examination of witnesses or
documents;
(f)
appointing guardians or next friends of persons who are
minors or of unsound mind;
(g)
adding legal representatives of the accused person;
(h)
consolidation of cases; and
(i)
enforcing any order made by him or it under this Act or
the rules made thereunder.
23F.
Proceedings before Adjudicating Officer to be deemed to
be judicial proceedings.—All proceedings before an Adjudicating
Officer or Appellate Board shall be deemed to be judicial proceedings
within the meaning of sections 193 and 228 of the Pakistan Penal
Code (Act XLV of 1860), and an Adjudicating Officer and the Appellate
Board shall be deemed to be a Court for the purposes of sections
480 and 482 of the Code of Criminal Procedure, 1898 (Act V of
1898).
23G.
Continuance of proceedings in the event of death or insolvency.-(1)
Notwithstanding anything contained in any other law for the time
being in force, where a penalty has been imposed under section
23B on any person and no appeal against the order imposing such
penalty has been preferred, or where any such appeal has been
preferred and where in either case, such person dies or is adjudicated
an insolvent during the pendency of proceedings before the Adjudicating
Officer or the Appellate Board or before preferring an appeal,
it shall be lawful for the legal representative of such person
or the official assignee or the official receiver, as the case
may be, to prefer an appeal to the Appellate Board, or as the
case may be, to continue the proceeding or appeal before the Adjudicating
Officer or the Appellate Board and in either case any such proceedings
before the Adjudicating Officer or Appellate Board shall not abate
but be continued as if such person were not dead or adjudged as
insolvent.
(2)
The power of the official assignee or the official receiver
under sub-section (1) shall be exercised by him subject to the
provisions of the Insolvency (Karachi Division) Act, 1909 (III
of 1909), or the Provincial Insolvency Act, 1920 (V of 1920),
as the case may be.
23H.
Confiscation of currency, security, etc.—Any Adjudicating
Officer adjudging any contravention under section 23B may, if
he thinks fit, and in addition to any penalty which he may impose
for such contravention, direct that any currency, security or
any other money or property in respect of which the contravention
has taken place shall be confiscated to the Federal Government
and further direct that the foreign exchange, if any, of the person
committing the contravention or any part thereof shall be brought
into Pakistan or shall be retained outside Pakistan in accordance
with the directions made by the State Bank in this behalf.
Explanation.—For
the purposes of this section, property in respect of which contravention
has taken place shall include :
(a)
deposits in a bank, where the said property is converted
into such deposits;
(b)
Pakistan currency, where the said property is converted
into that currency; and
(c)
any other property which has resulted out of conversion
of that property.
23I.
Correction of clerical errors, etc.—Clerical mistakes
in any decision or order passed by the Appellate Board or Adjudicating
Officer under this Act, or any errors arising therein from any
accidental slip or omission may, at any time, be corrected by
the Appellate Board or the Adjudicating Officer or his successor-in-office,
as the case may be:
Provided
that, where any correction proposed to be made under this section
will have the result of prejudicially affecting any person, no
such correction shall be made.
(i)
after the
expiry of two years from the date of such decision or order; and
(ii)
unless
the person affected thereby is given a reasonable opportunity
of making a representation in the matter.
23J.
Recovery of sums due to Government.—(1) Where any
penalty imposed on any person under this Act is not paid:
(i)
the Adjudicating
Officer may deduct, or direct the deduction of, the amount so
payable from any money which is owed to such person, and which
may be under the custody, power or control of an Adjudicating
Officer or any other person; or
(ii)
the Adjudicating
Officer may recover the amount so payable by detaining or selling,
or ordering the detention and sale of, any goods belonging to
such person which are under the custody, power or control of any
Adjudicating Officer or any other person; or
(iii)
in case the penalty
is payable by an authorised dealer, the State Bank may, without
further reference to him, recover the amount of penalty from him
by debiting the account or accounts then held or held at any time
thereafter with the State Bank by the authorised dealer; or
(iv)
if the amount
cannot be recovered from such person in the manner provided in
clause (i) or clause (ii) or clause (iii), the Adjudicating Officer
may prepare and sign a certificate specifying the amount due from
such person and send it to the Collector of the District in which
such person owns any property or resides or carries on business;
and the Collector on receipt of such certificate shall proceed
to recover from the said person the amount specified in the certificate
as if it were an arrear of land revenue.
(2)
When any bond or other instrument or security is executed
pursuant to section 23C, the amount due there-under may, without
prejudice to any other mode of recovery, be recovered in accordance
with the provisions of sub-section (1).
(3)
The several modes of recovery specified in sub-section
(i) shall not effect in any way:-
(i)
any other law for the time being in force relating to the
recovery of debts due to the Government; or
(ii)
the right of the government to institute a suit for the
recovery of the penalty due to the Government; and it shall be
lawful for the Government to have recourse to any such law or
suit notwithstanding that the amount is being or is to be recovered
by any mode specified in the said sub-section.
(4)
For the purposes of this section the expression "any
other person" appearing in clauses (i) and (ii) of sub-section
(1) shall include the State Bank, a banking company as defined
in clause (c) of section 5 of the Banking Companies Ordinance,
1962 (LVII of 1962), a bank established by or under any Federal
or Provincial law and any financial institution as defined in
clause (15A) of section 2 of the Companies Ordinance, 1984 (XLVII
of 1984), and such other person as the Federal Government may,
by notification in the official Gazette, specify in this behalf.
24.
Burden of proof in Certain Cases.
(1)
Where any person is tried for contravening any provision
of this Act or of any rule, direction or order made thereunder
which prohibits him from doing an act without permission, the
burden of proving that he had the requisite permission shall be
on him.
(2)
If in a case in which the proof of complicity of a person
resident in Pakistan with a person outside Pakistan is essential
to prove an offence under this Act, then after proof of the circumstances
otherwise sufficient to establish the commission of the offence,
it shall be presumed that there was such complicity, and the burden
of proving that there was no such complicity shall be on the person
accused of the offence.
(3)
Where the person accused of having made any payment in
contravention of clause (c) of sub-section (1) of Section 5 is
proved to have received from any person outside Pakistan a message
which raises a reasonable suspicion that it relates to certain
payment to be made, the Tribunal may in the absence of proof to
the contrary by the accused person presume that he had made such
payment in pursuance of such message.
(4)
If, after the issue of a notification under clause (a)
of section 9, any person is found to be in possession of, or to
have under his control, any foreign exchange specified in the
notification, in circumstances which tend to raise a reasonable
suspicion that he has contravened the notification, he shall be
presumed to have contravened the notification unless he can, by
proving the time when and the manner in which the foreign exchange
came into his possession or under his control, show that he had
not in fact contravened the notification.
25. Power to Federal Government to give directions.
For
the purposes of this Act the Federal Government may from time
to time give to the State Bank such general or special directions
as it thinks fit, and the State Bank shall, in the exercise of
its functions under this Act, comply with any such directions.
26. Bar of legal proceedings.
No
suit, prosecution or any other proceeding shall lie against the
Federal Government or the State Bank or any officer of the Federal
Government or of the State Bank or any other person exercising
any power or discharging any functions or performing any duties
under this Act, for anything in good faith done or intended to
be done or purported to be done under this Act or any rule, direction
or order made thereunder.
27.
Power to make rules.
The Federal Government may, by notification in the official
Gazette, make rules for carrying into effect the provisions of
this Act.