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CHAPTER
VIII
PRIVATE
NON-RESIDENT RUPEE ACCOUNTS
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General.
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Accounts
of United Nations and its Organizations.
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Joint
Accounts of Residents and Non-Residents.
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Opening
of New Non-Resident Accounts of Persons other than Banks.
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Accounts
of Foreign Nationals Resident in Pakistan - Form "Q.A.22".
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Form
"Q.A.22" not required from Non-Residents.
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Responsibility
of Authorised Dealers regarding irregular operations on Accounts.
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Operations
on Non-Resident Accounts of Persons, Firms and Companies other
than Banks.
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Disposal
of Forms A-7.
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Responsibility
for submitting Form A-7 - Credits to Private Non-resident
Accounts.
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Responsibility
for submitting Form A-7 - Debits to Non-resident Accounts.
1.
General.
(i)
Accounts of individuals, firms or companies resident in countries
outside Pakistan are designated as non-resident accounts. Also
under the State Bank's Notification
No.FE1/63-SB dated the 14th October, 1963 issued in pursuance
of Section 20(I) (a) of the Act, all nationals of Pakistan and
persons domiciled in Pakistan except persons holding office in
the service of Pakistan, who go out of Pakistan for any purpose
viz., employment, study, business tour, pleasure trip etc., are
treated as non-resident for the purpose of Section 5 of the Act,
for so long as they remain outside Pakistan. Accordingly their
accounts are also treated as non-resident accounts. All such accounts
are regarded for the purpose of Foreign Exchange regulations as
accounts of countries in which the account holder is residing.
(ii)
Non-resident accounts can, therefore, be grouped in the following
categories:
(a)
Non-resident accounts of Pakistan nationals permanently
residing and domiciled abroad.
(b)
Non-resident accounts of Pakistan nationals who are abroad
for short visits.
(c) Non-resident accounts of foreign nationals residing abroad.
(d) Non-resident accounts of foreign nationals ordinarily resident in Pakistan
but gone abroad for short visits.
(iii)
Authorised Dealers should mark the accounts of all non-resident
persons, firms or companies in their books as non-resident accounts
and also indicate clearly the country of their residence. All
non-resident accounts should be maintained in a separate ledger.
Similarly new non-resident accounts, as also those designated
as non-resident accounts consequent upon the account holders being
out of Pakistan, will be maintained in the Non-resident Accounts
ledger. As and when non-resident accounts are re-designated as
resident accounts, the same should be taken out of the Non-resident
Accounts ledger.
(iv)
Non-resident accounts of the categories mentioned in sub-para
(ii) shall be treated as resident on account holder's permanent
return or his temporary visit to Pakistan for which permission
of the State Bank is not necessary and there shall be no restriction
on the account holders' operating these accounts so long as such
account holders are resident in Pakistan.
(v)
Where any doubt exists whether any account is to be treated as
non-resident, an immediate reference should be made to the State
Bank for a decision giving full particulars.
(vi)
Authorised Dealers may transfer amounts to and from such accounts
only in accordance with the regulations laid down in this chapter.
2.
Accounts of United Nations and its Organizations.
In
terms of Section 5 of Article-II of the Schedule appended to the
United Nations (Privileges and Immunities) Act, 1948 the accounts
of United Nations and its organizations are free from financial
controls. Authorised Dealers should, therefore, treat such accounts
maintained with them as "Resident Accounts".
3. Joint Accounts of Residents and
Non-Residents.
There
is no bar on non-residents maintaining accounts jointly with residents.
These accounts should be treated as non-resident accounts irrespective
of the fact whether the accounts are to be operated solely or
jointly by the residents.
4.
Opening of New Non-Resident Accounts of Persons other than
Banks.
New
non-resident accounts in the names of persons or firms or companies
other than banks may be opened without the prior approval of the
State Bank where accounts are to be opened with funds received
from abroad through banking channel or with Rupee funds which
have been accepted by the State Bank for remittance abroad. Reference
of the Monthly Exchange Returns or the State Bank approval number,
as the case may be, should be quoted in the relevant form A-7
covering the credit.
5.
Accounts of Foreign Nationals Resident in Pakistan – Form
“Q.A.22”.
The
accounts of all foreign nationals who are resident in Pakistan
and the accounts of companies or firms (other than banks) whose
head offices or controlling interests are outside Pakistan but
the accounts are operated on by persons in Pakistan may be treated
as resident accounts. The account holders or persons in Pakistan
authorised to operate on such accounts must sign form "Q.A.22"
(Appendix V-6). Form "Q.A.22" should be obtained by
the Authorised Dealers in duplicate and a copy thereof forwarded
to the State Bank for record as and when the account is opened.
Prior approval of the State Bank for opening such accounts is
not necessary. However, in cases where such accounts are desired
to be opened with a bank which is not an Authorised Dealer, prior
approval of the State Bank will be necessary. Form "Q.A.22"
is an undertaking that the signatory will not provide any foreign
currency against reimbursement in Rupees and that any transaction
on the account not directly connected with the signatory's business
in Pakistan will be reported to the State Bank on form A-7. Declaration
on form "Q.A.22" should not be taken from members of
foreign embassies, legations, consulates and accredited representatives
of foreign governments in Pakistan.
6.
Form “Q.A.22” not required from Non-Residents.
In
the case of non-resident accounts, declaration on form "Q.A.22"
is not necessary.
Notwithstanding
the fact that a constituent has signed form "Q.A.22"
the Authorised Dealer must take all reasonable steps to ensure
that the constituent is not making foreign exchange available
to any person in Pakistan other than an Authorised Dealer against
reimbursement in Rupees or is not by any other means contravening
the provisions of the Act. It shall be the responsibility of the
Authorised Dealers to bring to the notice of the State Bank immediately
any such irregularities detected by them.
(i)
Unless it is prescribed otherwise by the State Bank in respect
of any particular Rupee non-resident account of persons, firms
and companies other than banks, all operations on such accounts
shall be governed by the rules set out below.
Authorised Dealers may, therefore, raise debits and afford
credits to non-resident accounts accordingly. The applicants will
be required to fill in Form A-7 (Appendix V-7) in respect of these
transactions:
(a)
Debits:
aa)
Payments on account of the account holder direct to the
institutions concerned in respect of insurance premium, club bills
or other payments of a regular nature provided the payments are
supported by bills and vouchers.
bb)
Government and Municipal dues provided payments are supported
by official claims and payments are made direct to the Government
or Municipal agencies.
cc)
Debits on account of disbursements in Pakistan limited
to the extent of the funds received from abroad through banking
channel.
dd)
Debits representing payments through cheques direct to
the carriers or the travel agents for travel within the country
by rail or air for self, wife, children and parents and for travel
abroad as approved in Chapter XVII.
ee)
Debits on account of purchase of shares of public limited
companies and/or securities of the Government of Pakistan, NIT
Units, Prize Bonds, Defence Savings Certificates etc., provided
such shares/securities etc., are purchased by the Authorised Dealers
themselves on behalf of the account holder on the basis of non-repatriation
of capital, dividend/interest etc., and registered at their Pakistan
address and also retained by the Authorised Dealers in their custody
on behalf of their constituent concerned so long as he resides
outside Pakistan. Sale proceeds of such investments and dividends/interest
etc., accruing thereon should be credited to the non-resident
account only.
ff)
Payments against bills for hotel expenses in Pakistan of
the family members of the account holder provided payment is being
made direct to the hotel by cheque. The concession is restricted
to hotels of the category of three stars and above only.
gg)
Cheques drawn in favour of his dependents resident in Pakistan
for maintenance.
hh)
Debits in reversal of previous credits.
ii)
Debits in respect of approved remittances in foreign exchange.
jj)
Payment of installments of loans direct to the financial
institution from whom the account holder had obtained loan.
(b)
Credits:
aa)
Receipts on account of salary, allowances, bonus, commission
etc., directly from the employers by cheque.
bb)
Dividend and interest income on investment in shares and
securities directly from the company by cheque.
cc)
Income from landed property and agricultural rent against
identity of the depositor.
dd)
Credits of remittances received from abroad through banking
channel.
ee)
Interest accrued on the amount lying in the non-resident
account.
ff)
Amounts representing the maturity proceeds/surrender/paid
up value of insurance policies and proceeds of the shares of the
public limited companies and/or securities of Government of Pakistan
purchased under sub para (a)(ee).
gg)
Refund of amounts previously debited or over-charged.
hh)
Sale proceeds of landed property as evidenced from the
registered sale deed.
All
other debits and credits require prior approval of the State Bank.
(ii)
While allowing operations on non-resident accounts in accordance
with the above instructions, the Authorised Dealers must satisfy
themselves that the credits/debits to the non-resident accounts
fall under any one of the exempted categories and are in fact
meant for the purpose declared by the applicant. Authorised Dealers
should take all possible precautions to ensure that the above
relaxation is not misused in any manner for evasion of any of
the provisions of the Act. It will be the responsibility of the
Authorised Dealers to ensure that payments from non-resident accounts
are allowed only in respect of genuine obligations in Pakistan
of the account holders while deposits represent genuine Rupee
receipts accruing to the account holders which are not intended
to set off payments effected abroad. Similarly while opening new
non-resident accounts, Authorised Dealers will ensure that the
Rupee funds with which the account is proposed to be opened, represent
receipts from abroad through banking channel or represent Rupee
funds which have been accepted by the State Bank for remittance
abroad. In cases of slightest doubt a reference should be made
to the State Bank for advice. If transactions passing through
a non-resident account are subsequently found to have been used
for compensatory deals, the Authorised Dealer maintaining the
account will be held responsible therefore.
9.
Disposal of Forms A-7.
Forms
A-7 in support of the transactions on non-resident accounts shall
be sent to the State Bank along with Schedule 'K' prescribed in
paragraph 7 of Chapter XXII of this Manual.
10.
Responsibility for submitting Form A-7 – Credits to Private
Non-resident Accounts.
In
the case of credits to a non-resident account, except when otherwise
prescribed, the receiving banker, i.e. the bank which credits
a non-resident account in its books is responsible for ensuring
that form A-7 has been completed or State Bank's approval obtained
where required, before crediting funds to private non-resident
accounts. In order that no difficulties arise on this score, the
following procedure is suggested for adoption by all banks. A
cheque or draft etc., received for the credit of a non-resident
account of a company, firm or person should be sent by the receiving
bank to the paying bank, stating that a non-resident account is
being credited and requesting in exchange a pay slip accompanied
by forms A-7 duly completed by the drawer or by the paying bank
on his behalf and where necessary, approved by the State Bank.
11. Responsibility
for submitting Form A-7 – Debits to Non-resident Accounts.
In
the case of debits to non-resident accounts cheques should be
returned by the paying banker with the remarks 'Non-resident account,
Form A-7 required'. The collecting bank will then arrange with
the customer, for whom the payment is drawn, to submit Form A-7
to the paying banker. |