All Authorised Dealers
in Foreign Exchange
Pakistan
Hotels Association
Dear
Sirs/Madam,
Restricted
Authorisation to Deal in Foreign Currencies - Hotels
In
exercise of the powers conferred by Section 3 of Foreign
Exchange Regulation Act, 1947 (VII of 1947) and other instructions
issued from time to time in connection with issuance of
Authorised Money Changers’ licence, it has been decided
to issue the following new terms and conditions for grant
of Restricted Authorisation to 3, 4 & 5 Star Hotels
only.
1.
Application for grant of Restricted Authorisation by the
intending 3, 4 & 5 Star Hotels should be made to the
Director, Exchange Policy Department (EPD), State Bank of
Pakistan, Karachi through Pakistan Hotels Association (PHA),
who would ascertain the status of the hotel and forward
the application to EPD. The application should contain full
particulars like name and address of the hotel showing its
status, name and address of the proprietor/partners/directors
etc. The applicant for the grant of Restricted Authorisation
would also produce the following:
I.
Hotels’ activities under such Restricted Authorisation
would be restricted to purchase/encashment of foreign currency
notes, coins and travelers cheques (TCs) from the hotel
customers only.
II.
Hotels would surrender within a period of one-week, the
currency notes, coins, TCs received by them, to an Authorised
Dealer, against which proper encashment receipts and records
should be maintained.
III. Hotels shall not be allowed to remit such foreign currencies
or use the same for their own settlement purposes.
IV. Encashment of foreign currency / payments of bills etc.
by the customers should be supported by receipts/vouchers
for all transactions. Every receipt provided to the customer,
shall bear the name of hotel in printed form, date, nature
of payment i.e. currency dealt, exchange rate and signature
of the recipient. The hotels shall prominently display a
sign advising customers of the necessity of obtaining receipts
for all such payments in foreign currencies.
V. Hotels shall display at a prominent place over the payment
counter, rates of foreign currencies applicable to purchase,
daily in the format of Exchange Rate Chart (App.V-I of FE
Manual- 2002), and all deals must be carried out at the
rates specified in the Rate Chart.
VI. The counters of the hotels should be equipped with Electronic
Cash Register or any other suitable electronic device for
issuing serially numbered receipts against purchase of foreign
currencies from the customers.
VII. Hotels shall be bound by the rules and regulations
prescribed by the State Bank from time to time. Any deviation/violation
of such rules may result in penalty, suspension or cancellation
of authorisation.
VIII. All foreign currency purchases by the hotels will
be at their own risk and responsibility.
IX. Hotels shall maintain proper books of accounts and upon
State Bank directive, provide all data, information, books
of accounts and all related record of their foreign exchange
transactions.
X. All hotels holding Restricted Authorisation will also
submit a monthly statement of the purchase of foreign exchange
by 10th of subsequent month to the Director, EPD, State
Bank of Pakistan, Karachi.
XI. The State Bank shall have the powers to visit the premises,
inspect the records/ books of accounts of the hotels.
XII. “Restricted Authorisation” will initially
be granted for the period of three years (up to 30th June),
which may be renewed for a further period of three years
on request. The fee required to be deposited in this regard
shall be Rs. 20,000/- per location for initial or subsequent
renewals, which should be submitted through pay order/draft
in favor of State Bank.
XIII. Application for renewal of Restricted Authorisation
should be made to the Director, EPD, State Bank of Pakistan,
Karachi, through PHA, at least one month before the expiry,
enclosing original authorisation.
XIV. Any change in the authorized hotel’s constitution,
its ownership or directors will immediately be intimated
to the Director, EPD, State Bank of Pakistan, Karachi.
XV. State Bank reserves the right to grant or refuse to
grant the Restricted Authorisation or renewal thereof.