The Presidents/Chief Executives of
All Authorized Dealers in Foreign Exchange
Amendment in Instructions regarding Foreign Currency Value Account (FCVA)
Attention of Authorized Dealers (ADs) is invited to FE Circular No. 2 dated August 5, 2020.
2. In terms of Para 2 sub-para (i (a)) of the above Circular, “A non-resident individual Pakistani” is eligible to open a Foreign Currency Value Account (FCVA). It is clarified that an individual non-resident, holding Pakistan Origin Card (POC) is also eligible to open FCVA. Accordingly, the existing Para 2 sub-para (i (a)) of the above Circular has been replaced with the following:
“Individual non-resident Pakistani and non-resident holding Pakistan Origin Card (POC).”
Consequently, all the provisions of FE Circular 2 of 2020 applicable to individual non-resident Pakistani shall also be applicable to non-resident holding Pakistan Origin Card (POC).
3. Moreover, in terms of Para 7, Chapter 22 of the Foreign Exchange Manual, Authorized Dealers are required to report inward remittance transactions, except for family maintenance and exports, exceeding USD 10,000/- on Form “R” to SBP. In this regard, it is advised that instead of asking the customer to provide duly filled in Form ‘R’, the bank receiving remittances in FCVA exceeding USD 10,000, or equivalent thereof, may digitally obtain the information, required for filling Form “R”, from the customer/remitting bank, if not already available in the transaction detail, for the purpose of reporting of transactions to SBP.
4. All other instructions on the subject matter shall remain unchanged.
5. ADs are advised to bring the above instructions to the knowledge of all their constituents for meticulous compliance.