Please refer to PSD Circular No.02 dated August 22, 2009 regarding payment and settlement of Home Remittance transactions under Pakistan Remittance Initiative (PRI) arrangement.

2. In order to ensure timely Inter-Bank domestic transfer of Home Remittances, under PRI arrangement, to the beneficiaries, it has been decided to allow the use of Message Type MT 102 in PRISM system free of charge and with no limit on minimum amount. However, payments other than home remittances sent using MT 102 will continue to be charged as per the existing rate structure.

3. Remitting banks shall ensure that:

a. For remittances received in Pakistan on a working day from 9AM till 3PM, the payment is transferred to the beneficiary bank via PRISM within two hours of the receipt of advice from abroad.

b. For remittances received in Pakistan after 3 PM till 9AM next working day, the payment shall be transferred to the beneficiary bank by 11AM via PRISM. In case of holiday, the same shall be credited on the next working day before 11AM.

4. After receiving funds via PRISM MT 102 Messages, beneficiary banks shall ensure that their customers’ accounts are credited within 2 hours.

5. In case of any discrepancy or dispute, the beneficiary bank shall inform the Remitting bank about the discrepancy, within two hours, preferably through PRISM MT 199 message. The remitting bank shall rectify the discrepancy by the next working day.

6. While preparing the MT 102 messages for transferring Remittances to the beneficiary bank, the Remitting bank will ensure the following:

a. Remittances related transactions need to be distinguished from the other MT 102 transactions, for which, the remitting banks will specify a code number ‘005’ in the fields ‘26T’ and ‘72’ of the message.

b. Wherever available, the remitting banks should specify beneficiary’s IBAN in the field ‘59’of the message.

7. Banks should take all necessary steps for implementation of the subject mechanism including, but not limited to:

a. Implement Straight-Through-Processing (STP) with the PRISM system for automating the process of crediting beneficiaries’ accounts in real-time.

b. Launch Awareness Campaigns for the use of IBAN in remittance-related messages for both, foreign tie-ups and customers to reduce transcription errors in payment messages. Such launches should be reported to Exchange Policy Department (EPD) of SBP.

8. Banks are advised to make necessary arrangements to comply with the instructions on priority basis by March 31, 2016. Thereafter, the existing mechanism, notified via PSD Circular No. 02 of 2009, will be discontinued and replaced by the new MT 102 based mechanism.

9. Banks shall maintain complete record of home remittance transactions transferred via PRISM MT 102 and submit a summary report as per the Annexure ‘A’ by the 3rd working day of the following month.

10. Banks shall ensure the compliance of all legal and regulatory guidelines including compliance of AML/ CFT and exchange regulations. However, all other instructions on the subject shall remain unchanged.

11. For any assistance, please contact PRISM Help Desk at [email protected] or Mr. Muhammad Ali, Joint Director at [email protected]

12. Please acknowledge receipt.

Encl: Annexure: ‘A’