ISLAMABAD: In a bid to stop money laundering, the federal government has issued rules pertaining to foreign currency accounts.
According to a document issued by the finance ministry, the rules have been based on the Protection of Economic Reforms Act 1992, under which “a foreign currency account of an individual may be credited with the remittances received from abroad through banking channel except payment for goods exported from Pakistan”.
“Other than this, payment for services rendered in or from Pakistan, proceeds of securities issued or sold to non-residents, and any foreign exchange borrowed from abroad under any general or special permission of the State Bank will also not be allowed.“
However, the new rules do allow people in foreign countries to send money to Pakistan in different ways, for example, a foreign currency account may be credited through transfer from another individual foreign currency account.
Under the rules, proceeds realised on account of profit, return, and principal amount of investment made in any foreign currency denominated or foreign currency linked scheme of Government of Pakistan may be credited into the account.
Furthermore, the State Bank may issue any general or special permission for credit to the account, documents state. A foreign currency account shall not be credited with any foreign exchange purchased from an authorized dealer, exchange company or money changer except as allowed by the State Bank through general or special permission under any law.
However, foreign currency brought in from abroad and duly declared at the point of entry into Pakistan with Pakistan Customs may be credited in the account and lastly the rules state that there shall be no restriction on cash withdrawals or transfers from the foreign currency account.