KARACHI: The State Bank of Pakistan (SBP) on Wednesday introduced a separate category of foreign exchange (FX) accounts named as Foreign Currency Business Value Accounts (FCBVA).
These accounts are to facilitate business entities incorporated abroad with a majority shareholding of non-resident Pakistanis which include companies, associations, foundations, limited liability partnerships, societies, trusts, waqfs, and other similar legal agreements. Sole proprietors and unregistered partnerships, however, will not be able to operate such accounts.
As per a circular by the SBP, legal entities incorporated or registered abroad and a majority (51% or more) owned and/or controlled by non-resident Pakistanis and/or non-resident Pakistan origin card can open an FCBVA account through an authorized dealer (AD) or bank.
Banking operations for FCBVA can be through electronic channels in addition to conventional modes in practice. Account holders can also get a cheque book.
ADs, however, are required to provide online real-time convertibility from FX to PKR based on the request made by the account and also indicate the exchange rate applicable for each transaction. This can be done electronically for eligible debits.
ADs will also need to monitor such accounts for money laundering and/ or terrorist financing.