State Bank of Pakistan (SBP) has decided to launch a new type of foreign currency account called Foreign Currency Commercial Value Account (FCBVA) to assist business companies formed overseas with majority ownership of non-resident Pakistanis.
These entities may be Corporations, Associations, Foundations, Limited Liability Partnerships (LLPs), Societies, Trusts, Waqfs, and/or other legal organizations with comparable legal structures. Exceptions will be made for single proprietorships and unregistered partnerships.
According to a circular published by the SBP, Authorized Dealers (ADs) might establish FCBVA accounts for legal organizations formed or registered overseas and primarily owned and/or managed by Non-Resident Pakistanis and/or non-resident Pakistan Origin Card holders (51 percent or more).
ADs or banks might permit FCBVA transactions through electronic channels in addition to traditional methods. ADs may also provide checkbooks if approved account operators so request.
Ads would also be needed to give online, real-time Foreign Currency to Pakistan Rupee conversions in response to an electronic request from the authorized account operator for qualifying debits from the account. For the purpose of openness, the ADs are required to provide the appropriate currency rate.
Ads would also be needed to design a method for digitally reactivating the account if FCBVA becomes inactive due to non-use. In addition, they would be responsible for monitoring FCBVAs for the prevention of Money Laundering and/or Terror Financing.
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