State Bank of Pakistan (SBP) has decided to introduce a separate category of foreign currency account named as Foreign Currency Business Value Account (FCBVA) in order to facilitate the business entities incorporated abroad with a majority shareholding of non-resident Pakistanis.
These entities could be Companies, Associations, Foundations, Limited liability partnerships (LLPs), Societies, Trusts, Waqfs and /or other similar legal arrangements. However, this will not include sole proprietorships or unregistered partnerships.
Authorized Dealers (ADs) could open FCBVA of the 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 holders, according to a circular issued by the SBP.
ADs or banks could allow operations in FCBVA through electronic channels besides conventional modes in practice. ADs may also issue chequebooks if required by the authorized account operators.
Ads would also be required to provide online real-time convertibility from Foreign Currency to PKR based on the request made by the authorized account operator electronically for the eligible debits from the account. For the sake of transparency, the ADs shall indicate the exchange rate applicable to the transaction.
Ads would also be required to devise a mechanism in case FCBVA becomes dormant due to non-operation for reactivating the account digitally. They would also be tasked to monitor FCBVAs for mitigating Money Laundering and/or Terror Financing risks.
