In order to facilitate overseas Pakistanis and foreign donors, the State Bank of Pakistan (SBP) has allowed the banks and exchange companies to receive foreign remittances on account of donations and charity through the home remittance channel with immediate effect.
With a view to facilitating the stakeholders in providing relief and rehabilitation support to the affectees of torrential rains and flash floods across Pakistan, banks are allowed to receive foreign remittances from Business to Customer (B2C) and Customer to Business (C2B) transactions through home remittance channel.
Banks can receive donations/charity received in designated Federal, Provincial, and Local Government bank accounts. Further, donations/charity received in bank accounts of NGOs/NPOs/Charities are permitted to receive contributions from abroad in accordance with applicable law and/ or policy.
Banks shall ensure foreign correspondent entities have a robust infrastructure and the capacity to comply with legal/regulatory requirements pertaining to AML/CFT, it added.
Payments from/to reputed and well-known foreign organizations/entities shall be accepted and processed by authorized dealers, banks and exchange companies.
Banks shall ensure screening of all sending/receiving persons/entities against relevant resolutions of the United Nations Security Council (UNSC), Schedules of Anti-Terrorism Act, 1997, etc.
All transactions shall be account credit only, which shall be disbursed in PKR only. Cash disbursement is not permissible for any of these transactions, added the central bank.
