SBP Introduces Improved Framework for Opening Freelancers’ Bank Accounts

To further facilitate the freelancers, the State Bank of Pakistan (SBP) has developed a comprehensive framework for opening and operating their bank accounts.

Under the framework, freelancers will be able to open an Exporters’ Special Foreign Currency Account (ESFCA) as defined in the Foreign Exchange Manual for retention of export proceeds concurrently with the corresponding primary PKR account, in-person or remotely through digital means.

All Freelancer Digital Accounts (FDA) opened so far, shall be considered to have been opened under this framework. The banks are advised to facilitate the onboarding of prospective freelancers under the attached framework.

These instructions will supersede other instructions pertaining to the Freelancer Digital Account (FDA) provided in the SBP’s Customers’ Digital Onboarding Framework issued vide BPRD Circular Letter 15 of 2022.

As per the updated framework for freelancer accounts, the bank has notified the following:

1. Eligible Customers-Freelancers	All individuals, resident in Pakistan, engaged in provision of any digital/online services, including IT and IT related services against which payments are received from outside Pakistan
2. Mode of Onboarding	In-person or remotely through digital means
3. Information required at the time of Account Opening	CNIC/ NICOP/ POC number Date of issuance of CNIC/ NICOP/ POC Full Name (as per identity document) Father/ Spouse Name Date of Birth Place of Birth Mother’s Maiden Name Phone Number (mobile number) Email Address Postal Address In the case of minors, the account will be opened with the guardian, and above information about the guardian will also be obtained in addition to the minor’s information
4. Declarations/ Consents required (to be made part of the account opening process)	Undertaking that the source of funds is freelance activities Undertaking to confirm beneficial ownership of funds/ controlling rights and other information provided during the opening of the account Foreign Account Tax Compliance Act (FATCA)/ Common Reporting Standard (CRS) Declaration, if required Acceptance of Terms and Conditions (T&Cs) of the account and consent to use the information/ documents provided for due diligence and supervisory functions
5. Documents required at the time of account opening	Scanned/ copy of original ID card (CNIC/ NICOP/ POC) or record of NADRA verification Live photo of the customer (only in case of digital onboarding) Signature (Wet/ Digital/ Electronic) or any other authentication method recommended by the bank
6. Verification, Risk Profiling and other features	After receiving the customer’s account opening request and required documents, the bank will carry out the required due diligence which includes: Biometric verification of customers including liveness check through NADRA (in-app or in-branch). In genuine cases, where biometric verification is not possible, the bank may utilize NADRA Verisys. Screening of the prospective customer against applicable sanctions regimes, to ensure that services are not provided to proscribed/designated individuals. In the case of digital onboarding, the following additional verification is required: Checking that the applicant is a human by deploying any mechanism (e.g. CAPTCHA) Verification of contact details through One Time Password received through cell phone, email, or callback In cases where biometric verification is not possible due to genuine reasons, verification of any two particulars of the customer from the information received through NADRA Verisys (such as mother’s maiden name, place of birth, etc., which are not available on identity document) may be conducted The bank shall ensure data/ privacy protection, safety, and security of information/documents through reliable IT security measures. Upon satisfactory completion of the requirements, 2 accounts (Exporters’ Special Foreign Currency Account-ESFCA as defined in the FE Manual and a primary PKR account) will be opened simultaneously and the customer will be informed, accordingly. Account may be opened with zero balance. Moreover, there shall be no maximum balance limit in the accounts. Maximum turn-around time (TAT) for the decision to open and activate or decline is 2 working days from the time the required documents/ information have been submitted/uploaded and verification completed. In case of decline, reasons should be recorded and communicated to the applicant in writing, preferably through digital means. Cash withdrawal shall only be done in PKR. FCY cash withdrawal from these accounts shall not be allowed in Pakistan. However, cash withdrawal outside Pakistan using debit card shall be allowed.
7. Ongoing Monitoring/ Due Diligence	After opening of account, as a part of ongoing monitoring and customer due diligence, banks may: seek additional information from customers based on their ongoing internal risk assessment and compliance framework carry out periodical re-profiling of the customers in accordance with their risk management framework including turnover in the account