Law allows monitoring of deposits, withdrawal from foreign currency accounts


KARACHI: The federal government has been empowered to monitor deposits and withdrawal from foreign currency account under the new law passed by the Parliament.
The parliament has approved amendments to Protection of Economic Reforms Act, 1992 through Finance Act, 2018.
According to amendments through the Finance Act, 2018: “―Provided that no cash shall be deposited in an account of a citizen of Pakistan, resident in Pakistan, unless the account holder is a filer as defined in the Income Tax Ordinance, 2001:
“Provided further that the federal government may make rules governing deposits in and withdrawals from the foreign currency accounts.”
In the Protection of Economic Reforms Act, 1992 (XII of 1992), the following further amendments shall be made, namely:-
(1) for section 3, the following shall be substituted, namely:—
3. Act to override other laws.— This Act shall have effect notwithstanding anything contained in the Foreign Currency Accounts (Protection) Ordinance, 2001 (L of 2001).;
(2) in section 4,-
(a) in sub-section (1), the words ―and shall not be required to make a foreign currency declaration at any stage nor shall any one be questioned in regard to the same‖ shall be omitted; and
(b) in sub-section (2),-
(i) in clause (f),-
(a) after the word ―dealer the expression ―, money changer or exchange company shall be inserted; and (b) for the full-stop at the end a semicolon shall be substituted; and
(ii) after clause (f), the following new clause shall be inserted, namely:-
―(g) cross border or inland movement of foreign currencies in cash exceeding US$ 10,000 or equivalent subject to such annual ceiling as may be prescribed by the State Bank of Pakistan.; and
(3) in section 5,-
(a) in sub-section (3), after the word ―accounts the words ―except as
otherwise required under the Foreign Exchange Regulation Act, 1947 (VII of 1947) or the Income Tax Ordinance, 2001 shall be inserted.