SBP issues directives to banks

SBP issued directives to all banks to incline their operations to the newly issued Assets Declaration Ordinance 2019

KARACHI: The State Bank of Pakistan (SBP) on Wednesday issued directives to all banks to incline their operations to the newly issued Assets Declaration Ordinance 2019. In a notification to presidents and CEOs of all banks, the State Bank said that the ordinance has been promulgated with a view to providing for voluntary declaration of undisclosed assets, sales and expenditures, for the purpose of allowing the undocumented economy’s inclusion into the taxation system and economic revival and growth by encouraging a tax-compliant economy. In terms of Section 8 of the ordinance, the declaration made shall be valid if the foreign currency held in Pakistan declared under Section 3 is deposited into the declarant’s own foreign currency bank account at the time of declaration and is retained in such account till June 30, 2019. “It is clarified that notwithstanding any instructions to the contrary contained in the Foreign Exchange Manual, a declarant, including a non-filer, can deposit foreign currency in cash in one’s bank account under the ordinance,” the notification read. Similarly, the provision of Foreign Exchange Manual, Chapter 6, para 1(vi) regarding deposit of foreign currency notes in foreign currency accounts exceeding $10,000 in a single day, will not be applicable to such deposits made under the ADO.

Published in The Express Tribune, June 27^th, 2019.

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