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SBP Mandates Account-to-Account Transfers for Foreign-Currency Deposits

The shift channels FX deposit sales through banks to improve traceability and AML controls.

Overview

  • Cash dollar sales for deposit have been curtailed, with exchange companies required to credit buyers’ FCY accounts instead of handing over cash.
  • Banks have been told not to pay cash dollars to customers lacking FCY accounts, moving such purchases onto banking rails.
  • Purchases above $500 now require a stated purpose, biometric verification, and supporting documents, with full paperwork for travel, study, or pilgrimage.
  • Market participants say bank-owned exchange outlets stand to gain while independent money changers face operational constraints under the new process.
  • Experts warn cheque-based settlements could slow access to funds, particularly for euros or pounds and cross-bank deposits that may take weeks to clear.