REMITTANCES BY HAJJ GROUP ORGANIZERS FOR HAJJ-2014
FE Circular No. 1 of 2014 July 28, 2014
It has been decided to allow the Authorized Dealers (ADs) to remit foreign exchange (Saudi Riyals) on behalf of the Hajj Group Organizers having been allocated quota under the Private Hajj Scheme for Hajj-2014 by the Ministry of Religious Affairs (referred as ‘enlisted HGO’ hereafter) subject to terms and conditions mentioned below. The list of enlisted HGOs is attached as Annexure-I.
2. The Authorized Dealers, on being approached, shall open a new PKR Account in the name of enlisted HGO (referred hereunder as ‘designated account in Pakistan’) specifically for the purpose of Hajj related remittances to Saudi Arabia subject to the following;
- While opening and operating these accounts, ADs are advised to strictly follow SBP KYC/AML guidelines and ensure compliance of all related rules and regulations issued from time to time. They shall obtain all necessary documents from the concerned enlisted HGO including authenticated copies of quota allocation letters from the Ministry of Religious Affairs (MORA).
- The bank account of the enlisted HGO shall be opened in its official name with the addition of words “for Hajj 2014” in the title of the said account.
- For the purposes of effecting Hajj 2014 related remittances to Saudi Arabia, each enlisted HGO is permitted to maintain only one account with the AD of its choice. In this respect, before opening the account, ADs shall obtain an undertaking from the enlisted HGO that it is not maintaining such account with any of the other ADs or any other branch of the same AD.
3. The attention of Authorised Dealers is also invited towards Hajj Policy 2014 issued by Saudi Authorities which, inter alia, makes it mandatory for each enlisted HGO to open a Saudi Riyal account in any of the specified banks in Saudi Arabia. The list of banks so specified is attached at Annexure II.
The other requirements for opening and operations of these accounts are as under;
- Each enlisted HGO is required to submit to the concerned bank in Saudi Arabia, a recommendation letter from its designated bank in Pakistan.
- The enlisted HGOs shall open bank accounts in Saudi Arabia only for the Hajj season ending on 1 st Moharram 1436 A.H and for the purposes of expenses of housing, catering, transportation, guides and subsistence requirements, which must be expressly indicated in the agreement of opening the account.
- The bank accounts of enlisted HGOs in Saudi Arabia shall only be fed through remittance made from the designated bank in Pakistan.
- The accounts shall be closed on or before 1 st Moharram 1436 A.H and the balances will be transferred to the designated bank of each enlisted HGO in Pakistan.
4. With respect to the operations of the designated accounts of enlisted HGOs in Pakistan opened in terms of para (2) above, the ADs will ensure observance of the following instructions;
- The only permissible deposits shall be the PKR funds received from intending pilgrims by the HGO. The ADs shall obtain the list of intending pilgrims from concerned HGOs minimum containing the below-mentioned details about the intending pilgrims;
- Name, address and contact details
- Passport No.
- HGO Hajj Package opted
- No cash withdrawals shall be permissible.
- ADs shall allow remittances from interbank against the PKR funds collected by HGOs in terms of 4 (a) above, subject to the following;
- The remittances shall only be destined to the specified bank account of concerned HGO in Saudi Arabia maintained in terms of para (3) above.
- The remittances shall only be made for the purposes of expenses of housing, catering, transportation, guides and subsistence requirements of intending pilgrims performing Hajj from the quota allocated to the concerned HGO against duly authenticated underlying contracts with service providers in Saudi Arabia.
- In case, any HGO is not in a position to provide authenticated copies of the contracts mentioned at (ii) above to the concerned AD before executing the transaction, AD shall obtain all necessary details about the transaction (s) involved and an undertaking (on non-judicial paper) from the concerned HGO that it will submit the same as and when finalized with the service provider (s) in Saudi Arabia. However, from regulatory perspective, it will be the responsibility of concerned AD to ensure receipt of the underlying contracts.
- The HGOs shall provide per pilgrim per service foreign exchange requirements to ADs for the services mentioned in (ii) above in terms of related package. ADs shall make remittances for such services after due verification keeping in view the total quota allocated to the concerned HGO under the Private Hajj Scheme for Hajj-2014. However, in any case, the total per pilgrim remittances to the bank account of enlisted HGO in Saudi Arabia should not be more than 60% of the Hajj Package being offered to individual pilgrim.
- In case aggregate remittance against all services by an HGO on any given day exceeds US$ 100,000/-, the concerned HGO will approach this Department along with related details and Form ‘M’ through the concerned AD for prior approval.
- ADs shall report each remittance transaction executed on behalf of HGOs on the same day as per the format attached as Annexure III and submit at the email ID email@example.com
- It is mandatory for HGOs to close their bank accounts in Saudi Arabia on or before 1 st Moharram 1436 A.H and transfer the balances to the designated bank account of each enlisted HGO in Pakistan. In this respect;
- The ADs shall obtain authenticated documentary evidence from the HGOs to the effect that they have closed their bank accounts in Saudi Arabia.
- ADs shall ensure that they have received back the entire balances available in the bank accounts of HGOs in Saudi Arabia at the time of their closure and have credited the same after conversion into the designated PKR accounts of HGOs maintained with them.
- ADs shall close the accounts of HGOs on or before 1 st of Moharram, 1436 A.H. In case of repatriation of funds mentioned in (d) above being in pipeline, the accounts shall be closed latest by 7 th Moharram, 1436 A.H.
5. Authorized Dealers are advised to bring the above to the notice of all their constituents and ensure meticulous compliance.