Central bank simplifies inheritance remittance process for foreign legal heirs
KARACHI – State Bank of Pakistan (SBP) has issued revised instructions regarding the distribution and remittance of assets belonging to deceased persons to legal heirs residing abroad.
The central bank announced amendments to Para 3 of Chapter 16 of the Foreign Exchange Manual to facilitate non-resident legal heirs seeking transfer of inherited assets and funds outside Pakistan.
SBP revises foreign exchange rules for inheritance cases
According to the SBP, the revised framework has been introduced in light of the enhanced role of the National Database and Registration Authority (NADRA), which is now authorized to issue Letters of Administration and Succession Certificates.
The updated instructions aim to simplify procedures for overseas heirs while ensuring proper legal documentation and compliance with foreign exchange regulations.
Documents required for remittance of inherited assets
Under the amended rules, applications for remittance of legacies and other distributions from the estate of deceased persons to beneficiaries living outside Pakistan must still be referred to the SBP for approval.
The applications must include several supporting documents and details, including:
• Name, nationality, and place of residence of the deceased at the time of death
• Duration of residence in Pakistan, if applicable
• Copies of relevant clauses of the will after probate has been granted
• Letters of Administration or Succession Certificates issued by NADRA or courts
• Authentication of documents by the issuing authority, Notary Public, judge, or magistrate
• A complete statement of the deceased’s assets located in Pakistan
NADRA succession certificates now recognized
The revised policy specifically recognizes succession certificates and letters of administration issued by NADRA in addition to those issued by courts.
The documents must be properly authenticated either in Pakistan or in the country where the deceased passed away if death occurred abroad.
The move is expected to reduce procedural hurdles and speed up inheritance-related financial transactions involving overseas Pakistani families and foreign heirs.
Blocked accounts allowed for non-remittable funds
The SBP further clarified that any portion of inherited funds not permitted for immediate remittance abroad may be credited into a blocked account maintained with a bank in Pakistan in the name of the executor or administrator.
Transfer of shares, securities and real estate included
The revised instructions also cover cases involving securities, shares, and real estate specifically bequeathed to beneficiaries living outside Pakistan.
In such cases, applicants are required to provide complete details of the assets being transferred.
The updated framework is part of broader efforts by the SBP to modernize foreign exchange procedures, improve facilitation for overseas Pakistanis, and streamline inheritance-related financial matters.