Central bank bars Al-Rahim Exchange Company from all foreign exchange activities with immediate effect
The State Bank of Pakistan (SBP) has cancelled the authorization and license of Al-Rahim Exchange Company (Pvt.) Limited over serious violations of the central bank’s regulatory instructions.
The decision, announced on Monday, takes immediate effect and prevents the exchange company from continuing its foreign exchange-related operations. The action represents a significant regulatory measure against the company for failing to comply with requirements set by the country’s central banking authority.
According to the SBP, the cancellation was prompted by serious breaches of its regulatory instructions. The central bank has taken the measure as part of its oversight responsibilities for exchange companies operating within Pakistan’s foreign exchange market.
Following the cancellation, Al-Rahim Exchange Company is no longer permitted to conduct foreign exchange business in any capacity. The restriction applies across the company’s entire operational network and covers all activities associated with foreign exchange dealings.
The prohibition also extends to the company’s head office and all of its constituent branches. This means that every branch operating under Al-Rahim Exchange Company has been barred from carrying out foreign exchange-related transactions following the SBP’s decision.
The central bank’s action underscores the importance of regulatory compliance for exchange companies operating in Pakistan. Firms involved in foreign exchange services are required to follow SBP instructions and regulatory requirements governing their operations.
The cancellation of Al-Rahim Exchange Company’s authorization and license also highlights the SBP’s continued regulatory oversight of the exchange sector. Companies that fail to comply with applicable rules can face enforcement measures, including restrictions or cancellation of operating permissions.
With the latest decision, Al-Rahim Exchange Company and its branches cannot undertake foreign exchange-related business unless permitted under applicable regulatory provisions in the future.
The SBP has continued to strengthen supervision of the exchange sector to ensure that market participants operate within the prescribed legal and regulatory framework. The cancellation is therefore expected to serve as a reminder to other exchange companies about the importance of maintaining compliance with central bank instructions.