The State Bank of Pakistan (SBP) has cancelled the authorization/license of M/s. Mega Currency Exchange Company ‘B’ (Pvt.) Limited on May 03, 2023.
The decision was taken due to contraventions of the relevant laws and regulations, according to a press release issued by the SBP. Consequently, the exchange company, including its head office and branches, can no longer undertake any kind of foreign exchange related business activity.
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The SBP has been taking strict action against non-compliant exchange companies in order to promote transparency and ensure the integrity of the foreign exchange market. The central bank has been implementing a risk-based approach to supervision, which means that it focuses its resources on higher-risk institutions and activities.
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According to the SBP, M/s. Mega Currency Exchange Company ‘B’ (Pvt.) Limited failed to comply with the regulatory requirements related to foreign exchange business activities. The company’s conduct was not in line with the laws and regulations governing the exchange business in Pakistan, leading to the cancellation of its authorization/license.
It is important to note that the SBP has been actively monitoring exchange companies and has been taking action against non-compliant entities. In February 2023, the SBP had also cancelled the license of another exchange company on account of non-compliance with the regulatory requirements.
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The SBP has been urging exchange companies to comply with the regulatory requirements and maintain proper systems and controls to mitigate risks associated with foreign exchange transactions. The central bank has also been encouraging exchange companies to adopt best practices in order to ensure transparency, accountability and customer protection.
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In conclusion, the cancellation of the authorization/license of M/s. Mega Currency Exchange Company ‘B’ (Pvt.) Limited by the SBP is a reminder to all exchange companies to comply with the regulatory requirements and maintain transparency in their business operations. The central bank’s action will promote a more robust and trustworthy foreign exchange market in Pakistan.
