Karachi, December 27, 2024 – The State Bank of Pakistan (SBP) has introduced a fresh regulatory framework for exchange companies to strengthen governance and streamline operations.
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Pakistan Suspends Operations of Exchange Companies
Karachi, February 13, 2024 – In a significant move, Pakistan has suspended the operations of several foreign exchange companies for serious violations of regulations.
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SBP Suspends Authorization of Five Exchange Companies in Ongoing Crackdown
Karachi, October 12, 2023 – The State Bank of Pakistan (SBP) has taken a resolute stance in its ongoing efforts to combat regulatory violations within the exchange sector.
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State Bank of Pakistan Introduces Reforms in Exchange Companies
Islamabad, September 6, 2023 – The State Bank of Pakistan (SBP) has initiated a series of structural reforms aimed at enhancing the monitoring and governance of exchange companies operating within the country.
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SBP Enhances Minimum Paid-Up Capital Requirement for Exchange Companies to PKR 500 Million
Karachi, September 6, 2023 – In a significant move aimed at fortifying the financial stability of exchange companies in Pakistan, the State Bank of Pakistan (SBP) announced on Wednesday that it would be raising the minimum paid-up capital requirement for these entities from PKR 200 million to PKR 500 million.
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SBP revokes licenses of two foreign exchange companies
KARACHI: State Bank of Pakistan (SBP) on Thursday revoked licenses of two foreign exchange companies.
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State Bank suspends exchange companies for refusing sales of foreign currencies
KARACHI: State Bank of Pakistan (SBP) has suspended outlets of many exchange companies for refusing sale of foreign currencies.
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SBP tightens transaction data reporting for exchange companies
KARACHI: State Bank of Pakistan (SBP) has tightened transaction data reporting for exchange companies.
The central bank of Friday issued a notification in this regard.
According to the circular, the SBP invited attention of all Exchange Companies and Exchange Companies of ‘B’ category towards the instructions contained in Para 4, Chapter 7 of Exchange Companies Manual and EPD Circular Letter No. 16 dated July 04, 2017.
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In order to enhance monitoring of data submitted by Exchange Companies and Exchange Companies of ‘B’ category, it has been decided to increase the frequency of transaction data reporting by them, with effect from December 19, 2022. Accordingly, the relevant instructions in the following Para of Exchange Companies Manual stand replaced as under:
Para 4, Chapter 7 of Exchange Companies Manual
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“Exchange Companies shall also submit data according to their scope of business in CSV format at Data Acquisition Portal (DAP). The data will be submitted by Exchange Companies on daily basis by next working day. For transactions conducted on Saturday & Sunday, ECs will submit data on next working day i.e. Monday.
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“While submitting the data under this reporting system, Exchange Companies shall ensure daily matching of opening/closing balances of Summary Statements of head office and each branch/outlet. The Summary Statements and Descriptions are given at Annexure – 21.”
All other instructions on the subject remain unchanged. For any queries related to reporting issues, SBP officers may be contacted.
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Failure to comply with these instructions shall attract regulatory action under the relevant provisions of the Foreign Exchange Regulation Act, 1947.
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SBP suspends two exchange companies namely Orient and Best Way in latest action
KARACHI: State Bank of Pakistan (SBP) on Friday suspended authorization of two exchange companies for serious violation of regulatory environment.
The central bank suspended the authorization of M/s Orient Exchange Company-B (Pvt) Limited and M/s Best Way Exchange Company-B (Pvt) Limited.
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The SBP suspended the companies for three months due to serious violations of regulatory instructions.
SBP has advised both the companies to strengthen their Internal Control Functions and submit a report, of corrective measures to be taken in this regard, to SBP.
Both Exchange Companies, their Head Offices, all branches/outlets have been restricted from undertaking any kind of business activity during the suspension period.
The central bank had initiated harsh action against the exchange companies in order to ensure legal mode of transactions for foreign currencies.
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On October 27, 2022, the SBP suspended the authorization of M/s Mega Currency Exchange Company – B (Pvt) Limited.
Similarly, on September 13, 2022, the central bank suspended the authorization of two Exchange Companies, namely, Swiss International Exchange Company-B (Pvt.) Limited and Great Union Exchange Company-B (Pvt.) Limited.
On March 25, 2022, the SBP suspended with immediate effect the authorization of an Exchange
Company namely M/s Noble Exchange International (Pvt) Limited till further orders for violation of SBP rules and regulations.
Recently, the SBP and Federal Investigation Agency (FIA) have agreed to take joint action against illegal exchange companies.
It was agreed by the both that concerted joint effort is required to apprehend and implicate the illegal foreign exchange operators and speculators across the country.
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SBP and FIA have jointly initiated action against illegal foreign exchange operators in Pakistan. To this effect, joint teams from SBP and FIA shall identify and take penal/legal action against the perpetrators so as to curb speculation and the grey market.
The teams, while remaining within the legal mandate allowed to them by the relevant laws, would crack down on all illegal foreign exchange operators and businesses across Pakistan.
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Banks and Exchange Companies are authorized by the SBP to carry out Foreign Exchange business in Pakistan. Involvement of any person or entity, other than banks and Exchange Companies, in foreign exchange business is illegal under the Foreign Exchange Regulation Act, 1947. The illegal foreign exchange business also adversely affects the open market exchange rate and increases the gap between the interbank and open market exchange rate.
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SBP, FIA jointly take action against illegal exchange companies
KARACHI: State Bank of Pakistan (SBP) and Federal Investigation Agency (FIA) have decided to jointly take action against illegal exchange companies.
A statement issued on Tuesday stated that a high-level meeting was held between the SBP governor and the Director General, FIA on November 8, 2022.
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The meeting took stock of illicit foreign exchange activities and chalked out a comprehensive plan of action against illegal foreign exchange businesses being carried out in the country.
It was agreed during the meeting that concerted joint effort is required to apprehend and implicate the illegal foreign exchange operators and speculators across the country.
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Accordingly, SBP and FIA have jointly initiated action against illegal foreign exchange operators in Pakistan. To this effect, joint teams from SBP and FIA shall identify and take penal/legal action against the perpetrators so as to curb speculation and the grey market.
The teams, while remaining within the legal mandate allowed to them by the relevant laws, would crack down on all illegal foreign exchange operators and businesses across Pakistan.
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Banks and Exchange Companies are authorized by the SBP to carry out Foreign Exchange business in Pakistan. Involvement of any person or entity, other than banks and Exchange Companies, in foreign exchange business is illegal under the Foreign Exchange Regulation Act, 1947.
The illegal foreign exchange business also adversely affects the open market exchange rate and increases the gap between the interbank and open market exchange rate.