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Tag: exchange companies

  • Exchange companies allowed export foreign currencies on consignment basis

    Exchange companies allowed export foreign currencies on consignment basis

    KARACHI: The State Bank of Pakistan (SBP) on Monday allowed exchanged companies to export foreign currencies other than US Dollars on consignment basis.

    The SBP said that under Exchange Companies Manual the exchange companies are allowed to export permissible foreign currencies other than US Dollars.

    “In order to further streamline the business of Exchange Companies keeping in view the emerging AML/CFT standards, it has been decided that Exchange Companies may export foreign currencies other than US Dollars on consignment basis only through cargo/security companies registered in Pakistan,” the SBP said.

    Further, the earlier mechanism for individual based export/import of foreign currencies by Exchange Companies stands discontinued, it added..

    Accordingly, Chapter-5 of the Exchange Companies Manual along with its Annexure-5 has been revised which is enclosed herewith for meticulous compliance.

    Further Para 9(iv), Chapter-3 of Exchange Companies Manual also stands revised as under:

    “Exchange Companies can export foreign currencies other than United States Dollar (USD) and bring in equivalent USD in their foreign currency accounts maintained with banks in Pakistan. Prior authorization from State Bank is mandatory before starting the foreign currency exports business. Detailed procedure for undertaking foreign currency export business is given in Chapter 5”.

  • Exchange company license may be revoked on false information

    Exchange company license may be revoked on false information

    KARACHI: The State Bank of Pakistan (SBP) has said it can revoke license of any exchange company in case the central bank has been provided with false, misleading or inaccurate information by or on behalf of the exchange company.

    According to Exchange Company Manual, the SBP has the right to revoke a license of an exchange company at any time.

    Before a license is revoked, the Exchange Company shall be served with a notice mentioning therein the reasons for such revocation and instructions for the company to explain its position in writing within 30 days from the date of issuance of notice.

    The SBP said that license of an Exchange Company can be revoked by the central bank if:

    (a) The State Bank is provided with false, misleading or inaccurate information by or on behalf of the Exchange Company.

    (b) It appears to the State Bank that the Exchange Company has violated these or any other regulation, instruction or circular issued by the State Bank or if any of the conditions of license has not been fulfilled or is incapable of fulfillment.

    (c) The interests of the customers of Exchange Company are in any way threatened, whether by the manner in which the company is conducting or intends to conduct its affairs or for any other reason.

    (d) The Exchange Company did not commence its exchange business within three months from the date of issuance of license by the State Bank.

    (e) Deliberate obstruction of the State Bank inspection team in the performance of their duties, by Exchange Companies or officials of its network.

    (f) Any other reason that in the opinion of the State Bank disqualifies the Exchange Company to hold the license.

  • List of approved currency exchange companies in Pakistan

    List of approved currency exchange companies in Pakistan

    KARACHI: State Bank of Pakistan (SBP) has issued list of approved currency exchange companies in the country.

    The SBP on Friday issued updated Exchange Companies Manual. Following is the list of exchange companies:

    1. AA Exchange Company (Pvt.) Ltd.

    2. Al-Hameed Int’l. Money Ex (Pvt.) Ltd.

    3. Al-Rahim Exchange Company(Pvt.) Ltd.

    4. Al-Sahara Exchange Company (Pvt.) Ltd.

    5. D.D Exchange Company (Pvt.) Ltd.

    6. Dollar East Exchange Company (Pvt.) Ltd.

    7. Fairdeal Exchange Company (Pvt.) Ltd.

    8. Glaxy Exchange Company (Pvt.) Ltd.

    9. H & H Exchange Company (Pvt.) Ltd.

    10. HBL Currency Exchange (Pvt.) Ltd.

    11. Habib Qatar International Exchange Pakistan (Pvt.) Ltd.

    12. Link International Exchange Company (Pvt.) Ltd.

    13. Money Link Exchange Company (Pvt.) Ltd.

    14. Muhammadi Exchange Company (Pvt.) Ltd.

    15. NBP Exchange Company Ltd.

    16. Noble Exchange International (Pvt.) Ltd.

    17. P B S Exchange Company (Pvt.) Ltd.

    18. Pakistan Currency Exchange Company (Pvt.) Ltd.

    19. Paracha International Exchange (Pvt.) Ltd.

    20. Paragon Exchange (Pvt.) Ltd.

    21. Ravi Exchange Company (Pvt) Ltd.

    22. Riaz Exchange Co. (Pvt.) Ltd.

    23. Royal International Exchange Company (Pvt.) Ltd.

    24. Sadiq Exchange Company (Pvt.) Ltd

    25. Sky Exchange Company (Pvt.) Ltd.

    26. Wallstreet Exchange Company (Pvt.) Ltd.

    27. ZeeQue Exchange Company (Pvt.) Ltd.

    List of Exchange Companies of ‘B’ Category

    1. Al-Khaleej Exchange Company-B (Pvt.) Ltd.

    2. Al-Pine International Exchange Company-B (Pvt.) Ltd.

    3. Best Way Exchange Company-B (Pvt.) Ltd.

    4. Capital Exchange Company-B (Pvt.) Ltd.

    5. Chanda Exchange Company-B (Pvt.) Ltd.

    6. Easy Exchange Company-B (Pvt.) Ltd. (Formally Aftab Exchange Company-B (Pvt.) Ltd.)

    7. Gohar Exchange Company-B (Pvt.) Ltd.

    8. Great Union Exchange Company-B (Pvt.) Ltd

    9. International Exchange Company-B (Pvt.) Ltd.

    10. Islamabad Exchange Company-B (Pvt.) Ltd.

    11. Karwan Exchange Company-B (Pvt.) Ltd.

    12. Madina Exchange Company-B (Pvt.) Ltd.

    13. Mega Currency Exchange Company-B (Pvt.) Ltd.

    14. Money Masters Currency Exchange Company-B (Pvt.) Ltd.

    15. Orient Exchange Company-B (Pvt.) Ltd.

    16. Premier Exchange Company-B (Pvt.) Ltd.

    17. Rajgan Exchange Company-B (Pvt.) Ltd.

    18. Swiss International Exchange Company-B (Pvt.) Ltd.

    19. Time Exchange Company-B (Pvt.) Ltd.

    20. Union Exchange Company-B (Pvt.) Ltd.

    21. United Exchange Co.-B (Pvt.) Ltd.

    22. Universal Exchange Company-B (Pvt.) Ltd.

    23. Usman International Exchange Company-B (Pvt.) Ltd.

    24. World Exchange Company-B (Pvt.) Ltd.

    25. World Wide Exchange Company-B (Pvt.) Ltd.

  • SBP extends date for exchange companies providing information

    SBP extends date for exchange companies providing information

    KARACHI: State Bank of Pakistan (SBP) on Thursday extended the date for exchange companies to submit information of customers related to anti-money laundering (AML) and Counter Financing Terrorism (CFT).

    The central bank amended the Foreign Exchange Circular No. 04 dated October 14, 2019 in this regard.

    The SBP said that in terms of instructions given in Para 5 (a) & (b) of the subject framework, authorized dealers in foreign exchange are required, inter alia, to complete the Risk Profiling of Customers and develop their distinct trade related Risk Profile by April 30, 2020.

    In view of the prevailing circumstances due to COVID-19 outbreak and representation from the banking industry, it has been decided to extend the aforementioned deadline up to September 30, 2020.

    Through the previous notification the SBP stated that in order to strengthen trade related Anti Money Laundering/Combating Financing of Terrorism (AML/CFT) regime and restrict possible misuse of banking channel, a comprehensive framework on the subject has been developed and attached herewith.

    Accordingly, Authorized Dealers (ADs) are advised to upgrade their systems and controls and bring policies and procedures in line with the requirements of the framework to ensure meticulous compliance with the provisions thereof with immediate effect except as otherwise provided in the framework

    The provisions of this framework are in addition to and not a replacement of already issued instructions on the subject of ML/FT risks.

    Therefore, the compliance of the same shall not absolve ADs from their legal and regulatory obligations under prevailing AML/CFT laws/rules and regulations or any other relevant law in force.

    ADs are also advised to educate their clients about their obligation of ensuring (a) correct declaration of particulars on the prescribed forms, (b) utilization of foreign exchange for the exact purpose for which it is acquired by them and (c) repatriation of foreign exchange that represents the full export value of goods. In the event, it is found that material information required to be submitted on the prescribed forms has been omitted or suppressed, foreign exchange is misutilized by a client of an AD or export proceeds repatriated by a client does not represent the full export value of goods, SBP shall initiate penal action against such delinquent parties under relevant provisions of the Foreign Exchange Regulation Act, 1947 (FERA).

    Further, the matter shall also be reported to relevant stakeholders for necessary action under the laws being administered by them.

    Failure to comply with the instructions on the subject and the regulatory obligations of AML/CFT may attract action against ADs under the FERA and other relevant laws.

  • SBP warns public against sale, purchase of foreign exchange with illegal money exchanges

    SBP warns public against sale, purchase of foreign exchange with illegal money exchanges

    KARACHI: State Bank of Pakistan (SBP) has warned general public against dealing of sale and purchase of foreign currency with illegal money exchanges.

    The central bank in an information to general public said that sale, purchase and transfer of foreign currency through Hawala/Hundi operators is illegal.

    The SBP said that people unknowingly may become part of money laundering and terrorism financing offence by dealing with illegal foreign exchange operators.

    The money laundering and terrorism financing offences are punishable under Anti Money Laundering (AML) Act, 2010 and Anti Terrorism Act (ATA), 1997.

    The SBP advised the general public to carry foreign currency sale, purchase and remittance transactions with only State Bank authorized banks and exchange companies.

    The central bank also advised to collect system generated official receipt of transactions. The general public has been urged to report any illegal foreign exchange sale/purchase and Hawala/Hundi Operators to Federal Investigation Agency (FIA).

    The SBP said that the business of foreign exchange in Pakistan is regulated under Foreign Exchange Regulations Act (FERA), 1947. The SBP issues authorization to banks and exchange companies to conduct foreign exchange business.

    Any person (individual or entity) other than those authorized by the SBP are doing illegal foreign exchange business which is punishable offence under FERA 1947 and AMLA 2010.

    All such operators are informed in their own interest not to indulge in illegal foreign exchange sale/purchase and hawala/hundi business.

    The SBP said that extensive action against illegal currency exchange and hawala/hundi operators is being carried out by relevant law enforcement agencies.

  • Exchange rate remains unchanged on January 19, 2019

    Exchange rate remains unchanged on January 19, 2019

    The foreign exchange rate in Karachi remained unchanged on Saturday January 19, 2019 due to lower demand from the general public.

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