The State Bank of Pakistan (SBP) has changed foreign exchange laws to encourage documentation and transparency in exchange company operations. According to new regulations, all foreign currency purchase/sale transactions done among Exchange Companies, Franchises of Exchange Companies, and Exchange Companies of the ‘B’ Category must be settled in Pakistan Rupees through their bank accounts.
Furthermore, emphasis has been placed on ensuring that CCTV Systems of Exchange Companies and Exchange Companies of the ‘B’ Category are operational at all times (i.e. 24 hours a day, 7 days a week), as required by existing rules.
To ensure transparency, Exchange Companies and Exchange Companies of the ‘B’ Category have been urged not to conduct any business activity at any of their outlets while the CCTV system is non-functional for any reason, including technical difficulties, until the CCTV system’s functioning is restored.
Furthermore, the minimum preservation term of video recordings through the CCTV system has been increased from two to six months, or until the company is inspected by SBP, whichever comes first. This would ensure that CCTV recordings are available for audit/inspection reasons.
To promote documentation and transparency in foreign exchange transactions, it has been decided that from now on, Pakistan Rupee consideration of currency exchange transactions between ECs, ECs-B, and franchises of ECs will be conducted through the respective ECs’, ECs’-B’s, and franchises’ bank accounts.
Furthermore, Exchange Companies, including their franchisees, must settle all foreign currency purchase/sale transactions in Pakistan Rupees with other Exchange Companies, Exchange Company Franchises, and Exchange Companies in the ‘B’ Category solely through their bank accounts.
Individuals, Exchange Companies, and Exchange Companies of the ‘B’ Category are authorized to deal in the acquisition and selling of foreign currency notes and coins in ‘Ready’ value exclusively from individuals, Exchange Companies, and Exchange Companies of the ‘B’ Category.
Furthermore, Exchange Companies in the “B” Category must settle all foreign currency purchase/sale transactions in Pakistan Rupees with other Exchange Companies, franchises of Exchange Companies, and Exchange Companies in the “B” Category solely through their bank accounts.
