The State Bank of Pakistan (SBP) has amended foreign exchange regulations with an objective to promote documentation and transparency in the foreign exchange transactions between exchange companies.
In terms of revised regulations, it has been made mandatory for Exchange Companies, Franchises of Exchange Companies, and Exchange Companies of the ‘B’ Category to settle Pakistan Rupee consideration of all foreign currency purchase/ sale transactions conducted among themselves through their bank accounts.
Besides, stress has been laid on ensuring that CCTV Systems of Exchange Companies and Exchange Companies of the ‘B’ Category should be functional at all times (i.e. 24 hours a day and 7 days a week) as required under existing regulations.
However, in order to ensure transparency, it has been advised that Exchange Companies and Exchange Companies of the ‘B’ Category shall not carry out any business activity during the period in which the CCTV system is non-functional at any of their outlet for any reason, including technical faults until the functionality of the CCTV system is restored.
Moreover, the minimum preservation period of video recording through the CCTV system has been enhanced from two to six months or until the inspection of the company by SBP, whichever is earlier. This would ensure the availability of CCTV recording for audit/inspection purposes.
In order to promote documentation and transparency in the foreign exchange transactions, it has been decided that, henceforth, Pakistan Rupee consideration of currency exchange transactions between ECs, ECs-B, and franchises of ECs shall be conducted through the bank accounts of respective ECs, ECs-B, and franchises of ECs.
Further, Exchange Companies, including their franchises, shall settle Pakistan Rupee consideration of all foreign currency purchase/ sale transactions conducted with other Exchange Companies, Franchises of Exchange Companies, and Exchange Companies of the ‘B’ Category only through their bank accounts.
Exchange Companies of the ‘B’ Category are authorized to deal in the purchase and sale of foreign currency notes and coins from individuals, Exchange Companies, and Exchange Companies of the ‘B’ category in ‘Ready’ value only.
Further, Exchange Companies of the “B” Category shall settle Pakistan Rupee consideration of all foreign currency purchase/sale transactions conducted with other Exchange Companies, franchises of Exchange Companies, and Exchange Companies of the “B” Category only through their bank accounts.
