SBP Suspends Operations of Mega Currency Exchange Company

The State Bank of Pakistan (SBP) has suspended, with immediate effect, the authorization of an Exchange Company –B namely M/s Mega Currency Exchange Company –B (Pvt) Limited till further orders due to serious violations of State Bank’s regulations and instructions.

The Exchange Company –B Category, its head office, and all branches have been debarred from undertaking any kind of business activity during the suspension period.

Recently, SBP has tightened regulations for exchange companies regulations with the 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.

In August, SBP suspended the operations of four branches of two Exchange Companies (ECs), Galaxy Exchange Co and Al-Hameed International Money Exchange Co for violation of SBP regulations.