Xinhua, Islamabad :
The State Bank of Pakistan (SBP) has taken stringent measures to tighten the currency movement within the country amid depreciating national currency following the grey-listing of Pakistan by the Financial Action Task Force (FATF).
The central bank issued a detailed set of instructions Saturday to all the money exchange companies, thereby instructing the money exchangers to help the bank keep a strict vigilance over the currency movements.
According to the State Bank’s statement, the money exchange companies will have to properly document and record the purpose of the currency movement after necessary authorization in its system on the real time basis by its head office.
However, the local exchange companies have voiced their concerns on the expected impact of the requirement by the central bank. They told the local media outlets on Saturday that the requirement will negatively affect their business.
The central bank, in a bid to further fortify the regulatory anti-money-laundering requirements for documentation and record keeping, has decided to allocate each outlet of the exchange companies working capital while carrying out transactions, keeping in view the business needs of the head office of the respective exchange company. This would help the State Bank to keep a check on the movement of Pakistani rupee and foreign currencies within the company’s authorized network.
The Exchange Companies will conduct the business only from such premises as approved by the State Bank. According to the State Bank’s directives, the companies will also not provide delivery services to customers.
The State Bank of Pakistan (SBP) has taken stringent measures to tighten the currency movement within the country amid depreciating national currency following the grey-listing of Pakistan by the Financial Action Task Force (FATF).
The central bank issued a detailed set of instructions Saturday to all the money exchange companies, thereby instructing the money exchangers to help the bank keep a strict vigilance over the currency movements.
According to the State Bank’s statement, the money exchange companies will have to properly document and record the purpose of the currency movement after necessary authorization in its system on the real time basis by its head office.
However, the local exchange companies have voiced their concerns on the expected impact of the requirement by the central bank. They told the local media outlets on Saturday that the requirement will negatively affect their business.
The central bank, in a bid to further fortify the regulatory anti-money-laundering requirements for documentation and record keeping, has decided to allocate each outlet of the exchange companies working capital while carrying out transactions, keeping in view the business needs of the head office of the respective exchange company. This would help the State Bank to keep a check on the movement of Pakistani rupee and foreign currencies within the company’s authorized network.
The Exchange Companies will conduct the business only from such premises as approved by the State Bank. According to the State Bank’s directives, the companies will also not provide delivery services to customers.
