ZCZC
BCN-09
PAKISTAN-BANK-CURRENCY
Pakistan’s central bank tightens currency movement
ISLAMABAD, July 8, 2018 (BSS/Xinhua) – 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 movement of Pakistani rupee within a city and foreign currency across
Pakistan will be carried out by the authorized individuals, who have been
registered with and authorized by the respective franchiser. The Exchange
Companies will develop and implement Standard Operating Procedures duly
approved by their Board of Directors.
BSS/XINHUA/HR/0955