State Bank of Pakistan amends foreign exchange regulations to enhance transparency in transactions between exchange companies

SBP has amended foreign exchange regulations to promote documentation and transparency in the foreign exchange transactions between exchange companies. In terms of revised rules, 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, 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 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.

 

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Posted in Banking & Insurance News.

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