State Bank of Pakistan tightens currency movement within country

State Bank of Pakistan tightens currency movement within country
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ISLAMABAD - The State Bank of Pakistan has tightened currency movement of foreign currency and rupee within the country after grey listing of Pakistan by the Financial Action Task Force.

The Bank issued detailed instructions to all exchange companies to bring the currency movements under strict monitoring of the central bank. The purpose for the movement of cash will also be properly documented and recorded, after necessary authorisation in system on real time basis by the head office.

Local exchange companies are concerned about the impact of this requirement since it will negatively affect their business. In order to further strengthen the regulatory Anti money laundering requirements for documentation and record keeping, it has been decided that while carrying out transactions requiring movement of Pakistani rupee and foreign currency within company`s authorised network, each outlet of Exchange Companies will be allocated working capital keeping in view the business needs by the head office of the respective exchange company.

The Exchange Companies will conduct the business only from such premises as approved by the State Bank. According to Bank`s directives the companies will also not provide delivery services to customers.

The movement of Rupee within a city and Foreign Currency across Pakistan will be carried out by the authorised individuals, who have been registered with and authorised by the respective franchiser. The Exchange Companies will develop and implement Standard Operating Procedures duly approved by their Board of Directors.

Economy