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

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

Local exchange companies are concerned about the impact of this requirementsince it will negatively affect their business. In order to furtherstrengthen the regulatory Anti money laundering requirements fordocumentation and record keeping, it has been decided that while carryingout transactions requiring movement of Pakistani rupee and foreign currencywithin company`s authorised network, each outlet of Exchange Companies willbe allocated working capital keeping in view the business needs by the headoffice of the respective exchange company.

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

The movement of Rupee within a city and Foreign Currency across Pakistanwill be carried out by the authorised individuals, who have been registeredwith and authorised by the respective franchiser. The Exchange Companieswill develop and implement Standard Operating Procedures duly approved bytheir Board of Directors.