SBP suspends two exchange companies for violations

KARACHI: The State Bank of Pakistan (SBP) has suspended the authorisation of two exchange companies for serious violations of its regulations and instructions, the central bank said on Monday.

The SBP said it had suspended Al-Sahara Exchange Company (Pvt.) Limited for a period of three months and Premier Exchange Company –B (Pvt.) Limited until further orders, effective immediately.

The exchange companies, their head offices, branches and franchises have been debarred from undertaking any kind of business activity during the suspension period, the SBP said in a statement.

The central bank's move comes after it announced structural reforms for the exchange companies on September 6 to improve governance, internal controls and compliance.

The reforms include encouraging banks to set up their own exchange companies to meet the legitimate foreign exchange needs of the public, consolidating various types of existing exchange companies into a single category with a clear mandate, and increasing the minimum capital requirement for exchange companies from Rs200 million to Rs500 million.