SBP tightens rules for exchangers

KARACHI: The State Bank of Pakistan (SBP) on Friday amended foreign exchange (FX) regulations for exchange companies, with an objective to promote documentation and transparency in FX transactions.

The central bank made it mandatory for exchange companies, their franchises, and ‘B’ category exchange firms to settle Pakistan rupee consideration of all foreign currency purchase/sale transactions conducted among themselves through their bank accounts.

The SBP also laid stress on ensuring working of closed-circuit television (CCTV) systems at exchangers at all times i.e. 24 hours a day and 7 days a week, as required under existing regulations.

“In order to ensure transparency, it has been advised that Exchange Companies and Exchange Companies of ‘B’ Category shall not carry out any business activity during the period in which 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,” the SBP notified.

The central bank also enhanced minimum preservation period of video recording through CCTV systems from two to six months or until the inspection of the company by the SBP, whichever is earlier. It would ensure availability of CCTV recording for audit/inspection purposes, SBP said.