SBP shuts four branches of two exchange companies

The State Bank of Pakistan (SBP) shut down four branches of two different foreign exchange companies on Wednesday, ARY News reported. 

According to details, the SBP has shut down four branches of two different foreign exchange companies citing irregularities in transactions. The SBP had fined multiple companies and shut down 13 franchises of different exchange companies some days back.

In a statement released on Wednesday, the SBP said that it has increased monitoring of transactions due to fluctuations in the currency rates.

The statement read, “In view of recent volatility in the exchange rate and the difference between the interbank rate and the rate offered by Exchange Companies (ECs) and banks to their customers, State Bank of Pakistan (SBP) has increased the monitoring of the foreign exchange operations of ECs and banks.”

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It added, “On Tuesday (August 2, 2022) SBP suspended the operations of four branches of two ECs (Galaxy Exchange Co and Al-Hameed International Money Exchange Co) for violation of SBP regulations. SBP has also imposed monetary penalties on some ECs in the recent past. Besides, due to violations of SBP instructions, arrangements of 13 franchises have been terminated by six different ECs in the recent past.”

The SBP said, “If needed, SBP would augment its enforcement actions on the ECs and the banks in light of findings of the ongoing inspections and mystery shopping.”