KARACHI: The State Bank of Pakistan (SBP) has amended exchange companies manual by incorporating references related to regulations, guidelines, notifications issued by State Bank and the Federal Government, under Anti-Money Laundering Act, 2010.
Previously, Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT) and Countering Proliferation Financing (CPF) Regulations were issued by the State Bank of Pakistan on Sep 30 for exchange companies and exchange companies of 'B' category. In this connection, the SBP has also updated exchange companies manual by incorporating some changes.
As per manual, exchange companies and exchange companies of 'B' category shall comply with the Anti-AML/CFT/CPF Regulations issued by SBP under the powers conferred by Section 6A (2) of the Anti-Money Laundering Act, 2010 (Act).
Foreign exchange policy and its operations in Pakistan are formulated and regulated in accordance with the provisions of the Foreign Exchange Regulation Act, 1947 (Act). The object of this Act is to regulate, in the economic and financial interest of Pakistan, certain payments, dealings in foreign exchange, securities, import/export of currency and bullion.
Under the Act, the basic regulations are issued by the government of Pakistan and the State Bank of Pakistan in the form of notifications which are published in the official gazette. However, directions having general application are issued in the form of FE circulars and circular letters issued by the SBP.
After the promulgation of Foreign Exchange Regulation (Amendment) Ordinance 2002, the SBP has issued various FE circulars and circular letters to exchange companies and exchange companies of 'B' category over the period.
In order to update/compile related regulations for the convenience of users, exchange companies manual has been prepared. For the purpose of securing compliance with the provisions of the Act and any rules, orders or directions issued there under, the State Bank may, under subsection (4) of Section 3AA of the Act, give directions to exchange companies and exchange companies of 'B' category who are authorized by the SBP to do anything in pursuance of the Act.
As per amendments in Exchange Companies Manual, title of chapter 6 and para 20 of chapter 8 is amended as "Anti-Money Laundering, Combating the Financing of Terrorism & Countering Proliferation Financing (AML/CFT/CPF) Regulations".
All paras and sub paras along with relevant annexure of chapter 6 stand deleted. Chapter 6 has been revised to incorporate references to related regulations, guidelines, notifications issued by State Bank and the federal government, under Anti-Money Laundering Act, 2010.
Instructions contained in existing para 2 A of chapter 6, regarding inland currency transportation and related annexure, have been shifted to chapter 3 (for exchange companies) and Chapter 8 (for exchange companies of 'B' category) and the relevant annexure has been re-numbered as annexure 2AA. The SBP has advised exchange companies to bring the above to the notice of all constituents.
Copyright Business Recorder, 2020
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