KARACHI: The State Bank of Pakistan (SBP) has discontinued individual-based export of foreign currencies and asked Exchange Companies to export foreign currencies other than US dollars on consignment basis only through cargo or security companies.
As per Chapter (5) of the Exchange Companies Manual, Exchange Companies are allowed to export permissible foreign currencies other than US dollars. Now, in order to further streamline the business of Exchange Companies keeping in view the emerging Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards, the SBP has amended these instructions.
According to a circular issue on Monday, it has been decided that Exchange Companies may export foreign currencies other than US dollars on consignment basis only through cargo or security companies registered in Pakistan. Further, the earlier mechanism for individual based export/import of foreign currencies by Exchange Companies stands discontinued.
Accordingly, the SBP has also revised the Chapter-5 of the Exchange Companies Manual for meticulous compliance.
Further, the SBP has also amended Para 9(iv), Chapter-3 of Exchange Companies Manual. As per revised as Para 9(iv) Exchange Companies can export foreign currencies other than United States Dollar (USD) and bring in equivalent USD in their foreign currency accounts maintained with banks in Pakistan. Prior authorization from State Bank is mandatory before starting the foreign currency exports business. According to SBP, detailed procedure for undertaking foreign currency export business is given in Chapter 5 of the Foreign Exchange Manual.
The SBP has advised Exchange Companies to bring the above to the notice of all their constituents and ensure compliance.
Exchange Companies and Exchange Companies of ‘B’ category are required to bring related regulations to the notice of their customers and to ensure compliance in their day-to-day operations. They should also report to the State Bank every case of evasion or attempt, direct or indirect, at evasion of the provisions of the Act and/or any rules, orders or directions issued thereunder, immediately as it comes to their notice.
Copyright Business Recorder, 2021
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