State Bank to tighten exchange companies monitoring

Banking and Finance

Karachi: The State Bank of Pakistan (SBP) is all set to further tighten the monitoring of exchange companies and bring new regulations in order to stop money laundering, hundi/hawala and smuggling of foreign currency.

According to Alfalah Securities Limited, SBP has identified that the online reporting requirements are not being met by the exchange companies as some franchises and booths of exchange companies are not fulfilling them. The SBP had earlier imposed a ban on the expansion of company’s network, which on request of the representatives is yet to be decided. It also identified that there is a lack of financial discipline and corporate governance which causes problems and needs to be addressed.

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