Attention of Exchange Companies is invited to FE Circular No. 08 dated July 8, 2006 wherein Exchange Companies were required to close their Nostro Accounts with Exchange Companies abroad latest by 25th July 2006. Accordingly all permissible inflows/ outflows of Exchange Companies are only to be routed through either their Nostro Accounts with banks abroad or their FCY Accounts maintained with Commercial Banks in Pakistan. Further, it is reiterated that funds against all individual inward remittances must first be received in Exchange Company’s accounts as above and all outward remittances must also be separately accounted for. Under no circumstances, should an Exchange Company resort to netting off inflows and outflows.

All Exchange Companies are therefore advised to review all their existing agency agreements with foreign entities abroad and confirm in writing to this department within 15 days hereof that all such agreements are in conformity with the above-mentioned instructions along with an up-to-date list of all agreements. Furthermore, details of all exchange companies’ Nostro accounts & FCY accounts with banks in Pakistan should also be provided to SBP within 15 days

All the Heads/Chief Executives of the Exchange Companies are advised to ensure the meticulous compliance of above-mentioned instructions as any contraventions would attract severe monetary penalties and prescribed action under Foreign Exchange Regulation Act and rules/regulations framed for regulating operations of Exchange Companies.