The Chief Executives,

Exchange Companies; and

Exchange Companies of 'B' Category

Dear Sirs/Madam,

Purchase of FCY from Exchange Companies - Use of Banking Channels

1. The attention of Exchange Companies and Exchange Companies of 'B' Category is invited to instructions contained in Para 9 (i)(g) and Para 9 (iii)(g) of Chapter 3; and Para 12(i)(d) of Chapter 8 of the Exchange Companies Manual.
2. In order to further strengthen the regulatory regime for Exchange Companies, and encourage customers to use banking channels for purchase of foreign exchange from Exchange Companies, the existing regulations prescribing the scope of business of Exchange Companies have been amended, which will be effective immediately:

Para 9(i)(g) Chapter 3 of Exchange Companies Manual

All foreign currency sale transactions of USD 2,000/- or above (or equivalent in other currencies) against PKR shall be conducted by the Exchange Companies through bank transfer/ cheque from the personal account of the customer. The transaction/instrument reference number and the name of the bank transferring funds/ issuing the instrument shall be mentioned on the transaction receipt along with identification document number of the customer.

Para 9(iii)(g) Chapter 3 of Exchange Companies Manual

All foreign currency sale transactions for outward remittance of USD 2,000/- or above (or equivalent in other currencies) against PKR shall be conducted by the Exchange Companies through bank transfer/ cheque from the personal account of the customer. The transaction/instrument reference number and the name of the bank transferring funds/ issuing the instrument shall be mentioned on the transaction receipt along with identification document number of the customer.

Para 12(i)(d) Chapter 8 of Exchange Companies Manual

All foreign currency sale transactions of USD 2,000/- or above (or equivalent in other currencies) against PKR shall be conducted by the Exchange Companies of 'B' Category through bank transfer/cheque from the personal account of the customer. The transaction/instrument reference number and the name of the bank transferring funds/ issuing the instrument shall be mentioned on the transaction receipt along with identification document number of the customer.

3. All other terms and conditions on the subject shall remain unchanged.
4. Failure to comply with these instructions shall attract regulatory action under the relevant provisions of the Foreign Exchange Regulation Act, 1947.