1. Please refer to F.E. Circular No. 32 dated the 4^th of July, 1998 on the above subject.

2. In a meeting held between the representatives of the Authorized Money Changers and the State Bank, it was agreed that for obtaining licences the date will be extended upto the 30^th September, 1998. It was also agreed to divide the Money Changers into two categories. The fee structure will be changed accordingly and a fresh circular will be issued for the purpose. Accordingly, the last date for filing renewal application of the licences is hereby extended from 31^st July, 1998 to 30^th September, 1998. The Money Changers doing their business without the license are also required to obtain the licences by 30^th September, 1998.

3. The Money Changer have been divided into the following two categories:
     

Category A - Authorized Money Changers having more than one branch:

Fee of issuance of fresh license	(a) for main office Rs. 300,000.00 (b) for other branches Rs. 50,000.00
Fee for renewal of licence	(a) for main office Rs. 50,000.00 p.a. (b) for other branches Rs. 10,000.00 p.a.

Category B - Authorized Money Changers having a single office:

Fee for issuance of fresh licence Rs. 50,000.00

Fee for renewal of licence Rs. 10,000.00 p.a.

4. In cases where Money Changer falling under category "B" opens additional branch, he will be required to pay the differential of Rs. 300,000.00 and Rs. 50,000.00 for the main branch at the time of obtaining the licenses for the additional branches in addition to fee of Rs. 50,000.00 per additional branch

5. The application for issuance of fresh licence will be made to the area office of the State Bank through an Authorized Dealer alongwith the following documents:-

1. Evidence that the paid up capital of the applicant is not less than Rs. 1 million as per audited accounts of the company and in case of individual / partnership firm, the net worth is not less than Rs. 500,000.00 as per the wealth statement filed with the Income Tax Department.

2. Evidence that the applicant(s) is/are Pakistani national(s) or resident Pakistani firms/companies who are paying income tax.

3. Evidence that the applicant has procured independent office measuring not less than 10' x 10' in size for carrying on the money changers' business and an undertaking that no other business activities of whatsoever nature will be conducted in the said premises. This requirement, however will not be applicable on hotels and curio shops working as money changer's office, if it is not located in a suitable place.

4. The report from the police authority that the applicant(s) is/are not involved in any illegal activity.

6. The Money Changers who have not yet obtained the licences from the State Bank (unlicensed Money Changers) will, abide by the following terms and conditions:-

 

1. They will restrict their activities to purchase of foreign currency notes, coins and foreign currency travellers cheques issued outside Pakistan and sale of foreign currency notes and coins only, from a fixed premises with space measuring not less than 10 ft. by 10 ft. in size.

2. They will not include words such as bank, financial institutions, investment company, trading company, real estate company or any word inactive other money changing business.

3. The will not undertake banking business, e.g. accepting of deposits, advancing of loans, issuance of letters of credit, discounting of bills of exchange, purchase or sale of stock or securities, release of foreign exchange for any purpose, purchase and sale of gold and silver in any form or the precious metals or any other banking activities. All purchases and sales by the Unlicensed Money Changers should be started by receipts / vouchers. A notice advising the customers of the necessity of obtaining receipts for all purchases of foreign currency notes / coins and travellers cheques or sale of foreign currency notes and coins shall be prominently displayed by them.

4. Purchase and sales by them will be undertaken at rates within the band to be announced daily by the Forex Association of Pakistan.

5. The will make their own arrangement to procure the stock of various currency notes and coins for meeting their daily requirement as also to dispose of their surplus holdings. They will also ensure that the foreign currency notes handled by them are genuine. They will not b entitled to make any purchase of foreign currency notes / coins from any Authorized Dealer against payment in rupees. They will, upon State Bank's directive, provide all books of account and other record relating to his business at any time and for any particular period to the State Bank.

6. They (Unlicensed Money Changers) will send to the Director, Foreign Exchange Department, State Bank of Pakistan, Central Directorates, Karachi a daily report of their transactions in a prescribed form on fax Nos. 2422083, 2417865, 2416608.

Strict action will be taken those who do not comply with the above terms and conditions.