IV)
Code of conduct
i)
Authorized Money Changer’s activities will be restricted
to purchase/sale of foreign currency notes/coins only.
ii)
Authorized Money Changer’s commercial name should
not include words such as bank, financial institution,
investment company, trading company, real estate or any
other word indicative of activities other than money changing
business. However, hotels, curio shops, departmental stores
or any other premises specially permitted by the State
Bank can use their original name.
iii) A Money Changer shall not be permitted to deal in
transfers i.e. T.Ts, DDs etc. However, there will be no
restriction on bringing in foreign currency through banking
channels from outside the country. Further, the money
changer, shall be prohibited to undertake any other banking
activity such as acceptance of deposit, advancing of loans,
issuance of letter of credit, discounting bills of exchange,
purchases/sales of travellers cheques and stocks/securities
, release of foreign exchange for travel abroad on various
accounts as defined in Chapter XVII of Foreign Exchange
Manual (7th Edition), 1992 as modified through F.E Circulars
from time to time or purchase/sale of gold and silver
in any form or the precious metals.
iv)
Dealing between Authorized Money Changers and Customers
should be supported by receipts/vouchers for all transactions.
Every receipt provided to the Customer shall bear the
name of Money Changer in printed form, date, nature of
transaction i.e. sale/purchase, currency dealt, rate and
signature of dealer. Further, a notice advising customers
of the necessity of obtaining receipts for all purchases/sales
of foreign currencies shall be prominently displayed by
AMCs. Authorized Money Changer will also display at a
prominent place in the business premises rates of foreign
currencies applicable to purchases and sales daily at
their counter in the format of Exchange Rate Chart as
App.V-I and all deals must be carried out at the rates
specified in the Rate Chart. However, Authorized money
changers may negotiate different rates for large transactions.
v) All purchases and sales made by Authorized Money Changers
in terms of their license will be on their own risk and
responsibility. They will make their own arrangements
to procure the stock of various currency notes and coins
for meeting their daily requirements and also to dispose
of their surplus holdings. They should also make arrangement
to ensure that the foreign currency notes handled by them
are genuine. The Authorized Money Changers will not be
entitled to make any purchases of foreign currency notes/coins
from any Authorized Dealer against payment in rupees.
vi) Authorized Money Changer shall maintain proper books
of account and upon State Bank directive, provide all
data, information, books of accounts and other record
relating to their business.
vii) Any change in the business premises/partners/directors
of the Authorized Money Changer for which license is granted
will require prior approval of State Bank. Separate fee
for each new branch at the scale prescribed in item (i)
above will be required to be paid.
viii)
The name/title of the business shall be displayed clearly
and in a bold face outside the business premises.
ix) The business premises should be equipped with Telephone,
Fax and Electronic Cash Registers or some other electronic
device for printing serially numbered receipts of their
sales/purchases transactions.
x) Authorized Money Changer shall ensure that an effective
system of internal control and checks and balance system
is in place.
xi)
The Authorized Money Changer shall follow same opening
hours as prescribed for the banks. However, they may observe
extended business hours.
xii)
Authorized Money Changers will be free to trade between
themselves domestically with proper accounting procedure
as laid down above.
xiii)
All Authorized Money Changers will submit a weekly statement
of sales and purchases, for weeks ending on 8th, 15th,
22nd and last day of each month to area Control Office
of the State Bank of Pakistan within 3 days in the prescribed
Proforma.
xiv)
Authorized Money Changers shall be bound by the rules
and regulations prescribed by the State Bank from time
to time. Any violation of such rules may result in penalty,
suspension or cancellation of License.
xv)
Authorized Money Changer’s License will not be issued
to person involved in illegal activities as per police
report.
V)
The State Bank shall have the powers to visit the premises,
inspect the records, books of accounts of the AMCs. The
State Bank may withdraw the license granted to any authorized
money changer in the following cases: