All Exchange Companies

Dear Sirs,

Opening of Bank Accounts by Franchisees

It is brought to the notice of all Exchange Companies that the title of bank accounts maintained by their franchisees must reflect their status of a franchise holder. Those franchisees who were previously holding Authorized Money Changers Licenses and entered into franchise arrangement before July 01, 2004, must ensure adherence to the following:
Ø For all franchisees who are running their business as proprietorships, the bank account may be maintained only in the personal names of the proprietor with the addition of words “franchisee M/s………… Exchange Company” (e.g Mr. A.B, franchisee M/s XYZ Exchange Co. (Pvt) Ltd). Here A.B. refers to the name of the proprietor and XYZ refers to franchiser.
Ø For partnerships, the old business name could be used if words like “Authorized Money Changers” or “Money Changers” are not a part of the partnership’s name. The words “franchisee M/s. ………… Exchange Company” should be used as suffix for opening/ maintaining of the accounts (e.g. M/s A.B Enterprises, franchisee M/s XYZ Exchange Co. (Pvt) Ltd.). Here A.B. refers to the name of the enterprise (partnership) and XYZ refers to franchiser. In all those cases where the words like “ Authorized Money Changers” or “Money Changers” are the part of the business name of the partnership, new partnership name will be required and this new name needs to be registered as well.

2. All franchisees who have formed new entities to carry out exchange business as franchisees may open/maintain bank account in the name of their newly registered businesses with the addition of words “franchisee M/s XYZ Exchange Company”, where XYZ is the name of the franchiser.”All the Heads/ Chief Executives of the Exchange Companies are advised to ensure compliance of above instructions under confirmation to this department at the earliest.