Attention of Exchange Companies (ECs) and Exchange Companies of ‘B’ Category (ECs-B) is invited towards instructions contained in Paras 9 (i)(b) of Chapter 3 and Para 12 (i)(a) of Chapter 8 of Exchange Companies Manual, in terms of which, they are allowed to purchase/sale foreign currencies from each other, as per their scope of business.

2.     In order to promote documentation and transparency in the foreign exchange transactions, it has been decided that, henceforth, Pakistan Rupee consideration of currency exchange transactions between ECs, ECs-B and franchises of ECs shall be conducted through the bank accounts of respective ECs, ECs-B and franchises of ECs. Accordingly, the relevant Paras of Exchange Companies Manual would stand amended as under:

Para 9(i)(b):
Purchase and sale of foreign exchange in “Ready”, “Tom” and “Spot” value dates from/to other Exchange Companies. Further, Exchange Companies, including their Franchises, shall settle Pakistan Rupee consideration of all foreign currency purchase/ sale transactions conducted with other Exchange Companies, Franchises of Exchange Companies, and Exchange Companies of ‘B’ Category only through their bank accounts.

Para 12(i)(a)
Exchange Companies of ‘B’ Category are authorized to deal in purchase and sale of foreign currency notes and coins from individuals, Exchange Companies and Exchange Companies of ‘B’ category in ‘Ready’ value only.  Further, Exchange Companies of “B” Category shall settle Pakistan Rupee consideration of all foreign currency purchase/sale transactions conducted with other Exchange Companies, franchises of Exchange Companies and Exchange Companies of “B” Category only through their bank accounts.

3.     Moreover, Exchange Companies and Exchange Companies of ‘B’ Category are advised to ensure that CCTV should be functional at all times (i.e. 24 hours a day and 7 days a week), as required in terms of Para 1(vii)(c) of Chapter 4 and Para 16B(iii) of Chapter 8, respectively, of Exchange Companies Manual. In cases, where CCTV system is non-functional at an outlet for any reason, including technical faults, Exchange Companies and Exchange Companies of ‘B’ Category shall not carry out any business activities in the said outlet during such time, until the functionality of the CCTV system is restored.

4.      Further, minimum preservation period of video recording as given in Para 1(vii (d)) of Chapter 4 and Para 16B (iv) of Chapter 8 of Exchange Companies Manual shall be six months or until inspection of the company by SBP, whichever is earlier.  

5.      All other terms and conditions on the subject shall remain unchanged.

6.     Failure to comply with these instructions shall attract regulatory action under the relevant provisions of the Foreign Exchange Regulation Act, 1947.