The State Bank of Pakistan (SBP) suspended the authorization of two exchange companies, citing serious violations of regulations and instructions.
The suspensions took immediate effect and are expected to have a significant impact on the operations of these financial institutions.
The first exchange company to face suspension is Al-Sahara Exchange Company (Pvt) Ltd. The SBP has suspended its authorization for a period of three months, highlighting the gravity of the regulatory infringements. As a result of this suspension, Al-Sahara Exchange Company, along with its head office, branches, and franchises, has been prohibited from conducting any form of business activity during this suspension period.
The SBP also put a ban on Premier Exchange Company–B (Pvt) Ltd due to serious violations of SBP regulations. The central bank has suspended its authorization until further orders.
This development places significant uncertainty on the future of Premier Exchange Company–B, pending further investigation and potential regulatory actions.
In a broader move to streamline the exchange company sector, the SBP has issued a directive to all B and C-category exchange companies. They have been instructed to either merge with A-category companies or cease their operations altogether. This directive is part of the SBP’s ongoing efforts to ensure the integrity and compliance of financial institutions operating within Pakistan.