SBP suspends 5 exchange companies for violating rules

The State Bank of Pakistan (SBP) has suspended the authorization of five exchange companies of B-category with immediate effect.

The exchange companies facing suspension include (a) International Exchange Company, (b) World Wide Exchange Company, (c) World Exchange Company, (d) Universal Exchange Company, and (e) United Exchange Company.

The SBP's stern action comes in response to serious violations of the central bank's regulations and instructions. The primary objective of the suspension is to ensure that financial regulations are upheld and the integrity of the financial system is preserved.

The suspension notice issued by the SBP explicitly states, "All the aforementioned Exchange Companies–B Category, their head offices, and all branches have been debarred from undertaking any kind of business activity during the suspension period." This strict measure aims to prevent these companies from conducting any financial operations until further notice.

Notably, the SBP has not disclosed specific details regarding the nature of the violations committed by these exchange companies. However, the severity of the breach was cited as the reason for their immediate suspension.

This latest action follows a similar move by the SBP in September when the central bank suspended the authorization of four exchange companies