State Bank of Pakistan (SBP) has suspended the authorization of two further exchange companies, including Orient Exchange Company and Best Way Exchange Company, for engaging in misconduct or being unable to comply with its requirements.
SBP has suspended the authorization of two Exchange Companies for three months, effective immediately, due to gross violations of regulatory orders.
SBP has advised both businesses to strengthen their Internal Control Functions and submit a report to SBP detailing the corrective actions to be implemented. During the suspension period, both Exchange Companies, their headquarters, and all branches/outlets are prohibited from conducting any type of business.
In the past several months, the banking regulator has also banned the activities of other exchange companies for regulatory infractions.
The SBP tightened foreign exchange restrictions in September 2022 in an effort to increase documentation and transparency in foreign exchange transactions between exchange companies. Since then, the regulator has taken severe action against exchange companies that violate its restrictions, which has contributed to the devaluation of the Rupee versus the Dollar.