On May 3, 2023, the State Bank of Pakistan (SBP) revoked M/s. Mega Currency Exchange Company (B) Private Limited authorization/license.
According to a press release issued by the SBP, the decision was made due to violations of the pertinent laws and regulations. Therefore, the exchange company, including its headquarters and branches, can no longer conduct any foreign exchange-related business.
In order to promote transparency and safeguard the integrity of the foreign exchange market, the SBP has taken stringent action against noncompliant exchange corporations. The central bank has adopted a risk-based approach to supervision, which means that it concentrates its resources on institutions and activities that pose the greatest risk.
According to the SBP, M/s. Mega Currency Exchange Company ‘B’ (Privately) Limited did not comply with the regulatory requirements governing foreign exchange business activities. The company’s actions violated the Pakistani laws and regulations governing the foreign exchange business, resulting in the revocation of its authorization/license.
Notably, the SBP has been actively monitoring exchange companies and taking action against noncompliant entities. Another exchange company’s licence was revoked by the SBP in February 2023 due to noncompliance with regulatory requirements.
The SBP has been imploring exchange companies to adhere to regulatory requirements and maintain adequate systems and controls to mitigate the risks associated with foreign exchange transactions. In order to ensure transparency, accountability, and customer security, the central bank has also been encouraging exchange companies to employ best practises.
In conclusion, the SBP’s cancellation of M/s. Mega Currency Exchange Company ‘B’ (Pvt.) Limited’s authorization/license serves as a reminder to all exchange companies to comply with regulatory requirements and maintain transparency in business operations. The action of the central bank will foster a more robust and reliable foreign exchange market in Pakistan.
