RIZWAN BHATTI
KARACHI: The State Bank of Pakistan (SBP) has issued Exchange Companies Manual 2016 in order to update/compile related regulations for the convenience of exchange companies.
According to the SBP-FE Circular No. 04, Exchange Companies Manual has been compiled by incorporating the related SBP Circulars and Circular Letters issued up to June 30, 2016 by relevant SBP departments. Some of the existing instructions contained in SBP Circulars/Circular Letters have been slightly amended in order to make more clarity, it added. Further, prescribed reporting forms have been made a part of the Exchange Companies Manual, it added.
After the promulgation of the Foreign Exchange Regulation (Amendment) Ordinance 2002, State Bank has issued various FE Circulars and Circular Letters to Exchange Companies and Exchange Companies of ‘B’ category over the period. In order to update/compile related regulations for the convenience of users, Exchange Companies Manual 2016 has been prepared.
For the purpose of securing compliance with the provisions of the Act and any rules, orders or directions issued there under, the State Bank may, under sub-section (4) of Section 3AA of the Act, give directions to Exchange Companies and Exchange Companies of ‘B’ category who are authorized by the State Bank to do anything in pursuance of the Act.
The Exchange Companies Manual has been issued in electronic form and changes in the regulations are generally advised by the issuance of FE Circulars and Circular Letters. Instructions issued by the State Bank to the Exchange Companies and Exchange Companies of ‘B’ category up to June 30, 2016, setting out the terms and conditions subject to which they may engage in transactions covered by the Act, have been incorporated in this Manual.
Contents of Manual and all instructions, directions, orders etc., issued under the Act are without prejudice to the provisions of any other law of Pakistan or any rules, orders, directions or regulations made there under.
According to the SBP, it will be in the interest of Exchange Companies and Exchange Companies of ‘B’ category to ensure that updated Manual and related Circulars and Circular Letters issued by the State Bank from time to time are available with them for appropriate compliance.
As per Manual, Exchange Companies and Exchange Companies of ‘B’ category are required to bring related regulations to the notice of their customers and to ensure compliance in their day to day operations.
Exchange companies should also report to the State Bank every case of evasion or attempt, direct or indirect, at evasion of the provisions of the Act and/or any rules, orders or directions issued there under, immediately as it comes to their notice, the SBP said.
