SBP revises manual for open-market foreign currency dealers

Move comes before next week's meeting of Financial Action Task Force

KARACHI: The State Bank of Pakistan (SBP) revised the manual containing laws for foreign currency dealers in the open market on Friday. The exercise is aimed at consolidating amendments made from time to time in the Foreign Exchange Manual since its issuance in 2017.

The step has been taken ahead of a crucial meeting of the Financial Action Task Force (FAFT), which is due next week. FATF would review what important measures Pakistan has taken so far to stop terror financing. Early this year, the task force warned the country of putting its name in the grey list to monitor its financing activities globally.

In latest amendment to the manual in May, the central bank put a condition that all buy and sell transactions in foreign currency equivalent to $500 or above would require exchange companies to obtain and retain copies of identification documents - CNIC, NICOP or passport in the case of a foreigner.



The move came as Pakistan looked to strengthen the anti-money laundering and combating terrosism financing regime ahead of the FATF meet-up in June, it was learnt.

On Friday, the central bank said the updated manual would facilitate stakeholders including authorised dealers (banks), exporters, importers, travel agents, carriers, etc.



Since the issuance of the updated Foreign Exchange Manual in 2017, several changes/amendments to the foreign exchange regulations have been made. Although the foreign exchange circulars, circular letters, notifications, etc through which these changes/amendments were made, have been posted at the SBP's website, the same stand incorporated in the Foreign Exchange Manual so that the stakeholders can find the regulations/instructions in a consolidated form in a single document.



The updated foreign exchange manual has been placed at the State Bank's website for reference of the stakeholders. "It is expected that the use of updated manual by the stakeholders would enable them to comply with the existing rules and regulations governing foreign exchange business more effectively," it said.

Published in The Express Tribune, June 23^rd, 2018.

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