SBP, FIA to take action against illegal forex activity

November 8, 2022 (MLN): State Bank of Pakistan (SBP) and the Federal Investigation Agency (FIA) will take joint action against illegal foreign exchange operators and speculators across the country, a press release issued on Tuesday showed.

At the high-level meeting between the Governor of the SBP and the Director General of the FIA, it was agreed that a joint effort is required in order to apprehend and implicate the illegal foreign exchange business.

Accordingly, SBP and FIA have jointly initiated action against illegal foreign exchange operators in Pakistan. To this effect, joint teams from SBP and FIA shall identify and take penal/legal action against the perpetrators so as to curb speculation and the grey market.

The teams, while remaining within the legal mandate allowed to them by the relevant laws, would crack down on all illegal foreign exchange operators and businesses across Pakistan.

Furthermore, Banks and Exchange Companies (ECs) are authorized by the SBP to carry out Foreign Exchange business in Pakistan.

In addition, the involvement of any person or entity, other than banks and ECs, in foreign exchange business is illegal under the Foreign Exchange Regulation Act, of 1947.

The illegal foreign exchange business also adversely affects the open market exchange rate and increases the gap between the interbank and open market exchange rates, it added.

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