SBP, FIA team up against illegal currency dealers

• Meeting took stock of illicit foreign exchange activities.
• Comprehensive plan chalked out to take action.
  
• Illegal money dealers disrupt open market exchange rate.
  

KARACHI: The State Bank of Pakistan (SBP) and the Federal Investigation Agency (FIA) have teamed up to bust illicit foreign exchange companies across the country.

The SBP governor and the Director-General FIA agreed to launch joint action in a meeting on Tuesday.

“The meeting took stock of illicit foreign exchange activities and chalked out a comprehensive plan of action against illegal foreign exchange businesses being carried out in the country,” the central bank said in a press release.

Both the officials agreed that a concerted joint effort was the need of the hour to apprehend and implicate the illegal foreign exchange operators and speculators across the country.

“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 SBP said.

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

"Banks and exchange companies are authorised by the SBP to carry out foreign exchange business in Pakistan; however, involvement of any person or entity, other than banks and exchange companies, in foreign exchange business is illegal under the Foreign Exchange Regulation Act, 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 rate, the SBP said.