“The Exchange Company, its head office, branches, franchises and payment booths have been debarred from undertaking any kind of business activity during the suspension period,” it added.

It is the second company the central bank debarred from undertaking any kind of business activity in September as it suspended the authorisation of Usman International Exchange Company –B (Pvt) Limited till further orders on September 8.

On September 6, the SBP introduced structural reforms in the Exchange Companies’ sector to strengthen governance, internal controls, and compliance culture in the sector.

The SBP has stated that it wants banks actively engaged in foreign exchange business to establish wholly owned Exchange Companies to cater to the legitimate foreign exchange needs of the general public.

Various types of existing exchange companies and their franchisees will be consolidated and transformed into a single category of ECs with a well-defined mandate.

Additionally, the minimum capital requirement for Exchange Companies was increased from Rs200 million to Rs500 million.