The State Bank of Pakistan (SBP) has revoked the authorization and license of M/s Glaxy Exchange (Private) Limited with immediate effect, citing serious violations of its regulatory instructions.
This action prohibits the exchange company—including its head office and all outlets—from conducting any foreign exchange-related business activities across Pakistan. The decision underscores SBP’s ongoing enforcement to maintain discipline in the foreign exchange market and protect against regulatory breaches.
Although in the above case the State Bank of Pakistan (SBP) has not explicitly mentioned, the central bank enforces strict regulations on exchange companies through its Exchange Companies Manual and related forex policies to ensure market integrity, prevent illicit flows, and maintain transparency.
Serious violations that could lead to license cancellation typically include:
Operating without proper documentation or failing to report transactions accurately.
Dealing in unauthorized currencies or exceeding prescribed limits on cash holdings.
Engaging in hawala/hundi (informal, unregulated transfers) or facilitating money laundering.
Manipulating exchange rates, such as selling dollars at premiums far above interbank rates or creating artificial volatility.
Non-compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, like inadequate customer verification.
Conducting business beyond licensed scope, such as unauthorized remittances or speculative trading.
Failing to maintain required capital, records, or submit timely reports to SBP.
Involvement in fraudulent activities or repeated minor breaches despite warnings.
These breaches undermine Pakistan’s foreign exchange stability, often prompting swift SBP action to protect the regulated market. The move comes amid the central bank’s continued scrutiny of exchange companies to ensure compliance with forex rules.