SBP cancels forex company's licence over 'regulatory violations'

The State Bank of Pakistan (SBP) on Tuesday cancelled the licence of Al Raj International Exchange Company with immediate effect over what it described as serious violations of regulatory guidelines.

In an official statement, the central bank said the action was taken following significant breaches of rules governing exchange companies, underscoring its commitment to maintaining transparency and discipline in the financial sector.

As a result of the cancellation, the head office and all affiliated branches of the company have been barred from conducting any foreign exchange-related business activities. The SBP clarified that the company is no longer authorised to deal in currency exchange or any related services.

The move is part of ongoing efforts by the central bank to tighten oversight of exchange companies and ensure compliance with regulatory standards aimed at preventing financial irregularities and protecting consumers.

The SBP reiterated that strict action will continue to be taken against entities found violating rules, as part of broader measures to strengthen Pakistan’s financial system and curb illegal foreign exchange practices.