Exchange companies to keep record of transactions worth $500 or more

KARACHI (Sarzameen News) – Taking stern action against money laundering in the country, the State Bank of Pakistan has directed money-exchange companies to keep a record of any transaction worth $500 or more.

The companies have been directed to identify the people who engage in transactions of the dollar, and the SBP has also amended its manual.

As per the new instructions, exchange companies are required to keep a copy of the identity card or passport of the person involved in the transactions.

According to the SBP officials, strict action will be taken against those who fail to follow the instructions.

Earlier on April 7, Pakistan’s central bank had advised people against the usage of cryptocurrency in any kind of transactions in the country, saying the new medium of exchange was neither “recognized as a Legal Tender” nor was “authorized or licensed” to anyone.

In its circular — titled “Caution regarding risks of virtual currencies”, the State Bank of Pakistan (SBP) rationalised: “Virtual Currencies/Coins/Tokens provide high degree of anonymity and potentially can be used for facilitating illegal activities.

“Also due to the ambiguous nature of Virtual Currencies, no legal protection or recourse is available to any individual,” the notification added.

The top financial authority’s External Relations Department said it is prudent to stay away from digital currency deals or investments since its significant price fluctuation, hacking and cybersecurity issues, and closure, “including action by law enforcement agencies”, could lead to preventable losses.

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