Currency Business dealers say business volume in the currency market fell to 70 percent in the past two months, but the Gray Market spread its operations widely. Dealers said that law is being made law enforcement by the State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP), which is causing concern in traders. .
Secretary General Exchange Companies Association of Pakistan Zafar Paracha told that “Investment in dollars and other currencies has disappeared, while the volume of currency business has fallen up to 70 percent in the last two months. He said that the gray market business of illegal currency exchange has spread widely and 70 percent of the legal business has also moved to the illegal market.
Currency Business dealers said that in exchange companies, the Compliance Officer has to do his job as a police officer, and he also has to report on his behalf regarding every transaction. It is clear that this year, Pakistan was beaten up by the Financial Action Task Force (FATF) in the month of June, and before the country was put into a blacklist, it was time to make the appropriate arrangements. Due to this pressure on Pakistan, there are many laws to make illegal and worried transactions and identification of consumers.
However, the rules made to look at money laundering, banks are providing better services to increase money transfer through banks, in the first five months of the current fiscal year; trend of money transfer through banks increased 12.5 percent.
All banks have been considered to know their user’s details “Know You Customer” (KYC), a campaign launched by State Bank of Pakistan and Securities and Exchange Commission of Pakistan. Dollar price getting up day by day and Pak Rupee value getting down.