AML KYC Regulations
MCB Exchange is steadfast in its commitment to combating money laundering and terrorist financing. We rigorously adhere to all Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations and guidelines issued by the State Bank of Pakistan (SBP) and other relevant authorities. Our policies and procedures are designed to detect, prevent, and report suspicious activities, reinforcing our dedication to a secure and transparent foreign exchange environment.
Anti-Money Laundering Act, 2010 (AMLA)
This is Pakistan’s core legislation for preventing money laundering and terrorism financing. It defines offenses, prescribes penalties, and mandates financial institutions to report suspicious transactions in accordance with regulatory requirements.
Anti-Terrorism Act, 1997 (ATA Law)
This act provides the legal basis for counter-terrorism efforts in Pakistan. It includes provisions related to the financing of terrorism, enabling authorities to detect, investigate, and prosecute terror-related financial crimes.
AML/CFT/CPF Regulations for SBP REs
These regulations define AML, CFT, and CPF obligations for SBP-regulated entities and provide detailed guidelines covering KYC, CDD, EDD, sanctioned screening, CTR/STR filing. Updated/Amended by SBP from time to time.
Regulatory Framework for Exchange Companies & AML Integration
Framework issued via FE Circular No. 02 of 2024 mandates that AML and KYC compliance, form part of the governance and operational model of Exchange Companies, emphasizing internal controls and effective reporting.
Foreign Exchange Manual and AML Guide
The manual provides comprehensive guidelines for handling foreign exchange transactions. It implicitly incorporates AML/KYC requirements for Exchange Companies, ensuring regulatory compliance in all currency dealings.
Customer Due Diligence and Documentation
Our KYC and AML checks not only fulfill compliance requirements but also protect customers. By verifying identities and transaction intent, we safeguard users from financial
misuse or potential fraud.
As a regulated foreign exchange company in Pakistan, MCB Exchange operates under the strict guidelines and regulations issued by the State Bank of Pakistan (SBP). These circulars ensure transparency, stability, and compliance within the currency exchange market, safeguarding the interests of both customers and the financial system. We are committed to adhering to all SBP directives, ensuring that our operations are fully compliant and uphold the highest standards of integrity.
Key SBP circulars and regulatory frameworks governing currency exchange in Pakistan, publicly available on the SBP website, include:
Foreign Exchange Manual: This comprehensive manual outlines the rules and regulations for foreign exchange business in Pakistan, serving as a foundational document for Authorized Dealers and Exchange Companies.
Regulatory Framework for Exchange Companies (RFEC): Issued via FE Circular No. 02 of 2024 (December 27, 2024), this consolidated framework supersedes the previous Exchange Companies Manual, setting forth corporate governance structures, internal controls, IT system requirements, and updated reporting for Exchange Companies.
FE Circular No. 03 of 2023 (September 06, 2023): These circular details "Reforms in the Exchange Companies Sector," including the consolidation and transformation of various Exchange Company categories.
EPD Circular Letter No. 17 of 2022 (September 30, 2022): This circular introduces "Amendments in Instructions for Exchange Companies," specifically regarding the settlement of Pakistan Rupee consideration for inter-company transactions through bank accounts and mandating functional CCTV systems.
Various other E. Circulars and EPD Circular Letters issued periodically by the SBP’s Exchange Policy Department, addressing specific aspects such as import/export regulations, remittances, and operational procedures.