State Bank of Pakistan has allowed exchange companies to carry out its operations of inward and outward remittances utility bill payments and others using Virtual Private Networks (VPN).
The company will establish standby network connections both to primary and secondary sites through Virtual Private Network (VPN) or dedicated links i.e internet access must be restricted according to the Regulatory Framework for Exchange Companies.
The banking regulator launched a strict mechanism for exchange companies that included high paid-up capital requirements operational compliances monitoring systems and security controls. Under the rules, exchange companies are required to ensure that their primary and secondary data centers lie within Pakistan.
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The company can contract its workload with local Cloud Service Providers (CSPs). The company shall outsource its workload to the local Cloud Service Providers (CSPs). The Company will establish security needs to protect its operating systems' software networks devices and databases.
The company shall establish monitoring control procedures that will enable the users and vendors to access sensitive data information and system. Exchange Companies Services for Public. The company may install banks ATM for PKR at their outlets as per the terms and conditions agreed upon between the respective bank and the Company without getting prior approval for SBP.
Exchange Company may act as an agent of banks and Microfinance banks who offer such services under Branchless Banking Regulations issued by SBP. The company may enter into agreements with utility companies like WAPDA, PTCL, KE, SSGC etc. For collection of utility bills in PKR on their behalf.
Companies that fall in the category of exchange businesses are required to come up with a broad BCP, Disaster Recovery Plan that will include; cutting and eliminating all forms of losses in terms of finance on the company offering its service with minimal effects on the disturbance so that it does not interfere with significant business performance operations based on the framework.
Prior to commencing the inward home remittance operation, the company shall obtain prior approval from SBP. On the same day, the company shall surrender 100 percent of the FCY received on account of inward home remittances in equivalent US dollars through the interbank market.
The company is authorized to effect outward remittances only on personal accounts of individuals i.e. personal financial transactions, the company is not allowed to effect any outward remittances on account of trade and commercial transactions of any nature including payments against services, commission etc whether on account of individuals or on behalf of corporate clients.
The company can make outward remittances to 75% of the inward home remittances mobilized by it during the preceding month. The company shall retain copy of identification document ie computerized National Identity Card CNIC National Identity Card for Overseas Pakistanis NICOP Pakistan Origin Card POC Passport having valid visa on it or any other proof of legal stay of a foreigner in Pakistan as the case may be after having seen the original document.
The company will carry out biometric verification of Pakistani Nationals for all transactions and maintain the record thereof.