KARACHI, Sept 28: The State Bank of Pakistan has asked the exchange companies to fully cooperate with its inspection team and warned that non-cooperation could bring serious punishment, like cancellation of licence.

Industry sources said that serious warning was issued primarily owing to pressure on Pakistan over money-laundering and other irregularities that may benefit or help terrorist funding.

A few exchange companies were found involved in irregularities and they have faced the consequences.The State Bank on Friday warned all exchange companies (A and B categories) that it would take punitive action against them if they deliberately obstruct SBP’s inspection teams in performance of their duties.

“The punitive action may include suspension or revocation of the licence of the exchange company, permanent disqualification of its directors and sponsors to conduct foreign exchange business in any capacity,” said a SBP circular issued to the chief executives of all the exchange companies.

As per rule, the SBP has the right to inspect activities of exchange companies at any time it finds appropriate to ensure adherence to its rules and regulations.

The SBP said that exchange companies are required to fully cooperate with the SBP inspection teams and provide full disclosure of information required during the course of inspection, including but not limited to their activities, accounts, operations, IT systems and records.

No exchange company or official of its entire network would obstruct or hinder the SBP inspection team that is carrying out duties or functions under SBP directives as well as provide false, misleading or inaccurate information to the SBP inspection teams, said the SBP.