SBP, in the year 2002, took the decision to convert all money changers and substitute them with exchange companies, the objective being to ensure full documentation of remittance transactions, to increase them and to help crack down on the activities of unauthorized money changers and the “hundi” business involved in money laundering. The directive was to take effect from July 2004.

The requirement for an exchange company includes a capital requirement of Rs. 100 million, which has to be increased in two years time to 200 million, among other stringent requirements. As most exchange companies will be unable to meet these, SBP allowed them the option to become the franchise of an already established foreign exchange network all over Pakistan. The franchises benefits from the business acumen of these companies, their technical expertise and are able to use these established names.

So far KKI has acquired … franchises all over the country and more are under consideration. We provide servers with software programs to the franchises, training to their employees and technical expertise and solutions. KKI lauds SBP‘s efforts to regulate the foreign currency market and supports them in their endeavors.