KARACHI, Aug 9: The State Bank has cancelled the licence of one private money changer in its drive to curb illegal transfers of currency and money laundering, officials said on Saturday.

Universal Forex, a Karachi-based money changer, was found involved in illegal transfers of money abroad from Pakistan, a senior central bank official told Reuters on the condition of anonymity.

The SBP is moving firmly against money laundering and illegal transfers and the cancelling of the licence is a step in that direction, another official said.

Two other money changers — Galaxy International and ARK Exchange — have been issued show-cause notices after similar complaints of illegal money transfers, they said.

A leading private forex company — Khanani and Kalia International — has also been issued a show-cause notice for illegal money transactions, they said.

The central bank spokesman confirmed the cancellation of the licence but refused to give any details.

There are 397 licensed private money changers and six private foreign exchange companies in Pakistan.

The money changers in Pakistan are required to maintain a weekly statement of foreign currency transactions with the central bank.

They are barred from transferring money abroad under the central bank’s regulations.

The central bank has introduced stringent rules to curb money laundering and bring foreign currency remittances into the banking channel in the wake of US-led war against terror.

The new rules are paying off as Pakistan’s remittances have hit a record $4.236bn in fiscal 2002/03 (July/June) compared to $2.389 the previous year.—Reuters