ISLAMABAD, Nov 17: The government has announced that since the unearthing of foreign exchange scam, all transactions are being closely monitored under the Foreign Exchange Regulation (FER) Act 1947 and policy guidelines issued from time to time by the State Bank.

A spokesman for the Ministry of Interior said in a statement on Monday that exchange companies were carrying out their business under the law and the ambit of the SBP for transferring money through legal banking channels under terms and conditions of licence granted to them by the central bank.

Illegal money transaction (hawala) within and outside Pakistan is an offence under section 5 and punishable under section 23 of the FER Act.

“The Federal Investigation Agency (Lahore Circle) has recently registered a case under the FER, Electronic Transactions Ordinance, Prevention of Electronic Crime Ordinance and Pakistan Penal Code against people involved in illegal transfer of foreign currency by providing underground remittance services in the garb of legal business,” the spokesman said.

He said that such services were being provided in a clandestine manner through an illegal site on the internet which was being run without any permission from the SBP, in violation of laws and rules governing the foreign exchange.