CB initiates regulatory action against errant money exchangers

In response to several complaints that certain authorised money exchangers are engaged in activities that are not in compliance with the directions issued under the provisions of the Foreign Exchange Act No. 12 of 2017 (FEA), the Central Bank is conducting a series of spot examinations at the offices of authorised money exchangers, a step towards strengthening monitoring and supervision.

In the spot examinations conducted during the months of November and December 2021, it was revealed that the following authorised money exchangers had not complied with the directions issued to them under the provisions of FEA. 

Accordingly, after the Minister of Finance was informed, notices were issued to them to comply with the relevant directions within a specified time period.

1. New Natasha Ltd. at No. 12, Super Market Complex, Wennappuwa

2. George Michael Holdings Ltd. at No. 157, Chilaw Road, Wennappuwa

3. Royal Money Exchange Ltd. at No. 55, Galle Road, Colombo 06

4. Prasanna Money Exchange Ltd. at No. 57, Galle Road, Colombo 06

In the event the errant authorised money exchangers fail to rectify the issues communicated through the notices, the Central Bank will be compelled to suspend and revoke the permits issued to them.

The general public must be informed that authorised money exchangers have no authority to transact foreign exchange at rates higher than those offered by the banks to such money exchangers.