Central Bank suspends Prasanna Money Exchange permit for offering higher rates

• CBSL says intensified its on-site investigations at Authorised Money Changing outlets

The Central Bank yesterday announced the suspension of the permit issued to Prasanna Money Exchange Ltd. It said considering the complaints received from general public that Prasanna Money Exchange is offering higher exchange rates, the Department of Foreign Exchange of the Central Bank conducted an on-site investigation on 30 March. 

As per the investigation, it was observed that the Prasanna Money Exchange had offered higher exchange rates and thereby attempted to purchase foreign currency from its customers at higher rates than the exchange rates offered to them by Licensed Banks and that they were in violation of the Directions issued to Authorised Money Changers under the Foreign Exchange Act No. 12 of 2017 (FEA). 

Accordingly, the Central Bank said it decided to temporarily suspend the permit issued to the Prasanna Money Exchange Ltd under the provisions of the FEA, with effect from 31 March. 

“@The public is hereby informed that the Prasanna Money Exchange (Pvt) Ltd is no longer permitted to engage in money changing activities as an Authorised Money Changer with effect from 31.03.2022,” CBSL aid.

It also warned the public that any transaction with the Prasanna Money Exchange Ltd. during the period of suspension is considered as a contravention with the provision of the FEA. 

“The Central Bank has intensified its on-site investigations at Authorised Money Changing outlets and will stand ready to suspend/revoke permits of Authorised Money Changers who do not adhere to the Directions issued under the Foreign Exchange Act,” the statement added.