The State Bank of Pakistan (SBP) has revoked the authorization and operating license of M/s Glaxy Exchange (Private) Limited with immediate effect, citing serious violations of the central bank’s regulatory framework governing exchange companies. The decision applies to the company’s head office as well as all of its branches and outlets across the country.
According to an official notification issued by the SBP on January 23, 2026, Glaxy Exchange is no longer permitted to conduct any foreign exchange-related business activities. The central bank stated that the action was taken following identified breaches of regulatory instructions, underscoring its zero-tolerance approach toward non-compliance in the financial sector.
The SBP did not publicly detail the specific nature of the violations but emphasized that the revocation was necessary to protect the integrity of Pakistan’s financial system. The move reflects the regulator’s ongoing efforts to strengthen oversight of exchange companies and ensure strict adherence to anti-money laundering, counter-terrorism financing, and operational compliance standards.
Exchange companies play a critical role in Pakistan’s financial ecosystem, particularly in facilitating remittances, currency exchange, and cross-border transactions. Given the country’s heavy reliance on remittance inflows, regulatory compliance in this segment is viewed as essential for maintaining financial stability, preventing illicit financial flows, and preserving international confidence in Pakistan’s banking and payments infrastructure.
In recent years, the SBP has significantly tightened its regulatory supervision of exchange companies. This has included enhanced licensing requirements, stricter reporting obligations, fit-and-proper criteria for management, and regular inspections to ensure compliance with prudential regulations. Institutions found in violation of these rules face penalties ranging from fines and operational restrictions to outright cancellation of licenses.
The revocation of Glaxy Exchange’s license follows a broader regulatory trend in which the SBP has taken enforcement actions against entities failing to meet governance and compliance standards. These actions are aligned with Pakistan’s commitments under international financial frameworks, including recommendations issued by the Financial Action Task Force (FATF), aimed at strengthening controls against money laundering and terrorism financing.
By cancelling the authorization of Glaxy Exchange, the SBP has effectively barred the company from dealing in foreign currency transactions, remittance services, and any other activities permitted under an exchange company license. Customers and counterparties dealing with the firm are expected to make alternative arrangements with authorized exchange companies or banks operating under SBP supervision.
The central bank reiterated that the decision was taken in the interest of regulatory compliance, transparency, and safeguarding the financial system. SBP officials have consistently stated that enforcement actions are not punitive in isolation but are intended to promote discipline, accountability, and trust in Pakistan’s regulated financial institutions.
Market observers note that such actions, while disruptive for affected firms, send a strong signal to the broader financial sector regarding the importance of compliance and governance. They also reinforce the SBP’s role as an active regulator at a time when Pakistan is seeking to modernize its financial system, improve documentation, and expand digital and formal financial channels.
The SBP has advised the public to engage only with authorized and regulated entities for foreign exchange transactions. A list of licensed exchange companies and banks is maintained on the central bank’s official website to help consumers verify the status of service providers before conducting financial dealings.
As regulatory scrutiny continues to intensify, industry participants are expected to invest more heavily in compliance systems, internal controls, and staff training. The revocation of Glaxy Exchange’s license serves as a reminder that adherence to regulatory requirements is not optional, particularly in a sector closely linked to external accounts, capital flows, and financial integrity.
The SBP has not indicated whether further enforcement actions are under consideration, but officials have maintained that regulatory vigilance will remain a priority as part of broader financial sector reforms.
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