DOLLAR EAST EXCHANGE COMPANY
Research Analyst, PAGE
July 26 - Aug 1, 2010
Dollar East Exchange Company (Pvt) Limited is a leading exchange company in Pakistan. The company is one of the pioneers to start currency exchange business in the country. It was amongst the first companies to receive the license of money changer from State Bank of Pakistan when this business was regularised in 1992.
When SBP established exchange companies in Pakistan in 2002, Dollar East was the second exchange company to be awarded permission. Dollar East received exchange company's license on 2nd May 2003 and commenced its operation on 7th July 2003.
Under the exchange company license, Dollar East is authorised to deal in the business of currency exchange, travelers' cheques, notes, postal notes, money order, bank drafts and inward/outward remittances in a regulated environment. The company is authorised to set up its own branches or grant franchise arrangements for full range of services. The company is also allowed to establish its own or franchised payment booths for inward remittances all over Pakistan.
Dollar East currently operates a network of 18 branches, which are strategically located in all high potential areas. The company has aggressive plans to expand its branch network to other areas of Pakistan. It also operates three payment booths in Rawalpindi, Mandi Bahauddin and Sahiwal and is also in the process of setting up franchised network of currency exchange booths and payment booths network in both rural and urban areas of Pakistan.
The company deals in outer remittances, inner remittances, currency exchange, and Hajj & Umrah pilgrimages.
Outer remittances include telegraphic transfer and demand draft. Telegraphic Transfer service is a fast, convenient, and reliable way to remit customer funds abroad. With the help of this service, the customer can swiftly transfer its money directly to a beneficiary's bank account in most foreign countries of the world. The money remitted is credited to the beneficiary's account within 2-3 working days depending on the currency, destination, and the corresponding bank. Telegraphic Transfer or Wire Transfer is considered to be one of the fastest means of remitting funds overseas. It is very easy to send money abroad: university fee, hospitalisation deposit, vendor's payment or a payment to the associate.
Foreign Currency Demand Draft is a safe, secure, and convenient form of money transfer. It is beneficial for the sender to use a bank draft because it is secure and can only be credited to the specified beneficiary's bank account. If the demand draft is lost, stolen, or destroyed the sender can stop payment of the draft and receive a refund. However, the refund can only be made if the draft has not been credited to a bank account. It is also advantageous for the beneficiary to use a DE Bank Draft. Beneficiary is assured payment of the amount specified on the bank draft.
Currently, there are 23 exchange companies working in Pakistan under the State Bank rules and regulations out of which three are under suspension.
It is important to note that hundred of thousands of Pakistanis are working in Kingdom of Saudi Arabia, Middle East, Europe, and USA/Canada and need to remit their earned money to homeland. Therefore, exchange companies in Pakistan should plan and implement strategy to bring their remittances through foolproof reliant system and demolish the Hundi and Hawala channels. Therefore, the remittances are brought to book and illegal transfer has to be discouraged.
For this, Pakistan's foreign exchange companies particularly Dollar East is trying to establish comprehensive anti-money laundering strategic programmes aimed at raising awareness on money laundering issues, Assisting law agencies and authorities to trace, seize, confiscate criminally derived profits, and introducing Know Your Customer Policy (KYC).
Reasonable measures to obtain information about the identity of the persons on whose behalf a transaction is made.
The National Assembly of Pakistan has already passed Anti-Money Laundering Bill 2009 suggesting one to ten years imprisonment and a fine up to Rs1,000,000 on violation of the law.
Anti-money laundering is a process that is against the illegal origin of the money. Money laundering is the result of a large number of criminal acts to generate a profit for an individual or group that carries out the act. Now a days money laundering has turned into a serious crime and in the last couple of years, the world has a serious concern towards it. Various measures have been taken to stop this unlawful act. Even in some countries, regulatory bodies have been formed to eliminate this crime. It is essential for us to know the effects which money laundering is creating on the economy and society, as mostly under developed countries where the law enforcement agencies are unable to play their respective roles become the victim of this.
Dollar East is a customer focused company and has always offered and maintained products, services, and policies aimed at best satisfying the customer needs. The infrastructure, systems, and procedures are regularly reviewed and improved to ensure that the customers are provided with speedy, convenient, and secure delivery of service.
The company is a good corporate citizen. It always operates within the provision of the national and international law. Dollar East is working closely with the regulatory authorities to promote the awareness and implementation of all regulatory requirements.