Will individuals be granted a license to establish a foreign currency exchange desk in 2022? Conditions and procedures for licensing foreign exchange in Vietnam desks?
What are the conditions and procedures for licensing foreign currency exchange for individuals?
Pursuant to subsection 1, subsection 2, section 6 of Circular 07/2001/TT-NHNN (replacing some phrases by clause 3, Article 1 of Circular 29/2015/TT-NHNN and amended by clause 2 of Article 1) 1 Circular 29/2015/TT-NHNN) is regulated as follows:
- Conditions of establishment
+ Being Vietnamese citizens who are border residents (except for minors, people with limited or incapacitated civil acts, people who are examined for penal liability or are serving a penalty); imprisoned, deprived of the right to practice by the Court);
+ Having a place to set up a foreign currency exchange desk in the border area and border gate economic area, or other areas in the border province as permitted by the State Bank of Vietnam;
+ Having a minimum cash capital of 50 (fifty) million Vietnam Dong. Individuals declare themselves and take responsibility before law for the accuracy of their capital declaration.
- Procedures for applying for a license
Individuals who fully meet the above conditions and wish to establish a foreign currency exchange desk to buy and sell Vietnam Dong with the currency of a bordering country must send an application for a license to the branch of the State Bank of Vietnam. in the area where the Currency Exchange Desk is located. Profile include:
+ An application form for the establishment of a foreign currency exchange desk (Form No. 3);
+ Contract for leasing the location of the Foreign Exchange in Vietnam Desk or legal documents proving the right to use the location of the Foreign Exchange Desk;
+ Legal documents proving that border residents in the province apply for a foreign currency exchange desk. Have one of the following documents:
Original permanent residence or border card or certification by the People's Committee of the commune, ward or township that they have permanent residence in the border area, border gate economic area or certificate of registration (Certificate of business registration) in the border area, the border gate economic area.
In case of submitting copies of the above papers, individuals have the choice to submit copies issued from the original book or certified copies or copies with presentation of the originals for comparison.
If the applicant submits a copy and presents the original for comparison, the collaborator is responsible for verifying the accuracy of the copy against the original.
Will individuals be granted a license to establish a foreign currency exchange desk in 2022? Conditions and procedures for licensing foreign exchange in Vietnam desks? (Image from the internet)
What rights and obligations do individuals have when being granted a foreign currency exchange license?
Pursuant to subsection 4, Section 6 of Circular 07/2001/TT-NHNN (replacing some phrases with Clause 3, Article 1 of Circular 29/2015/TT-NHNN) as follows:
"4. Rights and obligations of individuals licensed to establish foreign exchange desks
a. To decide on their own the exchange rate of buying and selling Vietnam Dong with the currency of the bordering country;
b. To be obliged to register business, pay taxes, fees, charges and other revenues of the State budget according to the provisions of law;
c. Take responsibility for your business results and all your actions before the law;
d. Set up a Currency Exchange Desk at the place specified in the License; Not to buy or sell currencies of other countries other than those of the bordering countries specified in the License; Notify the State Bank's branch in the border province in the area of change of location or termination of business; Only conduct business after having been granted a business registration certificate;
e. Open books to monitor activities of buying and selling Vietnam Dong with money of bordering countries;
g. To make periodical reports to the State Bank's branch in border provinces in accordance with the provisions of Point 1, Section VII;
H. Strictly abide by other relevant regulations on foreign exchange management;
i. To submit to the inspection and examination by the State Bank's branch in border provinces in the area and by competent state agencies; To be responsible for providing information and creating favorable conditions during the inspection and inspection process upon request.
Thus, according to the previous regulations, individuals have the above rights and obligations when they are granted a foreign currency exchange license.
Is there still a license to establish a foreign exchange desk for individuals?
Pursuant to Article 4 of Circular 11/2016/TT-NHNN stipulating as follows:
“Article 4. Transitional provisions for individuals who are granted a license to establish a foreign currency exchange desk before the effective date of this Circular
Individuals who have been granted a license by the State Bank of Vietnam to establish a foreign currency exchange desk in accordance with the provisions of Circular No. 07/2001/TT-NHNN dated August 31, 2001 of the Governor of the State Bank of Vietnam in the direction of the State Bank of Vietnam. guiding the implementation of the Regulation on money management of bordering countries in border areas and border gate economic zones of Vietnam, promulgated together with Decision No. 140/2000/QD-TTg dated December 8, 2000 of the Prime Minister. Prime Minister before the effective date of this Circular, may continue to conduct foreign currency exchange.”
Accordingly, individuals who have been granted a license by the State Bank of Vietnam to establish a foreign currency exchange desk before August 13, 2016 will continue to conduct foreign currency exchange activities.
Considering contact point a, Clause 2, Article 5 of Circular 11/2016/TT-NHNN stipulating as follows:
"Article 5: Implementing Provisions
…
2. From the effective date of this Circular, the following Articles and Clauses shall cease to be effective:
a) Section 6 of Circular No. 07/2001/TT-NHNN dated August 31, 2001 of the Governor of the State Bank of Vietnam guiding the implementation of the Regulation on money management of bordering countries in border areas and Vietnam's border-gate economic zone promulgated together with Decision No. 140/2000/QD-TTg dated December 8, 2000 of the Prime Minister;”
Accordingly, from August 13, 2016, the regulations on individual foreign currency exchange tables will no longer be effective. Thus, in 2022, individuals will not be granted a license to establish a foreign currency exchange desk.
Therefore, at present, it is not possible to issue a certificate to establish a foreign exchange desk for individuals according to the above regulations.
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