Amendment to the Implementation Method of Monetary Brokerage from July 01, 2024
Amendment of Currency Brokerage Implementation Methods from July 1, 2024?
On May 15, 2024, the Governor of the State Bank issued Circular 02/2024/TT-NHNN amending and supplementing several articles of Circular 17/2016/TT-NHNN dated June 30, 2016, which regulations on currency brokerage activities of commercial banks and foreign bank branches.
In Article 6 of Circular 17/2016/TT-NHNN, the implementation methods are stipulated as follows:
Currency Brokerage Implementation Methods
The brokerage agency can carry out currency brokerage activities through direct or indirect transactions via computer networks and/or telephones with customers, or other methods agreed upon by the parties in accordance with the conditions of the parties, complying with legal regulations.
In Clause 4, Article 1 of Circular 02/2024/TT-NHNN, the implementation methods of currency brokerage are stipulated as follows:
Currency Brokerage Implementation Methods
The brokerage agency can carry out currency brokerage activities with customers through direct transactions or through electronic means as regulated by the law on electronic transactions.
Thus, from July 1, 2024, there will be 02 methods for carrying out electronic currency brokerage, including:- Direct transactions;- Transactions through electronic means.
Amendment of currency brokerage implementation methods from July 1, 2024? (Image from the Internet)
Which customers can be intermediated for currency transactions?
In Article 1 of Circular 17/2016/TT-NHNN, amended by Clause 1, Article 1 of Circular 02/2024/TT-NHNN, the customers eligible for currency brokerage are stipulated as follows:
Applicable Subjects
The currency brokerage agency (hereinafter referred to as the brokerage agency) is a commercial bank or a foreign bank branch that has been approved by the State Bank for currency brokerage activities in the establishment and operation license of the commercial bank or the establishment license of the foreign bank branch issued by the State Bank.
Customers eligible for currency brokerage (hereinafter referred to as customers) are credit institutions, foreign bank branches established and operated under the Law on Credit Institutions.
Thus, from July 1, 2024, the customers eligible for currency brokerage include:- Credit institutions- Foreign bank branches established and operating under the Law on Credit Institutions.
What principles must currency brokerage adhere to?
In Article 4 of Circular 17/2016/TT-NHNN, amended by Clause 2, Article 2 of Circular 02/2024/TT-NHNN, the principles of currency brokerage are stipulated as follows:- Commercial banks and foreign bank branches must issue internal regulations on currency brokerage activities in accordance with this Circular and related legal regulations, including at least the following contents: process, procedures for currency brokerage; scope of responsibility and authority of individuals involved in currency brokerage activities; risk management for currency brokerage activities.
Within 10 days of issuance, amendment, supplementation, or replacement of the internal regulations on currency brokerage activities, commercial banks and foreign bank branches must send them directly or by post to the State Bank (the Banking Inspection and Supervision Agency).
- The implementation of currency brokerage must comply with the regulations in Circular 17/2016/TT-NHNN and other relevant legal regulations.
- Ensure honesty, objectivity, and the lawful interests of customers:+ Information about the transactions brokered and other information permitted by the customer must be fully and accurately reflected;+ Do not provide misleading information or interfere in any form to distort information leading to inaccurate assessment by the customer of the brokered transaction and/or affecting the lawful interests of the customer;
- Do not provide information related to customers and brokered transactions to third parties, except in cases where required by competent state agencies as regulated by law or with the customer's consent.
- Commercial banks and foreign bank branches cannot simultaneously act as both the brokerage agency and one of the parties conducting the brokered transaction with the customer.
Sincerely!
