Regulations on application for the issuance of certificates of registration of money exchange agents of bordering countries in Vietnam

Regulations on application for the issuance of certificates of registration of money exchange agents of bordering countries in Vietnam (Internet image)

On May 12, 2023, the Government issued Decree 23/2023/ND-CP amending Decree 89/2016/ND-CP stipulating conditions for foreign currency exchange agency activities, activities of providing foreign currency receipt and payment services of economic organizations and Decree 88/2019/ND-CP stipulating penalties for administrative violations in the monetary and banking sectors.

Regulations on application for the issuance of certificates of registration of money exchange agents of bordering countries in Vietnam

Specifically, in Clause 7, Article 1 of Decree 23/2023/ND-CP, Article 6d has been added after Article 6c, providing for the application for a certificate of registration of a money exchange agent of a bordering country as follows:

- An application form for a Certificate (made according to Form No. 01 specified in the Appendix issued together with Decree 23/2023/ND-CP);

- A copy of the document proving the placement of a money exchange agent of a bordering country at the location specified at Point b, Clause 1, Article 6a of Decree 23/2023/ND-CP;

- Report on the economic organization fully equipping the public exchange rate notice board, the signboard showing the name of the authorized credit institution and the name of the money exchange agent of the bordering country at the transaction place;

- The process of exchanging money in a bordering country includes the following main contents: taking measures to ensure security and safety in the process of exchanging money in a bordering country; recording and issuing invoices to customers, keeping documents, invoices, and books; accounting and bookkeeping regimes; reporting mode; handling measures when detecting counterfeit money, money unqualified for circulation;

- A copy of the currency exchange agency contract signed by the bordering country with the authorized credit institution, including the following main contents:

+ Name, head office address, and contact phone number of the contracting parties;

+ Names and addresses of money exchange agents in bordering countries;

+ Stipulating that money exchange Agents of bordering countries can only buy money from bordering countries in cash (except for agents located in exit waiting areas at international and main border gates) and resell the purchased cash (in addition to the remaining cash balance) to an authorized credit institution;

+ Regulations on the principles of determining the buying and selling exchange rates (the regulations on determining the selling rates only apply to agents located in waiting areas for exit at international and main border gates) for customers and the resale rate of money from bordering countries in cash to authorized credit institutions in accordance with regulations on foreign exchange management; stipulate agency commission fees (if any);

+ Rights and obligations of the parties to the contract, which clearly stipulates that money exchange agents of bordering countries must strictly comply with the currency exchange process of bordering countries; stipulating that the authorized credit institution must periodically inspect the activities of the agents to ensure the correct implementation of the contract and the provisions of the law;

Regulations on the handling of violations in cases where money exchange agents of bordering countries violate contracts and regulations of law on money exchange agency activities of bordering countries;

+ Agreement on the amount of funds to be left and the time limit for selling the cash purchased by the bordering country to an authorized credit institution.

04 cases of revocation of the certificate of registration of a money exchange agent of a bordering country

The State Bank branch of the border province shall revoke the certificate of registration of money exchange agent of the bordering country in the following cases:

(1) Economic organizations that do not act as money exchange agents of bordering countries after 12 months from the date of issuance of the Certificate;

(2) Economic organizations that cease to operate or do not generate money exchange sales from bordering countries for 12 consecutive months;

(3) The economic organization shall send a written request to the State Bank branch of the bordering province to terminate the operation of money exchange agents in the bordering countries;

(4) Cases of withdrawal according to the provisions of the law on sanctioning administrative violations in the field of currency and banking.

(Clause 1, Article 6e of Decree 89/2016/ND-CP (amended in Decree 23/2023/ND-CP))

More details can be found in Decree 23/2023/ND-CP, effective from July 1, 2023.

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