New regulation of Vietnam on requirements applicable to economic organizations operating as currency exchange agents of bordering countries

New regulation of Vietnam on requirements applicable to economic organizations operating as currency exchange agents of bordering countries

According to the Decree, amendments to requirements applicable to economic organizations operating as currency exchange agents of bordering countries prescribed in Decree No. 89/2016/ND-CP are as follows:

An economic organization may only operate as a currency exchange of a bordering country if it has a certificate of currency exchange registration of bordering countries granted by a branch of the State Bank of Vietnam at a bordering province.

Requirements for an economic organization to be considered for grant of a certificate:

- Requirements for headquarters and branches:

+ The economic organization must be headquartered in a land border area or an economic zone at a border checkpoint of a bordering province; or

+ The economic organization must be headquartered and have branches in a land border area or an economic zone at a border checkpoint of a bordering province; or

+ The economic organization is headquartered in a bordering province and have branches in a land border area or an economic zone at a border checkpoint of a bordering province;

- Requirements for the location of a currency exchange agent of a bordering country: it must be located in a land border area or an economic zone of a border checkpoint where the economic organization is headquartered or has branches;

- It must adopt the professional currency exchange procedure of the bordering country; display a public exchange rate notice board and a signboard stating the name of the authorizing credit institution and the name of the currency exchange agent of the bordering country at the transaction area;

- It is authorized by an authorizing credit institution to operate as a currency exchange agent of a bordering country;

- Each economic organization may only operate as a currency exchange agent of a bordering country for one authorizing credit institution.

Decree No.  23/2023/ND-CP of the Government of Vietnam comes into force as of July 1, 2023.

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