Circular No. 02/2024/TT-NHNN amends and supplements certain provisions of Circular No. 17/2016/TT-NHNN dated June 30, 2016, issued by the Governor of the State Bank of Vietnam on foreign exchange brokerage activities of commercial banks and branches of foreign banks.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 17/2016/TT-NHNN on foreign exchange brokerage activities of commercial banks

dated June 30, 2016 issued by the Governor of the State Bank of Vietnam

concerning foreign exchange brokerage activities of commercial banks,

foreign bank branches

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2022 2010;

Pursuant to the Law on Credit Institutions dated January 18, 2024;

Pursuant to Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the request of the Head of the Monetary Policy Department;

The Governor of the State Bank of Vietnam hereby promulgates this Circular amending and supplementing certain provisions of Circular No. 17/2016/TT-NHNN dated June 30, 2016 on foreign exchange brokerage activities of commercial banks and branches of foreign banks (hereinafter referred to as Circular No. 17/2016/TT-NHNN):     

Article 1. Amending and supplementing certain provisions of Circular No. 17/2016/TT-NHNN

1. Amend and supplement Clause 2 of Article 2 as follows:

"2. Clients for whom foreign exchange brokerage services are provided (hereinafter referred to as clients) are credit institutions and branches of foreign banks established and operating under the Law on Credit Institutions."

2. Amending and supplementing Clause 1 of Article 3 as follows:

"1. Foreign exchange brokerage is the intermediary activity with commission fees to arrange the implementation of banking activities and other business activities as prescribed by the Law on Credit Institutions between credit institutions and branches of foreign banks."

3. Amend and supplement Article 5 as follows:

"Article 5. Scope of foreign exchange brokerage

Commercial banks and branches of foreign banks may provide foreign exchange brokerage services to clients to carry out banking activities and other business activities as prescribed by the Law on Credit Institutions."

4. AMENDING AND SUPPLEMENTING ARTICLE 6 AS FOLLOWS:

"Article 6. Methods of implementing foreign exchange brokerage

The broker may conduct foreign exchange brokerage activities with clients through direct transactions or electronic means as prescribed by laws on electronic transactions."

Article 2. Repealing certain provisions of Circular No. 17/2016/TT-NHNN

1. Repeal Clause 2 of Article 3.

2. Repeal Clause 3 of Article 4.

This Circular takes effect from December 25, 2025/.

The Heads of the Office, the Monetary Policy Department, the heads of units under the State Bank of Vietnam, credit institutions, and branches of foreign banks shall be responsible for organizing the implementation of this Circular.

Article 4. Implementation provisions

1. This Circular takes effect from July 1, 2024.

2. For foreign exchange brokerage contracts signed before the effective date of this Circular, credit institutions, branches of foreign banks, and other financial organizations shall continue to implement the contents recorded in the foreign exchange brokerage contracts at the time of signing those contracts until the end of the contract term or agree to amend and supplement in accordance with the provisions of this Circular./.