Circular No. 17/2016/TT-NHNN on foreign exchange brokerage activities of commercial banks and branches of foreign banks.

CIRCULAR

Regarding foreign exchange brokerage activities of commercial banks,

 foreign bank branches

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Based on the Law on the State Bank of Vietnam No. 46/2010/Article 24H12 dated November 16June 2024;art. 6 year 2010;

Based on the Law on Credit Institutions No.No. 47/2010/Article 24H12 dated November 16June 2024;art. 6 year 2010;

Decree No. 1Decision No. 56/2013/NĐ-CP dated November 11, 2013 of the Government stipulating the functions, tasks, and organizational structure of the State Bank of Vietnam (hereinafter referred to as the State Bank);, duties,onstructure of the General Department of Market Regulation the proposal of the General Department of structure of the State Bank;

At the proposal of the Director of the Department of Tax Policy,"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."monetary policy;

The Governor of the State Bank issues this Circular stipulating foreign exchange brokerage activities of commercial banks, foreign bank branches.June 2024;ngân hàng nước ngoài.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates foreign exchange brokerage activities of commercial banks, foreign bank branches for customers.

Article 2. Applicability

1. The foreign exchange broker (hereinafter referred to as the broker) is a commercial bank, foreign bank branch that has been approved by the State Bank to conduct foreign exchange brokerage activities under the Commercial Bank Establishment and Operation License or the Foreign Bank Branch Establishment License issued by the State Bank.

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

3. Brokerage fee is the amount of money that the customer must pay to the broker for providing foreign exchange brokerage services.

Article 4. Principles of foreign exchange brokerage

2. The implementation of foreign exchange brokerage activities must comply with this Circular and other relevant legal provisions.

4. Ensuring honesty, objectivity, and the legitimate interests of customers:

a) Information about transactions subject to foreign exchange brokerage and other information permitted by the customer to provide must be fully and accurately reflected;

b) False information shall not be provided or any form of intervention shall not be made to distort information leading to customers misjudging the transactions subject to foreign exchange brokerage and/or affecting the legitimate interests of customers;

5. Customer-related information and transactions subject to foreign exchange brokerage shall not be disclosed to third parties, except when required by competent state authorities according to the law or with the customer's consent.

6. Commercial banks, foreign bank branches shall not simultaneously act as brokers and one party in the transactions subject to foreign exchange brokerage with customers.

Chapter II

SPECIFIC PROVISIONS

Commercial banks and foreign bank branches may provide currency brokerage services for banking activities and other business operations as prescribed in the Law on Credit Institutions and guidelines issued by the State Bank.

Article 6. Methods of Implementing Currency Brokerage Services

The broker may carry out currency brokerage activities through direct transactions or indirect transactions via computer networks and/or telephones with customers, or other methods agreed upon by the parties that are suitable to their conditions and comply with legal regulations.

Article 7. Currency Brokerage Contracts

The broker and customer shall enter into a currency brokerage contract based on mutual agreement, in compliance with this Circular and relevant laws, including the following main contents:

1. Information about the broker and customer.

2. Method of implementing currency brokerage services.

3. Brokerage fees and related costs (if any).

4. Payment method and payment deadlines.

5. Rights and obligations of the parties.

6. Liability for breach of contract.

7. Provisions for dispute resolution.

8. Effectiveness of the contract.

9. Other agreements consistent with this Circular and relevant laws.

Article 8. Brokerage Fees

Brokerage fees and related costs are agreed upon by the broker and customer.

Article 9. Record Keeping

The broker must establish and retain records of currency brokerage activities, including:

1. Currency brokerage contracts.

2. Other documents related to the implementation of currency brokerage transactions.

Chapter III

IMPLEMENTATION ORGANIZATION

Article 10. Effective Date

1. This Circular takes effect from August 22, 2016, replacing Decision No. 351/2004/QD-NHNN dated April 7, 2004 of the Governor of the State Bank on the issuance of the Currency Brokerage Regulations.

2. For currency brokerage contracts signed before the effective date of this Circular, credit institutions and foreign bank branches shall continue to implement the contents recorded in the currency brokerage contracts in accordance with the laws at the time of signing such contracts, or amend and supplement them in compliance with this Circular.

Article 11. Implementation Organization

1. Banking inspection and supervision agencies are responsible for inspecting, auditing, and supervising the implementation of this Circular and handling violations within their authority.

2. The Director of the Office, Heads of the Monetary Policy Department, Heads of units under the State Bank, Governors of the State Bank branches in provinces and centrally-administered cities, Chairmen of the Board of Directors, Chairmen of the Board of Members, and General Directors (Directors) of commercial banks and foreign bank branches are responsible for organizing the implementation of this Circular.