On May 12, 2023, the Government promulgates Decree 23/2023/ND-CP ("Decree 23") amending and supplementing a number of articles of Decree 89/2016/ND-CP on conditions for foreign currency exchange agency activities, provision of foreign currency receipt and payment services of economic organizations and Decree 88/2019/ND-CP on sanctioning administrative violations in the field of banking currency.
Regarding the operation and licensing of a frontier country currency exchange agent, Decree 23 specifies the following contents:
1. Economic organization is a unique subject to be granted the certificate of a frontier country currency exchange agent
Decree 23 supplements the regulations allowing authorized credit institutions to empower economic organizations to act as frontier country currency exchange agents. Accordingly, individuals previously granted foreign exchange desk licenses will have to terminate foreign exchange activities, and such licenses will be automatically expired. Individuals wishing to continue carrying out frontier country currency exchange activities must establish economic organizations to be considered by the State Bank of Vietnam's provincial branches in the border area for permission to carry out frontier country currency exchange agency activities as prescribed in this Decree.
2. Conditions for economic organizations to be granted the certificate of frontier country currency exchange agent
- Having head offices and branches in land border areas, economic zones and border gates in border provinces as prescribed;
- Having a location of frontier country currency exchange agent at the land border area or border-gate economic zone in the locality where the economic organization has its head office or branch;
- Having a professional process of frontier country currency exchange; having public exchange rate notice boards, and signboards with the name of the authorized credit institution and the name of frontier country currency exchange agent at the place of a transaction;
- Be authorized by a credit institution to act as a frontier country currency exchange agent. The authorized credit institution must have its head office and/or branch in the border province in the locality where the economic organization is located its frontier country currency exchange agent;
- Be granted a registration Certificate of a frontier country currency exchange agent by the State Bank of Vietnam's provincial branches in the border area.
3. The currency is used at frontier country currency exchange agency
- Currency exchange is only allowed for the Chinese Yuan (CNY), Lao Kip (LAK), and Cambodian Riel (KHR).
- Any country's currency can only be exchanged at the land border area or the economic zone at the border adjacent to that country.
Decree 23 takes effect from July 1, 2023.
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