THE STATE BANK OF VIETNAM
Circular No. 17/2016/TT-NHNN dated June 30, 2016 of the State Bank of Vietnam on money brokerage operations of commercial banks and branches of foreign banks
Pursuant to the Law on the State bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;
Pursuant to the Law on credit institutions No. 47/2010/QH12 dated June 16, 2010;
Pursuant to the Government's Decree No. 156/2013/ND-CP dated November 11, 2013 defining the functions, tasks, entitlements and organizational structure of the State bank of Vietnam (hereinafter referred to as the State Bank);
At the request of the Director of the Financial policy department;
The Governor of the State Bank promulgates a Circular on money brokerage operations of commercial banks and branches of foreign banks.
Article 1. Scope of adjustment
This Circular deals with money brokerage services of commercial banks and branches of foreign banks provided for customers.
Article 2. Subject of application
1. Money brokers (hereinafter referred to as brokers) are commercial banks and branches of foreign banks that are permitted to provide money brokerage services by the State Bank as specified in the establishment and operation license issued to the commercial banks or the establishment license issued to the branches of foreign banks by the State Bank.
2. Customers provided with money brokerage services (hereinafter referred to as customers) are credit institutions, branches of foreign banks established and operated in accordance with the Law on credit institutions and other financial institutions.
Article 3. Interpretation of terms
For the purposes of this Circular, these terms below shall be construed as follows:
1. Money brokerage (hereinafter referred to as brokerage) is the provision of intermediary services against some brokerage fees to arrange and facilitate banking operations and other business operations as prescribed in Article 5 of this Circular between credit institutions, branches of foreign banks and other financial institutions.
2. Other financial institutions are financial institutions prescribed in the Law on prevention and fighting money laundering.
3. Brokerage fee is a sum of money that a customer pays to the broker for the provision of brokerage services.
Article 4. Rules of brokerage
1. The commercial bank or the branch of foreign bank must provide internal regulations on brokerage operation in accordance with this Circular and relevant law provisions, which at least contain: procedures for brokerage performance; scope of responsibility and power of persons related to the brokerage operation; and management of risks to the brokerage operation.
Within 10 days from the date on which the internal regulations are issued, amended or replaced, the commercial bank or the branch of foreign bank must send such internal regulations, directly or by post, to the Bank Supervision and Inspection Agency of the State Bank.
2. The brokerage services must be provided in accordance with this Circular and relevant regulations of law.
3. At least one party being customer is a credit institution, branch of foreign bank established and operated in accordance with the Law on credit institutions.
4. Ensure the faithfulness, objectiveness and customer’s legal interests:
a) Information about the transaction provided with the brokerage and other information permitted to disclose by the customer must be reflected accurately and sufficiently;
b) The commercial bank or the branch of foreign bank may not provide falsified information or interfere the transaction in any form to falsify the information leading the inaccurate evaluation of the customer to the transaction provided with the brokerage and/or threatening the customer’s legal interests;
5. The commercial bank or the branch of foreign bank may not provide information about customers and transactions provided with the brokerage for a third party, except for the request of competent authority as prescribed by law or with the consent of the customer.
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