Act No. 277 / 2013 Coll.
Law on Exchange Activities
Valid
Law
Effective from 01.11.2013
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277
THE LAW
of 21 August 2013
on exchange activities
Parliament has decided on this law of the Czech Republic:
GENERAL PROVISIONS
Subject matter
This law regulates the terms and conditions of the exchange agent's activities and other terms of the exchange activity.
Definition of terms
(1) Currency exchange is an exchange trade
(a) banknotes, coins or cheques denominated in a specific currency for banknotes, coins or cheques denominated in another currency; or
(b) cash-free funds or electronic money denominated in a particular currency, provided that the payer has given a payment order to transfer such cash-free funds or electronic money through the recipient of the exchange, for banknotes, coins or cheques denominated in another currency.
(2) The currency trade is not
(a) payment of cash by the supplier of goods or services to the customer when paying for goods or services in excess of that payment;
(b) the exchange of currencies offered by the payee or any other person via an ATM or at the point of sale of goods or services before the start of the payment transaction.
(3) The exchange activity is a continuous activity carried out on its own behalf and under its own responsibility for the purpose of making a profit consisting in carrying out exchange transactions.
Persons authorised to conduct an exchange activity
Only exchange activities may be carried out
(a) banks, foreign banks and foreign financial institutions under the conditions laid down by law governing the activities of banks;
(b) savings and credit cooperatives under the conditions laid down by law governing the activities of savings and credit cooperatives;
(c) exchange agents (§ 4); and
d) Czech National Bank under the conditions laid down by the Act governing the jurisdiction of the Czech National Bank.
MODEL
Basic provisions
The currency exchange agent is the one who is entitled to operate the currency exchange activity on the basis of the permission to operate the currency exchange agent granted by the Czech National Bank.
Currency exchange register
(1) An exchange register is established, which is managed and operated by the Czech National Bank. The exchange register shall be kept in electronic form.
(2) The Czech National Bank writes in the currency exchange register
(a) in the case of a natural person, the trading firm or the name or, where applicable, the name, surname, date of birth, address of residence or registered office and the identification number of the person;
(b) in the case of a legal person, the name, registered office and identification number of the person;
(c) the date on which the authorisation to operate the currency exchange activity is established; and
(d) the date of the expiry or withdrawal of the permit for the operation of the exchange agent.
(3) If the applicant has not been assigned a person identification number before the application has been submitted, it shall be provided to the Czech National Bank by the administrator of the basic register of legal persons, business natural persons and public authorities.
(4) The Czech National Bank publishes the exchange register on its website.
Authorisation to operate an exchange agent
(1) The Czech National Bank shall grant an authorisation to the applicant for the activities of an exchange agent if:
(a) it has its registered office, business establishment or part thereof in the Czech Republic;
(b) is credible; the conditions of credibility must also be met by the management and the actual owners of the applicant,
(c) the leading person of the applicant who actually directs the operation of the exchange operation;
1. achieve secondary education with a graduate examination and
2. are not leaders who are actually in charge of the operation of the exchange business with another exchange agent, with the exception of the exchange agent who is a member of the same group; and
(d) it has reached the age of 18 and is fully independent if it is a natural person.
(2) For the purposes of this Act, the beneficial owner is the beneficial owner under the law governing the registration of beneficial owners.
(3) The beneficial owner of a security issuer admitted to trading on a European regulated market or on a foreign market in investment vehicles comparable to a European regulated market shall be considered to be credible for the purpose of granting an authorisation to operate an exchange agent.
(4) For the purposes of this Act, the head of a legal person shall mean his statutory body, a member of his statutory body, his director, a procurer or any other person who actually manages his activities. Where the statutory authority or its member is a legal person, the lead person shall be the natural person who, on behalf of that legal person, performs the function of statutory authority or its member. For the purposes of this Act, the head of the person undertaking the natural person shall be the director, the curator or any other person who otherwise actually manages his business.
(5) An application for authorisation to operate as an exchange agent may also be made by the founder of a legal entity which has not yet been established. The Czech National Bank shall grant this legal person an authorisation to operate as an exchange agent if it can reasonably be expected to meet the conditions laid down in paragraph 1 on the date of its establishment.
(6) An application for authorisation to operate as an exchange agent may be submitted only electronically. The particulars of the application, including the annexes certifying compliance with the conditions referred to in paragraph 1, shall be laid down in the implementing legislation.
Entry into the exchange register
(1) If the Czech National Bank accepts an application for an authorisation to operate as an exchange agent, it will register the applicant in the exchange repository. The decision shall not be drawn up in writing. The decision shall take effect at the time of entry in the register of exchange agents. The Czech National Bank shall inform the applicant without delay of the entry into the exchange register.
(2) If the Czech National Bank conforms to the application for authorisation to operate as an exchange agent submitted pursuant to Article 6 (5), it shall enter in the register of exchange agents the legal person whose founder has made the request. The Czech National Bank will state in the exchange register that the legal entity has not yet been established. The Czech National Bank will delete this information from the exchange register without undue delay after the creation of a legal entity.
Amendment of data
(1) The exchange agent shall notify the Czech National Bank without undue delay of any change in the information contained in the application for authorisation to operate as an exchange agent or in the annexes thereto on the basis of which the authorisation to operate as an exchange agent has been granted. The currency changer is not obliged to notify the Czech National Bank of the change of data that is kept in the basic registers as reference data.
(2) The notification referred to in paragraph 1 may be made only electronically. The formalities for such notification, including its annexes, its form and its method of submission shall be laid down in the implementing legislation.
Termination and withdrawal of the permit for the activities of an exchange agent
(1) The authorisation to operate as an exchange agent expires
(a) the death of the barrister,
(b) the cancellation of an exchange agent who is a legal person;
(c) on the date on which the decision on the insolvency of the barrister or the decision to reject the insolvency application for lack of the assets of the barrister becomes final.
(2) The Czech National Bank will withdraw the permit to operate as an exchange agent if the exchange agent so requests.
(3) The Czech National Bank may withdraw an authorisation to operate as an exchange agent if:
(a) the exchange agent has repeatedly or seriously infringed the obligation laid down by this law or other legislation governing the procedure for the operation of the exchange activity;
(b) the currency exchange agent does not comply with the conditions laid down by this law for the granting of an authorisation for the activities of the currency exchange agent; or
(c) an authorisation to operate as an exchange agent has been granted on the basis of false or incomplete data or as a result of another illegal exchange agent's procedure.
CONDITIONS FOR THE IMPLEMENTATION OF THE DIRECTIVE
Establishment
(1) For the purposes of this Act, an establishment shall mean the area in which the exchange activity is operated. Unless otherwise provided for in this law, its provisions on the establishment shall apply mutatis mutandis to the exchange machine.
(2) The person authorised to conduct the exchange activity (hereinafter referred to as "operator") may not operate the exchange activity outside the establishment.
(3) The establishment shall be identified by a commercial firm or by the name and surname of the operator or by the name of the operator and the operational time for public contact.
(4) The operator shall notify the Czech National Bank where its establishment will be located at least 3 working days before the date on which it will start its exchange operation. The operator shall notify the Czech National Bank without undue delay of any change in the data specified in this notification; This does not apply when it concerns a change in the data contained in the basic registers as reference data.
(5) The details of the notification, its form and the method of submission are laid down in implementing legislation.
Exchange rate list
(1) An operator shall publish a exchange-rate note at the premises in which it conducts exchange-rate transactions.
(2) The exchange sheet contains:
(a) an indication that it is a exchange-rate note;
(b) the business name or name of the company or name or, where appropriate, the names and surname of the operator and the identification number of the person;
(c) the names or other denominations of the currencies between which the operator carries out the exchange;
(d) information on the exchange rates at which they are converted between those currencies and which are least advantageous to those interested in the conduct of the exchange trade (hereinafter referred to as "candidates"),
(e) information on the remuneration for the execution of the exchange and the conditions under which payment is required; and
(f) information on the right of the operator to withdraw from the exchange transaction contract.
(3) The data on the exchange card shall be given at least in the Czech and English languages, clearly, in a reasonable size, in a clear and understandable manner. The names of the currencies referred to in paragraph 2 (c) need not be given in the Czech and English languages, if their other designation makes it clear which currency they are. The exchange-rate note shall be sufficiently separated and distinguished from any other information published in the establishment. The figures are given in Arabic numerals.
(4) The information referred to in paragraph 2 (c) and (d) shall be given as follows:
(a) information on the direction of exchange shall be given from the operator's position in the first person of a single or multiple number;
(b) in the case of an exchange of the Czech krone, the exchange rate by which the operator carries out the conversion on the acquisition of the foreign currency shall be indicated before the exchange rate by which the operator carries out the conversion on the disposal of the foreign currency.
Other exchange conditions
(1) An operator shall not conduct an exchange transaction using an exchange rate or for consideration which is less favourable to the interested parties than the exchange rate or the remuneration indicated on the exchange rate.
(2) Where an operator offers an exchange rate which is more favourable to the interested party than the exchange rate indicated on the exchange note, only general information on the offer may be published in the establishment and its immediate vicinity without the publication of a specific exchange rate.
Payment
The operator is not entitled to payment for the execution of the exchange transaction, except for the payment for the exchange
(a) coins composed by the customer;
(b) a cheque submitted by the customer; or
(c) cash-free funds or electronic money, provided that the customer has submitted a payment order to transfer them through the operator.
Information prior to carrying out the exchange transaction
(1) If the amount paid by the candidate for the exchange exceeds EUR 1 000, the operator shall communicate the information referred to in Article 14 (2) (a) (1) (b) (1) to (6) (c) (1) and the date and time of communication of the information to the candidate in good time before the exchange transaction is concluded.
(2) The information referred to in paragraph 1 must be communicated to interested parties in a text form, at least in the Czech and English language, in an appropriate size, in a clear and comprehensible manner. The figures are given in Arabic numerals. The text form shall be retained if the information is communicated in such a way that the interested party can retain it and repeatedly display it.
Proof of the execution of the exchange transaction
(1) An operator shall issue to the customer without undue delay proof of the execution of the exchange transaction. The document must be issued to the customer in text form. The information on the document shall be given at least in the Czech and English languages, clearly, in appropriate size, in a clear and understandable manner. The figures are given in Arabic numerals. The text form is retained if the document is issued in such a way that the customer can retain it and repeatedly display it.
(2) The operator shall indicate on the document referred to in paragraph 1:
(a) operators:
1. name and identification number of person,
2. the address of the registered office and the address of the establishment where the exchange transaction was made and, where appropriate, another address, including an electronic address, which is relevant for the communication of the customer with the operator, and, in the case of exchange transactions concluded through the exchange machine, the address of the nearest establishment which is not an exchange machine,
3. the operating time for public contact at the establishment where the exchange transaction was made,
(b) the exchange transactions which are:
1. the names or other names of the currencies between which the exchange was made;
2. the amount that the customer has lodged for the exchange;
3. Exchange rate,
4. an amount corresponding to the amount paid by the customer to carry out the shift after conversion at the exchange rate;
5. the remuneration for the execution of the exchange transaction,
6. the amount paid to the customer after the shift, if different from the amount referred to in point 4;
7. date and time of the transaction;
(c) the rights of the customer, which are:
1. information on the right of the customer to withdraw from the exchange agreement and a description of how to withdraw from the exchange agreement;
2. information on the right of the client to lodge a complaint with the supervisory authority and the name and address of the supervisory authority, including the address of its website containing information on the rights of the client;
3. Information on the right of the client to submit a proposal to an out-of-court dispute resolution body between the customer and the operator and the name and address of the seat of that authority.
(3) The Czech National Bank will publish the address of the website referred to in paragraph 2 (c) (2) by means of an official communication from the Czech National Bank in the Bulletin of the Czech National Bank.
(4) The operator shall comply with the obligation to issue the document referred to in paragraph 1 under the Consumer Protection Act.
(5) Where an operator sells or provides a supplementary goods or service (hereinafter referred to as "ancillary service ') to a customer in the context of an exchange transaction, it shall, without undue delay, issue to it a document under the Consumer Protection Act. The operator shall also indicate on the document referred to in paragraph 1 the right of the customer to withdraw from the supplementary service contract referred to in Article 16c (2). The second to last sentence of paragraph 1 shall apply mutatis mutandis.
Information obligation to the Czech National Bank
(1) The operator provides the Czech National Bank with information on the volume of exchange transactions made in each currency.
(2) The scope, form, time-limits and method of providing information shall be laid down in the implementing legislation.
Documents and records
(1) In the course of the exchange operation, the operator shall obtain documents or other records to the extent necessary to certify compliance with his obligations under this Act.
(2) An operator shall keep a record of the exchange transactions in which it records:
(a) the serial number of the record in an uninterrupted series, at least per establishment;
(b) information on the exchange transaction on the document referred to in Article 14 (2) (b);
(c) information on the possible withdrawal from the Exchange Trade Agreement pursuant to Article 16a, including information on how the parties returned, what they gained from the cancelled obligation of the Exchange Trade Agreement.
(3) The operator shall record the exchange transaction records without undue delay after the exchange transaction but no later than the end of the day on which the transaction took place.
(4) The operator shall keep the documents and records referred to in paragraphs 1 and 2 by the end of the sixth calendar year from the date on which the documents and records were issued. This is without prejudice to the obligation to keep such documents and records under other legislation.
(5) The obligation referred to in paragraph 4 shall also be the legal successor of the operator and one whose authorisation to operate the exchange operation has ceased or has been revoked.
Withdrawal from the Exchange Trade Agreement
(1) The customer may withdraw from the exchange transaction contract within 3 hours of the execution of the exchange transaction at the establishment in which the exchange transaction was made; the withdrawal must cover the full scope of the exchange agreement.
(2) If the amount paid by the customer for the exchange exceeds EUR 1 000, the customer may withdraw from the contract referred to in paragraph 1 in so far as the amount paid by the customer for the exchange amounts to EUR 1 000.
(3) The period referred to in paragraph 1 shall run only during the operational period for public contact at the establishment where the customer made the exchange transaction. An operator may not object to a client who is calling the operating time indicated on the exchange transaction document that the period referred to in paragraph 1 has expired. If the time limit referred to in paragraph 1 is interrupted, it shall not end until 30 minutes after it has started running again.
(1) If the customer enters into an exchange transaction through an exchange machine, he may withdraw from the exchange transaction contract within 3 working days of the date of the exchange transaction; the withdrawal must cover the full scope of the exchange agreement.
(2) If the amount paid by the customer for the exchange exceeds EUR 1 000, the customer may withdraw from the contract referred to in paragraph 1 in so far as the amount paid by the customer for the exchange amounts to EUR 1 000.
(1) If the customer has withdrawn from the exchange agreement pursuant to § 16a or 16b, the operator may pay the customer the difference between the amount that would have been paid to the customer after the exchange rate of the Czech currency to the foreign currency declared by the Czech National Bank for the day preceding the date of the exchange transaction and the amount that would have actually been paid to the customer after the exchange. In this case, the customer does not return the money received.
(2) Where an operator provides a supplementary service to a customer in connection with an exchange transaction, the customer may, together with the withdrawal from the exchange transaction contract, withdraw from the ancillary service contract.
(1) If the customer cannot withdraw from the exchange agreement because the operator is prevented from doing so, the customer may withdraw from the contract within a period of 6 months from the date of the exchange transaction, including elsewhere than in the establishment where the exchange transaction was made.
(2) Paragraph 1 shall apply mutatis mutandis if the customer does not withdraw from the contract because the operator has been misled or has not been informed by the operator of the right to withdraw from the contract under Article 11 (2) (f) or Article 14 (2) (c) (1).
The withdrawal period provided for in Articles 16b (1) and 16d (1) shall be maintained if the customer removes the withdrawal from the contract to the operator in its course through the postal service operator.
(1) If the customer withdraws from the exchange agreement pursuant to § 16a or 16b, the operator shall not be obliged to repay the funds received before
(a) the funds received are returned by the customer; or
(b) the return of the funds received shall be offered by the customer and not accepted by the operator.
(2) Paragraph 1 shall apply mutatis mutandis for the repayment of the performance of an obligation under the ancillary service contract from which the customer has withdrawn pursuant to Paragraph 16c (2).
(1) An operator shall issue to the customer, without undue delay, proof of withdrawal from the exchange agreement. The document must be issued to the customer in text form. The information on the document shall be given at least in the Czech and English languages, clearly, in appropriate size, in a clear and understandable manner. The figures are given in Arabic numerals. The text form is retained if the document is issued in such a way that the customer can retain it and repeatedly display it.
(2) The operator shall indicate on the document referred to in paragraph 1:
(a) operators:
1. name and identification number of person,
2. the address of the registered office and the address of the establishment where the withdrawal from the exchange agreement took place;
(b) the exchange transaction contract from which the customer withdrew;
(c) the amounts returned by the parties, including the name or other designation of currencies; and
(d) the date and time of withdrawal from the exchange agreement.
Arrangements derogating from § 16a to 16g to the detriment of the customer shall not be taken into account.
SURVEILLANCE
Supervision
(1) The Czech National Bank oversees compliance with the obligations of operators laid down by this Act or other legislation governing the procedure for carrying out the exchange activities.
(2) The operator is obliged to provide the Czech National Bank with the required information and explanations in the exercise of supervision; This applies mutatis mutandis to those who are reasonably suspected of having an illegal exchange activity.
(3) In the case of those who are reasonably suspected of carrying out an illegal exchange activity, the Czech National Bank may carry out an on-the-spot check to the extent necessary to establish the facts concerning the activity which gives rise to this suspicion.
(4) The provisions of the law governing the activities of banks on the obligation to remain silent in the exercise of supervision shall apply mutatis mutandis.
Measures to remedy
(1) If an operator infringes an obligation laid down by this law or other legislation governing the procedure for the operation of an exchange operation, the Czech National Bank may, depending on the nature and gravity of the deficiency found, require that operator to:
(a) has made a correction within the prescribed time limit; or
(b) exchange its manager within the prescribed time limit.
(2) If this is necessary to protect the customers of the operator, the Czech National Bank, together with the measure referred to in paragraph 1, may prohibit the operator from carrying out the exchange activity or require the operator to restrict the operation of the exchange activity until it has complied with the measures imposed pursuant to paragraph 1.
(3) The operator to whom the Czech National Bank has imposed the remedies provided for in paragraph 1 shall inform the Czech National Bank without undue delay of the removal of the deficiency and of the method of redress.
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Regulation Information
| Citation | Act No. 277 / 2013 Coll., on Currency Exchange Activities |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 10.09.2013 |
|---|---|
| Effective from | 01.11.2013 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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