Decree No. 280 / 2008 Coll.
Ordinance on foreign exchange activities, non-cash transactions in foreign currency and on monetary services
Valid
Order
Effective from 01.09.2008
Text versions:
01.09.2008
15.08.2008
280
DECLARATION
of 31 July 2008
on exchange activities, non-cash transactions in foreign currency and on monetary services
Pursuant to § 30a (a) to (d) of Act No. 219 / 1995 Coll., Foreign Exchange Act, as amended by Act No. 254 / 2008 Coll.:
Subject matter
This decree regulates
(a) in relation to the exchange activity:
1. the definition of the essential information provided in the application for an exchange-rate registration (hereinafter referred to as the "registration"), the change of which the foreign exchange point is required to inform the Czech National Bank without undue delay,
2. how to inform foreign exchange clients of the terms and conditions of purchase and sale of foreign currency, the purchase and sale rates used and the prices of services provided;
3. the extent, period, manner, time limits and structure of the data reported on the quantities of cash purchased and sold foreign currencies;
(b) in relation to non-cash transactions in foreign currency
1. the definition of the essential information contained in the application for a foreign exchange licence for non-cash transactions in foreign currency (hereinafter referred to as the "foreign exchange licence for non-cash transactions"), the change of which is required to inform the Czech National Bank of the change without undue delay,
2. Conditions for conducting non-cash transactions in foreign currency,
(c) in relation to the provision of monetary services, the definition of the essential data specified in the request for an exchange licence for the provision of monetary services, the change of which is required to inform the Czech National Bank of the change without undue delay.
Currency exchange activities
The relevant data under Section 3e (a) of the Foreign Exchange Act are:
(a) in the case of a natural person, the information referred to in Article 3 (5) of the Foreign Exchange Act;
(b) in the case of a legal person, the business firm, the registered office of the holder of the registration and the information referred to in § 3 (7) (b) to (e) of the Foreign Exchange Act.
The marketing authorisation holder shall report on the terms and conditions of the purchase and sale of the foreign currency, the purchase and sale rates used and the prices of the services provided as follows:
(a) the exchange-rate note, the price list of the services provided, an overview of the services related to the purchase and sale of the foreign currency provided free of charge if such services are provided (1), and the information on the client's right to issue a service document with data under another legislature2) shall be published in at least the Czech and English language before the service is provided jointly and visibly on the site accessible to the client in a manner excluding any substitution of the information provided;
(b) the price charged for the service provided may also be indicated as a percentage of the exchange rate value, indicating where appropriate the lowest and highest price charged according to the unit quantity sold,
(c) the exchange rate and the prices of each service shall be expressed in Arabic numerals of a uniform size;
(d) when communicating the information on the course in advertising and similar materials, it clearly distinguishes whether it is the purchase or selling rate and indicates the purchase and sale rate data of the currency together.
(1) The holder of the registration shall report to the Czech National Bank aggregate data on the quantities of foreign currencies in cash purchased and sold in the reported calendar quarter for all establishments. This information shall be provided by the marketing authorisation holder on a form the model and procedure for filling in is set out in the Annex to this Order. The form model in the form of a data file suitable for download is published by the Czech National Bank in a way that allows remote access.
(2) The completed form shall be sent by the holder of the registration to the Czech National Bank no later than 15 days after the end of the reported quarter, even if he has not made any purchases or sales of foreign currency during the reporting period.
(3) If the holder of the registration finds an error in the form he completed, he shall inform the Czech National Bank without undue delay.
(4) If the holder of the marketing authorisation is invited by the Czech National Bank to correct the data contained in the form sent to the Czech National Bank pursuant to paragraph 2, he shall perform the correction of the data and submit the corrected data form to the Czech National Bank without undue delay, but no later than 15 days.
(5) The registration holder shall send the form referred to in paragraph 1 to the Czech National Bank
(a) in paper form, signed by the person authorised to act on behalf of the marketing authorisation holder; or
(b) in electronic form in the form of a data message by e-mail to the e-mail address of the e-mail office. The data message shall be provided with a guaranteed electronic signature (s) of the person responsible for transmitting the messages.
Non-cash transactions in foreign currency and conditions for their implementation
The essential information referred to in § 3f (2) (a) of the Foreign Exchange Act is the business firm and registered office of the holder of the foreign exchange licence for non-cash transactions and the information referred to in § 3b (3) (a) and (b), paragraphs 4 (c) to (e), 5 (a), (c) to (h) and (j) of the Foreign Exchange Act.
(1) The holder of the foreign exchange licence for non-cash transactions shall adapt the mandatory internal rules
(a) organisational arrangements, including organisational and personnel security of activities related to the conduct of non-cash transactions in foreign currency, ensuring that the internal control system is effective and proportionate to the extent of the provision of non-cash transactions in foreign currency;
(b) procedures for the negotiation and settlement of non-cash transactions with foreign currency;
(c) means of ensuring against risks and procedures for their measurement, monitoring and management;
(d) procedures, control and security measures for data processing and recording and internal control mechanisms for such procedures and measures;
(e) an internal control system.
(2) The rules governing the internal control system include in particular:
(a) the obligation of the person or authority carrying out control functions in a legal person to regularly evaluate the internal control system;
(b) the obligation for each member of staff and the head of staff to carry out a pre-determined check;
(c) obligations of the compliance officer (§ 8),
(d) procedures for dealing with the failure of the internal control system;
(e) control elements and measures.
The holder of an exchange licence for non-cash transactions shall ensure that staff entrusted with the negotiation, settlement, compliance and accounting functions carry out their activities in accordance with internal law, foreign exchange legislation and legislation governing measures against the legalisation of criminal proceeds and those concerning the implementation of international sanctions (4).
(1) The compliance function of the holder of a foreign exchange licence for non-cash transactions includes in particular:
(a) systematic monitoring of compliance of internal legislation with legislation;
(b) a systematic check of the consistency of internal rules;
(c) coordination of ensuring consistency of activities;
(d) checks on compliance with internal rules, at least
1. compliance with the established means of ensuring against risks;
2. keeping and archiving separate records and documents of non-cash transactions in foreign currency,
3. compliance with the rules on the transactions of employees entered into for their own account or for the account of persons close to them;
4. monitoring the compliance of the proposed measures with the legislation.
(2) The holder of a foreign exchange licence for non-cash transactions shall assign at least one person to perform the compliance function.
(1) The holder of the foreign exchange licence for non-cash transactions shall indicate in the proof of settlement of non-cash transactions:
(a) the registration number of the negotiated transaction;
(b) the designation of the requested currency by ISO codes, their quantity, the rate,
(c) exchange rate value,
(d) the price of the service, unless it is provided free of charge;
(e) the date of the negotiation and the settlement deadline agreed with the client;
(f) the information necessary for the transfer of funds;
(g) the date and place of issue of the document.
(2) The holder of a foreign exchange licence for non-cash transactions shall keep separate records of non-cash transactions in the form of daily records. A record of each non-cash transaction in a foreign currency shall be made by the holder of the foreign exchange licence for non-cash transactions immediately after its negotiation. This record shall contain at least the following information:
(a) the serial number of the record in the uninterrupted number series;
(b) the registration number of the negotiated transaction;
(c) data identifying individual participants in the transaction;
(d) the designation of the requested currency by ISO codes, their quantity, the rate,
(e) exchange rate value;
(f) the price of the service, if not provided free of charge;
(g) the date of the negotiation and the settlement deadline agreed with the client;
(h) the information necessary for the transfer of funds.
(3) The holder of a foreign exchange licence for non-cash transactions shall indicate in the cash settlement document:
(a) the particulars referred to in paragraph 1 (a) to (f);
(b) the date of maturity of the order for payment of funds to the client;
(c) the date and place of issue of the document.
(4) The holder of the foreign exchange licence for non-cash transactions on all instruments relating to the non-cash transaction in foreign currency shall also indicate the address of the establishment in which the transaction took place and the name and surname of the person who provided the transaction and the original shall bear the signature thereof.
(5) The holder of the foreign exchange licence for non-cash transactions shall indicate the word "cancellation ', the registration number of the agreed transaction and the date and place of issue of the document on the document on the document cancelling the non-cash exchange.
(1) Records and documents of non-cash transactions in foreign currency shall be kept separately by the holder of the foreign exchange licence for each establishment for a period of 10 years following the year to which they relate, of which at least 3 months in the establishment in which they were issued.
(2) Records and documents of non-cash transactions in foreign currency may be held for the purposes of registration and archiving:
(a) paper form; or
(b) the electronic form, where the information system in which the alert is kept automatically records the time of entry of the data together with the identification of the person who entered the data, the time of the change of such data with the identification of the person who made the change.
The holder of an exchange-rate licence for non-cash transactions may also express the price charged for the non-cash transactions provided as a percentage of the exchange-rate value where applicable, indicating the lowest and highest price charged by reference to the unit quantity sold.
Cash services
The essential data under Section 3g (2) (a) of the Foreign Exchange Act are:
(a) in the case of a natural person, the information referred to in § 3c (2) (a) to (d) of the Foreign Exchange Act;
(b) in the case of a legal person, the business firm, the registered office of the holder of the foreign exchange licence for the provision of cash services and the information referred to in § 3c (3) (b) to (e) of the Foreign Exchange Act.
Repeal
The Order of the Czech National Bank No. 434 / 2002 Coll., laying down the formalities for the application for an exchange licence, the assumptions and conditions for the execution of certain foreign exchange transactions and the procedure for the handling of counterfeit or modified funds shall be deleted.
Efficacy
This Decree shall take effect on 1 September 2008.
Governor:
Doc. Ing. Tůma, CSc.
Annex to Decree No 280 / 2008 Coll.
1) § 3e (g) of Act No. 219 / 1995 Coll. 4 et seq. of Act No. 634 / 1992 Coll., on Consumer Protection, as amended.
2) Article 16 (1) of Act No. 634 / 1992 Coll.
3) § 2 (b) of Act No. 227 / 2000 Coll., Act on Electronic Signature, as amended by Act No. 440 / 2004 Coll.
4) For example, Act No 253 / 2008 Coll., Act No 69 / 2006 Coll., on the implementation of international sanctions, Decree No 281 / 2008 Coll., on certain requirements for the system of internal principles, procedures and control measures against the legalisation of proceeds from crime and terrorist financing, Council Regulation (EC) No 423 / 2007 of 19 April 2007 concerning restrictive measures against Iran, Council Regulation (EC) No 329 / 2007 of 27 March 2007 concerning restrictive measures against the Democratic People's Republic of Korea, Council Regulation (EC) No 1412 / 2006 of 25 September 2006 concerning certain restrictive measures against Lebanon.
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Regulation Information
| Citation | Decree No. 280 / 2008 Coll., on Exchange Activities, Non-Cash Transactions in Foreign Currency and on Cash Services |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 15.08.2008 |
|---|---|
| Effective from | 01.09.2008 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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