Act No 528 / 1990 Coll.

Foreign exchange law

Valid Effective from 01.01.1991
528
_
of 28 November 1990
The Federal Assembly of the Czech and Slovak Federal Republic decided on this law:

ČÁST PRVNÍ

Oddíl 1

Terms
§ 1
(1) Foreign exchange funds are funds denominated in foreign currency in the form of currency or currency.
(2) Valutes are money in foreign currency in the form of banknotes, statuses and circulation coins.
(3) Devizami are funds denominated in foreign currency which are in accounts with domestic or foreign monetary institutions or which can be treated on the basis of foreign payment documents [§ 2 (a)].
§ 2
For the purposes of this Act:
(a) by foreign payment documents, documents with which the right to cash supply in foreign currency is attached (bills, cheques, letters of credit, vouchers, credit cards, etc.);
(b) gold coins and gold in world-traded alloys, the purity of which is guaranteed for that purpose by a world-recognized legal person by means of a mark or an attached certificate;
(c) securities documents with a right to participate in assets (shares, units, etc.), bonds (State, public institutions, banks, industrial and other enterprises), as well as dividend and interest coupons and talons;
(d) foreign securities securities relating to assets abroad and denominated in foreign transactions;
(e) foreign exchange value, foreign exchange, foreign exchange payment documents, gold, foreign exchange securities, foreign exchange deposit certificates and foreign currency deposit books;
(f) trade in foreign exchange purchase values, sale of foreign exchange values for the Czechoslovak currency, exchange of foreign exchange values and treatment of foreign exchange values in all types of trade (e.g. guarantees, arbitrage operations, credit);
(g) a monetary claim by a foreign exchange domestic for a foreign exchange foreigner a claim which is carried out in Czechoslovak or foreign currency;
(h) a monetary obligation of a foreign exchange domestic towards a foreign exchange foreign exchange stranger to be fulfilled in a Czechoslovak or foreign currency.
§ 3
(1) For the purposes of this Act, a foreign bank and a branch of a foreign bank, provided that the authorisation to operate as a bank1) has not excluded foreign exchange trading or the execution of payment transactions with foreign countries.
(2) Unless otherwise provided for in this law, the foreign exchange bank, with the exception of a branch of a foreign bank, shall be subject to provisions governing the legal status of foreign exchange domestic legal persons. The branch of a foreign bank is not considered to be foreign exchange foreigners in the exercise of its activities resulting from the authorisation to act as a bank.
§ 4
The foreign exchange permit is an authorisation granted by the foreign exchange authority (§ 6) upon request under the various provisions of this law. Foreign exchange permits may also be issued for repeated operations.
§ 5
(1) Foreign domestic persons are natural persons resident in the country, 2) and legal persons domiciled in the country.
(2) Other natural and legal persons are foreign exchange aliens. Foreign exchange organisations are also international organisations based in the Czech Republic, established and active in the Czech and Slovak Federal Republic under special regulations. 3)
(3) The rights and obligations of foreign exchange domestic legal persons also apply to foreign exchange domestic persons who are natural persons - entrepreneurs, 3a) in carrying out their business.

Oddíl 2

Foreign exchange authorities and their responsibilities
§ 6
(1) Under this Act, the State Bank is the State Treasury, the Federal Ministry of Finance, the Ministry of Finance of the Republic and the Federal Ministry of Foreign Trade.
(2) The scope under this Act is exercised unless otherwise specified,
(a) the Federal Ministry of Finance for Government Credit and in relation to budgetary or contribution organisations, associations of citizens and foundations, as well as other legal persons within the competence of the Federation who are not engaged in business activities;
(b) the Ministry of Finance of the Republic in respect of budgetary or contribution organisations and associations of citizens under the jurisdiction of the Republic, churches, religious society4) and foundations, as well as other legal persons under the jurisdiction of the Republic who are not engaged in business activities and in respect of natural persons residing in the territory of that Republic, in so far as they are not engaged in business activities;
(c) Czechoslovak State Bank in relation to other legal persons and natural persons - entrepreneurs in their business.
(3) The Ministry of Finance of the Republic provides foreign exchange inventories and documents for the international negotiations on property rights and ensures the national implementation of the results of these negotiations.

ČÁST DRUHÁ

TRADE WITH DETAILED VALUE AND PAYMENT STATUS
§ 7
(1) Foreign exchange banks may trade in foreign exchange values [Paragraph 2 (f)] to the extent specified by the Czechoslovak State Bank.
(2) Foreign exchange domestic non-foreign exchange banks may trade without a foreign exchange permit:
(a) with foreign exchange values subject to the bidding obligation (§ 11 (1), § 17 (1)) and which the foreign exchange bank refused to purchase (§ 12 (3), § 17 (7)) and gave them a confirmation thereof,
(b) with gold coins.
(3) In cases not covered by the provisions of paragraph 2, foreign exchange domestic non-foreign exchange banks may trade foreign exchange values where one of the participants in such transactions is not a foreign exchange bank, only with the foreign exchange permit of the Czechoslovak State Bank.
(4) Foreign exchange foreigners may trade with one another in foreign exchange values for the Czechoslovak currency, as well as in foreign exchange domestic transactions only with the foreign exchange permit of the Czechoslovak State Bank.
(5) Other persons to whom the Czechoslovak State Bank has granted permission to trade in foreign exchange values and to make payments to foreign countries have, within the scope of this authorisation, the rights and obligations laid down by this Act to foreign exchange banks. The Czechoslovak State Bank sets out the terms and conditions for carrying out the currency exchange activity by these persons.
(6) Banks may purchase and sell foreign exchange values for the Czechoslovak currency without a foreign exchange permit. In this activity, foreign exchange banks are in position.
§ 8
(1) A foreign-exchange seal may pay abroad and accept payments from abroad, provided that, in accordance with the implementing regulation or the authorisation of the Czechoslovak State Bank or the authorisation of another foreign-exchange authority made in an agreement with the Czechoslovak State Bank, payment is not made otherwise, exclusively through a foreign-exchange bank, provided that payment is effected without cash.
(2) The authorisation referred to in paragraph 1 is not necessary for the provision of postal cash services in international traffic. 5)

ČÁST TŘETÍ

RIGHTS AND OBLIGATIONS OF DOUBLE TERMS - LEGAL PERSONS

Oddíl 1

§ 9
Reporting obligation
(1) Foreign exchange seal - a legal person is required to report to the Czechoslovak State Bank in the register
(a) its monetary claims and its monetary liabilities towards foreign exchange foreign exchange;
(b) their property abroad, as well as an overview of their income and expenditure associated with such property;
(c) their holdings abroad;
(d) its foreign securities.
(2) The implementing act shall set a time limit for the fulfilment of the reporting obligation referred to in paragraph 1 and may specify the cases to which that obligation does not apply. In justified cases, a foreign exchange seal - a legal person - may be exempt from reporting requirements in whole or in part by the granting of a foreign exchange permit.

Oddíl 2

Transfer of claims by foreign exchange domestic - legal persons to domestic
§ 10
(1) The foreign exchange seal - a legal person is required to do without delay all the actions necessary to ensure that the amount paid abroad to cover his claim and the foreign exchange funds in the accounts of foreign monetary institutions are transferred to or imported into the country.
(2) The implementing regulation may specify when a foreign exchange seal - a legal person is not obliged to do so under paragraph 1. In justified cases, a foreign exchange seal - a legal person - may be exempted from this obligation by the granting of a foreign exchange permit.

Oddíl 3

Tender obligation and right of reimbursement
§ 11
(1) A foreign exchange seal - a legal person is required to offer foreign exchange funds and gold to a foreign exchange bank (§ 3), with the exception of gold coins for the Czechoslovak currency, to the total extent of foreign exchange funds and gold acquired.
(2) The Foreign Exchange Bank is required to offer the Czechoslovak State Bank for the purchase of foreign exchange funds and gold for the Czechoslovak currency, which it has purchased from foreign exchange residents and foreign exchange aliens for the Czechoslovak currency, to the extent and in a manner determined by the Czechoslovak State Bank.
(3) Offers shall not be subject to foreign exchange funds and gold which shall involve the foreign exchange foreign exchange foreign exchange foreign exchange foreign exchange foreign exchange foreign exchange in the capital injection into a domestic enterprise under special rules. 6)
(4) The implementing regulation may specify when a foreign-exchange seal - a legal person - is not required to comply with paragraphs 1 and 2 or to extend the period for its fulfilment in accordance with Paragraph 12. In justified cases, a foreign exchange seal - a legal person - may be exempted from this obligation by the granting of a foreign exchange permit.
(5) A foreign exchange seal - a legal person - is required to deposit foreign exchange funds and the consideration of gold in a foreign currency which is not subject to a tender obligation (paragraphs 3 and 4) in an foreign exchange account with a foreign exchange bank, unless otherwise provided for in the implementing act or the foreign exchange permit.
(6) Foreign exchange funds deposited in the foreign exchange account shall not be subject to the bidding obligation referred to in paragraphs 1 and 2 and may be used by the owner without restriction, except in the cases referred to in paragraphs 7 (3) and 14 (1), and unless the foreign exchange permit referred to in paragraph 4 has been issued with the purpose of determining the use of such foreign exchange funds.
§ 12
(1) The obligation laid down in Section 11 is that the foreign exchange seal - a legal person must comply with the provisions of the provisions of the provisions of the provisions of the provisions of the provisions of the Act of Accession and of the Law on gold within 30 days of their acquisition, or after having become aware of their acquisition, or when it became a foreign exchange domestic. In the case of foreign exchange, the offer obligation is met by transferring the consideration of the foreign exchange funds acquired to the account of the foreign exchange domestic legal person, held in the Czechoslovak currency by the foreign exchange bank.
(2) The purchase of gold and gold is carried out on the basis of the exchange rate applicable to the purchase of gold or the market price of gold in force on the day on which the foreign exchange bank's valuations and gold were offered for purchase. The purchase of foreign exchange is carried out on the basis of the exchange rate applicable on the date specified in the foreign bank payment order. If the date is not stated, the purchase of foreign exchange according to the rate applicable on the date on which the foreign exchange bank received the foreign bank payment order for the benefit of the foreign exchange domestic legal person. Only if the foreign exchange bank cannot identify the amount reported by the foreign bank for the benefit of the foreign exchange domestic legal person other than on the basis of an extract from the relevant account, shall this amount be converted at the rate applicable on the date indicated in the extract from the foreign bank account.
(3) If a foreign exchange bank refuses to purchase foreign exchange funds from a foreign exchange domestic - legal persons, it shall issue a confirmation thereof. Foreign exchange ink - a legal person can dispose of these foreign exchange funds both domestically and abroad without restriction.
§ 13
(1) In order to fulfil the monetary obligation of a foreign exchange domestic legal person to an foreign exchange foreign exchange foreign exchange foreign exchange foreign exchange foreign exchange foreign exchange currency which has been established in accordance with this Act or under any other generally binding law, the foreign exchange bank is required to pay foreign exchange foreign exchange foreign exchange foreign exchange currency foreign exchange currency foreign exchange funds at the request of the foreign exchange domestic legal person. This is not the case with regard to the monetary liability of a foreign exchange domestic legal person arising from bonds denominated in Czechoslovak currency with a maturity of up to one year.
(2) The payment of the foreign exchange funds referred to in paragraph 1 shall take place at the rate applicable on the date on which the payment is made, which is necessary to comply with the maturity of the payment obligation. If the due date is not specified, the payment of foreign exchange funds shall be made at the rate agreed between the foreign exchange bank and the foreign exchange domestic legal person. In other cases, the remuneration shall be based on the rate applicable on the day of receipt of the foreign exchange domestic - legal persons to be paid by the foreign exchange bank.
(3) The Czechoslovak State Bank shall determine the procedure for foreign exchange banks in making the payments referred to in paragraph 1 and shall declare it a measure in the Collection of Laws.
§ 13a
(1) A foreign exchange bank is required to sell to a foreign exchange resident - a legal person for the Czechoslovak currency foreign exchange funds to cover the expenses of a natural person associated with his foreign exchange travel by that legal person to the extent specified in the special regulation. 6a)
(2) The Foreign Exchange Bank is obliged to transfer a remuneration in foreign currency equivalent to the countervalue of the Czechoslovak currency composed by the foreign exchange domestic legal entity, intended to cover the costs of its organisational activity abroad.
(3) A foreign exchange bank is obliged to sell foreign exchange funds to a foreign exchange resident - a legal person at its request or to pay foreign exchange funds to a foreign exchange stranger to the extent necessary
(a) to ensure State defence and security;
(b) to cover expenses related to the provision of services in the field of foreign tourism and paid abroad.
(4) The implementing regulation lays down which foreign exchange nationals - legal persons - are required to sell foreign exchange funds or who have the right to pay foreign exchange funds pursuant to paragraph 3 (a).
§ 13b
The foreign exchange authority competent pursuant to Article 6 (2) may, in justified cases, grant an exchange permit to a foreign exchange legal person for the exceptional purchase of foreign exchange funds in excess of those referred to in § 13 (1) or in § 13a (1) to (3).
§ 13c
The foreign exchange bank is obliged to sell to the foreign exchange resident - the legal entity the foreign exchange funds necessary to meet the monetary obligation arising from the issuance of domestic foreign currency securities. (b)

Oddíl 4

Subordinated mutual member accounts
§ 14
(1) Foreign exchange seal - a legal person may, without a foreign exchange permit, contractually undertake to pay against a foreign exchange foreign exchange stranger in order to fulfil this obligation to use its funds, except:
(a) purchase of real estate abroad;
(b) the purchase of foreign securities;
(c) acceptance of a monetary credit from a foreign exchange stranger.
(2) In cases not covered by paragraph 1, a foreign exchange seal - a legal person - may contractually commit to cash payment against a foreign exchange stranger only after the foreign exchange permit has been granted. The implementing act may specify further cases for which such authorisation is not required.

ČÁST ČTVRTÁ

RIGHTS AND OBLIGATIONS OF THE DOUBLE TERMS - PHYSICAL PERSONS

Oddíl 1

Reporting obligation
§ 15
(1) Foreign exchange seal - a natural person must, at the request of the Ministry of Finance of the Republic in whose territory he resides, report to him within the prescribed time limit in the register
(a) its monetary claims and its monetary liabilities towards foreign exchange foreign exchange;
(b) its property abroad and an overview of its income and expenditure incurred by it during that period in relation to that real estate;
(c) holdings abroad;
(d) its foreign securities.
(2) Where the payment of a monetary claim by a foreign exchange domestic natural person is made by means of a designated legal person, that legal person shall declare the claim in the foreign exchange register.

Oddíl 2

Transfer of transactions from receivables to domestic
§ 16
(1) Foreign exchange seal - a natural person is required to do without delay all the actions necessary to ensure that the amount paid abroad to meet his claim and the foreign exchange funds on accounts with foreign monetary institutions are transferred to or imported into the domestic country.
(2) Foreign exchange seal - a natural person employed abroad must fulfil the obligation laid down in paragraph 1 without delay upon returning to the country after the completion of this continuous work abroad.
(3) The implementing regulation may specify when a foreign exchange seal - a natural person is not required to comply with paragraph 1. In justified cases, a foreign exchange seal - a natural person - may be exempted from this obligation by the granting of a foreign exchange permit.

Oddíl 3

Obligation to deposit or offer foreign exchange funds and the right to purchase foreign exchange funds
§ 17
(1) A foreign exchange seal - a natural person shall be required to use its foreign exchange funds within the period laid down in paragraph 3 in excess of the consideration of the amount of 5000 CZK,
(a) deposit in a foreign exchange account with a foreign exchange bank; or
(b) offer foreign exchange banks to purchase for Czechoslovak currency.
The foreign exchange bank shall inform the foreign exchange resident on request of the amount in the relevant foreign currency corresponding to the amount of CZK 5000.
(2) Foreign exchange seal - a natural person shall, within the period laid down in paragraph 3, offer foreign exchange banks to purchase gold [§ 2 (b)] for the currency of Czechoslovakia or for foreign exchange funds. The bidding obligation shall not apply to gold coins.
(3) The obligation referred to in paragraphs 1 and 2 shall be fulfilled by the foreign exchange seal - a natural person, within 30 days of the acquisition of foreign exchange funds and gold, or when he or she became a foreign exchange domestic, has become aware of their acquisition. Foreign exchange funds and gold acquired by a foreign exchange seal - a natural person during his stay abroad and imported into the country, must be deposited into a foreign exchange account or offered to a foreign exchange bank for purchase within 30 days of his return from abroad.
(4) Foreign exchange instruments which do not exceed the equivalent of 5000 CZK may be used by a foreign exchange pencil - a natural person, except in the cases referred to in § 7 (3) and § 23.
(5) For the calculation of the consideration of the amount of 5000 CZK, the relevant rate shall be valid for the purchase of valut or foreign exchange on the date on which the time limit for fulfilling the obligations under paragraphs 1 and 2 starts to run.
(6) The obligations referred to in paragraph 1 shall not be subject to the foreign exchange funds sold or issued by the foreign exchange bank within six months of the date of their purchase or issue as indicated in the certificate of the foreign exchange bank. Within that period, the foreign exchange seal - a natural person - may dispose of such foreign exchange funds, except in the cases referred to in § 7 (3) and § 23.
(7) If a foreign exchange bank refuses to purchase foreign exchange funds from a foreign exchange domestic - natural persons, it is obliged to issue a confirmation thereof. Foreign exchange ink - a natural person can dispose of these foreign exchange funds both domestically and abroad without restriction.
§ 18
The Deviza banka does not examine whether the time limit laid down in Paragraph 17 (3) has been complied with in the fulfilment of its obligations and does not establish the origin of the acquisition of foreign exchange funds offered or deposited.
§ 19
(1) The implementing regulation may provide for relief from the obligations of the foreign exchange seal - a natural person under Paragraph 17.
(2) By granting a foreign exchange permit, the foreign exchange seal - a natural person - may be relieved of the obligations laid down in Paragraph 17 or may be extended by the time limit for its fulfilment.
§ 20
(1) A foreign exchange bank is required to sell to a foreign exchange resident - a natural person and an foreign exchange stranger for the currency of Czechoslovakia foreign exchange funds in the cases referred to in this Act, its implementing regulation or the foreign exchange permit, which may, where justified, be issued by the foreign exchange authority competent under Article 6 (2) (b).
(2) The sale of the foreign exchange assets referred to in paragraph 1 shall take place at the rate applicable to the sale by the foreign exchange bank on the day of the sale.
§ 21
(1) The Foreign Exchange Bank is obliged to sell foreign exchange funds to a foreign exchange resident - a natural person for the Czechoslovak currency for the purpose of paying foreign exchange-related expenses to the extent declared by the State Bank for a specified period of time and to issue a confirmation thereof.
(2) The sale of foreign exchange funds referred to in paragraph 1 shall take place on the basis of the exchange rate applicable to the sale by the foreign exchange bank on the date on which the foreign exchange seal - a natural person - is composed of the consideration of the foreign currency purchased in the currency of the foreign exchange bank.

Oddíl 4

Foreign exchange accounts
§ 22
(1) The foreign exchange bank is obliged to set up an interest-bearing foreign exchange account for the foreign exchange funds in the agreed foreign currency at its request. This is without prejudice to the procedure of the foreign exchange bank in accordance with a specific regulation. (c)
(2) The foreign exchange funds in the foreign exchange account established under paragraph 1 may be used by a natural person, or, to the extent authorised by him, by another foreign exchange seal, except in the cases referred to in paragraphs 3 and 23 of Section 7.
(3) Foreign exchange accounts established under paragraph 1 shall be remunerated in the currency in which they are held.

Oddíl 5

Subordinated liabilities and their performance
§ 23
(1) Foreign exchange seal - a natural person may, without a foreign exchange permit, contractually undertake to pay foreign exchange foreign exchange foreign exchange foreign exchange foreign exchange foreign exchange foreign exchange transactions, with the exception of the purchase of real estate abroad, the purchase of foreign exchange securities and the acceptance of a foreign exchange foreign exchange credit, provided that he is able to use it in accordance with this law:
(a) foreign exchange funds deposited in a foreign exchange account with a foreign exchange bank;
(b) foreign exchange assets which the foreign exchange bank is obliged to sell to it pursuant to Sections 20 and 21;
(c) foreign exchange funds which the foreign exchange bank has refused to buy from it and has issued a certificate thereof;
(d) foreign exchange funds acquired during his stay abroad;
(e) foreign exchange assets not subject to the obligations laid down in Article 17.
(2) Foreign exchange seal - a natural person may, without a foreign exchange permit, contractually commit to cash transactions in Czechoslovak currency in respect of foreign exchange foreign exchange, with the exception of:
(a) purchase of real estate abroad;
(b) the purchase of foreign securities; and
(c) acceptance of a monetary credit from a foreign exchange stranger.
(3) In cases not covered by paragraphs 1 and 2, the foreign exchange seal - a natural person - may contractually commit to cash payment against the foreign exchange alien only after the foreign exchange permit has been granted. The implementing act may specify further cases where such authorisation is not required.

Oddíl 6

Treatment of certain values
§ 24
(1) Foreign exchange seal - a natural person may, only with a foreign exchange permit, transfer free of charge to foreign exchange aliens or surrender to the benefit of his foreign exchange foreign exchange exchange
(a) claims on foreign exchange foreign exchange;
(b) real estate abroad.
(2) The foreign exchange permit referred to in paragraph 1 is not required to handle the values referred to in paragraph 1 in the event of death.
(3) The implementing regulation may provide for further cases where the foreign exchange permit referred to in paragraph 1 is not required.
§ 25
Foreign exchange can acquire ownership of real estate in the Czech and Slovak Federal Republic only:
(a) inheritance;
(b) for diplomatic representation of a foreign State, subject to reciprocity;
(c) if the property is acquired in the non-joint ownership of spouses, of which only one is a foreign exchange foreigner, or if the property is acquired by a foreign exchange alien - a natural person from a spouse, parents or grandparents,
(d) by exchange of the domestic property which he owns for another domestic property whose value does not exceed the value of the original property;
(e) if he has a right to pre-purchase by virtue of joint ownership of the property, 6d)
(f) as regards the construction which the foreign exchange alien has built on his own land,
(g) if specifically provided for in a special law. 7)

ČÁST PÁTÁ

Oddíl 1

Import and export of foreign exchange and other values
§ 26
(1) There is no need for a foreign exchange permit for imports into the country (Sections 1 and 2).
(2) The foreign exchange alien is obliged to be confirmed by the customs authorities.
§ 27
(1) Foreign exchange seal - a natural person may export without a foreign exchange permit when travelling abroad
(a) the foreign exchange instruments indicated in the certificate of the foreign exchange bank not more than six months old that they have been sold or issued to it;
(b) foreign exchange instruments not exceeding the consideration of 5000 Kčs at the rate applicable to purchases by the foreign exchange bank on the day on which the foreign exchange funds are exported;
(c) foreign exchange instruments listed in the certificate of the foreign exchange bank that it refused to buy them from it;
(d) credit cards denominated in the name of a foreign exchange domestic issued by a foreign exchange bank.
(2) A foreign exchange alien may export or transfer foreign exchange funds, foreign-exchange payment documents, foreign securities and foreign currency-denominated holding books without foreign exchange authorisation, except in the case where they are obtained in the domestic territory in breach of the Czechoslovak law.
(3) A foreign exchange alien may export gold without a foreign exchange permit [Paragraph 2 (b)] which he has imported into the country and has its imports confirmed by the customs authorities, and gold coins also if he proves that he has acquired it in the country by buying it from a person authorised to sell it. The export of inherited gold coins is regulated by § 31 (3) and (4).

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Regulation Information

CitationAct No. 528 / 1990 Coll., Foreign Exchange Act
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation21.12.1990
Effective from01.01.1991
Effective until-
Status Valid
The regulation text is for informational purposes only.
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