Circular 02/2024/TT-NHNN amend Circular 17/2016/TT-NHNN prescribing monetary brokerage operations of commercial banks and foreign bank branches

CIRCULAR

Amending and supplementing a number of articles of Circular No. 17/2016/TT-NHNN of June 30, 2016, of the Governor of the State Bank of Vietnam, providing monetary brokerage operations of commercial banks and foreign bank branches^[1]

Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;

Pursuant to the January 18, 2024 Law on Credit Institutions;

Pursuant to the Government’s Decree No. 102/2022/ND-CP of December 12, 2022, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Monetary Policy Department;

The Governor of the State Bank of Vietnam promulgates the Circular amending and supplementing a number of articles of Circular No. 17/2016/TT-NHNN of June 30, 2016, providing monetary brokerage operations of commercial banks and foreign bank branches (below referred to as Circular No. 17/2016/TT-NHNN).

Article 1. To amend and supplement a number of articles of Circular No. 17/2016/TT-NHNN

1. To amend and supplement Clause 2, Article 2 as follows:

“2. Clients provided with monetary brokerage services (below referred to as clients) that are credit institutions and foreign bank branches established and operating under the Law on Credit Institutions.”

2. To amend and supplement Clause 1, Article 3 as follows:

“1. Monetary brokerage means the acting as intermediaries with collection of brokerage charges to arrange the performance of banking operations and other business activities under the Law on Credit Institutions among credit institutions and foreign bank branches.”

3. To amend and supplement Article 5 as follows:

“Article 5. Scope of monetary brokerage

Commercial banks and foreign bank branches may provide monetary brokerage services to clients for the performance of banking operations and other business activities specified in the Law on Credit Institutions.”

4. To amend and supplement Article 6 as follows:

“Article 6. Modes of performance of monetary brokerage

A broker may perform monetary brokerage operations with clients via direct transactions or by electronic means in accordance with the law on e-transactions.”

Article 2. To annul a number of clauses of articles of Circular No. 17/2016/TT-NHNN

1. To annul Clause 2, Article 3.

2. To annul Clause 3, Article 4.

Article 3. Responsibility for organization of implementation

The Chief of the Office, the Director of the Monetary Policy Department and heads of units of the State Bank of Vietnam, credit institutions and foreign bank branches shall organize the implementation of this Circular.

Article 4. Implementation provisions

1. This Circular takes effect on July 1, 2024.

2. For monetary brokerage contracts signed before the effective date of this Circular, credit institutions, foreign bank branches and other financial institutions may continue performing the contents of such contracts until the contracts expire or reach agreement on modification or supplementation of such contracts in accordance with this Circular.-

For the Governor of the State Bank of Vietnam
Deputy Governor
PHAM THANH HA