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 dated June 30, 2016, of the Governor of the State Bank of Vietnam, prescribing monetary brokerage operations of commercial banks and foreign bank branches

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

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

Pursuant to the Government’s Decree No. 102/2022/ND-CP dated 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 hereby promulgates the Circular amending and supplementing a number of articles of Circular No. 17/2016/TT-NHNN dated June 30, 2016, prescribing monetary brokerage operations of commercial banks and foreign bank branches (hereinafter referred to as Circular No. 17/2016/TT-NHNN):

Article 1. Amending and supplementing 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) being credit institutions or 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 provision of intermediary services with collection of a brokerage charge to arrange the performance of banking operations or performance of other business activities among credit institutions and foreign bank branches as prescribed in the Law on Credit Institutions.”

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 for clients to perform banking operations and other business activities as prescribed in the Law on Credit Institutions.”

4. To amend and supplement Article 6 as follows:

“Article 6. Modes of performing monetary brokerage operations

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

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

1. To repeal Clause 2 Article 3.

2. To repeal Clause 3 Article 4.

Article 3. Responsibilities of implementation organization

The Chief of Office, Director of the Monetary Policy Department, Heads of units affiliated to 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 from 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 shall continue following contents stated in the monetary brokerage contracts at the time of signing such contracts until the end of the term of the signed contracts or reach an agreement on amendment or supplementation in accordance with this Circular./.