MONEY-CHANGING BUSINESS
1. What is Money-Changing Business?
Money-Changing Business is the business of buying or selling foreign currency notes. No one is allowed to operate the Money-Changing Business unless he is in possession of a valid Money-Changer’s License.
2. Who can operate the Money-Changing Business?
An applicant who desires to operate the business could be a person or a company.
3. Who is responsible for licensing Money-Changing Business?
Ministry of Finance through Financial Institutions Division is responsible for licensing, regulating and supervising Money-Changing Business under the Money-Changing and Remittance Businesses Act (Chapter 174).
The Authority that administers the Money-Changing and Remittance Businesses Act, 1994 is the Permanent Secretary of the Ministry of Finance.
4. How do you apply for Money-Changer’s License?
i) A person who desires to obtain a license shall make an application to the Ministry of Finance by filling in a form issued by the Financial Institutions Division. Each application form costs BND100 and it is non-refundable.
ii) Application forms will only be available for applicants to purchase once advertisement on availability of licenses to be offered to public is announced in the Government Periodical, Pelita Brunei.
iii) Written exam will be conducted by the Financial Institutions Division to all the applicants who had returned their application forms before the dateline. Applicants will be informed on the date, time and venue of the exam.
iv) Successful applicants who pass the exams will be invited for interviews by the Financial Institutions Division.
v) All applicants will be notified of the results of their applications.
5. How many Money-Changers are licensed in Brunei Darussalam?
Currently there are 26 Money Changers operating in Brunei Darussalam including 3 hotels.
6. What is the period in force for the Money-Changer’s License?
The Money-Changer’s License is in force for one year only from 1 January until 31 December of the same year. The license has to be renewed every year.
7. What is the license fee for Money-Changing Business?
The license fee for Money-Changing Business is BND2,000 per year.
8. Are Money-Changers allowed to open branches?
No, currently Money-Changers are not allowed to open branches. The business can only be undertaken at the place of business stated in the certificate of the license.
9. Are Money-Changers required to maintain security at the Ministry of Finance?
No, only Remittance Companies are required to maintain security at the Ministry of Finance in the form of Bankers Guarantee at the amount of BND55,000.
10. What is the penalty imposed to a person found carrying out Money-Changing Business without a valid Money-Changer’s license?
Under Section 5 of the Money-Changing and Remittance Businesses Act, 1994, a person who is found to carry out Money-Changing Business without a valid Money-Changer’s license shall be guilty of an offence and shall be liable on conviction to a fine not exceeding BND10,000 or imprisonment for a term not exceeding one year or to both.
11. Are Money-Changers required to appoint an auditor?
Yes, Money-Changers are required to appoint a recognized auditor. The auditor is to submit the profit and loss report of the Money-Changer in such form as prescribed by the Financial Institutions Division.
12. Are Money-Changers required to submit ‘cash transaction reports’ (CTR’s)?
Yes, Money-Changers are required to submit CTR’s of BND5,000 and above.
13. Are Money-Changers required to furnish information and statistical data?
Every Money-Changers shall furnish to the Ministry of Finance:-
(a) Not later than the 14th of every month a statement in the prescribed form showing the Total Foreign Currency Changed in Brunei Darussalam at the close of business on the last business day of the preceding month. The form shows the type of foreign currency, the rate of buying and selling of foreign currency and total foreign currency bought and sold.
(b) Not later than the 14th of every month a Business Format of Money Changed of B$5000 and above. The format shows the date, customers’ details including name, race/citizenship, identity card number and colour or passport number and total money changed.
(c) Not later than 14th April 2007, 14th July 2007, 14th October 2007 and 14th January 2008 the List of Employee’s Name in Money-Changing Business. The list shows the employee’s details including name, race/citizenship, identity card number and colour or passport number, country of origin, starting date for reporting of work, position, gross salary and references from the Labour Department.
(d) Not later than 31st of March 2007, i.e. not later than 3 months after the end of financial year, a Profit and Loss Account approved by external auditors.