REMITTANCE BUSINESS
1. What is Remittance Business?
Remittance business is the business of accepting moneys for the purpose of transmitting them to persons resident in another country. No one is allowed to operate the Remittance Business unless he is in possession of a valid Remittance’s License.
2. Who can operate a Remittance Business?
An applicant who desires to operate the business could be a person or a company.
3. Who is responsible for licensing Remittance Business?
Ministry of Finance through Financial Institutions Division is responsible for licensing, regulating and supervising Money-Remittance Business under the Money-Changing and Remittance Businesses Act (Chapter 174).
The Authority that administers the Money-Changing and Remittance Businesses Act (Chapter 174) is the Permanent Secretary of the Ministry of Finance.
4. How do you apply for a Remittance’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 Remittance Companies are licensed in Brunei Darussalam?
Currently, there are 19 licensed Remittance companies operating in Brunei Darussalam.
6. What is the period in force for the Remittance’s License?
The Remittance’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 Remittance Business?
The license fee for Remittance Business is BND3,000 per year.
8. Are Remittance Companies allowed to open branches?
No, currently Remittance Companies 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 Remittance Companies required to maintain security at the Ministry of Finance?
Yes, 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 Remittance Business without a valid Remittance’s license?
Under Section 6 of the Money-Changing and Remittance Businesses Act (Chapter 174) a person who is found to carry out Remittance Business without a valid Remittance’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 Remittance Companies required to appoint an auditor?
Yes, Remittance Companies are required to appoint a recognized auditor. The auditor is to submit the profit and loss report of the Remittance in such form as prescribed by the Financial Institutions Division.
12. Are Remittance Companies required to submit ‘cash transaction reports’ (CTR’s)?
Yes, Remittance Companies are required to submit CTR’s of BND5,000 and above.
13. Are Remittance Companies required to furnish information and statistical data?
Every Remittance Companies 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 Money Remitted Abroad at the close of business on the last business day of the preceding month. The form shows the name of country or destination, total money remitted abroad in Brunei Dollars and in foreign currency.
(b) Not later than the 14th of every month a Business Format of Money Remitted of B$5000 and above. The format shows the date, customers’ details including name, race/citizenship, identity card number and colour or passport number and total money remitted (B$), reason for remitting and full name and address of the receiver of the money remitted abroad.
(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-Remittance 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.