CENTRAL BANK GENERALIZES PRACTICE OF APPLYING CURRENCY LAWS
Topic 1 Business Law ReviewCENTRAL BANK GENERALIZES PRACTICE OF APPLYING CURRENCY LAWSFebruary 9, 2005, WednesdayCENTRAL BANK GENERALIZES PRACTICE OF APPLYING CURRENCY LAWSThe Central Bank on December 31, circulated Letter No.30generalizing the practice of applying Central Bank regulatory acts oncurrency regulation and currency control. Below is the complete text ofthe letter.Central BankLetter No.30 of December 31, 2004Summary of the practice of applying Central Bank regulatory acts oncurrency regulation and currency controlThis letter deals with matters pertaining to the application of theCentral Bank's instruction No.117-I of June 15, 2004 on the rules ofsubmitting documents and information to authorized banks by residentsand nonresidents while conducting foreign currency operations, the rulesof registering foreign currency operations and passports of deals byauthorized banks (hereinafter referred to as Instruction No.117-I) andthe Central Bank's Provision No.258-P of June 1, 2004 on the rules ofsubmitting confirming documents and information to authorized banks byresidents, involved in foreign currency operations on foreign tradedeals with nonresidents, and the authorized banks' control over foreigncurrency operations (hereinafter referred to as Provision No.258-P).1. In what instances must residents submit a certificate on foreigncurrency operations to an authorized bank? Must a foreign currencycertificate be submitted when a resident sells foreign currency to theauthorized bank, buys foreign currency from th authorized bank,transfers foreign currency from a transit foreign-currency account tothe current foreign currency account (special bank account), or whencash foreign currency is entered on or taken off the resident's account,or when the commission of the authorized bank is written off?A certificate documenting foreign currency operations shall besubmitted to the authorized bank while identifying foreign currencyresources that have arrived at the resident's transit foreign-currencyaccount, while writing off foreign currency resources from theresident's account in the authorized bank, while conducting foreigncurrency operations indicated by the resident ( points 1.2 and 1.3 ofInstruction 117-I).
