Supervision of bureaux-de-change
Supervision of bureaux-de-change is an integral part of maintaining the stability of the financial system in the Czech Republic and promoting its sound and smooth development. In the case of bureau-de-change activity, this means in particular strengthening the credibility and soundness of bureau-de-change service provision, including compliance with rules of transparent exchange rate disclosure. Bureaux-de-change are classed as risky also because they can be misused for money laundering.
Bureau-de-change activity, where not carried on by a credit institution, may only be performed by a natural person or legal entity registered by the Czech National Bank. Persons carrying on bureau-de-change activity on the basis of a licence issued by a trade licensing office or a foreign exchange licence were allowed to carry on such activity on the basis of such authorisations only until 28 February 2010. Thereafter they were obliged to terminate such activity or apply to the CNB for registration.
Supervision of bureaux-de-change includes decisions on applications for bureau-de-change registration and inspection of compliance with the Foreign Exchange Act, especially as regards the performance of bureau-de-change activities. Such inspection also includes inspection of compliance with the rules on providing information to clients of foreign exchange entities to ensure that clients are not disadvantaged and receive sufficient information before the exchange takes place.
Bureau-de-change activity is governed by Act No. 219/1995 Coll., the Foreign Exchange Act, as amended. Under this Act, the CNB is authorised to issue a decree stipulating specimen forms for applications for registration for bureau-de-change activity and the content of their annexes (Legislation).