GOLDILOCKS
Re: Redemption Centers (updated 7-15-2024)
"According to the Federal Register, 12 CFR Part 240, also known as Retail Foreign Exchange Transactions (Regulation NN), covers the authority, purpose, and scope of the regulation, as well as the definitions used in the regulation.
Section 240.4 of the regulation states that a banking institution must notify the Board before starting a retail forex business.
This notification must be provided in writing and in compliance with section 240.4, which requires the following:
* Treatment of existing retail forex businesses
* Compliance with the Commodity Exchange Act.
Other sections of the regulation include:
* Section 240.13(d)
Prohibits a related person of a banking institution from having an account with another retail foreign exchange counterparty, unless a person designated by the banking institution sends proper written authorization to open and maintain the account.
* Section 240.12
Requires specific authorization, and no banking institution may directly or indirectly effect a retail forex transaction for the account of any retail forex."
This information should clarify where redemption centers really are inside a bank, and what, is involved in holding a retail foreign currency exchange account.
It is important to note that these guidelines have just recently been updated and amended.
© Goldilocks
Displaying title 12, up to date as of 7/15/2024. Title 12 was last amended 7/15/2024. (see below)
https://www.ecfr.gov/current/title-12/chapter-II/subchapter-A/part-240
No comments:
Post a Comment