Reserve Bank of Fiji Operational Guidelines for Restricted Foreign Exchange Dealers and Money Changers

Reserve Bank of Fiji
Restricted Foreign Exchange Dealers and Money Changers Supervision Policy Statement No: 2 OPERATIONAL GUIDELINES NOTICE TO RESTRICTED FOREIGN EXCHANGE DEALERS AND MONEY CHANGERS LICENSED UNDER THE EXCHANGE CONTROL ACT Reserve Bank of Fiji April 2025 (Revised)

1.0 Introduction
1.1 This Policy outlines the operational guidelines for Restricted Foreign Exchange
Dealers and Money Changers (FX Dealers). It aims to facilitate the daily transactions undertaken within the parameters set out by the Reserve Bank of Fiji (the Reserve Bank) and the conditions of the business licence. This Policy is issued under the Legal Notice 88 of 2002 Delegation of Powers and the Exchange Control Act 1985.
1.2 In line with the Financial Transactions Reporting Act (FTR) 2004 and FTR Regulation,
FX Dealers are expected to maintain internal control and procedures aimed at preventing its use for money laundering practices.
1.3 This Policy Statement is applicable to the Restricted Foreign Exchange Dealers and
Money Changers licensed under the Exchange Control Act 1985.
2.0 Scope of Operation
2.1 The following rules will apply to the types of transactions and limits that can be traded:

• Transaction types as listed under the approved category of foreign exchange
  business.
• Individual transactions for sales and purchases of foreign exchange are to be
  within the maximum limit of the paid up capital of the business.
• Exchange Control approvals, including telephone approvals granted by the
  Reserve Bank of Fiji.
• Overnight foreign exchange cash limit is 75% of the paid up capital.
  3.0 Responsibilities of FX Dealers
  3.1 Each FX Dealer must display its Licence1 at its principal place of office in a
  conspicuous manner, and a copy of its licence at each of its branch.
  3.2 Licence to conduct foreign exchange business expires on 31st December each year.
  Application for renewal of a licence must be submitted to the Reserve Bank annually on or before 30th September. The licence renewal application must contain all required documents/ information as per the licence renewal checklist.
  3.3 FX Dealers must seek written approval from the Reserve Bank before making any
  changes to:
• Its business name;
• The address of any of its office;
• The membership of its board of directors (if applicable); and
• Its shareholders and shareholding structure.
  3.4 FX Dealers must quote fair market exchange rates for daily public display. In addition,
  transaction fees and charges must be also displayed in the business premises.
  3.5 A copy of the receipt must be issued to customers for every transaction conducted.
  1 Licence refers to the current year licence issued by the Reserve Bank of Fiji to conduct transactions permitted under Supervision Policy Statement No. 1.

3.6 For foreign currency purchase, the receipt shall contain the following details:

• The FX Dealer’s name, address and telephone number;

• The date of the transaction;

• A serial number of the receipt that corresponds to an entry in the register;

• The amount and type of currencies tendered by the customer;

• The amount of Fiji currency to be issued to the customer;

• The rate of exchange; and,

• The customer’s name and passport number or other types of ID, if the
  transaction amount is FJ$5,000.00 and above.
  3.7 An authorised officer of the FX Dealer shall sign on the receipt and shall issue the
  original of the receipt to the customer. The FX Dealer shall retain the duplicate copy of the receipt together with copies of the documents provided by the customer in support of the transactions for a period not less than twenty-four months and shall produce it for inspection and copying on demand by the Reserve Bank or any person authorised by the Reserve Bank.
  3.8 FX Dealers shall, before appointing a managing director2 or any officer, who in any
  manner will have control of its foreign exchange business, obtain prior written approval from the Reserve Bank for the proposed appointment. The FX Dealer shall make reference to the minimum criteria of a ‘fit and proper’ person set out in Schedule 1 of this Policy Statement. If the Reserve Bank forms the opinion that an elected or appointed person is not fit and proper or failed to perform adequately the required responsibilities, Reserve Bank shall disqualify the appointed person.
  3.9 FX Dealers at its own expenses shall appoint annually an auditor to carry out an audit
  of its foreign exchange business.
  3.10 Identification and Verification of Customers: FX Dealers must identify and verify the
  identity of their customers in line with the requirements of the FTR Act, FTR Regulations and other guidelines issued by the Financial Intelligence Unit (FIU).
  4.0 Documentary Requirements
  4.1 FX Dealers must sight and retain (except for passports) original documents for all
  payments made. Photocopies are to be made in cases where original documents cannot be kept by the FX Dealer. All original documents that are returned must be stamped to avoid reproduction.
  4.2 The following rules will apply when processing documentary evidence:

• All original tax clearance certificates are to be checked for validity and only
  the amount declared on the certificate is to be paid out by the company. All original certificates are to be retained.

• Original customs import entries provided as a result of an advance payment
  made must be verified to ensure that the amount declared on the entry corresponds to the amount that was earlier paid. 2 For the purpose of this Policy Statement, director refers to the person in charge of the daily operation of the foreign exchange business of the FX Dealer.

• For goods that have arrived in Fiji, import payments must be made directly to
  the supplier on the customs entry and not to a third party.

• Valid passports and airline tickets of all travellers and emigrants (including
  family members) must be sighted and details3 must be recorded for these documents. Copies must be made for valid passport and airline ticket if the amount of travel fund is FJ$5,000 and above. Fiji passports of travellers and emigrants must also be endorsed with the amount of funds issued on the last
  page of the passport.

• In the case of foreign passport holders on overseas travel with return ticket to
  Fiji, a Form TF must be completed and issued to the passport holder on issuance of travel funds.

• For service related payments, original invoices must be sighted (except for
  pro-forma invoices for advance import payments) and stamped.

• Payments must be made directly to the issuer of the invoice. Payments to
  third parties are not delegated to Foreign Exchange Dealers.
  5.0 Applications outside the Delegated Authority
  5.1 FX Dealers are expected to explain the exchange control regulations and assist
  their customers in preparing the applications. This includes referring applications, together with the relevant documents, that fall outside their authority to commercial banks and the Reserve Bank.
  5.2 The company is also responsible for informing the commercial banks of its
  maximum transaction limit as approved by the Reserve Bank.
  5.3 All cases referred to the commercial bank or the Reserve Bank for approval must
  be completed and signed by the customer (not the FX Dealer).
  5.4 The business is not delegated to make its own company payments. These must be
  referred to the Reserve Bank together with proper documentation, and may be effected only when permission is granted.
  5.5 All applications that fall outside the limits delegated to FX Dealers, including cases
  of insufficient documentation must be referred to the commercial bank or the Reserve Bank if outside the authority delegated to commercial banks.
  6.0 Foreign Currency Accounts
  6.1 Approval must be obtained from the Reserve Bank for the operation of foreign
  currency accounts. The accounts must operate within the approved limits set by the Reserve Bank. Any excess funds above the approved limits must be converted and transferred to the Fiji dollar resident account. 3 Details such as passport number and airline ticket information.

6.2 The accounts can be credited with funds from offshore, payments from other foreign
currency accounts and local deposits from its operations.
6.3 Debits to the accounts will include offshore payments, transfers to other foreign
currency and Fiji dollar accounts and local withdrawals to fund operation.
7.0 Settlement with Other Dealers and the Commercial Banks
7.1 FX Dealers are allowed to buy and sell foreign exchange with other Dealers
including commercial banks.
7.2 Settlement must be made within dealing parameters.
8.0 Reporting Procedures
8.1 FX Dealers are required to provide reports on their operations. The reports must
comply with the formats and accompanying notes provided by the Reserve Bank of Fiji.
8.2 The reports to be submitted by FX Dealers are highlighted as follows:
a) Overseas Exchange Transactions

• The OET report has two parts. The main part of the report contains the
  totals of all payments made and the receipts recorded under the different codes. This main report is the standard batch header for the individual sales and purchases. Refer to Appendix 1.

• The second part consists of all the individual sales and purchases. Refer
  to Appendix 1(i) and 1(ii). The total of these must correspond to the main report.

• Transactions in foreign currencies between FX Dealers are not required
  to be reported on OET.
  The weekly OET report must reach the Reserve Bank on the Tuesday following the reporting week. b) Exposure

• FX Dealers will be required to keep record of its consolidated overnight
  foreign currency holdings. Each company will be required to report, in the monthly exposure return, the consolidated highest or ‘peak’ overnight foreign exchange cash holdings incurred on any day during the reporting month, in addition to the end of month foreign currency figures. The monthly Foreign Exchange Exposure Report form is attached as Appendix 2.

• The report must include settlement of sales and purchases of foreign
  currencies with other dealers and commercial banks.

• The report must reach the Reserve Bank within 10 working days from
  the reporting month. The report must be accompanied by copies of bank statements. c) Suspicious Transaction Report

• FX Dealers must ascertain the identity of their customers by conducting
  Customers Due Diligence and identify suspicious transactions as required under section 14 of the Financial Transactions Reporting (FTR) Act.

• A record must be kept of all suspicious transactions and report with full
  details to the FIU no later than 2 working days after forming the suspicion or the receipt of the information being reported on. d) Electronic Fund Transfer Report and Cash Transaction Report

• FX Dealers must report (i) all electronic funds transfers coming into or
  going out of Fiji and (ii) Cash Transaction Reporting (CTR) according to the FIU Notices issued under the FTR (Amendment) Act 2022.

• These reports must be submitted to the FIU within 5 working days from
  the date of the transaction and must be in the format required under the FTR Regulations. e) Annual Accounts

• The financial accounts must be audited by a Chartered Accountant in
  public practice and acceptable to the Reserve Bank.

• The audited annual accounts of the business must be provided to the
  Reserve Bank within 4 months from end of financial year.
  9.0 Records Management
  9.1 To enhance proper record management of the FX business, FX Dealers are
  required to maintain two registers for Payments and Receipts to record all business transactions whether direct or indirect relating to the sales and purchases of foreign exchange.
  9.2 The Payment Register must record the following details:
  i. date of transaction;
  ii. name of applicant and address;
  iii. name of beneficiary;
  iv. OET payment code;
  v. Fiji dollar amount;
  vi. foreign currency amount;
  vii. purpose of payment;
  viii. RBF approval number; and
  ix. Details that original documents were sighted and recorded, copied and
  stamped.

9.3 The Receipts Register must record the following transaction details:
i. date of transaction;
ii. name of remitter and address;
iii. name of beneficiary (in Fiji) and address;
iv. OET receipt code;
v. Fiji dollar amount;
vi. foreign currency amount;
vii. purpose of transfer;
viii. confirmation that documentation was in order; and,
ix. Individual cash purchases must be totaled under the heading “Cash
Purchases” and include in the Receipts Register.
9.4 Correct OET codes are to be given for each transaction using the OET Classification
Guide, set out in Schedule 2 of the Policy Statement.
9.5 The registers should be kept at the approved place of business and must be made
available for inspection by the Reserve Bank on request.
9.6 The business shall retain all such records and registers until the expiry of seven
years.
10.0 Oversight of the Reserve Bank of Fiji
10.1 The Reserve Bank of Fiji will assess the compliance of each FX Dealer with the
requirements of this Policy in the course of its supervision. Non-compliance may result in revocation of licence.
11.0 Oversight by the Reserve Bank of Fiji
11.1 This Policy applies to FX Dealers and will be effective immediately.
Reserve Bank of Fiji
April 2025 (Revised)
Attach:
i. Schedule 1 - Minimum Criteria of a ‘Fit and Proper’ Person
ii. Schedule 2 - OET Classification Codes
iii. Appendix 1,1(i) and 1(ii) - OET Report Forms
iv. Appendix 2 - Foreign Exchange Exposure Report Form

SCHEDULE 1
Minimum Criteria of a ‘Fit and Proper’ Person

1. Pursuant to the Legal Notice 88 of 2002, Delegation of Powers and the Exchange Control Act
   1985, a FX Dealer, in determining whether a person is ‘fit and proper’, to hold the position of a director, or officer, who in any manner has control of its foreign exchange business, shall consider the following matters:
   a) His probity, competence and soundness of judgment for fulfilling the responsibilities of that position. b) Any evidence that he has engaged in any business practices appearing to be deceitful or otherwise improper. c) Whether he, or the foreign exchange company in which he holds a position of responsibility, has had its licence revoked. d) Whether he has been a party to any action or decision of the board or management of a foreign exchange company which is detrimental to the interest of that company or its customers. e) Whether he has held a position of responsibility in the management of any company which has been convicted of an offence under any written law during his tenure of office unless he proves that such offence was committed without his knowledge or consent and he was not in a position to prevent the offence. f) Whether he has held a position of responsibility in the management of any company which during his tenure of office:
   i. Has defaulted in payment of any judgment sum against it,
   ii. Has suspended payment or has compounded with its creditor; or,
   iii. Has had a receiver or manager appointed in respect of its property.
   g) Whether he shall be available for full time employment, and shall not carry on any other business or vocation, except as a nonexecutive director or shareholder of another company.
2. A person is deemed not to be a ‘fit and proper’ person if:
   a) He has been compounded or convicted; or b) As a director, or an officer, who in any manner has control of the business of a foreign exchange company, has caused the company to be compounded or convicted.

SCHEDULE 2
CLASSIFICATION GUIDE
PAYMENTS
CLASSIFICATION NATURE OF PAYMENT
NUMBER (CODE)
Merchandise Imports
01 CHEMICALS
02 MANUFACTURED GOODS
03 FOOD, BEVERAGE AND TOBACCO
04 MACHINES, MACHINERY AND ELECTRICAL EQUIPMENT and parts (excluding vehicles and vehicle parts) 05 MINERAL FUELS (petroleum products, bottled gas, coal, etc.) 06 RAW MATERIALS 07 TEXTILES, CLOTHING AND FOOTWEAR 08 TRANSPORT EQUIPMENT (cars, buses, aircrafts, etc.) 09 OTHER IMPORTS 10 GOVERNMENT IMPORTS 11 MERCHANTED GOODS Fares, Freight and Transportation 12 BUNKERING, SHIPPING, AIRCRAFT CHARGES, PORT DUES, etc. 13 FARES – tickets sold/earnings of foreign airlines and shipping companies 14 FREIGHT charges 15 REPAIR charges of domestic carriers or vessels 16 OTHER TRANSPORT PAYMENTS Travel 17 FOREIGN CURRENCY, TRAVELLERS CHEQUES, letter of credit etc. purchased by travellers including credit card reimbursement (e.g. Diners, American Express, Visa, Mastercard) 19 TRAVEL AGENTS PAYMENTS for accommodation and other hotel and motel charges, visitors surplus funds including swaps of Fiji notes from abroad 20 OTHER TRAVEL PAYMENTS Overseas Investment Income 21 DIVIDENDS, PROFITS remitted to companies and individuals 22 DIVIDENDS, INTEREST remitted to foreign holders of Government stock 23 INTEREST ON OVERSEAS LOANS and debts of companies and individuals 24 INTEREST ON OVERSEAS LOANS and debts of Government and Statutory Bodies Other Current Transactions 25 ADVERTISING charges

26 COMMISSIONS, ROYALTIES, patents, brokerage and copyright charges 27 EDUCATION FUNDS for Fiji students overseas 28 EMIGRATION TRANSFERS and legacies 29 EXPENSES OF OFFICES, agencies, representatives and equivalent counterparts overseas by companies and organisations 30 EXPENSES OD EMBASSIES, high commissions and offices overseas of government and statutory bodies 31 FEES – examination, passport, visa, etc. 32 GIFTS AND CHARITABLE DONATIONS by government, individuals, organisations, etc. 33 INSURANCE premiums and claims 34 MAINTENANCE of dependants overseas by residents 35 MEDICAL expenses incurred overseas 36 MOVIE (CINEMA) FILMS, VIDEO TAPES – purchase and rental 37 NEWS SERVICE charges 38 NON-RESIDENT TRANSFER of funds upon or after departure from Fiji 39 NON-RESIDENT TRANSFER of funds overseas to meet commitments and expenses 40 PENSIONS AND SUPERANNUATION benefits including FNPF and superannuation contributions 41 PROFESSIONAL SERVICE CHARGES paid by individuals, companies for work done on their behalf for administration, management and knowhow 42 PROFESSIONS SERVICE charges as for the above but paid by Government and Statutory Bodies 43 REFUNDS, all kinds 44 SUBSCRIPTIONS and contributions to clubs, professional organisations, international and regional bodies etc. Capital Transactions 45 INVESTMENT OVERSEAS by Fiji residents, companies, societies, etc. and LOANS by resident companies to non-residents 46 REPAYMENTS OF OVERSEAS LOANS of individuals and companies 47 REPAYMENTS OF OVERSEAS LOANS of Government 48 REPAYMENT OF OVERSEAS LOANS of Statutory Bodies 49 WITHDRAWAL OF INVESTMENT in Fiji 50 OTHER – Indefinable, doubtful transactions

RECEIPTS
CLASSIFICATION NATURE OF PAYMENT
NUMBER (CODE)
Merchandise Exports
01 COPRA and copra products
02 FISH
03 GINGER
04 GOLD
05 MERCHANTED GOODS. Receipts by Fiji companies in respect of goods paid for by Fiji merchants to a non-resident supplier for goods forwarded to a party outside Fiji 06 SUGAR and molasses 07 TIMBER 80 EXPORT OF MINERAL WATER 81 TEXTILES, CLOTHING AND FOOTWEAR 82 OTHER EXPORTS of Fiji origin 09 RE-EXPORT of Mineral fuels 10 OTHER RE-EXPORTS Fares, Freight and Transportation 11 BUNKERING, SHIPPING, AIRPORT charges 12 FARES – domestic airlines 13 FREIGHT CHARGES – domestic airlines 14 FREIGHT CHARGES - domestic shipping companies 15 PORT DISBURSEMENTS in Fiji by shipping companies 16 REPAIRS TO FOREIGN VESSELS or aircrafts 17 SALVAGE earnings 18 OTHER TRANSPORT Travel 19 FUNDING OF ACCOUNT. Used for bank to bank funding for the sole purpose of travel related expenses for customers 20 NOTES AND TRAVELLERS CHEQUES deposited by duty free dealers or merchants 21 NOTES AND TRAVELLERS CHEQUES deposited by hoteliers 22 PRIVATE AND BUSINESS TRAVEL FUND covering foreign currency notes and coins, travellers cheques, overseas cheques, drawings by letters of credit, credit card reimbursement (eg. Diners, American Express, Visa , Mastercard) etc. 23 REPURCHASE of travellers cheques issued in Fiji 24 TRAVEL FIRMS and other tourism monies Income from Overseas Investment 25 PROFITS RECEIVED by domestic companies and individuals 26 INTEREST RECEIVED by domestic companies

27 INTEREST RECEIVED by Government or Statutory Bodies Other Current Transactions 28 COMMISSIONS AND ROYALTIES 29 EDUCATION FUNDS of overseas students studying in Fiji 30 FIJI GOVERNMENT receipts covering earnings by Government Departments such as Inland Revenue 31 FOREIGN GOVERNMENTS’ REMITTANCES. Funds received on behalf of foreign agencies, Embassies, High Commissions, Consulates, Trade Promotion Offices, etc. in Fiji 32 GIFTS, MAINTENANCE, DONATIONS to individuals and SALARIES OF FIJI RESIDENTS WORKING ABROAD 33 GIFTS AND DONATIONS to Fiji Government and Statutory Bodies 34 GIFTS, DONATIONS by Foreign Governments and international agencies to Fiji Missions, religious and voluntary organisations, regional bodies or their equivalent counterparts 35 IMMIGRANTS TRANSFERS including legacies 36 INSURANCE receipts – premiums and claims by insurance companies and individuals 37 NON-RESIDENT TRANSFERS TO MEET EXPENSES IN FIJI. Funds received by non-residents in Fiji on a Visitor’s Permit 38 OPERATING EXPENSES of international agencies in Fiji e.g. UNDP, WHO, ILO 39 OPERATING EXPENSES OF OVERSEAS COMPANIES. Branch operations expenses only. If temporary of short term loan for Fiji incorporated company, then use code (45) 40 OPERATING EXPENSES of mining, exploration and construction companies 41 PERSONAL RECEIPTS. Salaries and allowances of expatriates on a work permit, pensions for retirees 42 PROFESSIONAL SERVICE charges received 43 OTHER NON-CAPITAL TRANSACTIONS. Funds received for refunds or adjustments and cannot be classified under the above Capital Transactions 44 EQUITY contribution. Funds for the purpose of purchasing shares in a company or capital contribution for a partnership or sole proprietorship 45 OVERSEAS BORROWING by individuals, companies. Receipt of funds as borrowing (shareholders’ advance, offshore loan) by Fiji resident individuals and companies 46 OVERSEAS BORROWING by Government 47 OVERSEAS BORROWING by Statutory Bodies. 48 REAL ESTATE purchased in Fiji 49 WITHDRAWAL OF INVESTMENT. Funds received in respect of withdrawal of investment abroad by Fiji resident individuals and companies 50 OTHER – Indefinable, doubtful transactions