Post by Sapphire Capital on Nov 2, 2023 0:08:37 GMT 4
Again and often asked for me here are some corner points:
a. private pincipals exchanging currency between themselves are perfectly legal in most countries but not all as long as it is not their principal busines
b. if the private principals are doing it constantly they might be qualified as a money business and may need a license
c. criminal law applies to everyone, so prohibition of fraud, theft and money laundering to name only a few shall be applicable.
d. every one holding himself out to the public for currency exchange needs a license in most countries.
e. always check the jurisdiction the principals are located AND the jurisdiction the exchange is transacted AND the law of the currency exchanged
f. brokerage on private business is generally allowed, but some countries require a license for finder brokerage
g. any broker offering services of the financial kind to the public normally needs a license.
h. always check the jurisdiction the broker as well as the principals are located AND the jurisdiction the exchange is transacted AND the law of the currency exchanged
i. paperwork needs to be sure, straight, conclusive and legal.
j. banks involved will do a full compliance check for the principals but will only pay brokers if ordered to do so
k. so called irrevocable payment orders are never irrevocable and frankly if not notarized and countersigned by the bank not worth the hazzle.
l. Always remember: a deal is only as good as the parties involved, also remember: you are unlikely to be able to do a lawsuit against anyone even if its just the cost and time necessary.
a. private pincipals exchanging currency between themselves are perfectly legal in most countries but not all as long as it is not their principal busines
b. if the private principals are doing it constantly they might be qualified as a money business and may need a license
c. criminal law applies to everyone, so prohibition of fraud, theft and money laundering to name only a few shall be applicable.
d. every one holding himself out to the public for currency exchange needs a license in most countries.
e. always check the jurisdiction the principals are located AND the jurisdiction the exchange is transacted AND the law of the currency exchanged
f. brokerage on private business is generally allowed, but some countries require a license for finder brokerage
g. any broker offering services of the financial kind to the public normally needs a license.
h. always check the jurisdiction the broker as well as the principals are located AND the jurisdiction the exchange is transacted AND the law of the currency exchanged
i. paperwork needs to be sure, straight, conclusive and legal.
j. banks involved will do a full compliance check for the principals but will only pay brokers if ordered to do so
k. so called irrevocable payment orders are never irrevocable and frankly if not notarized and countersigned by the bank not worth the hazzle.
l. Always remember: a deal is only as good as the parties involved, also remember: you are unlikely to be able to do a lawsuit against anyone even if its just the cost and time necessary.
