Currency Exchange Licence

This licence confirms that the exchange office meets state-established requirements, including aspects of security and financial stability. It regulates the activities of the exchange office, ensuring client protection and compliance with laws aimed at combating money laundering and the financing of terrorism.

The rules for obtaining such a licence vary by country and depend on specific legislation. The process typically involves verifying business reputation, ensuring sufficient capital, and assessing the professional competence of employees.

Operating without the necessary permit subjects currency exchange activities to various sanctions and fines imposed by regulators. Penalties may include financial fines, suspension of operations, administrative sanctions, and potentially criminal liability.

Currency exchanges are subject to regulatory oversight, which includes scheduled and unscheduled inspections, as well as mandatory regular financial reporting.

Advantages and disadvantages of a currency exchange office licence

The operation of currency exchange offices without the appropriate licence is illegal in almost all countries. Holding a licence allows a business to operate within the legal framework, ensuring compliance with the law and offering several additional benefits:

• increasing customer trust and attracting more customers – licenced establishments that prioritise customer safety gain more trust;
• exchange offices operating officially have access to a wide range of banking services, facilitating financial management and expanding business opportunities;
• business can operate stably and predictably without fear of sanctions and fines;
• licencing according to international standards allows a business to scale and enter global markets.

Disadvantages of obtaining a currency exchange office licence include the financial and time costs associated with the process, as well as the complexity of meeting official requirements.