Brunei’s Foreign Currency Exchange On Bullish Trend
By Azlan Othman

Bandar Seri Begawan - Brunei has been recording a surge in the amount of remittance and foreign currency exchange for the past several years.

Citing the fact that such development indicated a very healthy trend, Dato Paduka Hj Yakub, Deputy Minister of Finance, revealed that the remittance service itself recorded an increase of 636 per cent last year compared to seven years ago.

Dato Paduka Hj Yakub, who was the chief guest, highlighted this at the introductory course in foreign currency exchange for licence remittance and foreign exchange operators at the Ministry of Finance building near the capital yesterday.

He urged operators in these two sectors to be cautious against those who might abuse the service with money-laundering and financing undesirable activities.

He also advised the operators to report any suspicious transaction immediately to the Ministry of Finance.

The amount of remittance last year mounted to $241.86 million compared to only $38.01 million in 1996 while the buying of foreign currencies rose to $306.85 last year compared to $14.71 million in 1996.

Meanwhile, the buying of Brunei currency also showed an upward trend, recording $34.71 million in 2003 compared to only $16.11 million in 1996.

Dato Hj Yakub also stressed on the need for licensed holders of such service to run their businesses in accordance to the regulations imposed by the Government of His Majesty including new requirements introduced in 2004.

"This is the step taken by the Ministry of Finance to fine-tune and scrutinise this sector in line with the current trend. The new regulations are not to burden licence holders but to protect public interest in ensuring the safety of their cash and to avoid money being swindled," he added.

As Brunei has become a member of Asia-Pacific Groups on Money Laundering (APG) in 2002, Dato Hj Yakub also urged licence operators to submit their financial statement within the time specified by the Ministry of Finance.

"This is one of the actions made in the country's effort against money-laundering activities which are probably being made through remittance and foreign currency exchange."

Dato Hj Yakub also called for remittance and foreign currency exchange operators to ensure their business locations are strategically located, safe and clean as it determines the success of their businesses. As many of the customers are foreign visitors to the country, he also urged the operators to be courteous to give a better image of the country.

Meanwhile, Hj Muhammad Syaippudin Hj Abdullah, Director of Financial Institution at the Ministry of Finance, in his speech said the course was the first of its kind being held by the Ministry of Finance since the business licence was first issued in 1996.

He also said that it is the aspiration of the nation to make the financial services sector an important component in the country's effort to diversify its economy.

At the initial stage, the course is focused on the concepts normally used by the banking and a financial institution that covers definitions of foreign exchange, bid and offer, value today, value tomorrow, value spot, value forward and cross rates. In addition the course also involved, Practical course session in the form of case study relating to calculation of foreign exchange profits and commission. -- Courtesy of Borneo Bulletin

Click Here To Have Your Say On This Story

Brudirect.com News