RBF warns businesses and public against unlicensed foreign exchange dealings

The Reserve Bank of Fiji (RBF) is warning businesses and members of the public against conducting foreign currency exchange transactions with unlicensed operators.

The warning follows information received by the RBF that some retail businesses, hotels and individuals are engaging in foreign exchange activities without the required licence under the Exchange Control Act 1950.

The central bank says operating a foreign currency exchange business without a licence is a criminal offence.

While hotels and retail businesses may accept foreign currency from tourists as payment for goods and services, they are not permitted to use that foreign currency to conduct further exchange transactions or provide money-changing services to other customers.

The RBF says businesses accepting foreign currency must ensure the transaction is for the purchase of goods or services and that any change given to the customer is provided in Fijian dollars.

Foreign currency received must also be deposited with a commercial bank or sold to a licensed restricted foreign exchange dealer within 30 days of receipt.

The RBF has reminded the public that foreign exchange services in Fiji may only be provided by institutions licensed under the Exchange Control Act.

Licensed commercial banks include ANZ Bank, Bank of Baroda, BSP Financial Group (Fiji), BRED Bank (Fiji), HFC Bank and Westpac Banking Corporation.

The central bank has also licensed several restricted foreign exchange dealers, including City Forex (Fiji), Exchange & Finance (Fiji), FEXCO (Fiji), Lotus Foreign Exchange, MH Money Express, Real Forex, GCC Exchange and Vision Fintech Services.

The RBF is urging members of the public to deal only with licensed foreign exchange providers.

It says transactions with unlicensed operators can expose customers to risks such as fraud and financial losses, while also leaving them without legal protection.

The central bank has warned that enforcement action will be taken against unauthorised operators in accordance with the law.

Members of the public who suspect unlicensed foreign exchange activities or other unauthorised financial services are encouraged to report them confidentially to the RBF.

The RBF says the advisory is part of its ongoing efforts to safeguard Fiji’s financial system and protect the interests of the public.