Bureau de change

A currency exchange facility is a company in the financial services sector, in its business space clients can change money. Brought foreign currency is done by the workers there in exchange for banknotes and / or coins to another - converted at the exchange rates offered - usually domestic. Change Legal tender their owners.

Exchange offices are also on the widespread designations Bureau de change ( " Change " from the French " ECHANGER " =) or Exchange (from the English ) or Cambio recognizable. There are companies that also gold in the form of coins or bullion to buy or sell a principal activity of the money alternation and operate the remittance business. The services of currency exchange can be connected to a further charge than the price difference between buying and selling.

• 2.1 Spatial location
• 2.2 sources of income
• 2.3 Effects of the modern payment
• 2.4 Company (selection)

• 3.1 permission
• 3.2 Precautions against money laundering
• 3.3 Other government regulations

Bureaux de change service

Trade with varieties

Focus of the business activities are variety of shops, ie buying and selling of foreign currency (almost always) to your local currency. This includes the sale or redemption of travelers checks. Common stock are held convertible foreign currencies. Needed by customers bills for exotic travel destinations, the currency exchange when necessary for the customer get. In everyday language, the retail business has mostly naturalized as a purchase or sale of " foreign exchange ", which is not true, because this bank-technically only the non-cash domestic credit are designated in foreign currency accounts or accounts abroad.

It is quite possible in special situations currency that the currency exchange omit certain transactions. Little Amsterdam exchange bureaux for example, have at times rejected in 2008 the monetary exchange of the U.S. dollar because of its losses.

Precious metal trading

A second area are buying and selling gold, be it gold coins or gold bars. Trading in other precious metals, such as silver, silver coins, or platinum, may be business purpose in individual cases complementary.

Financial transfers

If the currency exchange money transmission or remittance business, it is usually as an agency for international suppliers, such as the Western Union operates. A customer can pay a cash amount in Germany, for example, to except payment of a service charge, which is also paid to the beneficiary abroad in cash.

Expertise

The staff develop an instinct for possible forgeries in both bills as with coins over time. The recognition is supported by holding the relevant literature and information as well as technical aids such as lamps with ultraviolet radiation.

Also on import and export rules for the currencies often frequented holiday destinations, they are the customer can provide information expertly.

Entrepreneurial aspects

Spatial location

Exchange offices operate mainly travelers. Therefore, they are almost always present in places with an airport, a seaport, a major railway station or a border crossing. Established exchange offices are also in cities with international exhibitions or trade fairs. Currency exchange exchange offices run out of credit institutions, some travel agencies, hotels or larger often been sought by foreign tourists shopping places by. On cruise ships or ferries at sea the paymaster often is also responsible for the operation of the currency exchange.

Sources of income

A currency exchange earned on the pricing of on - or sale price of the convertible currencies or the price differences in gold sales. In addition, charges may be incurred for the conduct of financial services. Details are given in the pricelist.

The exchange rates of the varieties are based on the officially fixed exchange rates, plus or minus a margin. You can change daily. In general, only banknotes bought or sold. Coins are rather exceptionally acted, because they are less favorable in the prices for the customer as the dealer. This differentiation is caused by higher costs for storage and, where appropriate, transport or shipping of the metal travel funds in the country of origin.

A Simple Example of the trading range:

Impact of the modern payment

In the last third of the 20th century, several developments have affected the financial situation of the exchange offices. The spread of ATMs has meant that it can be cheaper for customers to obtain needed by means of his debit or credit card, cash in foreign currency in the other country directly from a licensed ATMs. The amount is then converted debited at the exchange rate, minus a bank fee for the withdrawal of its domestic bank account. Thus, the risk of loss when carrying a larger amount of money on travel, such as theft, reduced.

The introduction of the common currency Euro in different States of the European Union has led to the loss of their national currencies and reduces the turnover in currency exchange transactions. In the start of 2002 disappeared exchange transactions in German marks, Spanish pesetas, Italian lira, Belgian francs and Dutch guilders.

There are now few exchange offices that provide services over the Internet. Ordered foreign currencies will be sent about the client's home, charged their values ​​via credit card or direct debit from the customer's account.

Companies (selection)

In Germany the journey Bank is a large, highly specialized to the currency exchange business provider. Worldwide, the company Travelex raises claims to be out in front of competitors.

Legal regulations

Permission

A currency exchange facility is operated both by businessmen as well as legal persons, or a State institution. Frequently the business in banks and savings banks and their branches is handled. The operation generally requires a commercial accounting. Depending on national regulations may be required prior to commencement of operations, a state permission.

• Germany

In Germany, a sole proprietor does not receive permission to operate a currency exchange. The retail business is one of ( § 1 para 1a sentence 2 No. 7 KWG) to the banking business. Who operates it, hence is either a credit institution or financial services institution, if it is not - such as in department stores, hotels or travel agencies - those transactions to a permit- by- activity is (§ 2 paragraph 6, sentence 1 No. 12 of the Banking Act ).

Measures against money laundering

Exchange offices are a potential target for criminals who want to turn into legal tender illegal erlangtes money for their cash sales. Each operator of a currency exchange is now in the FATF belonging States are required to take precautions against money laundering.

• Germany

In Germany this was done in 1998. For variety stores from 5,000 euros more records of the customer transaction including identification will always be required. For this purpose, the legislature felt compelled to issue money laundering by criminal investigation cases and lessons learned from international cooperation of the authorities. Among other things, had been identified in a large scale with the help of holders of two exchange offices in Munich by the police money laundering, got involved with criminals in the drug scene. A total of about 60 million marks to have been introduced here between the months June 1993 and 1994 in the regular circulation of money.

More government regulations

Business dealings in exchange offices has been or will be touched by other government regulations. Examples are:

• Countries with non-convertible currencies often prohibit the export of domestic currency and require or limit the exchange of foreign currency. In customs regulations can be instructed that the traveler must declare the possession of foreign currency and should document the conversion into national currency on the basis of evidence of the exchange offices. So the former GDR has enforced by western visitors a minimum conversion in East German marks, which was settled in exchange offices at the border crossings in the GDR.

• After the currency reform was in four divided city of Berlin a dual currency phase, until finally the Western Allies prepared by admitting of bureaux de change and the decision of the German mark as the sole legal tender in the Western sectors of the conflict situation to an end. In these exchange points East marks were in Western mark or be exchanged reversed to an oriented on supply and demand course. Between price and currency exchange office owners, there was this court discharged disagreements.

The business activities of bureaux de change is monitored in many States of supervisory authorities. For example, in Germany the Federal Financial Supervisory Authority, in France, the Banque de France responsible for it.

History

Exchange offices are the modern equivalent of the centuries the population familiar moneychangers. The need to change foreign currency into local or nationwide usual means of payment, since the time of Hellenism is available. From the history of Bremen is known about that Archbishop Adaldag established a currency exchange in the year 966.

With a different task, the exchange offices in the documents belonging to towns in Bohemia created by King George of Podiebrad were designed: you should implement one in the June 5, 1469 determined a monetary reform and exchange old money for new. From the money changers, banks emerged in modern times.