What does a bank need to offer foreign-currency sub-accounts to customers?
Banking
Asked by Question Bot11/Sep/20151 answer
1 Answer
F
Faisal Khan
Answered 11/Sep/2015
Barring licensing or approval which may be required from the Central Bank/Financial Regulator, what you basically need to do is to simply have a foreign currency account ledger in your CBS. All FCY accounts will be under this ledger.
Depending on who your settlement bank is for the foreign exchange (it could be an FX broker using a local FCY settlement bank, it could be the central bank itself or it could be a designated FCY bank locally), you would need to establish a correspondent relationship with them. This is how all your clearing and settlement will be done, via these banks.
From a technology point of view, you would most likely implement a FX solution in-house for FX handling for your treasury. Companies like Currenex (See: Currenex / Home) or Reuters Eikon is used (See: Forex trading strategies).
Again, if you are licensed to operate FX accounts, you will be able to accept FCY deposits.
The compliance would stem from the Correspondent bank that does FX settlement and clearing for you, along with the house rules as mandated by the central bank/financial regulator.
You do not need to have a bank in the origin country of the foreign exchange for the currencies you have mentioned, HK has plenty of banks designated for this locally.
Depending on who your settlement bank is for the foreign exchange (it could be an FX broker using a local FCY settlement bank, it could be the central bank itself or it could be a designated FCY bank locally), you would need to establish a correspondent relationship with them. This is how all your clearing and settlement will be done, via these banks.
From a technology point of view, you would most likely implement a FX solution in-house for FX handling for your treasury. Companies like Currenex (See: Currenex / Home) or Reuters Eikon is used (See: Forex trading strategies).
Again, if you are licensed to operate FX accounts, you will be able to accept FCY deposits.
The compliance would stem from the Correspondent bank that does FX settlement and clearing for you, along with the house rules as mandated by the central bank/financial regulator.
You do not need to have a bank in the origin country of the foreign exchange for the currencies you have mentioned, HK has plenty of banks designated for this locally.