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Order Of 9 July 1996 By The Which Modifies The Order Of 27 December 1991 On Financial Transactions With The Outside.

Original Language Title: Orden de 9 de julio de 1996 por la quese modifica la Orden de 27 de diciembrede 1991, sobre transacciones económicas con el exterior.

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TEXT

The Order of 27 December 1991, for the development of Royal Decree 1816/1991 of 20 December 1991 on economic transactions with the outside world, came to lay down the rules of procedure relating to charges and payments between residents and non-residents and transfers to and from abroad arising from economic transactions with the outside, opening and maintenance of accounts in operating offices in Spain of entities registered in the name of non-residents or abroad in the name of natural or legal persons resident, as well as physical movements through metal currency borders, bank notes and bank notes to the bearer and the use thereof as a means of collection and payment between residents and non-residents.

Now, Royal Decree 1638/1996 of 5 July has abolished the requirement for prior authorisation for the export of metallic coins, bank notes and bank cheques to the bearer of a sum of more than 5,000,000 In the light of the judgments of 23 February 1995 and 14 December 1995 of the Court of Justice of the European Communities in which the incompatibility of that requirement with Community law has been declared, it has therefore been replaced by the such a requirement for mere declaration.

It seems appropriate, therefore, to carry out the corresponding adjustment of the new regulation, thereby modifying the Order of 27 December 1991, which is the object of this Order.

On the other hand, the experience gained in the application of the rules on economic transactions with the outside makes it advisable to introduce certain technical improvements to such a system, in particular to require the accreditation of the origin of certain means of payment in cases where non-residents intend to carry out certain operations.

In your virtue I have:

Single item.

Articles 4 and 10 of the Order of 27 December 1991, for the development of Royal Decree 1816/1991 of 20 December 1991 on economic transactions with the outside world, are worded as follows:

" Article 4. º

1. The introduction into national territory of metallic currency, bank notes or any other means of payment or instruments of rotation or credit, encrypted in pesetas or foreign currency, is free.

Notwithstanding the foregoing, non-residents who introduce metal currency, bank notes or bank notes to the bearer, encrypted in pesetas or in foreign currency, in excess of 1,000,000 pesetas and intend to carry out with them any of the operations referred to in Article 10 of this Order or any operation which, in accordance with the rules on foreign investments in Spain, requires the accreditation of the origin of the said means of payment, shall be a declaration to the customs office of entry or to a deposit institution entered in the Official records of the Banco de España (hereinafter "registered entity"), in the form and according to the model that is established.

Once the declaration has been filed with any of the bodies mentioned in the preceding paragraph, they shall take the same charge, return their original copy to the person concerned, and send the duplicate copy to the Banco de España.

2. The output of the Spanish territory of metallic currency, bank notes or bank notes to the bearer, encrypted in pesetas or in foreign currency, in the amount of more than 1,000,000 pesetas, will be declared according to the model that is established.

This declaration shall be made to the customs office of departure, to any registered entity or to the Banco de España.

The declaration shall be completed by the body or entity to which it was made, giving the person concerned a copy of the declaration, and the duplicate copy is sent to the Banco de España.

The declaration shall be valid for a period of 15 calendar days from the date of due diligence; if it is not used within that period, the declaration must be deemed to be expired.

3. Where the customs office has discovered the means of payment referred to in the preceding paragraph without having made a declaration, the customs officials shall intervene in the means of payment and shall be required to make the payment They will be sent to the Executive Service of the Commission on the Prevention of the Laundering Of Capital And Monetary Violations, making available to the latter the means of payment.

4. The operations of sending and receiving Spanish banknotes by the registered entities with their banking correspondents abroad, as well as the sending and receiving of foreign banknotes and coins and effects denominated in Foreign exchange or pesetas carried out by entities registered abroad shall be carried out in accordance with the procedure established by the Bank of Spain.

Article 10.

Non-residents who intend to make payments into accounts on behalf of non-residents opened in registered entities or to acquire bank cheques, payment orders or other instruments, encrypted in pesetas or in foreign currency, by means of the the supply of bank, Spanish or foreign banknotes, or bank cheques to the carrier encrypted in pesetas or in foreign currency, or to transfer the amount of such means of payment or its equivalent to the foreign currency, must prove its origin, in accordance with the provided in Articles 4, 1, and 7. of this Order.

The non-residents who intend to carry out the purchase of tickets for other banknotes in establishments open to the public for currency exchange are subject to the same obligation.

Without the justification of the import or payment in question, the registered entity and the establishment open to the public for currency exchange shall not be able to carry out the reference operations. "

Final disposition.

This Order shall enter into force on the day following that of its publication in the Official Gazette of the State.

Madrid, 9 July 1996.

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