Circular No. 16/2014/TT-NHNN dated August 01, 2014 of the State Bank of Vietnam guiding the use of account of accounts of foreign currency and Vietnamese dong at authorized banks for residents and non-residents

CIRCULAR

Guiding the use of foreign currency and Vietnam dong accounts of residents and non-residents at licensed banks[1]

Pursuant to June 16, 2010 Law No. 46/2010/QH12 on the State Bank of Vietnam;

Pursuant to June 16, 2010 Law No. 47/2010/QH12 on Credit Institutions;

Pursuant to December 13, 2005 Ordinance No. 28/2005/PL-UBTVQH11 on Foreign Exchange; and March 18, 2013 Ordinance No. 06/2013/UBTVQH13 Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree No. 156/2013/ND-CP of November 11, 2013, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Foreign Exchange Management Department;

The Governor of the State Bank of Vietnam promulgates the Circular guiding the use of foreign currency and Vietnam dong accounts of residents and non-residents at licensed banks.

Article 1. Scope of regulation

1. This Circular guides the use of foreign currency payment accounts (below referred to as foreign currency accounts) and Vietnam dong payment accounts (below referred to as Vietnam dong accounts) at licensed banks, including:

a/ Foreign currency accounts of resident and non-resident organizations and individuals;

b/ Vietnam dong accounts of non-resident organizations and individuals and resident foreigners.

2. The use of payment accounts in the following cases must comply with other relevant regulations of the State Bank of Vietnam:

a/ Foreign currency and Vietnam dong accounts for capital transactions;

b/ Special-use foreign currency accounts;

c/ Accounts in currencies of countries bordering on Vietnam.

3. Other contents related to foreign currency and Vietnam dong accounts must comply with relevant laws.

Article 2. Subjects of application

1. Commercial banks and foreign bank branches licensed for foreign exchange business and services (below referred to as licensed banks).

2. Licensed banks and non-bank credit institutions licensed for foreign exchange business and services (below referred to as licensed credit institutions).

3. Resident and non-resident organizations and individuals that use foreign currency accounts at licensed banks.

4. Non-resident organizations and individuals and resident foreigners that use Vietnam dong accounts at licensed banks.

Article 3. Use of foreign currency accounts by resident organizations

Resident organizations may use foreign currency accounts at licensed banks to make the following collection and spending transactions:

1. Collection:

a/ Collecting foreign currencies transferred from abroad;

b/ Collecting foreign currencies transferred to pay for export of goods and services from accounts of non-resident organizations opened at licensed banks in the country;

c/ Depositing unspent foreign currency cash amounts withdrawn from licensed banks for their staff on overseas work trips. When depositing foreign currency cash into accounts, organizations shall produce to licensed banks documents related to the money withdrawal from the accounts and immigration declarations bearing the border-gate customs offices’ certification of the foreign currency cash amounts carried upon entry. An immigration declaration bearing the border-gate customs office’s certification is only valid for an organization to deposit foreign-currency cash into its foreign currency account within 60 (sixty) days from the date of entry indicated in the immigration declaration;

d/ Collecting foreign currencies from domestic lawful revenue sources, including:

- Collecting foreign currencies purchased through account transfer at licensed credit institutions;

- Collecting transferred foreign currencies or foreign currency cash deposited into accounts in cases eligible for collection of foreign currencies in the country according to the State Bank of Vietnam’s regulations on use of foreign exchange in the Vietnamese territory.

2. Spending:

a/ Sale of foreign currencies to licensed credit institutions;

b/ Money transfer or payment for current transactions and capital transactions in accordance with the law on foreign exchange management;

c/ Conversion into other foreign currencies under regulations of the State Bank of Vietnam;

d/ Conversion into payment instruments in foreign currencies;

dd/ Withdrawal of foreign currency cash for the organizations’ employees on overseas work trips;

e/ Account transfer or withdrawal of foreign currency cash to pay wages, bonuses or allowances to non-resident or resident foreigners;

g/ Money transfer or payment for transactions allowed to be paid domestically in foreign currencies under the State Bank of Vietnam’s regulations on use of foreign exchange in the Vietnamese territory;

h/ Account transfer for other lawful transactions as prescribed by the law on foreign exchange management.

Article 4. Use of foreign currency accounts by resident individuals

Resident individuals may use foreign currency accounts at licensed banks to make the following collection and spending transactions:

1. Collection:

a/ Collecting foreign currencies transferred from abroad;

b/ Collecting foreign currencies transferred to pay for export of goods and services from accounts of non-resident organizations opened at licensed banks in the country;

c/ Collecting foreign currency cash from abroad. Foreign currency cash deposited into accounts must be certified by the border-gate customs office in accordance with the law on foreign exchange management;

d/ Collecting foreign currencies from domestic lawful revenue sources, including:

- Resident foreigners eligible for collecting wages, bonuses or allowances and buying foreign currencies from lawful Vietnam dong sources;

- Other lawful revenue sources under the law on foreign exchange management.

2. Spending:

a/ Sale of foreign currencies to licensed credit institutions;

b/ Money transfer or payment for current transactions and capital transactions in accordance with the law on foreign exchange management;

c/ Conversion into other foreign currencies under regulations of the State Bank of Vietnam;

d/ Conversion into payment instruments in foreign currencies;

dd/ Donation or presentation as prescribed by law;

e/ Withdrawal of foreign currency cash;

g/ Transfer abroad, for resident foreigners;

h/ Conversion into foreign currency savings at licensed banks for Vietnamese residents;

i/ Money transfer or payment for transactions allowed to be paid domestically in foreign currencies under the State Bank of Vietnam’s regulations on use of foreign exchange in the Vietnamese territory.

3. The use of foreign currencies in accounts for inheritance division must comply with relevant laws.

Article 5. Use of foreign currency accounts by non-resident organizations

Non-resident organizations may use foreign currency accounts at licensed banks to make the following collection and spending transactions:

1. Collection:

a/ Collecting foreign currencies transferred from abroad;

b/ Collecting foreign currencies transferred from foreign currency accounts of other non-residents in the country;

c/ Depositing unspent foreign currency cash amounts withdrawn from licensed banks for their staff on overseas work trips. When depositing foreign currency cash into accounts, organizations shall produce to licensed banks documents related to the withdrawal of money from the accounts and immigration declarations bearing the border-gate customs offices’ certification of the foreign currency cash amounts carried upon entry. An immigration declaration bearing the border-gate customs office’s certification is only valid for an organization to deposit foreign currency cash into its foreign currency account within 60 (sixty) days from the date of entry indicated in the immigration declaration;

d/ Collecting foreign currencies from domestic lawful revenue sources, including:

- Collecting foreign currencies purchased through account transfer at licensed credit institutions;

- Collecting transferred foreign currencies or depositing foreign currencies in cash into accounts in cases eligible for collection of foreign currencies in the country according to the State Bank of Vietnam’s regulations on use of foreign exchange in the Vietnamese territory.

2. Spending:

a/ Sale of foreign currencies to licensed credit institutions;

b/ Money transfer or payment for current transaction and capital transactions in accordance with the law on foreign exchange management;

c/ Conversion into other foreign currencies under regulations of the State Bank of Vietnam;

d/ Conversion into payment instruments in foreign currencies;

dd/ Withdrawal of foreign currency cash for the organizations’ employees on overseas work trips;

e/ Account transfer or withdrawal of cash to pay wages, bonuses or allowances to nonresident and resident foreigners;

g/ Transfer abroad or to foreign currency accounts of other non-residents;

h/ Payment for export of goods and services to residents;

i/ Money transfer or payment for transactions allowed to be paid domestically in foreign currencies under the State Bank of Vietnam’s regulations on use of foreign exchange in the Vietnamese territory.

Article 6. Use of foreign currency accounts by non-resident individuals

Non-resident individuals may use foreign currency accounts at licensed banks to make the following collection and spending transactions:

1. Collection:

a/ Collecting foreign currencies transferred from abroad;

b/ Collecting foreign currency cash from abroad. Foreign currency cash deposited into accounts must be certified by the border-gate customs office in accordance with the law on foreign exchange management;

c/ Collecting foreign currencies transferred from foreign currency accounts of other non-residents in the country;

d/ Collecting foreign currencies from domestic lawful revenue sources, including:

- Wages, bonuses and allowances and foreign currencies bought from lawful Vietnam dong sources;

- Other lawful revenue sources under the law on foreign exchange management.

2. Spending:

a/ Sale of foreign currencies to licensed credit institutions;

b/ Money transfer or payment for current transactions and capital transactions in accordance with the law on foreign exchange management;

c/ Conversion into other foreign currencies under regulations of the State Bank of Vietnam;

d/ Conversion into payment instruments in foreign currencies;

dd/ Donation or presentation as prescribed by law;

e/ Withdrawal of foreign currency cash;

g/ Transfer abroad or to foreign currency accounts of other non-residents;

h/ Money transfer or payment for transactions allowed to be paid domestically in foreign currencies under the State Bank of Vietnam’s regulations on use of foreign exchange in the Vietnamese territory;

3. The use of foreign currencies in accounts for inheritance division must comply with relevant laws.

Article 7. Use of Vietnam dong accounts by non-resident organizations and individuals and resident foreigners

Non-resident organizations or individuals and resident foreigners may use Vietnam dong accounts at licensed banks to make the following collection and spending transactions:

1. Collection:

a/ Sale of foreign currencies to licensed credit institutions;

b/ Lawful revenue sources in Vietnam, including:

- Account transfer for the supply of goods and provision of services;

- Wages, bonuses and allowances and collected charges;

- Other lawful revenue sources in Vietnam dong.

2. Spending:

a/ Payment or withdrawal of cash for spending in Vietnam;

b/ Money transfer or payment for current transactions and capital transactions under the law on foreign exchange management;

c/ Donation or presentation as prescribed by law (for non-resident individuals and resident foreigners);

d/ Purchase of foreign currencies from licensed credit institutions for transfer abroad;

dd/ For other purposes permitted by Vietnamese law.

3. The use of Vietnam dong in accounts by non-resident individuals and resident foreigners for inheritance division must comply with relevant laws.

Article 8. Transfer of foreign currencies and Vietnam dong among accounts of a single account holder

1. Resident or non-resident organizations or individuals may transfer foreign currencies among their own foreign currency accounts opened at different licensed banks or within the same system of a licensed bank, excluding resident organizations which are not allowed to transfer foreign currencies under the State Bank of Vietnam’s regulations on purchase and sale of foreign currencies by state economic groups and corporations.

2. Non-resident organizations or individuals or resident foreigners may transfer Vietnam dong among their own Vietnam dong accounts opened at different licensed banks or within the same system of a licensed bank.

Article 9. Responsibilities of licensed credit institutions and resident and non-resident organizations and individuals

1. Licensed credit institutions shall:

a/ Implement, and guide clients in implementing, this Circular;

b/ Prescribe, examine and keep relevant papers and documents to ensure that actual transactions are made properly and in accordance with this Circular and relevant laws.

2. Other related organizations and persons shall:

a/ Strictly implement this Circular;

b/ Produce papers and documents required by licensed credit institutions when making foreign exchange transactions and take responsibility before law for the truthfulness of papers and documents produced to licensed credit institutions.

Article 10. Handling of violations

Organizations or persons that violate this Circular shall, depending on the nature and severity of their violations, be handled in accordance with law.

Article 11. Implementation provisions

1. This Circular takes effect on September 15, 2014.

2. The Chief of the Office, the Director of the Foreign Exchange Management Department and heads of related units of the State Bank of Vietnam, directors of the State Bank’s provincial-level branches, chairpersons of Boards of Directors and Members’ Councils and directors general (directors) of licensed credit institutions shall implement this Circular.-

For the Governor of the State Bank
Deputy Governor
LE MINH HUNG