Circular No. 20/2011/TT-NHNN of the State Bank of Vietnam providing for the purchase, sale of foreign currencies in cash between individuals and authorized credit institutions

STATE BANK OF VIET NAM

Circular No. 20/2011/TT-NHNN of August 29, 2011, on the sale and purchase of foreign-currency cash between individuals and licensed credit institutions

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-UBTVQH on Foreign Exchange;

Pursuant to the Government’s Decree No. 160/2006/ND-CP of December 28, 2006, detailing the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree No. 96/2008/ND-CP of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

In furtherance of the Government’s Resolution No. 11/NQ-CP of February 24, 2011, on major solutions for curbing inflation, stabilizing the marco-economy and assuring social security;

The State Bank of Vietnam guides the sale and purchase of foreign-currency cash between individuals and licensed credit institutions as follows:

Article 1. Scope of regulation

1. This Circular guides the implementation of regulations on the sale and purchase of foreign-currency cash between individuals and credit institutions and foreign bank branches licensed to conduct foreign exchange operations (below referred to as licensed credit institutions).

2. Foreign exchange transactions between individuals and credit institutions’ foreign exchange agents comply with current regulations on foreign exchange agents.

3. Individuals’ use of bank cards and other non-cash payment instruments as well as their purchase of foreign currencies in the form of transfer via licensed credit institutions for lawful overseas payment purposes comply with current laws.

Article 2. Subjects of application

1. Vietnamese citizens may buy foreign-currency cash from licensed credit institutions to meet the spending needs of their own and children sharing their passports, covering meal, day-to-day and travel expenses in foreign countries, which are related to any of the following purposes:

a/ Overseas study or medical treatment;

b/ Overseas working trips, tours or visits.

2. Individuals may buy foreign-currency cash from licensed credit institutions for other lawful purposes specified in Clause 2, Article 8 of the Government’s Decree No. 160/2006/ND-CP of December 28, 2006, detailing the Ordinance on Foreign Exchange, depending on the latter’s capacity of balancing foreign-currency cash sources.

3. Foreigners having lawful Vietnam-dong revenues may buy foreign-currency cash from licensed credit institutions under current regulations on foreign exchange management.

4. Individuals shall sell foreign-currency cash to licensed credit institutions and their foreign exchange agents under current regulations on foreign exchange management.

Article 3. Foreign currency cash-selling/buying points

1. Individuals may buy foreign-currency cash at transaction points belonging to the operational networks of licensed credit institutions, which are permitted to sell foreign-currency cash according to law.

2. Individuals may sell foreign-currency cash at transaction points belonging to the operational networks of licensed credit institutions, which are permitted to buy foreign-currency cash according to law, and foreign exchange agents of licensed credit institutions.

Article 4. To-be-purchased foreign currencies

A Vietnamese citizen may buy foreign-currency cash from licensed credit institutions to meet his/her foreign-currency needs specified in Clause 1, Article 2 of this Circular on the following principles:

1. The to-be-bought foreign currency is the currency of his/her destination country.

2. In case licensed credit institutions have no cash in the destination country’s currency, they may sell other freely convertible foreign currencies.

Article 5. Foreign-currency purchase limits

1. Vietnamese individuals may buy foreign-currency cash from licensed credit institutions to meet their foreign-currency needs specified in Clause 1, Article 2 of this Circular at the level of USD 100/person/day or cash amounts in other foreign currencies of the same value for 10 (ten) days they stay abroad. This foreign-currency limit also applies to children sharing passports with their mothers or fathers.

2. Licensed credit institutions shall sell foreign-currency cash to Vietnamese citizens under Clause 1 of this Article on the basis of documents produced by the latter.

3. Based on their capacity of balancing foreign-currency cash sources, licensed credit institutions may sell foreign-currency amounts in excess of the limit specified in Clause 1 of this Article to meet individuals’ foreign-currency needs specified in Clause 1, Article 2 of this Circular.

Article 6. Notification of the sale and purchase of foreign-currency cash

1. Within 15 days after the issuance date of this Circular, each licensed credit institution selling/buying foreign-currency cash to/from individuals shall:

a/ Submit (directly or by post) to the State Bank of Vietnam (the Foreign Exchange Management Department) a written notice of the sale/purchase of foreign-currency cash to/from individuals, made according to the form provided in Appendix 1 this Circular - not printed herein.

b/ Post on its website a list of foreign currency cash-buying/selling points within its system.

c/ Notify the list of its foreign currency cash-selling/purchasing points to the State Bank of Vietnam (the Foreign Exchange Management Department) and provincial-level State Bank branches of respective localities. Such notices shall be made according to the form provided in Appendix 2 to this Circular - not printed herein.

2. In case a licensed credit institution that does not yet perform the operation of selling/buying foreign-currency cash to/from individuals wishes to perform this operation after the effective date of this Circular, it shall make notification according to the contents specified in Clause 1 of this Article within 15 days before it starts the operation.

3. Within 15 days after the occurrence of any changes in the sale and purchase of foreign-currency cash (increase or decrease in the number of selling/buying points or termination of selling/buying activities), a licensed credit institution shall submit a written notice of such changes (directly or by post) to the State Bank of Vietnam (the Foreign Exchange Management Department) and the provincial-level State Bank branch of the respective locality and update the list of foreign currency cash-selling/buying points, made according to the form provided in Appendix 2 to this Circular.

Article 7. Responsibilities of licensed credit institutions

1. To sell/buy foreign-currency cash to/from individuals for the purposes specified in this Circular after making notification to the State Bank of Vietnam.

2. To publicly post up buying and selling foreign currency rates to be applied in foreign-currency cash selling/buying transactions with individuals at foreign currency cash-selling/buying points and on their websites, and sell/buy foreign-currency cash according to current regulations on foreign exchange rates.

3. To promulgate internal processes of selling/buying foreign-currency cash to/from individuals, specifying procedures, dossiers and documents for proving individuals’ foreign-currency cash needs for overseas spending so as to assure the sale/purchase of foreign-currency cash for proper purposes under this Circular and other foreign exchange management regulations.

4. To comply with regulations on documents and books relating to the sale/ purchase of foreign-currency cash to/from individuals according to law.

5. To issue internal instructions to be applied within their systems to manage, supervise and assure safety in the hand-over, delivery, preservation and transportation of foreign-currency cash according regulations of the State Bank of Vietnam.

6. To create favorable conditions to encourage individuals to use non-cash payment instruments to meet their lawful overseas spending needs.

Article 8. Responsibilities of provincial-level State Bank branches

1. To direct and guide licensed credit institutions in their respective localities in strictly complying with this Circular.

2. To inspect foreign currency cash-selling/buying points of licensed credit institutions in their respective localities. To examine, inspect and handle violations on the sale and purchase of foreign-currency cash under this Circular.

3. To set up and publicize on the mass media telephone hotlines to receive and process information on licensed credit institutions’ sale and purchase of foreign-currency cash to/from individuals under this Circular.

Article 9. Responsibilities of individuals

1. To produce sufficient documents and papers as required by licensed credit institutions and take responsibility before law for the accuracy of these papers and documents.

2. To use foreign-currency cash bought from credit institutions for proper purposes according to law.

Article 10. Reporting

On the 10th every month at the latest, each licensed credit institution shall:

1. Send to the provincial-level State Bank branch a report on foreign-currency cash selling/buying transactions conducted in the preceding month in the respective locality, made according to the form provided in Appendix 3 to this Circular - not printed herein.

2. Summarize and report on foreign-currency cash selling/buying transactions conducted in the preceding month within its entire system to the State Bank of Vietnam (the Foreign Exchange Management Department). Such a report shall be made according to the form provided in Appendix 3 to this Circular.

Article 11. Implementation provisions

1. This Circular takes effect on October 15, 2011.

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

State Bank Governor
NGUYEN VAN BINH