Circular 20/2022/TT-NHNN one-way money transfer abroad from Vietnam

CIRCULAR

Guiding one-way international money transfer and payment and money transfer for other current transactions of institutional and individual residents^[1]

Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;

Pursuant to the June 16, 2010 Law on Credit Institutions; and the November 20, 2017 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;

Pursuant to the December 13, 2005 Ordinance on Foreign Exchange; and the March 18, 2013 Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree No. 70/2014/ND-CP of July 17, 2014, detailing the implementation of a number of articles of the Ordinance on Foreign Exchange and the Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree No. 16/2017/ND-CP of February 17, 2017, 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 one-way international money transfer and payment and money transfer for other current transactions of institutional and individual residents.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Circular guides:

a/ Purchase of foreign currencies for transfer or carrying abroad by institutional residents for the purpose of one-way money transfer specified in Clause 1, Article 7 of the Government’s Decree No. 70/2014/ND-CP of July 17, 2014, detailing the implementation of a number of articles of the Ordinance on Foreign Exchange and the Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange (below referred to as Decree No. 70/2014/ND-CP);

b/ Purchase of foreign currencies for transfer or carrying abroad by residents who are Vietnamese citizens for the purposes of one-way money transfer specified in Clause 2, Article 7 of Decree No. 70/2014/ND-CP;

c/ Payment and money transfer for other current transactions specified at Point g, Clause 6, Article 4 of the Ordinance on Foreign Exchange (which was amended and supplemented) (below referred to as payment and money transfer for other current transactions).

2. Transactions of transfer of money for offshore investment by residents who are Vietnamese citizens for the purpose of obtaining foreign citizenships or settling abroad are not regulated by this Circular.

Article 2. Subjects of application

1. Banks and foreign bank branches that are licensed to conduct foreign exchange business and provide foreign exchange services (below referred to as licensed banks).

2. Institutional and individual residents that conduct one-way international money transfer and payment and money transfer for other current transactions.

3. Other organizations and individuals that are involved in one-way international money transfer and payment and money transfer for other current transactions.

Article 3. Interpretation of terms

1. Relative means a person who is the natural father, natural mother, father-in-law, mother-in-law, adoptive father, adoptive mother, wife, husband, birth child, adopted child, daughter-in-law, son-in-law, or sibling of a resident being a Vietnamese citizen who applies for purchase and transfer or carrying of foreign currencies abroad.

2. Relationship-proving paper means a paper showing the family relationship specified in Clause 1 of this Article in accordance with law.

3. Foreign currency purchase means an institutional or individual resident that uses Vietnam dong to purchase a foreign currency amount at a licensed bank for transfer or carrying abroad for the purposes specified in this Circular.

4. Foreign currency transfer means an institutional or individual resident that transfers a foreign currency amount abroad via a licensed bank.

5. Foreign currency carrying means a resident who is a Vietnamese citizen or an institutional resident’s individual representative carrying abroad a foreign currency amount in cash upon exit.

Chapter II

PURCHASE OF FOREIGN CURRENCIES FOR TRANSFER OR CARRYING ABROAD FOR THE PURPOSES OF ONE-WAY MONEY TRANSFER BY INSTITUTIONAL RESIDENTS

Article 4. Cases of purchase of foreign currencies for transfer or carrying abroad for the purpose of one-way money transfer by institutions

1. Cases of purchase of foreign currencies for transfer or carrying abroad for the purpose of provision of donations and aid by institutions:

a/ Purchase of foreign currencies for transfer or carrying abroad to provide donations or aid according to commitments or agreements between the State, the Government or local administrations at all levels and foreign partners. Such donations and aid come from budget funds or funds of donors or aid providers;

b/ Purchase of foreign currencies for transfer abroad to provide donations or aid for remedying consequences of disasters, epidemics or wars. Such donations and aid come from voluntarily contributed amounts of domestic organizations and individuals and/or funds of donors or aid providers;

c/ Purchase of foreign currencies for transfer abroad to finance programs, funds and projects established by domestic organizations and/or overseas organizations for the purpose of supporting and promoting development in the fields of culture, education (grant of scholarships) and healthcare. Such donations come from funds of donors.

2. Cases of purchase of foreign currencies for one-way international money transfer by institutions for other purposes:

a/ Making payouts for non-residents being overseas organizations or individuals that participate in programs and contests organized in Vietnam under relevant regulations. The source for making payouts comes from non-residents that are overseas organizations or individuals or institutional residents;

b/ Conducting one-way international money transfer for the following purposes from donations received from non-residents that are overseas organizations or individuals:

(i) Distribution of monetary donations to overseas members participating in the implementation of scientific research projects in Vietnam or abroad;

(ii) Reimbursement of monetary donations for the implementation of projects in Vietnam in accordance with commitments and agreements with foreign partners.

Article 5. Sources of foreign currencies for transfer or carrying abroad

Sources of foreign currencies for transfer or carrying abroad for the purposes specified in Article 4 of this Circular include:

1. Foreign currencies on payment accounts.

2. Time deposits in foreign currency.

3. Foreign currencies purchased from licensed banks.

Article 6. Purchase of foreign currencies for transfer or carrying abroad

1. Institutions that wish to purchase foreign currencies for transfer or carrying abroad for the purposes specified in Article 4 of this Circular shall comply with guidance of licensed banks.

2. In case an institutional resident purchases foreign currencies from a licensed bank for carrying abroad for the purpose specified at Point a, Clause 1, Article 4 of this Circular at a level subject to customs declaration, the licensed bank shall issue a certificate for carrying abroad foreign currencies in cash under regulations on carrying of foreign currencies in cash upon exit or entry.

3. Within their available foreign currency amounts, licensed banks shall sell foreign currencies to institutional residents for transfer or carrying abroad for the purposes specified in Article 4 of this Circular.

Article 7. Transfer or carrying of foreign currencies abroad from foreign currencies on payment accounts or time deposits in foreign currency

1. Institutions that wish to use foreign currencies on their payment accounts or time deposits in foreign currency for transfer or carrying abroad for the purposes specified in Article 4 of this Circular shall comply with guidance of licensed banks.

2. In case an institutional resident withdraws foreign currencies in cash from payment accounts or time deposits in foreign currency for carrying abroad for the purpose specified at Point a, Clause 1, Article 4 of this Circular at a level subject to customs declaration, it shall comply with Clause 2, Article 6 of this Circular.

Article 8. Levels of foreign currencies permitted for purchase and transfer or carrying abroad

1. The level of foreign currencies permitted for purchase and transfer or carrying abroad in the cases specified at Points a and b, Clause 1, and Clause 2, Article 4 of this Circular shall be based on money amounts written in relevant papers and documents.

2. The level of foreign currencies permitted for purchase and transfer abroad in the cases specified at Point c, Clause 1, Article 4 of this Circular shall be based on money amounts written in relevant papers and documents, but must not exceed USD 50,000 (fifty thousand US dollars) or an equivalent amount in other foreign currencies per money transfer.

Chapter III

PURCHASE OF FOREIGN CURRENCIES FOR TRANSFER OR CARRYING ABROAD FOR THE PURPOSES OF ONE-WAY MONEY TRANSFER BY RESIDENTS BEING VIETNAMESE CITIZENS

Article 9. Cases of purchase of foreign currencies for transfer or carrying abroad for the purposes of one-way money transfer by residents being Vietnamese citizens

1. Residents being Vietnamese citizens may purchase foreign currencies for transfer or carrying abroad for the purpose of one-way money transfer specified in Clause 2, Article 7 of Decree No. 70/2014/ND-CP.

2. The purchase of foreign currencies for transfer or carrying abroad by residents being Vietnamese citizens or legal representatives of Vietnamese citizens or relatives of Vietnamese citizens who are studying or undergoing medical treatment abroad must comply with guidance of licensed banks in accordance with law.

Article 10. Sources of foreign currencies for transfer or carrying abroad

Sources of foreign currencies for transfer or carrying abroad for the purpose specified in Article 9 of this Circular include:

1. Individuals’ self-acquired foreign currencies (foreign currencies on their payment accounts, time deposits in foreign currency, savings deposits in foreign currency, and self-stored foreign currencies).

2. Foreign currencies purchased from licensed banks.

Article 11. Purchase of foreign currencies for transfer or carrying abroad

1. Residents being Vietnamese citizens who wish to purchase foreign currencies for transfer or carrying abroad for the purpose of one-way money transfer specified in Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall comply with guidance of licensed banks.

2. In case a resident being a Vietnamese citizen purchases foreign currencies from a licensed bank for carrying abroad for the purpose of one-way money transfer at a level subject to customs declaration, the licensed bank shall issue a certificate for carrying foreign currencies in cash abroad under regulations on carrying of foreign currencies in cash upon exit or entry.

3. Within their available foreign-currency amounts, licensed banks shall sell foreign currencies to residents being Vietnamese citizens for transfer or carrying abroad for the purpose of one-way money transfer under this Circular.

4. Residents being Vietnamese citizens who need foreign currencies in cash for carrying abroad for study, medical treatment, business trip, tourism or visit purpose may purchase from licensed banks currencies of countries where they will arrive. In case currencies of countries where Vietnamese citizens will arrive are not available, licensed banks shall sell other freely convertible foreign currencies.

Article 12. Transfer or carrying of foreign currencies from individuals’ self-acquired foreign currencies

1. Residents being Vietnamese citizens who wish to use their self-acquired foreign currencies for transfer or carrying abroad for the purpose of one-way money transfer specified in Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall comply with guidance of licensed banks, except cases of carrying self-stored foreign currencies at a level lower than that subject to customs declaration under regulations.

2. Residents being Vietnamese citizens who carry abroad their self-acquired foreign currencies at a level subject to customs declaration shall comply with Clause 2, Article 11 of this Circular.

Article 13. Levels of foreign currencies permitted for purchase and transfer or carrying abroad

1. Levels of foreign currencies permitted for purchase and transfer or carrying abroad for the purpose of study or medical treatment specified at Point a, Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall be based on r expenses stated in notices of foreign partners.

In the absence of the foreign partner’s notice of cost of living and other expenses for the study or medical treatment purpose, in addition to tuition fee, hospital fee and other expenses notified by the foreign partner, a licensed bank shall decide on the level of foreign currencies permitted for purchase and transfer or carrying abroad for the above purpose under Points a and b, Clause 4 of this Article.

2. Levels of foreign currencies permitted for purchase and transfer or carrying abroad for business trip, tourism or visit purpose specified at Point b, Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall be decided by licensed banks on the basis of reasonable needs of individuals and under Point b, Clause 4 of this Article.

3. Levels of foreign currencies permitted for purchase and transfer abroad for paying charges and fees to foreign partners specified at Point c, Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall be based on expenses stated in notices of foreign partners.

4. Levels of foreign currencies permitted for purchase and transfer abroad for supporting relatives living abroad as specified at Point d, Clause 2, Article 7 of Decree No. 70/2014/ND-CP are provided as follows:

a/ Licensed banks shall decide on levels of foreign currencies permitted for purchase and transfer abroad on the basis of reasonable needs of individuals and for the purpose of paying part of cost of living and stabilizing lives of overseas beneficiaries;

b/ The per-annum level of foreign currencies permitted for purchase and transfer to an overseas beneficiary must not exceed the per-capita income at the current price of the country where the beneficiary lives. Annually, licensed banks shall update data on per-capita incomes at current prices of countries recently published on the World Bank’s website for use as a basis for determining levels of foreign currencies permitted for purchase and transfer for the purpose of supporting overseas relatives;

c/ The purchase of foreign currencies for transfer abroad for the purpose of supporting relatives does not apply to relatives who are studying, undergoing medical treatment, on business, tourism or visit trips overseas.

5. Levels of foreign currencies permitted for purchase and transfer abroad for the purpose of transferring inheritance to overseas heirs as specified at Point dd, Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall be based on the value of assets to be received by heirs in accordance with the law on inheritance.

6. Levels of foreign currencies permitted for purchase and transfer abroad for the purpose of money transfer to persons permanently residing abroad as specified at Point e, Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall be based on the value of formed-in-Vietnam assets of such persons before being naturalized abroad or before being permitted to reside abroad for settlement purpose under regulations of the host country.

In case of transferring money to pay expenses related to procedures for applying for overseas settlement (excluding the investment value to obtain a foreign citizenship or to be permitted to settle abroad), levels of foreign currencies permitted for purchase and transfer abroad shall be based on expenses stated in notices of foreign partners.

Chapter IV

PAYMENT AND MONEY TRANSFER FOR OTHER CURRENT TRANSACTIONS OF INSTITUTIONAL AND INDIVIDUAL RESIDENTS

Article 14. Payment and money transfer for other current transactions

1. Payment and money transfer for other current transactions of institutional and individual residents cover:

a/ Payment and money transfer related to the following activities: temporary import, re-export, temporary export, re-import, transit, goods trading agency for foreign traders and hiring of foreign traders to act as sales agents in foreign countries, goods processing for foreign traders and placement of orders for goods processing abroad, commodity trading via overseas Commodity Exchanges through Vietnam-based Commodity Exchanges connected with overseas Commodity Exchanges, and other activities related to international goods trading in accordance with the commercial law;

b/ Payment and money transfer related to social insurance-based contributions and social insurance-based payments;

c/ Payment and money transfer related to payment of social insurance premiums, reinsurance, retrocession, insurance brokerage and insurance auxiliary services under treaties to which the Socialist Republic of Vietnam is a contracting party, or payment of indemnities and insurance benefits;

d/ Payment and money transfer under legally effective court rulings or judgments or arbitration awards, or decisions of competent authorities of Vietnam;

dd/ Payment and money transfer related to fines and compensations for property damage or for injury not yet covered by insurance.

2. The payment and money transfer for current transactions specified in Clause 1 of this Article shall be made via licensed banks.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 15. Reporting regime

1. By the 20^th of a reporting month at the latest, licensed banks shall report on purchase of foreign currencies for transfer or carrying abroad by institutional residents for the purpose of transferring monetary donations and aid under Article 4 of this Circular (according to the form provided in the Appendix to this Circular). The data cutoff period is from the 15^th of the month preceding the reporting month to the 14^th of the reporting month. Reports shall be sent to [email protected] email address of the State Bank of Vietnam.

2. Every month, licensed banks shall report on the purchase of foreign currencies for transfer or carrying by residents who are Vietnamese citizens, and the purchase and sale of foreign currencies in cash with individuals in accordance with the State Bank of Vietnam’s regulations on the statistical reporting regime.

Article 16. Responsibilities of licensed banks

1. To strictly implement and guide clients to comply with this Circular.

2. To formulate, and take responsibility for contents of, internal regulations on professional processes related to one-way international money transfer and payment and money transfer for other current transactions, which must at least include the following contents:

a/ Regulations on papers and documents related to money transfer transactions in order to ensure that the provision of foreign exchange services is for proper purposes and in accordance with this Circular and relevant regulations;

b/ Principles for formulating levels of foreign currencies permitted for purchase and transfer or carrying for the purposes of one-way money transfer;

c/ Regulations on examination and supervision of data on purchase and transfer or carrying of foreign currencies by organizations and individuals for the purposes of one-way money transfer and other current transactions in their banking system to ensure that amounts purchased and transferred or carried do not exceed amounts stated in relevant papers and documents and levels of foreign currencies permitted for purchase and transfer or carrying abroad specified in this Circular;

d/ Regulations requesting organizations and individuals to make written commitments to purchase and transfer or carry foreign currencies at levels of foreign currencies permitted for purchase and transfer or carrying abroad specified in this Circular.

3. To check and retain papers and documents of actual transactions in accordance with this Circular and relevant regulations.

4. To request organizations and individuals that wish to purchase and transfer or carry foreign currencies for the purposes of one-way money transfer and payment and money transfer for other current transactions to provide necessary information about themselves and about beneficiaries, which must include at least the following information:

a/ Information for identification of institutional and individual clients that purchase and transfer or carry foreign currencies in accordance with the anti-money laundering law;

b/ Necessary information about institutional and individual beneficiaries from payment and money transfer for the purposes of one-way money transfer and other current transactions: names and bank account numbers of beneficiaries, and beneficiary banks (addresses and countries). In the absence of bank account number of an individual beneficiary, his/her people’s identity card number or citizen identifty card number or passport number or an equivalent legal document which remains valid may be used instead.

5. Licensed banks may refuse to carry out transactions of selling, transferring or issuing certificates for carrying of, foreign currencies abroad if applying organizations or individuals fail to provide complete and/or accurate information as specified in Clause 4 of this Article.

6. To fully comply with regulations on prevention and combat of money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction.

Article 17. Responsibilities of related organizations and individuals

1. To provide licensed banks with the information specified in Clause 4, Article 16
of this Circular and take responsibility before law for the authenticity of the provided information.

2. To produce papers and documents upon purchase and transfer or carrying of foreign currencies abroad for the purposes of one-way money transfer of individuals and payment and money transfer for other current transactions under regulations of licensed banks.

3. To produce papers and documents proving the purpose of and sources for providing donations, decisions approving levels of donation of organizations’ legal representatives, written commitments on legality of money sources, and other papers and documents as required by licensed banks upon purchase and transfer or carrying of foreign currencies for the purpose of one-way money transfer of organizations (except the case specified in Clause 4 of this Article).

4. An institutional resident that transfers money abroad for the purpose of providing donations or aid from voluntary monetary contributions specified at Point b, Clause 1, Article 4 of this Circular shall produce:

a/ Documents on the mobilization and receipt of monetary voluntary contributions for provision of donations or aid, which must have the following major contents: purposes of providing donations or aid; donation or aid beneficiaries; times of starting and stopping the receipt of monetary voluntary contributions; method of receiving contributions that are made by bank transfer and/or in cash and contributions in Vietnam dong; information about bank accounts for receiving voluntary monetary contributions;

b/ A list showing names and addresses (if any), together with contributed money amounts, of organizations and individuals;

c/ Documents proving the receipt of money amounts from voluntary contributions;

d/ The institution’s written commitment stating that the institution opens only one account at one licensed bank for receiving voluntary monetary contributions;

dd/ Other papers and documents as required by licensed banks.

5. To take responsibility before law for the authenticity of papers and documents produced to licensed banks.

6. To refrain from using the same set of documents for purchase and transfer or carrying foreign currencies in excess of amounts written in relevant papers and documents or levels of foreign currencies permitted for purchase and transfer or carrying abroad specified in this Circular at one or more than one licensed bank.

7. To use foreign currencies in cash purchased at licensed banks for proper purposes and in accordance with law.

8. To refrain from purchasing and transferring or carrying foreign currencies abroad for the purposes of money laundering, terrorism financing, financing of the proliferation of weapons of mass destruction, swindling, or committing frauds and other violations.

9. Institutional residents that transfer money abroad for the purpose of providing donations specified at Point c, Clause 1, Article 4 of this Circular may only purchase and transfer foreign currencies at one licensed bank throughout the process of providing donations for each program, fund or project.

10. Institutional or individual residents shall, when making payment or money transfer abroad for goods trading via overseas Commodity Exchanges, comply with this Circular, regulations on goods trading via overseas Commodity Exchanges through Vietnam-based Commodity Exchanges connected with overseas Commodity Exchanges, and relevant regulations.

11. To strictly comply with this Circular and relevant regulations.

Article 18. Implementation provisions

1. This Circular takes effect on February 15 , 2023.

2. To annul Circular No. 20/2011/TT-NHNN dated August 29, 2011, of the Governor of the State Bank of Vietnam, providing for the purchase and sale of foreign currencies in cash between individuals with licensed credit institutions.

3. To annul Clause 3, Article 1 of Circular No. 24/2018/TT-NHNN of September 28,  2018, of the Governor of the State Bank of Vietnam, amending, supplementing or annulling a number of articles of the circulars and documents that regulate the periodical reporting regime.

4. This Circular:

a/ Amends and supplements Point b, Clause 1, Article 17 of Circular No. 02/2021/TT-NHNN of March 31, 3021, of the Governor of the State Bank of Vietnam, guiding foreign-currency transactions in the foreign currency market by credit institutions licensed to conduct foreign exchange activities, as follows:

“b/ Vietnamese citizens purchase foreign currencies in cash for overseas study, medical treatment, business trip, tourism or visit purpose.”.

b/ Amends and supplements Point a, Clause 1, Article 5 of Circular No. 15/2011/TT-NHNN of August 12, 2011, of the Governor of the State Bank of Vietnam, providing for the carrying of foreign currencies and Vietnam dong in cash by individuals upon their exit and entry, as follows:

“a/ Licensed credit institutions shall issue certificates to individuals (including also individuals representing institutional residents) for carrying foreign currencies and Vietnam dong in cash for the purposes specified in Clauses 1, 2 and 3, Article 7 of Government’s Decree No. 70/2014/ND-CP of July 17, 2014, detailing the implementation of a number of articles of the Ordinance on Foreign Exchange and the Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange (made according to the form provided in the Appendix  to this Circular);”.

c/ Adds Point i to Clause 2, Article 3 of Circular No. 16/2014/TT-NHNN of August 1, 2014, of the Governor of the State Bank of Vietnam, guiding the use of foreign-currency accounts and Vietnam-dong accounts of residents and non-residents at licensed banks, as follows:

“i/ Expenses for withdrawal of foreign currencies in cash for carrying abroad for the purpose of providing donations and aid in accordance with the law on foreign exchange management.”.

Article 19. Organization of implementation

The Chief of the Office, the Director of the Foreign Exchange Management Department, and heads of units under the State Bank of Vietnam, licensed banks, and related organizations and individuals shall implement this Circular.-

For the State Bank Governor
Deputy Governor
PHAM THANH HA