Circular No. 28/2013/TT-NHNN dated December 05, 2013 of the State Bank of Vietnam promulgating the regulations on handing counterfeit money and money suspected to be counterfeit in bank sector

THE STATE BANK OF VIETNAM

Circular No. 28/2013/TT-NHNN dated December 05, 2013 of the State Bank of Vietnam promulgating the regulations on handing counterfeit money and money suspected to be counterfeit in bank sector

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

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

Pursuant to Decree No. 130/2003/QD-TTg dated June 30, 2003 of the Prime Minister on protection Vietnamese currency;

At the proposal of Director of the Issuing and Vault Department;

The Governor of State Bank of Vietnam Issuing the Circular promulgating the regulations on handing counterfeit money and money suspected to be counterfeit in bank sector.

Chapter 1.

GENERAL REGULATION

Article 1. Scope of adjustment

This Circular provides for the seizure of counterfeit money, temporary seizure of money suspected being counterfeit; verification of counterfeit money and suspected counterfeit money; stamping of counterfeit money;

Article 2. Subjects of application

1. The State Bank of Vietnam (hereinafter called the State Bank), credit institutions and branches of foreign banks.

2.Organizations and individuals having counterfeit money and suspected counterfeit money in cash transactions with the organization specified in Clause 1 of this Article.

Article 3. Term explanations

In this Circular, the terms below are construed as follows:

1. Counterfeit money is the type of money made similarly with Vietnamese currency but is not printed, cast or issue;

2. New counterfeit money is the money which has not been announced in writing by the State Bank (or the Ministry of Public Security);

3. Suspected counterfeit money is the money which has not been concluded as real or counterfeit money;

4. Security features are the ones on the money to be distinguished from real and counterfeit money;

5. Customers are individuals and organizations doing the cash transaction with the State Bank, credit institutions and branches of foreign banks;

Chapter 2.

SPECIFIC REGULATIONS

Article 4. Responsibility for seizure of counterfeit money and suspected counterfeit money

1. The State Bank branches of provinces and cities directly under the Central Government (hereafter referred to as branch of State Bank), the Transaction Center of State Bank (hereafter referred to as Transaction Center), credit institutions and branches of foreign banks, upon detecting counterfeit money in cash transaction with customers, must seize it under the provisions in Article 5 of this Circular; upon detecting the suspected counterfeit money, they must temporarily seize it under the provisions in Article 6 of this Circular;

2. The persons seizing counterfeit money or money suspected being counterfeit must be trained with skills to recognize real or counterfeit money or techniques of money verification;

The persons seizing counterfeit money and suspected counterfeit money of the State Bank must be trained with techniques of money verification;

3. Strictly prohibiting the return of counterfeit money or suspected counterfeit money to customers;

Article 5. Seizure of counterfeit money

1. In cash transaction with customers, when detecting the suspected counterfeit money, the State Bank branches, the Transaction Centers, credit organizations and branches of foreign banks must compare it with the security features of sample money (or real money) of the same type and announcement of identification characteristics of counterfeit money from the State Bank (or the Ministry of Public Security) and shall handle the case as follows:

a) In case of confirmation of counterfeit money from the written agreement of the State Bank (or the Ministry of Public Security), it is required to make a record (Appendix 1), seize, stamp and punch on the counterfeit money. The stamping and punching of counterfeit money shall comply with the provisions of Clause 2, Article 7 of this Circular;

b) In case of confirmation of new counterfeit money, it is required to make a record (Appendix 1) and seize it but not stamp and punch on it;

Within 02 working days after the seizure of new counterfeit money, the State Bank branches, the Transaction Centers must inform in writing the Issuing and Vault Department; the credit institutions and branches of foreign banks must inform in writing the State Bank branches in the area or Transaction Centers;

2. The State Bank branches, the Transaction Centers, the credit institutions and branches of foreign banks must promptly inform the nearest public security authority for coordination of handling upon detection of one of the following two cases:

a) There are suspicious signs of storing, transporting and circulating counterfeit money.

b) New counterfeit money

c) There are 05 notes of counterfeit money (or five pieces of counterfeit coin) or more in a transaction;

d) The customers do not comply with the making of record and seizure of counterfeit money;

3. During the calculation, classification and selection of money after handover and receipt of money by bundle, sac with seal of bank sector under the regulations of the State Bank. When detecting counterfeit money, the units of the State Bank, the credit institutions and branches of foreign banks shall handle the case as the counterfeit money detected in cash transaction under the provisions in Clause 1 and 2 of this Article;

Article 6. Temporary seizure of suspected counterfeit money

1. In cash transaction with customer, when detecting the suspected counterfeit money, the State Bank branches, the Transaction Centers, the credit institutions and branches of foreign banks shall make a record (Appendix 2) and temporarily seize the suspected counterfeit money;

2. Within 05 working days after the temporary seizure, the credit institutions and branches of foreign banks must transfer the suspected counterfeit money for verification (Appendix 4) and the copy of record of temporary seizure to the State Bank branches in the area or the Transaction Center for verification;

Article 7. Stamping and punching  counterfeit money

1. Stamp counterfeit money:

The stamp of counterfeit money is rectangular with size: 60mm x 20mm; name of unit: 60mm x 7mm, the word “COUNTERFEIT MONEY”: 60mm x 13mm. The stamp of counterfeit money is used with fadeless red ink and

2. Way of stamping and punching on counterfeit money:

Stamping “counterfeit money” on two side of the note of counterfeit money, stamping one time on each side and punching 04 holes on the counterfeit money (each side length of note of counterfeit money is punched with 02 well-proportioned round holes by an office punching tool)

Article 8. Packing and preserving counterfeit money

1. The State Bank branches and the Transaction Center shall pack and seal the counterfeit money. The seal of counterfeit money is done under the regulations of sealing of cash of the State Bank but there must be a stamp of “COUNTERFEIT MONEY” to distinguish it from real money;

2. Packing and sealing of counterfeit money:

a) The counterfeit cotton or polymer note: 100 notes of same par value and material are packed into a sheaf; 10 sheaves are packed into a bundle (1,000 notes) and sealed. In case of insufficiency of 1,000 notes, they are also packed into sheaves, bundles and sealed;

b) Counterfeit coins: 100 pieces of the same par value are packed into a small sac and sealed; 10 sacs are packed into a big sac (1,000 sacs) and sealed. In case of insufficiency of 100 or 1,000 notes, they are also packed into sacs and sealed;

3. Counterfeit money is separately preserved in the vault of State Bank system, credit institutions and branches of foreign banks;

Article 9. Handover and transporting counterfeit money

1. Credit institutions and branches of foreign banks must monthly hand over the entire amount of counterfeit money seized to the State Bank branches in the area or the Transaction Center, except for the amount of new counterfeit money which shall be handed over under the provisions in Clause 4 of this Article. The handover of counterfeit money is done by note/piece and must be recorded (Appendix 3- not translated herein)

Way of transport of counterfeit money shall be decided by the Chairman of Member Council, Chairman of the Board or General Director (Director) of credit institutions and branches of foreign banks to ensure the safety during the transport;

2. The State Banks branches and Transaction Center shall verify the authenticity of each note of counterfeit money handed over by credit institutions or branches of foreign banks;

In case of detecting real money in the amount of counterfeit money handed over, the State Bank branches and Transaction Center shall draw up a record (Appendix 5) and require in writing the handing-over unit to return the equal value to the customer and make a report on the result within 30 working days;

The note of real money stamped with “counterfeit money” and punched shall be cut its corner with an area equal to 1/8 of note and changed with the same value (Credited) by the State Bank branches or the Transaction Center for the handing-over unit (without fee of change of money ineligible for circulation), packed and handed over as the money ineligible for circulation as prescribed by the State Bank;

3. State Bank branches and the Transaction Center must hand over the counterfeit money to the Central Vault or State Bank branch of Binh Dinh at least once for every 06 months (if any) in conjunction with the transfer of money of the State Bank. The handover is done with bundles and sacs with full seal and recorded (Appendix 3- not translated herein);

4. For the new counterfeit money, the credit institutions and branches of foreign banks must hand it over to the State Bank branches in the area or the Transaction Center within 02 working days after the seizure. The way of transport shall comply with the provisions of Clause 1 of this Article;

The handover of new counterfeit money of State Bank branches or the Transaction Center is done at the proposal of Issuing and Vault Department. The way of transport of new counterfeit money shall be decided by Director of Transaction Center, the State Bank branches to ensure the safety and timeliness;

Article 10. Verification of counterfeit money and suspected counterfeit money

1.The organizations and individuals have a need of verification of counterfeit money and suspected counterfeit money must prepare a dossier directly submitted to the State Bank branches in the area, the Transaction Center, the Issuing and Vault Department (in Hanoi city) or the Issuing and Vault Sub-Department. The dossier includes:

a) Written request for verification of counterfeit money and suspected counterfeit money (Appendix 4- not translated herein);

b) The counterfeit money and suspected counterfeit money to be verified;

2. Within 05 working days after receiving the request for verification under the provisions in Clause 1 of this Article or since the day of receipt of suspected counterfeit money under the provisions in Clause 2, Article 6 or since the day of receipt of new counterfeit money under the provisions in Clause 4, Article 9 of this Circular, State Bank branches or the Transaction Center, the Issuing and Vault Department or the Issuing and Vault Sub-Department (hereafter referred to as the verification authority) must organize the verification and announce the verification result in writing to the organizations and individuals requesting the verification. The verification is done free of charge;

3. In case of failing to conclude the real or counterfeit money, within 30 working days after the receipt of counterfeit money or suspected counterfeit money in need of verification, the State Bank branches or the Transaction Center shall Issuing a written proposal to transfer the amount of counterfeit money to the Issuing and Vault Department or the Issuing and Vault Sub-Department for verification while informing the organizations and individuals specified in Clause 1 of this Article or Clause 1 of Article 6 or the credit institutions or branches of foreign banks specified in Clause 2, Article 6 of this Circular;

The way of transport of counterfeit money or suspected counterfeit money to be verified shall be decided by Director of State Bank branches or the Transaction Center to ensure the safety and convenience;

Within 05 working days after the receipt of result of verification, the State Bank branches or the Transaction Center must announce the result of verification in writing to the organizations and individuals requesting the verification;

Article 11. Handling of result of verification

1. At the Issuing and Vault Department or the Issuing and Vault Sub-Department:

a) If the result concludes that the money is real, the amount of real money shall be returned to the organizations and individuals requesting the verification or to the Transaction Center if verified at the Issuing and Vault Department or State Bank branch of HCM City if verified at the Issuing and Vault Sub-Department in order to announce the Credit to State Bank branches, credit institutions or branches of foreign banks requesting the verification;

b) If the result concludes that the money is counterfeit with the announcement of the State Bank (or the Ministry of Public Security, this amount of money shall be seized, stamped, punched and transferred to the Central Vault in Hanoi city ( Vault No.1) or in HCM City (Vault No.2);

c) If the result of verification concludes that the money is the new counterfeit money, promptly notifying the Security Department of Finance - Currency - Investment of the Ministry of Public Security and seizing it. For the Issuing and Vault Sub-Department, making a report to the Issuing and Vault Department and transferring the new counterfeit money to the Issuing and Vault Department (if required), the way of transport shall be decided by the Issuing and Vault Sub-Department to ensure the safety and timeliness. In case of no requirement for transfer to the Issuing and Vault Sub-Department, this amount of counterfeit money shall be stamped, punched and stored at the Vault II.

The amount of new counterfeit money is kept at the Issuing and Vault Department in service of prevention of counterfeit money of the State Bank under the provisions in Article 12 of this Circular;

2. At State Bank branches or Transaction Center:

a) If the result concludes that the money is real, this amount of real money shall be collected and changed for the organizations and individuals requesting the verification as prescribed by the State Bank on collection and change of money ineligible for circulation;

b) If the result concludes that the money is counterfeit with the announcement of the State Bank (or the Ministry of Public Security, this amount of money shall be seized, stamped, punched or the result of verification shall be announced in writing to the organizations and individuals requesting the verification in case of compliance with the provisions in Clause 3 of Article 10;

c) If the result of verification concludes that the money is the new counterfeit money, promptly notifying the Security Division of Finance - Currency -Investment or Economic Security Division (of the provinces and centrally-affiliated cities) and informing in writing the Issuing and Vault Sub-Department of the new counterfeit money. In case of no requirement for handover of new counterfeit money to the Vault Sub-Department under the provisions in Clause 4, Article 9 of this Circular, this amount of counterfeit money shall be stamped, punched and handed over under the provisions in Clause 3, Article 9 of this Circular;

3. At the credit institutions and branches of foreign banks:

a) If the result of verification concludes that the money is real, this amount of real money is collected and changed for the customers under the provisions of the State Bank on collection and change of money ineligible for circulation;

b) If the result of verification concludes that the money is counterfeit, informing the customers of the result of verification and the handling of counterfeit money from the verification authority;

4. For the counterfeit money or suspected counterfeit money verified at the request of public security authority, border guards and Customs, it shall be returned to the units requesting the verification without stamping or punching. The handover and receipt of the counterfeit money or suspected counterfeit money shall be recorded with the information on type of money, amount and serial number;

Article 12. Storing counterfeit money for State Bank’s counterfeit money prevention

After analyzing and verifying the new counterfeit money, the Issuing and Vault Sub-Department is entitled to keep and preserve a maximum of 15 notes (pieces)/type for study and prevention of counterfeit money and for professional training (except for counterfeit money or suspected counterfeit money to be verified under Clause 4, Article 11 of this Circular). In case of storage and preservation of more than 15 notes (pieces)/type, the Issuing and Vault Sub-Department shall request the decision from the Governor of the State Bank;

Article 13. Counterfeit money’s collection and destruction

1. The State Bank shall collect the counterfeit money handed over by the organizations and individuals;

2. The State Bank shall destroy the counterfeit money as prescribe for the money ineligible for circulation;

3. The destruction of counterfeit money as the material evidence of the criminal cases shall comply with the provisions of the Code of Criminal Procedure.

Article 14. Information on counterfeit money

1. The State Bank (the Issuing and Vault Sub-Department shall analyze, verify and notify in writing the identification characteristics of counterfeit money to the Security Department of Finance – Currency - Investment, the Institute of Criminal Sciences (the Ministry of Public Security), the Reconnaissance department (the High Command of Border Guard), the State Bank branches, the Transaction Center, the Central State Treasury, the Head Office of commercial bank as state enterprise for prevention of counterfeit money;

2. When receiving the written announcement on the new counterfeit money from the Issuing and Vault Sub-Department, the State Bank branches must announce in writing the identification characteristics of new counterfeit money to the Head Office of credit institutions (excluding the Head Office of commercial bank as State-run enterprise) and branches of foreign banks in the area;

3. When receiving the written announcement on the new counterfeit money from the State Bank, the credit institution and branches of foreign banks must notify in writing the units in the system to prevent the counterfeit money;

4. In case of necessity, the Issuing and Vault Sub-Department shall publicly announce on the mass media or on the State Bank’ website on the identification characteristics of counterfeit money circulating for vigilance and proactive prevention from the organizations and individuals;

Article 15. Statistics and reports on counterfeit money

The State Bank branches, the Transaction Center, credit institutions and branches of foreign banks shall make a report on data of counterfeit money under the regulations of statistical report of the State Bank;

Chapter 3.

IMPLEMENTATION ORGANIZATION

Article 16. Responsibilities for implementation guidance and inspection

1.The Issuing and Vault Sub-Department shall guide and inspect the implementation of this Circular;

2. The State Bank branches shall inspect the implementation of provisions in this Circular against the credit institutions, branches of credit institutions and branches of foreign banks in provinces and cities;

3. The credit institutions and branches of foreign banks are responsible for guiding and inspecting the implementation of this Circular in the system;

Article 17. Violations commendation and handling

1. Violation commendation:

Every year, organizations and individuals that have made outstanding achievements in the implementation of this Circular shall be considered and decided upon commendation by the Governor of the State Bank under the regulations of law and bank sector;

2. Violation Handling:

The organizations and individuals committing acts of violation of provisions of this Circular, depending on the nature and seriousness of violation, shall be disciplined, handled from administrative violation or prosecuted for criminal liability in case of seriousness as prescribed by law;

Article 18. Effect

This Circular takes effect on January 20, 2014 and supersedes the Decision No. 28/2008/QD-NHNN dated October 10, 2008 issued by the Governor of State Bank regulating the handling of counterfeit money or suspected counterfeit money in the bank industry;

Article 19. Implementation responsibilities

Chief of Office, Director of Issuing and Vault Department, Director of State Bank branches, Director of Transaction Centers and the Heads of units concerned of the State Bank system; Chairman of Member Council, Chairman of the Board, General Director (Director), the credit institutions and branches of foreign banks are liable to execute this Circular.

For the Governor

Deputy Governor

Dao Minh Tu

* All appendices are not translated herein.