Circular No. 28/2016/TT-NHNN dated October 05, 2016 of the State Bank of Vietnam on amending and supplementing a number of articles of Circular No. 21/2014/TT-NHNN of August 14, 2014, of the Governor of the State Bank of Vietnam, guiding the scope of foreign exchange activities and the conditions, order and procedures for approval of foreign exchange activities of credit institutions and foreign bank branches

Banks must converse basic foreign exchange activities before November of 2017

On October 05, 2016, the State Bank of Vietnam issued the Circular No. 28/2016/TT-NHNN on amending and supplementing a number of articles of Circular No. 21/2014/TT-NHNN of August 14, 2014, of the Governor of the State Bank of Vietnam, guiding the scope of foreign exchange activities and the conditions, order and procedures for approval of foreign exchange activities of credit institutions and foreign bank branches.

Accordingly, the State Bank shall convert licenses for commercial banks, general finance companies, factoring finance companies, consumer credit finance companies, financial leasing companies and foreign bank branches that have permitted to carry out foreign exchange activities, conversion into establishment and operation licenses or license modification and supplementation decisions stating the activities of foreign exchange trading and provision of foreign exchange services in the domestic market and/or international market within the scope prescribed by the State Bank for commercial banks, general finance companies, factoring finance companies, consumer credit finance companies, financial leasing companies and foreign bank branches that have been licensed to carry out one or several basic foreign exchange activity(ies) in the domestic market and/or international market; conversion into definite-term written approvals for other foreign exchange activities;

The conversion shall be made through October 31, 2017. Past this date, commercial banks, general finance companies, factoring finance companies, consumer credit finance companies, financial leasing companies and licensed foreign bank branches must cease foreign exchange activities for which conversion has not been made or is not permitted to be made due to their failure to meet the conditions.