Circular No 34/2015/TT-NHNN dated December 31, 2015 of the State Bank of Vietnam guiding the provision of foreign currency receipt and payment services

CIRCULAR

Guiding the provision of foreign currency receipt and payment services[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;

Pursuant to the Prime Minister’s Decision No. 170/1999/QD-TTg of August 19, 1999, on encouraging overseas Vietnamese to transfer money back home, and Decision No. 78/2002/QD-TTg of June 17, 2002, amending and supplementing Decision No. 170/1999/QD-TTg;

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

The State Bank Governor promulgates the Circular guiding the provision of foreign currency receipt and payment services.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular prescribes the provision of foreign currency receipt and payment services, including direct foreign currency receipt and payment activities and foreign currency payment agency activities of credit institutions, foreign bank branches and economic organizations.

Article 2.Subjects of application

1. Credit institutions and foreign bank branches that are licensed to provide foreign exchange services (below referred to as licensed credit institutions).

2. Credit institutions and foreign bank branches that are not licensed to provide foreign exchange services (below referred to as credit institutions) and act as foreign currency payment agents for economic organizations and other licensed credit institutions.

3. Economic organizations directly receiving and paying foreign currencies.

4. Economic organizations acting as foreign currency payment agents for licensed credit institutions.

5. Persons in the country receiving foreign currency amounts transferred by overseas Vietnamese or foreigners abroad to Vietnam (below referred to as beneficiaries).

6. Organizations and individuals involved in the provision of foreign currency receipt and payment services.

Article 3.Principles of provision of foreign currency receipt and payment services by credit institutions and economic organizations

1. Economic organizations directly receiving and paying foreign currencies may only authorize credit institutions but not other economic organizations to act as foreign currency payment agents.

2. Economic organizations and credit institutions acting as foreign currency payment agents may not authorize payment activities to other economic organizations and credit institutions.

3.  A credit institution or an economic organization may act as a foreign currency payment agent for one or more than one licensed credit institution.

4. A credit institution may act as a foreign currency payment agent for an economic organization.

5. In case a foreign currency payment agent contract signed with an authorizing organization ceases to be effective or is terminated ahead of time, the economic organization or the credit institution acting as a foreign currency payment agent shall terminate agency activities with the authorizing organization.

6. In case a foreign currency receipt and payment contract signed with a foreign partner ceases to be effective or is terminated ahead of time, the economic organization shall terminate direct foreign currency receipt and payment activities with such foreign partner.

Article 4.Competence to approve the provision of foreign currency receipt and payment services

1. The State Bank of Vietnam (below referred to as the State Bank) shall:

a/ Approve direct foreign exchange receipt and payment activities; approve change, addition or extension of duration of direct foreign exchange receipt and payment activities of the Vietnam Post Corporation;

b/ Approve foreign currency payment agent registration; approve change, addition or extension of the Vietnam Post Corporation’s foreign currency payment agent registration;

c/ Revoke its written approval of direct foreign currency receipt and payment; its written approval of change, addition or extension of duration of direct foreign currency receipt and payment activities of the Vietnam Post Corporation;

d/ Revoke its written approval of foreign currency payment agent registration; its written approval of change, addition or extension of the Vietnam Post Corporation’s  foreign currency payment agent registration.

2. The State Bank’s branches in provinces or centrally run cities (below referred to as State Bank branches) where the head offices of credit institutions or economic organizations are located shall:

a/ Approve direct foreign currency receipt and payment activities; approve change, addition or extension of duration of direct foreign currency receipt and payment activities of economic organizations directly receiving and paying foreign currencies;

b/ Approve foreign currency payment agent registration; approve change, addition to or extension of foreign currency payment agent registration of economic organizations and credit institutions acting as foreign currency payment agents;

c/ Revoke written approvals of direct foreign currency receipt and payment activities; and written approvals of  change, addition or extension of duration of direct foreign currency receipt and payment of economic organizations directly receiving and paying foreign currencies;

d/ Revoke written approvals of  foreign currency payment agent registration; approve change, addition or extension of foreign currency payment agent registration of economic organizations and credit institutions acting as foreign currency payment agents.

3. Credit institutions licensed to provide foreign currency receipt and payment services (including direct foreign currency receipt and payment; foreign currency payment agency) are not required to carry out procedures to obtain the State Bank’s approval in accordance with this Circular.

Article 5.Cases of change and addition

1. Cases of change and addition related to the following contents are subject to the State Bank’s approval:

a/ For economic organizations directly receiving and paying foreign currencies:

(i) Changing names and addresses of economic organizations;

(ii) Changing or adding foreign partners;

b/ For credit institutions acting as foreign currency payment agents:

(i) Changing names of credit institutions acting as foreign currency payment agents;

(ii) Adding credit institutions licensed to authorize foreign currency payment agency;

c/ For economic organizations acting as foreign currency payment agents:

(i)  Changing names and addresses of economic organizations;

(ii) Adding credit institutions licensed to authorize foreign currency payment agency;

2. Cases of change and addition related to the following contents shall be reported to the State Bank under Clause 3 of this Article without having to obtain the State Bank’s approval:

a/ For economic organizations directly receiving and paying foreign currencies:

(i) Changing, adding or reducing foreign currency payment places;

(ii) Changing, adding or reducing economic organizations’ branches that carry out currency payment activities;

(iii) Specialized foreign currency account-related changes: changing licensed commercial banks or foreign bank branches where specialized foreign currency accounts are opened to receive and pay foreign currencies; adding specialized accounts corresponding to other types of foreign currencies; adding and closing specialized foreign currency accounts of branches that carry out foreign currency payment activities;

b/ For credit institutions acting as foreign currency payment agents: adding or reducing branches that carry out foreign currency payment activities;

c/ For economic organizations acting as foreign currency payment agents;

(i) Changing, adding or reducing places of foreign currency payment agents;

(ii) Adding or reducing branches that carry out foreign currency payment activities.

3. Every year, on January 10 and July 10, credit institutions and economic organizations shall report to the State Bank branches or the State Bank (for the Vietnam Post Corporation) on the change or addition (if any) specified in Clause 2 of this Article, clearly stating the reason.

4. Dossiers, the order and procedures for approval of change and addition must comply with Articles 11, 12, 14 and 15 of this Circular.

Article 6.Money transfer charge, applied exchange rate

1. Money transfer charge:

a/ Economic organizations directly receiving and paying foreign currencies shall negotiate with foreign partners to enjoy money transfer charges, without collecting any charges from beneficiaries;

b/ For licensed credit institutions:

i/ In case of money transfer through a licensed credit institution that signs a money transfer service contract with a foreign partner: The licensed credit institution shall negotiate with such foreign partner to enjoy money transfer service charges, without collecting any charges from beneficiaries;

(ii) In case of money transfer through a licensed credit institution not falling in the case prescribed at Point b (i) of this Clause: The licensed credit institution may collect service charges from beneficiaries in conformity with the State Bank’s regulations on the collection of service charges, and shall post up service charges at foreign currency payment places.

2. Exchange rates for conversion from foreign currencies into Vietnam dong: In case the beneficiaries wish to receive payments in Vietnam dong, credit institutions and economic organizations providing foreign currency receipt and payment services shall make payments in Vietnam dong at the exchange rate according to the State Bank’s decision effective at the time of conversion.

Article 7.Specialized foreign currency account

1. Economic organizations directly receiving and paying foreign currencies shall open 1 (one) payment account for each type of foreign currency at 1 (one) commercial bank or licensed foreign bank branch in the locality where their head offices are located to make foreign currency payments (below referred to as specialized foreign currency account).

2. In case an economic organization directly receiving and paying foreign currencies makes foreign currency payments at a branch outside the province or city where its head office is located, the economic organization may open 1 (one) specialized foreign currency account for each type of foreign currency at 1 (one) commercial bank or licensed foreign bank branch in the locality where its branch is located for its branch to make foreign currency payments via this account.

3. Economic organizations directly receiving and paying foreign currencies shall register with the State Bank the following details related to specialized foreign currency accounts: account number, type of foreign currency, name and address of commercial bank or foreign bank branch where the account is opened as stated in the written request for approval of direct foreign currency receipt and payment activities (made according to the form in Appendix 1 or 2 to this Circular).

4. Specialized foreign currency accounts may be used to conduct the following collection and payment transactions:

a/ For specialized foreign currency accounts of economic organizations in the locality where their head offices are located:

(i) Receiving foreign currencies transferred from abroad;

(ii) Receiving foreign currencies transferred from specialized foreign currency accounts opened by economic organizations at commercial banks or licensed foreign bank branches in the localities where their branches make foreign currency payments, in case of failing to pay to beneficiaries;

(iii) Paying foreign currencies via account transfer or in cash to beneficiaries in the country;

(iv) Withdrawing foreign currencies in cash for credit institutions acting as foreign currency payment agents to pay beneficiaries;

(v) Transferring to specialized foreign currency accounts of economic organizations opened in the localities where their branches making foreign currency payments are located;

(vi) Selling foreign currencies to licensed credit institutions for Vietnam dong to pay to beneficiaries;

b/ For specialized foreign currency accounts of economic organizations opened in the localities where their branches making foreign currency payments are located:

(i) Receiving foreign currencies transferred from specialized foreign currency accounts of economic organizations in the localities where their head offices are located;

(ii) Paying foreign currencies vi account transfer or in cash to beneficiaries in the country;

(iii) Selling foreign currencies to licensed credit institutions for Vietnam dong to pay to beneficiaries;

(iv) Returning to specialized foreign currency accounts opened by economic organizations at licensed commercial banks or foreign bank branches in the localities where their head offices are located in case of failing to pay to beneficiaries.

Article 8.Activities of foreign currency payment agents

Organizations acting as foreign currency payment agents for licensed economic organizations and credit institutions shall make foreign currency payments as follows:

1. Receiving foreign currencies in cash from authorizing licensed credit institutions and economic organizations.

2. Paying to beneficiaries foreign currencies or Vietnam dong in cash at the exchange rate determined by the authorizing organizations.

Article 9.Principles of preparing and sending dossiers of application for approval of foreign currency receipt and payment service provision

1. A dossier shall be made in Vietnamese. For translations from a foreign language, the submitting organization may submit translations with the translator’s signature certified under Vietnam’s law on certification or translations certified the organization’s lawful representative.

2. For documents being copies, the organization may submit certified copies or duplicates from the master register or copies certified by the organization of the truthfulness of the copies to the originals. In case the organization submits the dossier comprising copies other than certified copies, duplicates from the master register or copies certified by the organization directly to the State Bank or State Bank branch, the organization shall produce their originals for comparison. Officers who check the copies against their originals shall sign on the copies and take responsibility for the truthfulness of the copies to their originals.

Chapter II

CONDITIONS, ORDER, PROCEDURES FOR APPROVAL OF DIRECT FOREIGN CURRENCY RECEIPT AND PAYMENT; APPROVAL OF CHANGE, ADDITION OR EXTENSION OF DURATION OF DIRECT FOREIGN CURRENCY RECEIPT AND PAYMENT

Article 10.Conditions for approval of direct foreign currency receipt and payment; approval of extension of duration of direct foreign currency receipt and payment

1. Economic organizations directly receiving and paying foreign currencies must satisfy the following conditions:

a/ Having established and operated in accordance with Vietnamese law;

b/ Having equipment and facilities and physical foundations satisfying the requirements of foreign currency receipt and payment including computer, telephone and facsimile machine.

c/ Having contracts signed with foreign partners on foreign currency receipt and payment services;

d/ Having a scheme on the provision of foreign currency receipt and payment services signed by lawful representatives.

2. Conditions for economic organizations to be considered and permitted for extension of duration of direct foreign currency receipt and payment

a/ The granted written approval of direct foreign currency receipt and payment remains valid for at least 30 (thirty) days by the date of dossier submission;

b/ No violation of the reporting regime specified in Article 22 of this Circular is committed for at least 4 (four) quarters from the date of receiving the written approval of direct foreign currency receipt and payment or the written approval of the latest extension to the date of application for extension.

Article 11.Dossiers of application for approval of direct foreign currency receipt and payment; approval of change, addition or extension of duration of direct foreign currency receipt and payment

1. A dossier of application for approval of direct foreign currency receipt and payment must comprise:

a/ A written application (made according to the form provided in Appendices 1 and 2 to this Circular);

b/ Copies of papers proving the organization’s lawful establishment and operation, including the enterprise registration certificate, the investment registration certificate or other equivalent papers in accordance with law;

c/ Copies enclosed with the Vietnamese translations of the foreign currency receipt and payment contract signed with the foreign partner with the following principal contents:

(i) Names, addresses, representatives and legal status of involved parties;

(ii) Account numbers and banks where the economic organization’s head office opens its specialized foreign currency account;

(iii) Rights and obligations of the contracting parties;

(iv) Principles of applying exchange rates in case the beneficiary wishes to receive Vietnam dong (if any);

(v) The commission charge to be enjoyed;

(vi) Other agreements (on liability for breaches of contract, the contract term, termination of the contract ahead of time, settlement of disputes and other agreements in accordance with law);

d/ A plan on the provision of foreign currency receipt and payment services,containing the following principal contents:

(i) Planned area of operation and human resources;

(ii) Contents, method and process of foreign currency receipt and payment;

(iii) Estimated turnover and income from foreign currency receipt and payment activities;

dd/ A report on the state of equipment and facilities and physical foundations;

e/ Copies enclosed with the Vietnamese translations of a foreign competent agency’s documents confirming the foreign partner’s legal status.

2. A dossier of application for approval of change or addition of direct foreign currency receipt and payment must comprise:

a/  A written application for approval of change, addition or extension of duration of direct foreign currency receipt and payment (made according to the form in Appendix 5 to this Circular);

b/ A copy of the granted written approval of direct foreign currency receipt and payment;

c/ Necessary papers related to the change or addition prescribed at Point a, Clause 1, Article 5 of this Circular.

3. A dossier of application for approval of extension of duration of direct foreign currency receipt and payment must comprise:

a/  A written application for approval of change, addition or extension of duration of direct foreign currency receipt and payment (made according to the form provided in Appendix 5 to this Circular);

b/ A copy of the granted written approval of direct foreign currency receipt and payment;

c/ A copy enclosed with the Vietnamese translation of the valid foreign currency receipt and payment contract signed with the foreign partner.

Article 12.Order and procedures for approval of direct foreign currency receipt and payment; approval of change, addition or extension of duration of direct foreign currency receipt and payment

1. An economic organization wishing to carry out direct foreign currency receipt and payment activities (or to change, add or extend duration of direct foreign currency receipt and payment) shall send 1 (one) set of dossier by post or submit it directly to the State Bank branch in the locality where its head office is located.

2. Within 30 (thirty) working days after receiving a complete and valid dossier, the State Bank branch shall consider and grant a written approval of direct foreign currency receipt and payment (made according to the form provided in Appendix 8 to this Circular) or a written approval of change, addition or extension of duration of direct foreign currency receipt and payment (made according to the form provided in Appendix 12 to this Circular). In case of refusal, the State Bank branch shall issue a written reply clearly stating the reason.

3. Order and procedures for approval of direct foreign currency receipt and payment (or change, addition or extension of duration of direct foreign currency receipt and payment) for the Vietnam Post Corporation:

a/ The Vietnam Post Corporation shall send 1 (one) set of dossier by post or submit it directly to the State Bank;

b/ Within 30 (thirty) working days after receiving a complete and valid dossier, the State Bank shall consider and grant a written approval of direct foreign currency receipt and payment (made according to the form provided in Appendix 9 to this Circular) or a written approval of change, addition or extension of duration of direct foreign currency receipt and payment (made according to the form provided in Appendix 13 to this Circular). In case of refusal, the State Bank shall issue a written reply clearly stating the reason.

4. The validity duration of written approvals and written approvals of extension of duration of direct foreign currency receipt and payment:

a/ The validity duration of a written approval of direct foreign currency receipt and payment and a written approval of extension of duration of direct foreign currency receipt and payment shall be based on the validity duration of the contract signed with the foreign partner or the contract with the longest validity duration in case there are many direct foreign currency receipt and payment contracts, and must not exceed 5 (five) years from the date of signing.

b/ In case of extending duration of direct foreign currency receipt and payment activities, at least 30 (thirty) days before the expiration of the written approval of direct foreign currency receipt and payment, the economic organization shall submit a dossier of application for approval of extension under Clause 3, Article 11 of this Circular.

Chapter III

CONDITIONS, ORDER, PROCEDURES FOR APPROVAL OF FOREIGN CURRENCY PAYMENT AGENT REGISTRATION; APPROVAL OF CHANGE, ADDITION OR EXTENSION OF FOREIGN CURRENCY PAYMENT AGENT REGISTRATION

Article 13.Conditions for approval of foreign currency payment agent registration; approval of extension of foreign currency payment agent registration

1. Credit institutions and economic organizations acting as foreign currency payment agents must satisfy the following conditions:

a/ Having established and operating under Vietnam’s law;

b/ Having equipment and facilities and physical foundations meeting the requirements of the operation of foreign currency payment agents including computer, telephone, facsimile machine, etc.;

c/ Being authorized by licensed credit institutions or economic organizations to act as foreign currency payment agents.

2. Conditions for credit institutions and economic organizations to be considered and permitted for extension of foreign currency payment agent registration:

a/ The granted written approval of foreign currency payment agent registration remains valid for at least 30 (thirty) days by the date of dossier submission;

b/ No violation of the reporting regime specified in Article 22 of this Circular is committed for at least 4 (four) quarters from the date of receiving the written approval of foreign currency payment agent registration or the written approval of the latest extension to the date of application for extension.

Article 14.Dossiers of application for approval of foreign currency payment agent registration; approval of change, addition or extension of foreign currency payment agent registration

1. A dossier of application for approval of foreign currency payment agent registration must comprise:

a/ A written application (made according to the form provided in Appendices 3 and 4 to this Circular);

b/ Copies of papers proving the organization’s lawful establishment and operation, including the enterprise registration certificate, the establishment and operation license; the investment registration certificate and other equivalent papers in accordance with law;

c/ A copy of the foreign currency payment agent contract signed with the authorizing  organization with the following principal details: payment method; payment network; commission charge; rights and obligations of the contracting parties;

d/ A report on the state of equipment and facilities and physical foundations.

2. A dossier of application for approval of change or addition of foreign currency payment agent registration must comprise:

a/ A written application for approval of change, addition or extension of foreign currency payment agent registration (made according to the form provided in Appendix 5 to this Circular);

b/ A copy of the granted written approval of foreign currency agent registration;

c/ Necessary papers related to the change or addition specified at Points b and c, Clause 1, Article 5 of this Circular.

3. A dossier of application for approval of extension of foreign currency payment agent registration must comprise:

a/ A written application for approval of change, addition or extension of foreign currency payment agent registration (made according to the form provided in Appendix 5 to this Circular);

b/ A copy of the granted written approval of foreign currency agent registration;

c/ A copy of the valid foreign currency payment agent contract signed with the authorizing organization.

Article 15.Order and procedures for approval of foreign currency payment agent registration; approval of change, addition or extension of foreign currency payment agent registration

1. A credit institution or an economic organization wishing to carry out activities of a foreign currency payment agent (or change, add or extend its existing registration as an agent) shall send 1 (one) set of dossier by post or submit it directly to the State Bank branch in the locality where the head office of the credit institution or economic organization is located.

2. Within 30 (thirty) working days after receiving a complete and valid dossier, the State Bank branch shall consider and grant a written approval of foreign currency payment agent registration (made according to the form provided in Appendix 10 to this Circular); a written approval of change, addition or  extension of foreign currency payment agent registration (made according to the form provided in Appendix 12 to this Circular). In case of refusal, the State Bank branch shall issue a written reply clearly stating the reason.

3. Order and procedures for approval of foreign currency payment agent registration (or change, addition or extension of the agent registration) for the Vietnam Post Corporation:

a/ The Vietnam Post Corporation shall send 1 (one) set of dossier by post or submit it directly to the State Bank;

b/ Within 30 (thirty) working days after receiving a complete and valid dossier, the State Bank shall consider and grant a written approval of foreign currency payment agent registration (made according to the form provided in Appendix 11 to this Circular); a written approval of change, addition or extension of foreign currency payment agent registration (made according to the form provided in Appendix 13 to this Circular). In case of refusal, the State Bank shall issue a written reply clearly stating the reason.

4. The validity duration of written approvals, written approvals of extension of foreign currency payment agent registration

a/ The validity duration of a written approval of foreign currency payment agent registration and a written approval of extension of foreign currency payment agent registration is based on the validity duration of the foreign currency payment agent contract signed with the authorizing organization or on the foreign currency payment agent contract with the longest validity duration in case there are many foreign currency payment agent contracts, and must not exceed 5 (five) years from the date of signing.

b/ In case of extending activities of a foreign currency payment agent, at least 30 (thirty) days before the expiration of the written approval of foreign currency payment agent registration, the credit institution or economic organization shall submit a dossier of application for approval of extension under Clause 3, Article 14 of this Circular.

Chapter IV

CASES OF AUTOMATIC TERMINATION OF VALIDITY OF WRITTEN APPROVALS; REVOCATION OF WRITTEN APPROVALS

Article 16.Cases of automatic termination of validity

The validity of a written approval of direct foreign currency receipt and payment; a written approval of change, addition or extension of direct foreign currency receipt and payment; a written approval of foreign currency payment agent registration; a written approval of change, addition or extension of foreign currency payment agent registration shall automatically terminate when:

1. The credit institution or economic organization is divided, merged or consolidated, or dissolves or goes bankrupt in accordance with law.

2. The credit institution or economic organization has its establishment and operation license, enterprise registration certificate, investment registration certificate or equivalent papers revoked by a competent state agency.

Article 17.Revocation of written approvals

1. The State Bank shall revoke the written approval of direct foreign currency receipt and payment; the written approval of change, addition or extension of direct foreign currency receipt and payment; the written approval of foreign currency payment agent registration; the written approval of change, addition or extension of foreign currency payment agent registration when:

a/ The credit institution or economic organization concerned fails to operate after 12 months counting from the date of receiving the written approval;

b/ The credit institution or economic organization concerned ceases its operation or has no arising payment turnover for 12 consecutive months;

c/ The credit institution or economic organization concerned files a written request with the State Bank for permission to terminate direct foreign currency receipt and payment activities or activities of its foreign currency payment agents;

d/ Cases of revocation in accordance with the law on handling of administrative violations in the monetary and banking sector.

2. Order and procedures of revocation:

The State Bank shall issue a written revocation of the written approval of direct foreign currency receipt and payment; the written approval of change, addition or extension of direct foreign currency receipt and payment; the written approval of foreign currency payment agent registration; the written approval of change, addition or extension of foreign currency payment agent registration from an economic organization or credit institution (made according to the forms provided in Appendices 14 and 15 to this Circular).

Chapter V

RESPONSIBILITIES OF RELATED UNITS

Article 18.Responsibilities of organizations authorizing other organizations to act as agents

1. To guide organizations acting as foreign currency payment agents in foreign currency payment. To comply with and guide organizations acting as foreign currency payment agents to comply with this Circular and other relevant regulations.

2. To examine, control and take responsibility for foreign currency payment activities of authorized agents. In case of detecting an agent breaching the agent contract and this Circular, the authorizing organization shall apply appropriate handling measures, depending on the nature and severity of violations.

3. Within 15 (fifteen) working days from the date the foreign currency payment agent contract terminates ahead of time, the authorizing organization shall notify in writing to the State Bank branch in the locality where the head office of the organization acting as an agent is located.

Article 19.Responsibilities of credit institutions and economic organizations acting as foreign currency payment agents

1. To comply with the contents of the foreign currency payment authorization contract.

2. To update accounting books, archive documents in conformity with current regulations, and fully produce documents relating to foreign currency payment activities at the request of competent agencies.

3. Within 15 (fifteen) working days from the date the foreign currency payment agent contract ceases to be effective or is terminated ahead of time, the credit institution or economic organization acting as a foreign currency payment agent shall notify in writing the State Bank that has granted the written approval of foreign currency payment agent registration.

4. To comply with this Circular and other relevant regulations.

5. To observe the reporting regime prescribed in this Circular.

Article 20.Responsibilities of economic organizations directly receiving and paying foreign currencies

1. Economic organizations directly receiving and paying foreign currencies when transferring or withdrawing foreign currencies in cash from specialized foreign currency accounts to pay to beneficiaries in the countryshall produce the following papers to commercial banks or licensed foreign bank branches where such accounts are opened:

a/ The written approval of direct foreign currency receipt and payment; the written approval of change, addition or extension of direct foreign currency receipt and payment (upon first-time production only);

b/ A list of beneficiaries with full names and identity card numbers (or other equivalent papers in accordance with law), the amount of money each beneficiary will receive in each type of foreign currency.

2. To update accounting books, archive documents in conformity with current regulations and fully produce documents relating to foreign currency receipt and payment activities at the request of competent agencies.

3. Within 15 working days from the date the foreign currency receipt and payment contract ceases to be effective or is terminated ahead of time, the economic organization shall notify such in writing to the State Bank that has granted the written approval of direct foreign currency receipt and payment.

4. To comply with this Circular and other relevant regulations.

5. To observe the reporting regime in accordance with this Circular.

Article 21.Responsibilities of units of the State Bank

1. Responsibilities of the Foreign Exchange Management Department:

a/ To implement and guide credit institutions and economic organizations to strictly comply with this Circular;

b/ To receive and examine dossiers and propose the State Bank Governor to grant a written approval of direct foreign currency receipt and payment; a written approval of change, addition or extension of duration of direct foreign currency receipt and payment; a written approval of foreign currency payment agent registration; or a written approval of change, addition or extension of foreign currency payment agent registration to the Vietnam Post Corporation according to this Circular;

c/ To act as a focal point to solve problems in the provision of foreign currency receipt and payment services by credit institutions and economic organizations in the course of implementing this Circular.

2. Responsibilities of the State Bank branches:

a/ To implement and guide credit institutions and economic organizations in the locality to comply with this Circular;

b/ To grant written approvals of direct foreign currency receipt and payment; written approvals of change, addition or extension of duration of direct foreign currency receipt and payment; written approvals of foreign currency payment agent registration; written approvals of change, addition or extension of foreign currency payment agent registration to economic organizations and credit institutions according to this Circular;

c/ To convert to written approvals of direct foreign currency receipt and payment or written approvals of foreign currency payment agent registration for credit institutions and economic organizations that are eligible under Article 23 of this Circular;

d/ In case of granting written approvals of direct foreign currency receipt and payment; written approvals of change, addition or extension of duration of direct foreign currency receipt and payment; written approvals of foreign currency payment agent registration; or written approvals of change, addition or extension of foreign currency payment agent registration to credit institutions or economic organizations wishing to pay foreign currencies in provinces and cities other than where their head offices are located, the State Bank branch that grants such documents shall send 1 (one) copy to the State Bank branch in the locality where such organizations’ payment places are located, for coordination and monitoring;

dd/ To inspect, examine and supervise organizations’ foreign currency receipt and payment activities in the locality (where there is no banking supervision and inspection department) or to coordinate with the banking supervision and inspection departments in inspecting, examining and supervising foreign currency receipt and payment activities of organizations in the locality (where the banking supervision and inspection department is located);

e/ To observe the reporting regime in accordance with this Circular.

Chapter VI

ORGANIZATION OF IMPLEMENTATION

Article 22.Reporting regime

1. By the 10^thday of the first month of every quarter at the latest, credit institutions and economic organizations acting as foreign currency payment agents shall report to the State Bank branches in the localities on foreign currency payment figures of the previous quarter in the localities (made according to the form provided in Appendix 16 to this Circular).

2. By the 10^thday of the first month of every quarter at the latest, economic organizations directly receiving and paying foreign currencies shall report to the State Bank branches in the localities on foreign currency receipt and payment figures of the previous quarter in the localities (made according to the form provided in Appendix 17 to this Circular). In case an economic organization directly pays foreign currencies in different provinces and cities, it shall report as follows:

a/ The head office of the economic organization shall report foreign currency receipt and payment figures of the whole system to the State Bank branch in the locality where the head office is located;

b/ The economic organization’s branch shall report foreign currency payment figures to the State Bank branch in the locality where the branch is located.

3. By the 10^thday of the first month of every quarter at the latest, the Vietnam Post Corporation shall report to the State Bank of Vietnam (the Foreign Exchange Management Department) on foreign currency receipt and payment figures of the previous quarter (made according to the forms provided in Appendices 16 and 17 to this Circular).

4. Licensed credit institutions shall report foreign currency receipt and payment figures in accordance with the State Bank’s regulations on statistics and reporting.

5. The State Bank branches shall:

a/ Report receipt and payment figures of economic organizations directly receiving and paying foreign currencies; and economic organizations acting as foreign currency payment agents in the localities in accordance with the State Bank’s regulations on reporting and statistics;

b/ Report the list of organizations providing foreign currency receipt and payment services in the locality:

(i) Within 30 (thirty) days from the expiration of the time limit for the conversion specified in Article 23 of this Circular, the State Bank branches shall send written reports to the State Bank (the Foreign Exchange Management Department) on the list of economic organizations directly receiving and paying foreign currencies and the list of credit institutions and economic organizations acting as foreign currency payment agents in every (made according to the form provided in Appendix 18 to this Circular);

(ii) By the 10^thday of the first month of every quarter at the latest, the State Bank branches shall report on the latest changes (if any) in the list of economic organizations directly receiving and paying foreign currencies and the list of credit institutions and economic organizations acting as foreign currency payment agents in the localities (made according to the form provided in Appendix 18 to this Circular).

Article 23.Provisions on conversion

1. Principles of conversion

a/ Within 12 months from the effective date of this Circular, economic organizations and credit institutions that have been granted foreign currency payment agent registration certificates or foreign currency receipt and payment service provision licenses shall convert them to written approvals of foreign currency payment agent registration or written approvals of direct foreign currency receipt and payment in accordance to this Circular. If past the above time limit, economic organizations and credit institutions still fail to convert or are not permitted for conversion because of failing to fully meet the conditions specified in Clause 2 of this Article, they shall terminate acting as foreign currency payment agents or direct foreign currency receipt and payment activities;

b/ In the course of implementing the conversion, economic organizations and credit institutions may still act as foreign currency payment agents or carry out direct foreign currency receipt and payment activities under the granted foreign currency payment agent registration certificates or foreign currency receipt and payment service provision licenses.

2. Conditions for conversion

a/ Economic organizations that were granted foreign currency receipt and payment service provision licenses may convert them to written approvals of direct foreign currency receipt and payment after satisfying the conditions specified in Article 10 of this Circular;

b/ Economic organizations and credit institutions that have been granted foreign currency payment agent registration certificates may convert them to written approvals of foreign currency payment agent registration after satisfying the conditions specified in Article 13 of this Circular.

3. Dossiers of conversion:

a/ A dossier of conversion to a written approval of direct foreign currency receipt and payment must comprise:

(i) A written application (made according to the form provided in Appendix 6 to this Circular);

(ii) The original foreign currency receipt and payment service provision license;

(iii) The documents specified at Point c, Clause 1, Article 11 of this Circular;

b/ A dossier of conversion to a written approval of registration of foreign currency payment agents must comprise:

(i) A written application (made according to the form provided in Appendix 7 to this Circular);

(ii) The original foreign currency payment agent registration certificate;

(iii) The documents specified at Point c, Clause 1, Article 14 of this Circular.

4. Order and procedures for conversion:

a/ An economic organization or a credit institution shall make 1 (one) set of dossier as prescribed in Clause 3 of this Article and directly submit it or send it by post to the State Bank branch in the locality;

b/ Within 30 (thirty) working days after receiving a complete and valid dossier, the State Bank branch shall consider and convert to the written approval of direct foreign currency receipt and payment or written approval of foreign currency payment agent registration. In case of refusal, the State Bank branch shall issue a written reply clearly stating the reason.

5. For the Vietnam Post Corporation:

a/ Within 12 (twelve) months from the effective date of this Circular, it shall apply for approval of direct foreign currency receipt and payment under Articles 10, 11 and 12 of this Circular;

b/ In the course of applying for approval specified at Point a of this Clause, it may still receive and pay foreign currencies. If past the time limit stated at Point a of this Clause, it fails to carry out the procedures for approval or its direct foreign currency receipt and payment activities are disapproved, it shall terminate these activities.

Article 24.Handling of violations

Violators of this Circular shall, depending on the nature and severity of its violations, be handled in accordance with law.

Article 25.Implementation provisions

1. This Circular takes effect on March 1, 2016.

2. On the effective date of this Circular, the following regulations cease to be effective:

a/ The State Bank’s Circular No. 02/2000/TT-NHNN7 of February 24, 2000, guiding the implementation of the Prime Minister’s Decision No. 170/1999/QD-TTg of August 19, 1999, on encouraging overseas Vietnamese to transfer money back to the country;

b/ The State Bank Governor’s Decision No. 472/2000/QD-NHNN7 of November 13, 2000, amending and supplementing a number of provisions of the State Bank’s Circular No. 02/2000/TT-NHNN7 of February 24, 2000;

c/ The State Bank Governor’s Decision No. 878/2002/QD-NHNN of August 19, 2002, amending and supplementing a number of provisions of the State Bank’s Circular No. 02/2000/TT-NHNN7 of February 24, 2000;

d/ Articles 4 and 12 of the State Bank’s Circular No. 25/2011/TT-NHNN of August 31, 2011, on the implementation of the plan to simplify administrative procedures in foreign exchange activities under the Government’s resolutions on simplification of administrative procedures within the ambit of the State Bank’s management functions.

3. The Chief of the Office, and heads of related units of the State Bank, directors of the State Bank’s provincial-level branches, chairpersons of the Boards of Directors and Members’ Councils and directors general (directors) of credit institutions and foreign bank branches shall implement this Circular.-

For the Governor of the State Bank
Deputy Governor
NGUYEN THI HONG

*All appendices to this Circular are not translated.