Decree No. 40/2012/ND-CP of May 2, 2012 of the Government on issue of money, and preservation and transportation of precious assets and valuable papers within the system of the State Bank, credit institutions and foreign bank branches

THE GOVERNMENT

Decree No. 40/2012/ND-CP of May 2, 2012, on issue of money, and preservation and transportation of precious assets and valuable papers within the system of the State Bank, credit institutions and foreign bank branches

Pursuant to the December 25, 2001 Law on Organization of the Government;

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

Pursuant to the June 16, 2010 Law on Credit Institutions;

At the proposal of the Governor of the State Bank of Vietnam,

The Government promulgates the Decree on issue of money, and preservation and transportation of precious assets and valuable papers within the system of the State Bank, credit institutions and foreign bank branches.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides for the printing, minting, preservation, transportation, issue, withdrawal, replacement and destruction of banknotes and coins (below collectively referred to as money); preservation and transportation of precious assets and valuable papers within the system of the State Bank, credit institutions and foreign bank branches; and expenses for money issue operations.

Article 2. Subjects of application

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

2. Credit institutions and foreign bank branches.

3. Money printing and minting establishments; the State Treasury; and other relevant agencies, organizations and individuals.

Article 3. Interpretation of terms

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

1. Cash means banknotes and coins issued by the State Bank.

2. New money not yet issued means banknotes and coins which have been printed and minted and are stored in the State Bank’s vault but not yet permitted to be issued for circulation.

3. Money suspended from circulation means banknotes and coins which are no longer valid for circulation under the Prime Minister’s decision.

4. Money unqualified for use means banknotes and coins issued by the State Bank, which are currently in circulation but torn, damaged or deformed under the State Bank’s regulations.

5. Precious assets include gold, precious metals, gems, foreign currencies in cash and other types of precious assets.

6. Money printing and minting establishment means an organization printing and minting money at home and abroad which conducts money designing, plate making, printing and minting under contracts with the State Bank.

Chapter II

MONEY PRINTING, MINTING AND ISSUE

Section 1

MONEY PRINTING AND MINTING

Article 4. Printing and minting of money currently in circulation, printing and minting of new money not yet issued

1. The State Bank Governor shall, based on the annual forecast of the economy’s cash need, the need for issue of reserve money and the need for replacement of money unqualified for use, decide on the structure, quantity and value of money currently in circulation which needs to be additionally printed and minted.

2. The State Bank shall formulate a project on printing and minting of new kinds of money not yet issued for addition to or replacement of money in circulation, and submit it to the Prime Minister for approval. This project must have specimen designs of denominations, sizes, weight, pictures, patterns and other characteristics of such new kinds of money.

Article 5. Design of money specimens

1. The State Bank shall organize the design of money specimens to ensure that they are aesthetic, easily realizable, represent national cultural identity and follow the world money design trend.

2. Money specimen designing must ensure suitability with printing and minting materials and money plate-making, printing and minting technologies; ensure high durability and anti-counterfeiting capacity; and ensure convenience for money use, preservation and handling.

3. The State Bank acts as the copyright owner of approved design specimens of all kinds of money. Painters who personally create money specimens which are approved will be recognized as authors or co-authors and may enjoy remuneration under the law on intellectual property.

Article 6. Making of plates for money printing and minting

1. The State Bank shall organize the making of plates for money printing and minting, meeting the following requirements:

a/ Correctly and fully showing the details of the approved designs of money specimens;

b/ Satisfying technical standards of each kind of money.

2. The State Bank Governor shall stipulate the embedment of security features on money to increase the anti-counterfeiting capacity.

Article 7. Organization and management of money printing and minting

The State Bank shall organize money printing and minting on the following principles:

1. Money printing and minting shall be carried out under contracts between the State Bank and money printing and minting establishments according to money printing and minting plans and technical standards of each kind of money as stipulated by the State Bank Governor.

2. The State Bank shall examine the quality of all kinds of money before money printing and minting establishments hand over money to the State Bank.

3. The State Bank shall submit cases of making of plates and molds and printing and minting of Vietnamese currency overseas to the Prime Minister for decision.

4. The State Bank shall guide money printing and minting establishments to manage each kind of printed and minted money; guide and supervise money printing and minting establishments in destroying defective money printing paper sheets or printed and minted products.

Article 8. Money printing and minting

1. Money printing and minting establishments shall prepare and safely manage equipment, supplies, raw materials and auxiliary materials for money printing and minting under contracts.

2. Domestic money printing and minting establishments shall develop technological processes of money printing and minting and submit them to the State Bank Governor for approval.

3. Before official printing and minting, money printing and minting establishments shall submit specimens for trial printing and minting, and master prints and molds to the State Bank Governor for approval.

4. Money printing and minting establishments shall ensure stable quantity and quality of printed and minted money according to technical standards of each kind of money as approved by the State Bank Governor.

5. Money printing and minting establishments may not use special-purpose supplies for printing and minting Vietnamese currency to produce other products unless they obtain prior written consent of the State Bank.

6. Money printing and minting establishments shall ensure confidentiality of information relating to money printing and minting under regulations.

Section 2

MONEY ISSUE

Article 9. Management of issue reserve funds and issue operation funds

1. The State Bank shall set up issue reserve funds and issue operation funds within its system.

a/ Issue reserve funds shall be managed at central vaults and vaults of the State Bank’s provincial-level branches;

b/ Issue operation funds shall be managed at the vault of the State Bank’s Transaction Center and vaults of the State Bank’s provincial-level branches.

2. Sources of issue reserve funds and issue operation funds:

a/ An issue reserve fund is formed from:

- Newly printed and minted money from money printing and minting establishments;

- Money from issue operation funds.

b/ An issue operation fund is formed from:

- Money from issue reserve funds;

- Money collected from circulation.

Article 10. Announcement of issue of new kinds of money

1. Based on the economy’s cash need and monetary stabilization requirements, the State Bank Governor shall submit to the Prime Minister for decision the issue of new kinds of money, covering the following contents:

a/ Denominations of newly issued kinds of money;

b/ Time and form of issue of new kinds of money.

2. The State Bank shall announce in the mass media the following:

a/ The Government’s decision on the issue of new kinds of money;

b/ Time and form of issue of new kinds of money;

c/ Denominations, sizes, weight and other characteristics of each new kind of money.

Article 11. Issue of money

1. The State Bank shall issue money for circulation and collect money from circulation through its cash collection and payment operations and other operations.

2. The State Bank shall satisfy the cash needs of credit institutions, foreign bank branches and the State Treasury on the basis of the balance of their deposit accounts at the State Bank.

Article 12. Money sorting and classification

1. The State Bank, credit institutions, foreign bank branches and the State Treasury shall organize money sorting, classification and handling.

2. The State Bank shall guide and examine money sorting, classification and handling.

Chapter III

PRESERVATION OF MONEY, PRECIOUS ASSETS AND VALUABLE PAPERS

Article 13. Principles of preservation of money, precious assets and valuable papers

1. Money, precious assets and valuable papers within the system of the State Bank, credit institutions and foreign bank branches shall be preserved in vaults; classified, tallied, packed, sealed, and stored in separate areas in a vault.

2. Vaults shall be constantly guarded and protected to ensure round-the-clock security.

Article 14. Responsibility to preserve money, precious assets and valuable papers

1. Money printing and minting establishments shall preserve newly printed and minted money which is not yet handed over to the State Bank.

2. The State Bank shall preserve new kinds of money not yet issued, money currently in circulation (including money unqualified for use), money subject to circulation suspension, precious assets and valuable papers within its scope of management.

3. Credit institutions and foreign bank branches shall preserve money, precious assets and valuable papers under their management.

4. The State Bank shall guide and examine the preservation of money, precious assets and valuable papers.

Article 15. Construction and management of vaults

1. The State Bank shall issue technical standards for vaults and regulations on management of vaults within the system of the State Bank, credit institutions and foreign bank branches.

2. The State Bank shall build central vaults and vaults of the State Bank’s provincial-level branches for preserving money, precious assets and valuable papers under its management.

3. Credit institutions and foreign bank branches shall build vaults for preserving money, precious assets and valuable papers under their management.

Chapter IV

TRANSPORTATION OF MONEY, PRECIOUS ASSETS AND VALUABLE PAPERS

Article 16. Scope of and responsibility for transportation

1. The State Bank shall organize transportation of money, precious assets and valuable papers:

a/ From money printing and minting establishments, airports, ports and railway stations to central vaults and vice versa;

b/ Among central vaults;

c/ Between central vaults and vaults of the State Bank’s provincial-level branches;

d/ Among vaults of the State Bank’s provincial-level branches.

2. Credit institutions and foreign bank branches shall organize the transportation of money, precious assets and valuable papers under their management among themselves and between them and the State Bank.

Article 17. Transportation principles

Transportation of money, precious assets and valuable papers within the system of the State Bank, credit institutions and foreign bank branches must adhere to the following principles:

1. Transportation must have transfer orders of competent authorities.

2. Money, precious assets and valuable papers must be transported in special-purpose vans or other safe means of transport.

3. There must be sufficient escorts and guards of money, precious assets and valuable papers during transportation.

4. Transportation plans and processes must be kept secret.

5. Money, precious assets and valuable papers must be packed and sealed and securely preserved for transportation.

Article 18. Transportation of money, precious assets and valuable papers

1. The State Bank shall set up van teams for transporting money, precious assets and valuable papers under their management. These teams will be provided with special-purpose vans and necessary technical equipment.

2. The State Bank shall stipulate technical standards for special-purpose vans and technical facilities; and guide and examine transportation of money, precious assets and valuable papers within the system of the State Bank, credit institutions and foreign bank branches.

Article 19. Protection of transportation

1. The Ministry of Public Security shall organize forces for safeguarding the transportation of money, precious assets and valuable papers of the State Bank.

2. Control stations and mobile patrol teams of law enforcement forces may not check en route special-purpose vans and vehicles transporting money, precious assets and valuable papers of the State Bank, credit institutions and foreign bank branches.

3. Vehicles transporting money, precious assets and valuable papers of the State Bank are given priority to go ahead during rush hours, pass bridges, and get on ferry boats and on banned roads.

4. People’s Committees at all levels shall coordinate with the State Bank, credit institutions and foreign bank branches in promptly settling problems arising during the transportation of money, precious assets and valuable papers of the State Bank, credit institutions and foreign bank branches in localities.

Chapter V

MONEY WITHDRAWAL, REPLACEMENT AND DESTRUCTION

Section 1

MONEY WITHDRAWAL AND REPLACEMENT

Article 20. Retrieval and exchange of money unqualified for circulation

1. The State Bank, credit institutions, foreign bank branches and the State Treasury shall organize the retrieval and exchange of money unqualified for use under the State Bank’s regulations.

2. The State Bank shall issue standards for money unqualified for use; collect and exchange money of kinds unqualified for use; and guide and examine implementation of these regulations.

Article 21. Money withdrawal and replacement

1. Announcement of money withdrawal and replacement

The Prime Minister shall decide on circulation suspension and replacement of kinds of money in circulation. Pursuant to the Prime Minister’s decision, the State Bank shall announce in the mass media the following:

a/ The Government’s guideline on money circulation suspension and withdrawal of money subject to circulation suspension; partial or whole replacement of kinds of money currently in circulation;

b/ Form of, procedures and time limit for withdrawal of kinds of money subject to circulation suspension.

2. Money withdrawal and replacement

a/ The State Bank shall organize the withdrawal of kinds of money subject to circulation suspension under regulations;

b/ Withdrawn kinds of money will be exchanged for other kinds of money with equivalent value within the time limit specified by the State Bank;

c/ Issue of other kinds of money for replacement complies with the Prime Minister’s decision.

Section 2

MONEY DESTRUCTION

Article 22. Money subject to destruction

Money subject to destruction includes:

1. Money unqualified for circulation.

2. Money subject to circulation suspension.

Article 23. Organization and management of money destruction

1. It must be ensured that after being destroyed, money cannot be restored for re-use as money.

2. Money destruction must ensure absolute safety and ensure state secret.

3. The State Bank shall organize, guide and supervise the destruction of money and the adequate, accurate and prompt accounting of the quantity and kinds of money subject to destruction.

Article 24. Accounting of proceeds from sale of scraps

The proceeds from sale of scraps from money destruction shall be accounted as the State Bank’s revenue from professional operations.

Chapter VI

EXPENSES FOR MONEY PRINTING, MINTING, PRESERVATION, TRANSPORTATION, ISSUE, WITHDRAWAL, REPLACEMENT AND DESTRUCTION

Article 25. Regular expenses

Annual regular expenses for money printing, minting, preservation, transportation, issue, withdrawal, replacement and destruction shall be paid and managed under the Law on the State Budget and the State Bank’s financial regulations.

Article 26. Expenses for printing and minting new money

Expenses for printing and minting new kinds of money not yet issued shall be separately accounted under Government-approved projects. The State Bank Governor shall manage and examine such expenses under confidentiality regulations and report on expense items to the Prime Minister and concurrently to the Ministry of Finance.

Chapter VII

RESPONSIBILITIES OF THE STATE BANK AND CONCERNED AGENCIES

Article 27. Responsibilities of the State Bank

1. To organize money designing, printing, minting, issue, withdrawal, replacement, classification and destruction; to preserve and transport money, precious assets and valuable papers within the State Bank’s system.

2. To coordinate with functional agencies in detecting and preventing prohibited acts specified in Article 23 of the Law on the State Bank of Vietnam.

3. To guide regulations on cash balancing within the State Bank’s system, cash transactions, treasury services, and the accounting and statistical regime under the law on accounting and statistics.

Article 28. Responsibilities of the Ministry of Finance

1. To examine the State Bank in conducting money printing, minting and destruction.

2. To examine state treasuries in implementing relevant provisions of this Decree.

Article 29. Responsibilities of the Ministry of Public Security

1. To ensure the State Bank’s operation security and safety with regard to money issue, preservation and transportation of precious assets and valuable papers and protection of vaults of the State Bank and cash vaults of money printing and minting establishments.

2. To direct public security agencies at all levels in assuming the prime responsibility for, and coordinating with the State Bank in, investigating and handling acts of destroying money, and making, transporting, storing or circulating counterfeit money.

3. When requested, to assess material evidence suspected of being counterfeit money or destroyed money.

Article 30. Responsibilities of People’s Committees at all levels

1. To coordinate with relevant agencies in, and create favorable conditions for, safe protection of cash vaults and transportation of money, precious assets and valuable papers of the State Bank, credit institutions and foreign bank branches in localities.

2. To direct professional sectors in mobilizing people to maintain and protect Vietnamese currency; preventing acts of destroying money and making, transporting, storing and circulating counterfeit money.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 31. Effect

1. This Decree takes effect on June 26, 2012.

2. This Decree replaces the Government’s Decree No. 81/1998/ND-CP of October 1, 1998, on printing, minting, preservation, transportation and destruction of banknotes and coins; preservation and transportation of precious assets and valuable papers within the banking system; and the Government’s Decree No. 87/1998/ND-CP of October 31, 1998, on issue, withdrawal and replacement of banknotes and coins.

Article 32. Implementation responsibility

1. The State Bank Governor, the Minister of Finance and the Minister of Public Security shall, within the ambit of their functions and tasks, guide and examine the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG