Decree No. 89/2016/ND-CP dated July 01, 2016 of the Government on requirements applicable to business entities acting as currency exchange agents or providing foreign currency receipt and payment services

DECREE

Prescribing conditions for foreign exchange agency and provision of foreign currency receipt and payment services of economic organizations[1]

Pursuant to the June 19, 2015 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;

Pursuant to the November 26, 2014 Law on Investment;

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;

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

The Government promulgates the Decree prescribing conditions for foreign exchange agency and provision of foreign currency receipt and payment services of economic organizations.

Article 1. Scope of regulation

This Decree prescribes conditions on economic organizations acting as foreign exchange agents; and conditions on economic organizations providing foreign currency receipt and payment services, including direct foreign-currency receipt and payment activities and foreign currency payment agency activities.

Article 2. Subjects of application

1. Economic organizations acting as foreign exchange agents.

2. Economic organizations providing foreign currency receipt and payment services.

3. Other organizations and individuals involved in foreign exchange agency and provision of foreign currency receipt and payment services.

Article 3. Interpretation of terms

In this Decree, the terms below shall be construed as follows:

1. Licensed credit institution means a bank, non-bank credit institution or foreign bank branch that is licensed to provide foreign exchange services in accordance with law.

2. Authorizing credit institution means a credit institution that is licensed to authorize an economic organization to act as its foreign exchange agent or foreign currency payment agent.

3. Economic organizations (excluding credit institutions) mean organizations established and operating in accordance with Vietnamese law, including enterprises, cooperatives, unions of cooperatives and other organizations carrying out business investment activities.

Article 4. Conditions on economic organizations acting as foreign exchange agents

An economic organization may act as a foreign exchange agent only after obtaining a foreign exchange agent registration certificate from the State Bank of Vietnam. Conditions for an economic organization to be considered and granted a foreign exchange agent registration certificate by the State Bank of Vietnam:

1. Being established or making business registration in accordance with Vietnamese law.

2. Having location(s) for foreign exchange agent(s) at one or more than one of the following places:

a/ Tourist accommodation establishments graded at least three stars by the state management agency in charge of tourism;

b/ International (road, airway, waterway) border gates;

c/ Recreation and entertainment centers licensed to organize prize-winning games for foreigners;

d/ Ticket offices of foreign airlines, shipping firms or tourism companies and international air-ticket offices of Vietnamese airlines;

dd/ Tourist sites, trade centers and department stores with foreign visitors and customers.

3. Having physical facilities that satisfy the following requirements of foreign exchange agency activities:

a/ Having a separate transaction place (the transaction office or counter is exclusively used for foreign exchange services but not for other business activities);

b/ The transaction place must have essential working facilities, such as telephone, facsimile machine, safe, exchange rate board, and signboard displaying the name of the authorizing credit institution and the name of the foreign exchange agent.

4. Staff members working directly at a foreign exchange agent shall possess a certificate granted by the authorizing credit institution, which states that they have been trained in the skills to distinguish between genuine and counterfeit foreign currency banknotes.

5. Adopting a professional process for foreign exchange as well as measures to ensure security and safety in the course of foreign exchange.

6. Being authorized by a licensed credit institution to act as a foreign exchange agent.

7. An economic organization may act as a foreign exchange agent for only one licensed credit institution and may reach agreement on placing the foreign exchange agent(s) at one or more than one location in the geographical area where its head office or branch is based.

Article 5. Conditions on economic organizations providing direct foreign-currency receipt and payment services

1. Conditions for an economic organization to be considered and approved by the State Bank of Vietnam for provision of direct foreign-currency receipt and payment services:

a/ Being established or making business registration in accordance with Vietnamese law;

b/ Having equipment and physical facilities that satisfy the requirements of foreign currency receipt and payment services, such as computer, telephone and facsimile machine;

c/ Signing a contract with a foreign partner on foreign currency receipt and payment services;

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

2. Conditions for an economic organization to be considered and approved by the State Bank of Vietnam for extension of the duration of provision of direct foreign-currency receipt and payment services:

a/ Satisfying the conditions prescribed in Clause 1 of this Article;

b/ The granted written approval for provision of direct foreign-currency receipt and payment services remains valid for at least 30 days by the time of dossier submission;

c/ Having committed no violation of the reporting regime prescribed by the State Bank of Vietnam for at least 4 quarters from the time of obtaining the written approval for provision of direct foreign-currency receipt and payment services or the written approval for the latest extension by the time of request for extension.

Article 6. Conditions on economic organizations acting as foreign currency payment agents

1. Conditions for an economic organization to be considered and approved  by the State Bank of Vietnam for foreign currency payment agent registration:

a/ Being established or making business registration in accordance with Vietnamese law;

b/ Having equipment and physical facilities that satisfy the requirements of foreign currency receipt and payment agency activities, such as computer, telephone and facsimile machine;

c/ Being authorized by a licensed credit institution to act as a foreign currency payment agent.

2. Conditions for an economic organization to be considered and approved by the State Bank of Vietnam for extension of the duration of foreign currency payment agent registration:

a/ Satisfying the conditions prescribed in Clause 1 of this Article;

b/ The granted written approval for foreign currency payment agent registration remains valid for at least 30 days by the time of dossier submission;

c/ Having committed no violation of the reporting regime prescribed by the State Bank of Vietnam for at least 4 quarters from the time of obtaining the written approval for foreign currency payment agent registration or the written approval for the latest extension by the time of request for extension.

Article 7. Organization of implementation

1. This Decree takes effect on July 1, 2016.

2. The Governor of the State Bank of Vietnam, ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC