Circular 58/2024/TT-NHNN guide the handling of counterfeit money in the banking sector

CIRCULAR

Guiding the handling of counterfeit money
and suspected counterfeit money in the banking sector

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

Pursuant to the Government’s Decree No. 102/2022/ND-CP dated December 12, 2022 defining the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to the Government’s Decree No. 87/2023/ND-CP dated December 8, 2023 on prevention and fight of counterfeit money and protection of Vietnamese money;

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

The Governor of the State Bank of Vietnam hereby promulgates the Circular  guiding the handling of counterfeit money and suspected counterfeit money in the banking sector.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides guidance on the seizure of counterfeit Money; temporary seizure of suspected counterfeit money; the verification of counterfeit money and suspected counterfeit money; the stamping and punching of counterfeit money; the packaging, delivery, storage, and transportation of counterfeit money within the banking sector.

Article 2. Subjects of application

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

2. Organizations and individuals possessing counterfeit money or suspected counterfeit money in cash transactions with the authorities and organizations prescribed in Clause 1 of this Article.

Article 3. Interpretation of terms

For the purposes of this Circular, the terms below are construed as follows:

1. Counterfeit money of a new type means counterfeit money not yet announced in writing by the State Bank or the Ministry of Public Security.

2. Security features mean intentionally integrated characteristics on banknotes to distinguish genuine money from counterfeit money.

3. Customers mean organizations or individuals engaging in cash transactions with the State Bank, credit institutions, or branches of foreign banks.

Chapter II
SPECIFIC PROVISIONS

Article 4. Responsibility for seizing counterfeit money and temporarily seizing suspected counterfeit money

1. The Central Banking Department of the State Bank (hereinafter referred to as the Central Banking Department), State Bank branches, credit institutions, and branches of foreign banks, upon detecting counterfeit money in cash transactions with customers, must seize it in accordance with Article 5 of this Circular; upon detecting suspected counterfeit money, they must temporarily seize it in accordance with Article 6 of this Circular; and must not return counterfeit money or suspected counterfeit money to customers.

2. Personnel responsible for seizing counterfeit money or temporarily seizing suspected counterfeit money must be trained in skills to recognize genuine money and counterfeit money in accordance with the State Bank's program or be trained in currency verification.

Personnel responsible for verifying counterfeit money and suspected counterfeit money of the State Bank must be trained in currency verification.

Article 5. Seizure of counterfeit money

1. In cash transactions with customers, upon detecting currency with signs of suspected counterfeit, State Bank branches, the Central Banking Department or the credit institution or foreign bank branch shall compare it with the security features on genuine money (or sample currency) of the same type or with the features and methods of identifying Vietnamese currency in the notice published by the State Bank, or shall compare it with the features of counterfeit money in the notice issued by the State Bank or the Ministry of Public Security, and shall proceed as follows:

a) If it is confirmed to be a type of counterfeit money that has been announced in writing by the State Bank or the Ministry of Public Security, it must be seized, a record must be made using Form No. 01 provided in the Appendix issued with the Government's Decree No. 87/2023/ND-CP dated December 08, 2023, regulating the prevention and combat of counterfeit money and the protection of Vietnamese currency, and the counterfeit money must be stamped and punched. The stamping and punching of counterfeit money shall be carried out in accordance with Clause 2, Article 7 of this Circular.

b) If it is determined to be counterfeit money of a new type, it must be seized and a record must be made using Form No. 01 provided in the Appendix to Decree No. 87/2023/ND-CP, but the counterfeit money must not be stamped or punched.

Within 02 working days from the date of seizing the counterfeit money of a new type, the State Bank branch or the Central Banking Department must send a written notice to the Issue and Vault Department; the credit institution or foreign bank branch must send a written notice to the Central Banking Department  or the State Bank branch in the locality where such credit institution or its branch, or such foreign bank branch opens its payment account (hereinafter referred to as the local State Bank branch). The notice shall include information on the currency denomination, quantity, serial numbers, and a description of the counterfeit money’s features.

2. State Bank branches, the Central Banking Department, credit institutions, and branches of foreign banks must promptly notify the nearest police offices for coordination and handling of one of the following cases:

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

b) They detect counterfeit money of a new type.

c) They detect five or more counterfeit notes (or 5 or more counterfeit metal coins) in a single transaction.

d) Customers fail to obey while records are being made and the counterfeit money is being seized.

3. During the process of counting, sorting, and selecting currency, after receiving cash in bundles and bags with intact seals used in the banking sector as prescribed by the regulations of the State Bank, when counterfeit money is detected, units under the State Bank, credit institutions, and branches of foreign banks shall handle it as with counterfeit money detected in cash transactions as prescribed in Clause 1 and Points b and c, Clause 2 of this Article.

Article 6. Temporary seizure of suspected counterfeit money

1. In cash transactions with customers, upon detecting suspected counterfeit money, the State Bank branch, the Central Banking Department, or the credit institution or foreign bank branch must temporarily seize it and make a record using Form No. 02 provided in the Appendix to Decree No. 87/2023/ND-CP.

2. Within 05 working days from the date of temporary seizure, the credit institution or foreign bank branch must submit a verification dossier as prescribed in Clause 1, Article 10 of this Circular to the local State Bank branch or the Central Banking Department for verification thereof.

Article 7. Stamping and punching of counterfeit money

1. Counterfeit money stamp:

The counterfeit money stamp is rectangular; dimensions: 60mm x 20mm; section for the unit’s name: 60mm x 7mm, section for “TIỀN GIẢ” (COUNTERFEIT MONEY): 60mm x 13mm. The counterfeit money stamp uses red, indelible ink.

2. Method of stamping and punching holes on counterfeit money:

Stamp “TIỀN GIẢ” (COUNTERFEIT MONEY) on both sides of the counterfeit money note, one stamp per side, and punch 4 holes on the note (2 evenly spaced holes along each long edge of the note using a standard office hole puncher).

Article 8. Packaging and preservation of counterfeit money

1. State Bank branches and the Central Banking Department shall be responsible for packaging and sealing counterfeit money. The sealing of counterfeit money shall be carried out in accordance with the State Bank's regulations on sealing cash, but the seal must be stamped with “TIỀN GIẢ” (COUNTERFEIT MONEY) to distinguish it from genuine money.

2. Packaging and sealing of counterfeit money:

a) Counterfeit cotton notes, counterfeit polymer notes: 100 notes of the same denomination and the same material shall be bundled into 1 packet; 10 packets shall be bundled into 1 bundle (1,000 notes) and sealed.

b) Counterfeit metal coins: 100 coins of the same denomination shall be packaged into 1 small bag and sealed; 10 small bags shall be packaged into one large bag (1,000 coins) and sealed.

c) In case of insufficient quantity to make a bundle (or bag), State Bank branches and the Central Banking Department shall still package and seal, clearly stating the number of notes (or coins) for convenient delivery and receipt.

3. Counterfeit money shall be stored separately in the vaults of the State Bank system, credit institutions, and branches of foreign banks.

Article 9. Delivery, receipt, and transportation of counterfeit money

1. Credit institutions and branches of foreign banks must deliver all seized counterfeit money to the Local State Bank branch or the Central Banking Department on a monthly basis, except for counterfeit money of a new type which is delivered in accordance with Clause 4 of this Article. The delivery and receipt of counterfeit money shall be carried out on a note-by-note (or coin-by-coin) basis and must be recorded in a report using Form No. 04 provided in the Appendix to Decree No. 87/2023/ND-CP.

The method of transporting counterfeit money shall be decided by the Chairman of the Members' Council, the Chairman of the Board of Directors, or the Chief Executive Officer (Director) of the credit institution or foreign bank branch, ensuring safety during transportation.

2. State Bank branches and the Central Banking Department shall be responsible for verifying the authenticity of each counterfeit money note delivered by credit institutions and branches of foreign banks.

In cases where genuine money is found among the delivered counterfeit money, the State Bank branch or the Central Banking Department shall make a record using the form provided in the Appendix issued with this Circular and issue a written request to the delivering unit to reimburse the customer for the equivalent value and report the result within 30 days.

The genuine note that has been stamped “TIỀN GIẢ” (COUNTERFEIT MONEY) and punched shall be cut by the State Bank branch or the Central Banking Department at 1/8 of the note's area, exchanged for the equivalent value (credited) to the delivering unit (without charging a fee for exchanging money unfit for circulation), and packaged and delivered as with money unfit for circulation in accordance with the regulations of the State Bank.

3. State Bank branches and the Central Banking Department must deliver counterfeit money at least once every 6 months (if any) to the Central Vault. The delivery can be combined with the State Bank's money transfers.

The delivery and receipt shall be carried out in bundles, packages, and bags with intact seals and shall be recorded in a report using Form No. 04 provided in the Appendix to Decree No. 87/2023/ND-CP.

4. For counterfeit money of a new type, based on the notification of counterfeit money of a new type prescribed at Point b, Clause 1, Article 5 of this Circular, the credit institution or foreign bank branch must deliver it to the local State Bank branch or the Central Banking Department within 05 working days from the date of seizure. The transportation method shall comply with Clause 1 of this Article.

Within 02 working days from the date of receiving the counterfeit money of a new type, the State Bank branch or the Central Banking Department shall notify the Issue and Vault Department.

5. Based on the notification of counterfeit money of a new type from the State Bank branch or the Central Banking Department as prescribed at Point b, Clause 1, Article 5, and Clause 4, Article 9 of this Circular, the Issue and Vault Department shall consider and decide on the request for the counterfeit money of a new type to be delivered. If there is such a request, the State Bank branch or the Central Banking Department shall deliver the counterfeit money of a new type as requested by the Issue and Vault Department. The method of transporting counterfeit money of a new type shall be decided by the Director of the Central Banking Department or the State Bank branch, ensuring safety and timeliness. If there is no request, the counterfeit money shall be stamped, punched, and delivered in accordance with Clause 3 of this Article.

Article 10. Verification of counterfeit money and suspected counterfeit money by the State Bank

1. Any authority, organization, or individual requesting the verification of counterfeit money or suspected counterfeit money must prepare 01 dossier of request for verification as prescribed in Clause 2, Article 5 of Decree No. 87/2023/ND-CP and submit it directly to the State Bank branch or the Central Banking Department or the Issue and Vault Department (in Hanoi), or the Sub-Department of Issue and Vault (in Ho Chi Minh City).

2. Upon receiving the dossier of request for verification in accordance with Clause 1 of this Article or from the date of temporary seizure of suspected counterfeit money in accordance with Clause 1, Article 6, the State Bank branch, the Central Banking Department, the Issue and Vault Department, or the Sub-Department of Issue and Vault (hereinafter referred to as the verification agency) must conduct the verification. The duration of verification shall comply with Clause 3, Article 5 of Decree No. 87/2023/ND-CP.

Within a maximum of 02 working days from the completion of the verification, the verification agency shall send a written notice on the verification results to the authority, organization, or individual that requests such verification.

The verification shall be carried out free of charge.

3. In case of being unable to determine whether the money is genuine or counterfeit, within 30 days from the date of receiving the counterfeit money or suspected counterfeit money for verification, the State Bank branch or the Central Banking Department shall send a written request and transfer the counterfeit money or suspected counterfeit money to the Issue and Vault Department or the Sub-Department of Issue and Vault for verification; and at the same time send a notice to the authority, organization, or individual mentioned in Clause 1 of this Article or Clause 1, Article 6 of this Circular or the credit institution or foreign bank branch mentioned in Clause 2, Article 6 of this Circular.

The method of transporting counterfeit money or suspected counterfeit money for verification shall be decided by the Director of the State Bank branch or the Central Banking Department, ensuring safety and convenience.

Within a maximum of 05 working days from the date of receiving the verification results, the State Bank branch or the Central Banking Department must send a written notice on the verification results to the authority, organization, or individual that requests such verification.

Article 11. Handling of verification results

1. At the Issue and Vault Department and the Sub-Department of Issue and Vault:

a) If the verification result shows that it is genuine money, the genuine money shall be returned to the authority, organization, or individual that requests such verification, or shall be deposited at the Central Banking Department when verified at the Issue and Vault Department or the State Bank branch in Ho Chi Minh City when verified at the Sub-Department of Issue and Vault to credit the State Bank branch, credit institution or foreign bank branch requesting the verification.

b) If the verification result shows that it is a type of counterfeit money that has been announced by the State Bank or the Ministry of Public Security, it shall be seized, stamped, punched, and deposited at the Central Vault in Hanoi (Vault I) or in Ho Chi Minh City (Vault II).

c) If the verification result shows that it is counterfeit money of a new type, the Issue and Vault Department shall promptly notify the Department of Economic Security under the Ministry of Public Security and carry out the seizure. For the Sub-Department of Issue and Vault, it shall send a written report to the Issue and Vault Department and promptly notify the Municipal Police Department of Ho Chi Minh City (the Economic Security Division); transfer the counterfeit money of a new type to the Issue and Vault Department (if requested). The transportation method shall be decided by the Sub-Department of Issue and Vault, ensuring safety and timeliness. If there is no request to transfer the counterfeit money to the Issue and Vault Department, it shall be stamped, punched, and preserved at Vault II.

The counterfeit money of a new type shall be kept at the Issue and Vault Department for the purposes of the State Bank's prevention and combat of counterfeit money in accordance with Article 12 of this Circular.

2. At State Bank branches and the Central Banking Department:

a) If the verification result shows that it is genuine money, the genuine money shall be exchanged for the authority, organization, or individual that requests such verification in accordance with the State Bank's regulations on exchanging money unfit for circulation.

b) If the verification result shows that it is a type of counterfeit money that has been announced by the State Bank or the Ministry of Public Security, it shall be seized, stamped, and punched.

c) If the verification result shows that it is counterfeit money of a new type, it shall be seized; a notice shall be promptly sent to the local police department (the Economic Security Division), and a written notice of the counterfeit money of a new type shall be sent to the Issue and Vault Department. The delivery of counterfeit money of a new type shall be carried out in accordance with Clause 4, Article 9 of this Circular.

3. At credit institutions and branches of foreign banks:

a) If the verification result shows that it is genuine money, the genuine money shall be exchanged for the customer in accordance with the State Bank's regulations on exchanging money unfit for circulation.

b) If the verification result shows that it is counterfeit money, the verification result and the handling of counterfeit money by the verification agency shall be notified to the customer within a maximum of 05 working days from the date of receiving the verification result.

4. For counterfeit money or suspected counterfeit money verified at the request of a police agency, a competent agency of the Army, a customs office, the People's Procuracy or People's Court, after verification, it shall be returned to the unit that requests such verification, without stamping or punching. The delivery and receipt of counterfeit money or suspected counterfeit money shall be recorded in a report using Form No. 04 provided in the Appendix to Decree No. 87/2023/ND-CP.

Article 12. Retention of counterfeit money as research material for the State Bank's prevention and combat of counterfeit money

After analyzing and verifying counterfeit money of a new type, the Issue and Vault Department is allowed to retain and preserve a maximum of 15 notes (or coins) per type to serve the research, prevention, and combat of counterfeit money, and professional training (except for counterfeit money and suspected counterfeit money verified in accordance with Clause 4, Article 11 of this Circular). The Issue and Vault Department shall monitor, retain, and preserve in accordance with the denomination, serial number, and quantity of each type of counterfeit money. If it is necessary to retain and preserve more than 15 notes (or coins) per type, the Issue and Vault Department shall submit it to the Governor of the State Bank for decision.

In cases where it is not necessary to retain and preserve after the research, prevention, and combat of counterfeit money, and professional training, the Issue and Vault Department shall stamp and punch holes on the counterfeit money, and deposit it at the Central Vault in Hanoi (Vault I).

Article 13. Information on counterfeit money

1. The Issue and Vault Department (under the State Bank) shall analyze, verify, and announce the features of counterfeit money of a new type in writing to the Department of Economic Security, the Institute of Criminal Sciences (under the Ministry of Public Security), the Department of Drug and Crime Prevention – the Border Guard Command (under the Ministry of National Defense), State Bank branches, the Central Banking Department, and the State Treasury for the purposes of the prevention and combat against counterfeit money.

2. Upon receiving the written announcement of counterfeit money of a new type from the Issue and Vault Department, State Bank branches must send written notices of the features of such new type to the head offices of credit institutions and branches of foreign banks in the respective localities.

3. Upon receiving the written announcement of counterfeit money of a new type from the State Bank, credit institutions and branches of foreign banks must send written notices to the units within their systems in order to prevent counterfeit money.

4. When necessary, the Issue and Vault Department shall publicly announce on mass media or on the State Bank's website the features of counterfeit money appearing in circulation so that organizations and individuals can be vigilant and proactively prevent it.

Article 14. Statistical reports on counterfeit money

State Bank branches, the Central Banking Department, credit institutions, and branches of foreign banks shall report data on seized counterfeit money in accordance with the State Bank's statistical reporting regime.

Chapter III
ORGANIZATION OF IMPLEMENTATION

Article 15. Responsibilities for guiding and inspecting the implementation

1. The Issue and Vault Department shall be responsible for guiding and inspecting the implementation of this Circular. The Issue and Vault Department shall coordinate with relevant units to develop a training program on currency verification and a training program on skills to recognize genuine money and counterfeit money and submit it to the Governor of the State Bank for decision.

2. State Bank branches shall inspect the implementation of this Circular by those subject to inspection within their competence in the respective localities.

3. Credit institutions and branches of foreign banks shall be responsible for guiding and inspecting the implementation of this Circular within their systems.

Article 16. Effect

This Circular takes effect from February 14, 2025, and supersedes Circular No. 28/2013/TT-NHNN dated December 05, 2013 of the Governor of the State Bank, on the handling of counterfeit money and suspected counterfeit money in the banking sector.

Article 17. Organization of implementation

Heads of affiliates to the State Bank; credit institutions, and branches of foreign banks shall be responsible for organizing the implementation of this Circular./.

* All Appendices are not translated herein.