Circular 60/2024/TT-NHNN on treasury services for credit institutions and foreign bank branches

CIRCULAR

On treasury services for credit institutions and foreign bank branches

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

Pursuant to the Law on Credit Institutions dated January 18, 2024;

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. 40/2012/ND-CP dated 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;

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

The Governor of the State Bank of Vietnam promulgates the Circular on treasury services for credit institutions and foreign bank branches.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular stipulates the provision of treasury services by commercial banks, foreign bank branches and cooperative banks for other credit institutions and foreign bank branches.

Article 2. Subjects of application

1. Commercial banks, foreign bank branches and cooperative banks that provide treasury services for other credit institutions and foreign bank branches (hereinafter referred to as service providers).

2. Credit institutions and foreign bank branches that use treasury services (hereinafter referred to as service users).

3. Other relevant agencies, organizations and individuals.

Article 3. Interpretation of terms

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

1. Treasury services mean services involving the transportation of assets; the collection and payment of cash and foreign currency; money processing services; and cash replenishment and centralized cash collection services.

2. Asset transportation service means a service whereby the service provider transports cash, precious assets, and valuable papers for the service user under the agreement between the parties.

3. Cash and foreign currency collection and payment service means a service whereby the service provider collects and pays cash and foreign currency to or from the service user at the location specified in Clause 2 Article 8 of this Circular.

4. Money processing service means a service whereby the service provider conducts counting, selection, classification of notes fit or unfit for circulation, counterfeit notes, bundling, and sealing of cash and foreign currency for the service user as agreed upon by the parties.

5. Cash replenishment and centralized cash collection service means a service whereby the service provider carries out the replenishment of cash and the collection of cash and foreign currency for the branches, transaction offices, automated teller machines (ATMs), and other fixed transaction points of the service user under the agreement between the parties.

6. Treasury service fee refers to the amount paid by the service user to the service provider under the agreement between the parties.

7. Escort officer means the individual in overall charge during the transportation process, responsible for ensuring the safety of cash, precious assets, and valuable papers; organizing handover and transportation in accordance with the regulations of the State Bank of Vietnam (hereinafter referred to as the State Bank) on delivery, preservation, and transportation of cash, precious assets, and valuable papers.

Article 4. Principles for provision of treasury services

1. A service provider may only provide treasury services when:

a) The establishment and operation license of the commercial bank or cooperative bank, or the license for the establishment of a foreign bank branch, includes permission to provide treasury services to other credit institutions and foreign bank branches;

b) The service provider has internal regulations and procedures for each type of treasury service to ensure the safety of assets for both the service provider and the service user.

2. When providing treasury services, the service provider must have the necessary facilities for treasury operations, including:

a) In case of provision of asset transportation services, the provider must use armored cash-in-transit vehicles that meet the standards prescribed by the State Bank.  If a vehicle other than an armored cash-in-transit vehicle is used to transport cash, precious assets, and valuable papers, the service provider must specify in writing and guide the process of transportation and security, as well as measures to ensure the safety of assets;

b) In case of asset preservation, a vault that meets the technical standards prescribed by the State Bank must be used;

c) Appropriate machinery, equipment, and devices must be provided for each type of treasury service provision;

d) There must be payment, accounting, and cash management systems in place for the provision of treasury services.

Article 5. Network for the provision of treasury services

Head offices, branches, and transaction offices of commercial banks, cooperative banks, and foreign bank branches meeting the conditions set forth in Article 4 of this Circular may provide treasury services.

Article 6. Treasury service contracts

1. When providing treasury services, the service provider must enter into a contract with the service user.  Such contract must conform to the provisions of this Circular and other relevant laws.

2. A treasury service contract must include at least the following information:

a) Information about the contracting parties;

b) Scope of the service and the duration of the contract;

c) Methods of managing cash in transactions related to the provision of treasury services;

d) Fees and payment methods;

dd) Handling of errors, surpluses, shortages, resolution of disputes, and breaches of contract;

e) Rights and obligations of the parties to the contract;

Chapter II

SPECIFIC PROVISIONS

Article 7. Asset transportation service

1. The service provider shall receive the request from the service user and enter into an asset transportation contract with the service user.

2. When providing the asset transportation service, the service provider shall be responsible for arranging transportation vehicles and security forces. The service user shall be responsible for arranging personnel to hand over or receive assets and for providing the escort officer.

3. The transportation of assets under treasury services shall comply with the State Bank’s regulations on delivery, preservation, and transportation of cash, precious assets, and valuable papers.

Article 8. Cash and foreign currency collection and payment service

 1. The service provider shall receive the request from the service user and enter into a cash and foreign currency collection and payment contract with the service user.

 2. The service provider may collect and pay cash and foreign currency at any transaction location within the lawful networks of both the service provider and the service user, or at another location as agreed upon by the parties.

3. The collection and payment of cash and foreign currency by the service provider shall comply with the State Bank’s regulations on delivery, preservation, and transportation of cash, precious assets, and valuable papers.

Article 9. Money processing service

1. The service provider shall receive the request from the service user and enter into a money processing contract with the service user.

2. The delivery, counting, classification, selection, bundling, and sealing of cash and foreign currency between the service provider and the service user shall comply with the State Bank’s regulations on delivery, preservation, and transportation of cash, precious assets, and valuable papers.

Article 10. Cash replenishment and centralized cash collection service

1. The service provider shall receive the request from the service user and enter into a cash replenishment and centralized cash collection contract with the service user.

2. When providing cash replenishment and centralized cash collection service, the service provider shall be responsible for arranging transportation vehicles, security forces, and an escort officer.

3. Bundles/bags/boxes of cash used for replenishment or collected under centralized cash collection must be those sealed by either the service provider or the service user.

4. The transportation and handover between the service provider and the service user’s fixed points of cash replenishment shall comply with the State Bank’s regulations on delivery, preservation, and transportation of cash, precious assets, and valuable papers.

Article 11. Treasury service fees

1. The service provider shall set fees for each type of treasury service, directly negotiate with the service user, and specify them in the treasury service contract on the principles of equality, voluntariness, and compliance with relevant laws.

2. Such fees must be publicly posted at all transaction locations within the lawful network of the service provider.

Article 12. Handling of surpluses or shortages of cash, precious assets, and valuable papers

Any surplus or shortage of cash, precious assets, or valuable papers arising during the provision of treasury services shall be handled in accordance with the State Bank’s regulations on delivery, preservation, and transportation of cash, precious assets, and valuable papers.

Chapter III

IMPLEMENTATION PROVISIONS

Article 13. Responsibilities of relevant units under the State Bank

Relevant units under the State Bank shall, within their competence and in accordance with the law, inspect and supervise the implementation of this Circular by credit institutions and foreign bank branches. 

Article 14. Responsibilities of the service providers

1. Pursuant to this Circular and other relevant laws, the service provider shall issue internal regulations and procedures for each type of treasury service and shall bear responsibility for ensuring asset safety.  Such internal regulations and procedures must be submitted to the State Bank (the Issue and Vault Department) within 10 days from the date of issuance.

2. Fulfillment of other responsibilities as stipulated in the treasury service contract and in accordance with relevant laws.

Article 15. Effect

1. This Circular takes effect from February 14, 2025.

2. Heads of units under the State Bank, credit institutions, and foreign bank branches shall implement this Circular./.