Circular No. 02/2000/TT-NHNN guiding the implementation of Decision No. 170/1999/QĐ-TTg dated August 19, 1999 of the Government Prime Minister on encouraging overseas Vietnamese to transfer money back to Vietnam.

CIRCULAR

Guidelines for Implementing Decision No. 170/1999/QĐ-TTg dated August 19, 1999

of the Prime Minister on Encouraging Overseas Vietnamese to Transfer Money Back to Vietnam

To encourage and facilitate overseas Vietnamese and foreigners to transfer foreigncurrency back to Vietnam to help their families, relatives, or for other charitablepurposes based on respect for Vietnamese and foreign laws, on August 19, 1999, thePrime Minister issued Decision No. 170/1999/QĐ-TTg on encouraging overseas Vietnameseto transfer money back to Vietnam.

                                               

Pursuant to Clause 2, Article 10 of Decision No. 170/1999/QĐ-TTg dated August 19,1999 of the Prime Minister on encouraging overseas Vietnamese to transfer moneyback to Vietnam, the State Bank of Vietnam provides guidance for implementation asfollows:

I. Rights of the Beneficiary

Receiving foreign currency or Vietnamese dong (in cash or by bank transfer) asrequested;

1.In the case of receiving foreign currency, the beneficiary has the right to:

2. a.Sell to authorized credit institutions or foreign exchange counters;

b.Deposit foreign currency savings at authorized credit institutions;

c.Open and deposit foreign currency personal accounts at authorized creditinstitutions;

d.Use foreign currency for other purposes in accordance with the provisions ofDecree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchangemanagement, Circular No. 01/1999/TT-NHNN7 dated April 16, 1999 of the State Bank ofVietnam guiding the implementation of the aforementioned Decree, and other currentprovisions related to foreign exchange management.

The beneficiary is not required to pay income tax on foreign currency received fromthe sender.

3.II. Conditions and Procedures for Issuing Permits to Provide Foreign CurrencyReception and Payment Services

1. For Credit Institutions

a.Credit institutions are only permitted to provide foreign currency reception andpayment services after being granted a foreign exchange operation permit by theState Bank of Vietnam (which includes the provision of foreign currency receptionand payment services).

b.The conditions and procedures for issuing foreign exchange operation permits tocredit institutions are stipulated in Circular No. 01/1999/TT-NHNN7 dated April 16,1999 of the State Bank of Vietnam guiding the implementation of Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchange management andother current provisions related to foreign exchange management.

2. For Economic Organizations

2.1 Conditions

Having a basic contract with a foreign partner providing foreign currency receptionand payment services. The contract must clearly specify the form of reception andpayment, the ratio of commission sharing from transferred funds between the economicorganization and the foreign partner (for cases where the economic organizationreceives money from the sender through a foreign partner);

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows:b.Having a feasible project to provide foreign currency reception and payment services;

c.Having a convenient and quick payment network for beneficiaries.

2.2 Procedures

When applying for a permit to provide foreign currency reception and payment services,an economic organization must submit to the State Bank of Vietnam (Department ofForeign Exchange Management) the following dossier:

Application for permission to provide foreign currency reception and payment services(according to Form I attached);

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows:Project to provide foreign currency reception and payment services;

b.c.Basic contract with a foreign partner regarding foreign currency reception andpayment services (for cases where the economic organization receives money fromthe sender through a foreign partner);

d.Certified copy of the decision establishing the economic organization, businessregistration certificate, investment license, or operating license;

Opinion of the supervising authority and the Branch of the State Bank of Vietnam inthe same locality regarding the economic organization's provision of foreigncurrency reception and payment services;

e.Opinion Within fifteen working days from the date of receipt of complete and valid documents, theState Bank of Vietnam (Department of Foreign Exchange Management) will considergranting or refusing the permit, in the case of refusal, a written explanation of thereasons must be provided.

3. For Economic Organizations Acting as Agents for Payment Services Provided byAuthorized Credit Institutions

3.1 Conditions

Having a basic contract to act as an agent for an authorized credit institution;

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows:b.Having a convenient and quick payment network for beneficiaries.

3.2 Procedures

When applying for a permit to act as an agent for foreign currency payment servicesprovided by authorized credit institutions, an economic organization must submit tothe Branch of the State Bank of Vietnam in the same locality the following dossier:

a.Application to act as an agent for foreign currency payment services provided byauthorized credit institutions (according to Form II attached); b.Basic contract to act as an agent for an authorized credit institution;

c.Certified copy of the decision establishing the economic organization, businessregistration certificate, investment license, or operating license;

Within fifteen days from the date of receipt of complete and valid documents, theBranch of the State Bank of Vietnam in the same locality will consider granting orrefusing the permit, in the case of refusal, a written explanation of the reasons mustbe provided.

Within thirty days from the effective date of this Circular, economic organizationscurrently providing foreign currency reception and payment services for senders oracting as agents for foreign currency payment services provided by authorized creditinstitutions

must complete the procedures to apply for new permits in accordance with thisCircular.

4.After the above period, economic organizations that have not been granted newpermit must immediately cease their activities in providing foreign currencyreception and payment services for senders or must immediately cease their servicesas agents for foreign currency payment services provided by authorized creditinstitutions. III. Suspension or Revocation of Permits

The State Bank of Vietnam or its Branches in provinces and centrally-administeredcities, depending on the authority to issue permits, may suspend temporarily or revokepermits for organizations violating any of the following circumstances:

1. Organizations whose permits are suspended temporarily in the followingcircumstances:

Frequently failing to report to the Bank as prescribed in Part VI of this Circular;

b.Violating clauses in contracts signed with foreign partners or agency agreementsfor foreign currency payment services signed with authorized credit institutions,being requested by the foreign partner or authorized credit institution to cancel thecontract already signed;

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows:Not complying with the provisions in the permit issued by the Bank.

2. Organizations whose permits are revoked in the following circumstances: a.There is evidence that the application for the permit contains intentionally falseinformation;

c.Failing to comply with the provisions set out in the license issued by the Bank.

2. Organizations shall have their licenses revoked in the following cases:

a. There is evidence that the information in the application for the license was intentionally false.

b.Within twelve months from the date of issuance of the permit, the organization does not provide foreign currency receipt and payment services for remitters or act as an agent for foreign currency payments;

c.Voluntarily or compulsorily dissolved by competent state authorities;

d. Splitting, merging, consolidating, bankruptcy.

IV.Transfer fees

1. Ordinary transfers through the banking organization system: Banking organizations are permitted to charge service fees for transfers from permitted economic organizations, international postal financial service enterprises, and beneficiaries according to the State Bank's regulations on bank transfer service fees.

2. Transfers through organizations providing transfer services: Banking organizations, Permitted economic organizations, international postal financial service enterprises may agree with foreign partners to receive transfer service fees without directly charging beneficiaries.

V. Publicity Organizations

1. Units under the State Bank responsible for publicity work cooperate with information media agencies, the Ministry of Foreign Affairs, the Overseas Vietnamese Committee, and related ministries and sectors to promote and disseminate policies of the Vietnamese Government encouraging overseas Vietnamese to transfer money back to Vietnam.

2.Branches of the State Bank in provinces and centrally-administered cities collaborate with local information media agencies and relevant departments to publicize and disseminate policies of the Vietnamese Government encouraging overseas Vietnamese to transfer money back to Vietnam.

VI. Reporting System

1.Implementing Article 8 of Decision No. 170/1999/QĐ-TTg dated August 19, 1999 of the Prime Minister, the State Bank requests relevant General Departments and units to coordinate in implementing the reporting system as follows:

a. The General Department of Customs reports to the State Bank (Department of Foreign Exchange Management) on the amount and situation of foreign currency carried by individuals when entering and exiting the country according to the form in Appendix III;

b.The Vietnam Post and Telecommunications Corporation and other enterprises providing international postal financial services licensed by the General Post Office report to the State Bank (Department of Foreign Exchange Management) on the amount and situation of foreign currency received and paid out according to the form in Appendix IV;

c.Branches of the State Bank in provinces and centrally-administered cities report to the State Bank (Department of Foreign Exchange Management) on the amount and situation of acting as agents for paying out foreign currency for economic organizations within their jurisdiction to permitted banking organizations according to the form in Appendix V;

d. Permitted banking organizations and permitted economic organizations report to the State Bank (Department of Foreign Exchange Management) on the amount and situation of foreign currency received and paid out for remitters according to the form in Appendix VI.

CAll the aforementioned General Departments and related units shall submit quarterly reports, at the latest by the 15th day of the first month of each quarter.

2.Quarterly, no later than the 5th day of the first month of each quarter, economic organizations acting as agents for paying out foreign currency for permitted banking organizations must report to the branches of the State Bank in provinces and centrally-administered cities within their jurisdiction on the amount and situation of acting as agents for paying out foreign currency domestically (according to the form in Appendix VII).

3.Quarterly, no later than the 25th day of the first month of each quarter, the Department of Foreign Exchange Management will consolidate and submit a report signed by the Governor of the State Bank to the Prime Minister regarding the amount and situation of foreign currency transferred into Vietnam by remitters from abroad and paid out to beneficiaries domestically.                       

VII. Implementation Provisions

1.This Circular takes effect fifteen days after its signing. Any amendments or supplements to this Circular shall be decided by the Governor of the State Bank.

2.Decision No. 48/QĐ-NH7 dated February 23, 1995 of the Governor of the State Bank on overseas Vietnamese transferring foreign currency back to Vietnam is hereby repealed.

3.The Head of the Office, the Inspector General, Heads of units related to the State Bank, Governors of branches of the State Bank in provinces and centrally-administered cities, General Directors (Directors) of permitted banking organizations and permitted economic organizations are responsible for implementing this Decision./.

(P(Appendix I)

NAME OF ECONOMIC ORGANIZATION              SOCIALIST REPUBLIC OF VIETNAM

(Regarding the situation of providing agency payment services for foreign currencies by economic organizations,                                                           Independence - Freedom - Happiness

                         ..........Date Month Year

APPLICATION FOR PERMIT

TO PROVIDE FOREIGN CURRENCY RECEIPT AND PAYMENT SERVICES

Respected: State Bank (Department of Foreign Exchange Management)

Name of Economic Organization:...

Establishment Decision No.:...

Issued by...on...day...month...year

Business Registration Certificate No.:

Issuing authority ...date...month ...year

Main office located at:...

Telephone:...Fax number:

Based on the conditions for being permitted to provide foreign currency receipt and payment services as stipulated by the State Bank, we have signed a principle contract with the foreign partner on...day...month...year (or established a Representative Office or Branch Company abroad) to provide foreign currency receipt and payment services for remitters from abroad;

We request the State Bank (Department of Foreign Exchange Management) to consider granting us a permit to provide foreign currency receipt and payment services. We solemnly commit to comply with all current regulations on foreign exchange management by the Vietnamese Government and bear legal responsibility for any violations committed by our unit.

GENERAL DIRECTOR

(DIRECTOR)

Enclosed documents:                                              

Establishment Decision and Business Registration; (Signature and seal)

Proposal for foreign currency receipt and payment services;

Principle contract with foreign party;

Opinion Approval of the supervisory authority and the State Bank branch in the province or city regarding permission to provide foreign currency receipt and payment services. 

(Appendix II)

NAME OF ECONOMIC ORGANIZATION              SOCIALIST REPUBLIC OF VIETNAM

No.: ___/                                                        Independence - Freedom - Happiness

                                                                                    ----------------------

                         ...date month year

APPLICATION FOR PERMIT

AGENT FOR PAYING OUT FOREIGN CURRENCY FOR PERMITTED BANKING ORGANIZATIONS

Unit: Equivalent USD : Branch in province A State Bank of the province (or city)...

Name of Economic Organization:...

Establishment Decision No.:...

Issued by...on...day...month...year

Business Registration Certificate No.:

Issuing authority ...date...month ...year

Main office located at:...

Telephone:...Fax number:

We have signed an agency contract with...on...day...month...year to act as an agent for paying out foreign currency for banking organizations;

We request the branch of the State Bank in the province or city to consider granting us a permit to act as an agent for paying out foreign currency for...

We solemnly commit to fully comply with all current regulations on foreign exchange management by the Vietnamese Government and bear legal responsibility for any violations committed by our unit.

Enclosed documents:                                                           GENERAL DIRECTOR (DIRECTOR)

- Establishment Decision and                                                        (signing and stamping)

business registration;

- Principal contract for agency

with authorized financial institutions

(Annex III)

CUSTOMS INSPECTION BUREAU                 SOCIALIST REPUBLIC OF VIETNAM

No.: ___/                                             Independence - Freedom - Happiness

             ...date month year

REPORT

(Regarding carrying foreign currency by individuals when entering and exiting the country in Quarter...of 200... from January...of 200... to January...of 200...)

Respected: State Bank (Department of Foreign Exchange Management)

To implement the provisions of Clause 2, Article 8 of Decision No. 170/1999/QĐ-TTg of the Prime Minister on encouraging overseas Vietnamese to transfer money back to the country, the General Department of Customs announces the following regarding the carrying of foreign currency by individuals when entering and exiting the country:

1. Amounts of foreign currency carried by individuals when entering and exiting the country and declared to customs

2. Overall assessment of the situation of carrying foreign currency when entering and exiting the country

DIRECTOR OF THE GENERAL DEPARTMENT

(Annex IV)NAME OF ENTERPRISE SOCIALIST REPUBLIC OF VIETNAM

 REPORT

(Regarding the situation of providing agency payment services for foreign currencies by economic organizations,                                             Independence - Freedom - Happiness

                                                                                     ----------------------

                                     ...date month year

On receiving and paying foreign currency by enterprises operating in the postal and telecommunications industry in Quarter...of 200... from

(January...of 200... to January...of 200...)            1. Situation of receiving and paying foreign currency

Respected: State Bank (Department of Foreign Exchange Management)

Total amount of foreign currency received from

2general director              

                                                                                                Branch of Commercial Bank

(DIRECTOR)

Province, City

SOCIALIST REPUBLIC OF VIETNAMState Province, City

No.: ___/                                    Independence - Freedom - Happiness

Province..., (city...) day month year ----------------------

REPORT ON SITUATION

(Regarding agency service for paying foreign currency for authorized financial institutions by economic organizations in the province, city... Quarter...of 200...)

            1. Number of economic organizations acting as agents for payment

Respected: State Bank (Department of Foreign Exchange Management)

Total number of economic organizations acting as agents for payment of foreign currency at the beginning of Quarter...of 200..

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows:Total number of economic organizations granted permission by Branch to act as agents for payment of foreign currency for authorized financial institutions in Quarter...of 200..

b.Total number of economic organizations having their agent permits revoked or suspended by Branch for payment of foreign currency for authorized financial institutions in Quarter...of 200..

c. 2. Situation of acting as agents for payment of foreign currency

Name of economic organization

3. Name of financial institution or

                                                                         Credit organization branch in province/city and basic credit cooperative…

authorized economic organization

No.: ___/                                                         SOCIALIST REPUBLIC OF VIET NAM

(Providing agency service for receiving and paying foreign currency in Quarter.../200... Independence - Freedom - Happiness

Country transferring money to Vietnam ----------------------

                                     ...date month year

(Regarding agency service for paying foreign currency for authorized financial institutions by economic organizations in the province, city... Quarter...of 200...)

Total amount of foreign currency received from abroad)

Respected: State Bank (Department of Foreign Exchange Management)

Total amount of foreign currency received from

Total number of economic organizations providing agency services for payment of foreign currency for financial institutions arising during the quarter

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows:Total number of economic organizations providing agency services for payment of foreign currency for financial institutions terminating agency contracts for payment of foreign currency during the quarter.

b.Amount converted to USD entrusted to economic organizations for payment

c. Assessment and recommendations on the situation of receiving and paying foreign currency

d. general director

3. acting as agent...

                                                                                    No.: ___/                                            

(Director)

 

(Annex VII)

Amount received from authorized financial institutionState Province, City

(Acting as agent for payment of foreign currency for authorized financial institutions, Independence - Freedom - Happiness

of Quarter.../year 200.. ----------------------

                         ...date month year

(Regarding agency service for paying foreign currency for authorized financial institutions by economic organizations in the province, city... Quarter...of 200...)

Branch of State Bank of Vietnam in province, city...

                                                Authorized financial institution granting power of attorney )

Respected: Beneficiary

Branches of Commercial Joint Stock Banks, Credit Cooperatives, Credit Guarantee Fund, and Basic Credit Cooperatives

(Director)