Circular No. 03/2020/TT-NHNN on the destruction of currency by the State Bank of Vietnam

CIRCULAR

Regulations on the destruction of currency of the State Bank of Vietnam

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

Pursuant to Government Decree No. 16/2017/NĐ-CP dated February 17, 2017 on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to Decree No. 40/2012/NĐ-CP dated May 2, 2012 of the Government on currency issuance operations; storage and transportation of precious assets and securities within the State Bank system, credit institutions, and foreign bank branches;

At the proposal of the Director of the Issuance and Treasury Department,

The Governor of the State Bank of Vietnam issues this Circular regulating the destruction of currency of the State Bank of Vietnam.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular regulates the destruction of paper money (cotton, polymer) and metal coins that do not meet circulation standards, suspended circulation money (hereinafter referred to as destroyed money).

Article 2. Applicability

1. The Currency Destruction Council of the State Bank of Vietnam (hereinafter referred to as the Destruction Council);

2. The Currency Destruction Supervision Council of the State Bank of Vietnam (hereinafter referred to as the Supervision Council);

3. Units under the State Bank of Vietnam and organizations and individuals related to currency destruction work and supervision thereof.

Article 3. Authority to decide on currency destruction

1. Based on inventory data of non-circulation standard currency and suspended circulation currency at the Central Treasury, the Director of the Issuance and Treasury Department shall submit to the Governor of the State Bank for decision on the time, quantity, and value of each type of destroyed currency.

2. The Destruction Council shall organize the destruction of currency at the Issuance and Treasury Department in Hanoi (hereinafter referred to as the Northern Destruction Cluster) and at the Issuance and Treasury Sub-department in Ho Chi Minh City (hereinafter referred to as the Southern Destruction Cluster).

In cases where it is necessary to organize the destruction of currency at another facility, the Governor of the State Bank shall decide.

Article 4. Principles of currency destruction

1. Ensuring absolute safety of assets and state secrets in currency destruction work.

2. Destroyed money shall be counted and sampled as a basis for the Chairman of the Destruction Council to decide the counting ratio of each type of money before destruction.

3. Destruction shall be carried out based on the actual amount received from the Central Treasury after the results of counting and classification by the Destruction Council.

4. Money after destruction must ensure that it cannot be restored for reuse as currency.

Article 5. Methods of currency destruction

1. Paper money to be destroyed shall be destroyed using specialized cutting machines.

2. Metal coins to be destroyed shall be destroyed by melting or using specialized metal coin destruction machines.

Chapter II

ORGANIZATION, DUTIES, AND LIMITS OF THE DESTRUCTION COUNCIL

Article 6. The Destruction Council

1. Annually, the Governor of the State Bank decides to establish the Destruction Council, consisting of:

a) Chairperson: Director of the Issuance and Treasury Department;

b) One Vice-Chairperson: Deputy Director of the Issuance and Treasury Department directly responsible for the Northern Destruction Cluster;

c) One Vice-Chairperson: Deputy Head of the Finance and Accounting Department;

d) One Vice-Chairperson: Sub-Director of the Issuance and Treasury Sub-department in Ho Chi Minh City directly responsible for the Southern Destruction Cluster;

e) Members include some Heads and/or Deputy Heads of the Issuance and Treasury Department; Deputy Sub-Director, some Heads and/or Deputy Heads of the Issuance and Treasury Sub-department in Ho Chi Minh City. Among them, there is one member who serves as secretary of the Destruction Council and two secretaries at the Northern Destruction Cluster and the Southern Destruction Cluster.

2. The Destruction Council's assistants consist of specialized teams; at each destruction cluster, four teams are organized according to Article 10 of this Circular.

Article 7. Tasks of the Destruction Council

1. The Destruction Council directs and organizes the implementation of currency destruction work at destruction clusters in accordance with this Circular under the supervision of the Supervision Council, ensuring absolute safety in currency destruction work.

2. Take timely measures to address any remaining issues or deficiencies during the currency destruction process.

3. Organize summaries, evaluations, and propose forms of commendation and handling of violations in currency destruction work.

4. Preserve relevant files and documents in currency destruction work in accordance with regulations.

Article 8. Tasks and Authorities of the Chairman of the Destruction Council

1. Be responsible before the Governor of the State Bank and the law for the State Bank's currency destruction work.

2. Issue internal rules and regulations for the operation of the Destruction Council.

3. Direct and manage overall; develop plans and programs for the Destruction Council's work; decide on the ratio of counting each type of destroyed currency.

4. Assign tasks to Vice Chairmen and members of the Destruction Council; organize the structure and tasks of specialized teams in accordance with Article 10 of this Circular.

Article 9. Tasks and Authorities of the Vice Chairman; Members, and Members兼任秘书的理事会销毁委员会副主席、成员和兼任秘书的成员的任务和权限

1. Vice Chairman of the Destruction Council

a) Comply with the assignment and direction of the Chairman of the Destruction Council.

b) Assist the Chairman of the Destruction Council in directing and managing the implementation of currency destruction tasks.

c) The permanent Vice Chairman represents the Chairman of the Destruction Council to be responsible for directing and managing the council's work when authorized.

d) The Vice Chairman responsible for the destruction cluster assigns tasks to members, Team Leaders, Deputy Team Leaders, and staff of the specialized team under his/her responsibility; approves the plan for receiving destroyed currency from the Central Currency Warehouse of the destruction cluster.

2. Member, and Member兼任秘书的理事会销毁委员会成员和兼任秘书的成员

a) Be responsible to the Chairman of the Destruction Council for assigned tasks.

b) The Member兼任秘书of the Destruction Council has the duty to monitor and compile periodic and ad hoc reports on the results of currency destruction according to regulations; advise the Chairman of the Destruction Council on implementing systems related to the rights and interests of civil servants and workers participating in currency destruction work; compile reports on violations of currency destruction regulations; coordinate with the Secretary of the Supervision Council to complete necessary procedures to serve the mid-term and final summaries of currency destruction work.

Article 10. Tasks of Specialized Teams

1. The Currency Receipt and Storage Team (hereinafter referred to as Team 1): Receive various types of currency for destruction from the Central Currency Warehouse for storage in the currency destruction warehouse; issue and hand over to the Currency Counting Team and the Currency Destruction Team; store currency returned by other specialized teams; enter into the warehouse currency that meets circulation standards selected from the currency destruction counting.

2. The Currency Counting Team (hereinafter referred to as Team 2): Receive currency from Team 1, carry out counting of the number of notes (pieces) received and handle excess, shortage, mixed types of currency, counterfeit currency, and currency meeting circulation standards before transferring to the Currency Destruction Team; count notes (pieces) in cases where bundles (bags) of currency have excess or missing strips, sealed and packaged bundles (bags) not conforming to specifications discovered during receipt and delivery.

3. The Currency Destruction Team (hereinafter referred to as Team 3): Carry out currency destruction using specialized equipment and recover waste materials from the destroyed currency.

4. The Consolidation Team (hereinafter referred to as Team 4): Carry out administrative, accounting, and statistical work; monitor the entry and exit of waste materials from currency destruction; propose requirements for purchasing supplies and materials to support currency destruction work.

5. Each specialized team has a Team Leader and Deputy Team Leader appointed by the Vice Chairman responsible for the destruction cluster for review and decision.

Article 11. Duties of the Head of the Specialized Team

1. Carry out the division of work assigned by the Vice Chairman responsible for the destruction cluster and be accountable to the Destruction Council for the tasks assigned.

2. Directly guide and organize the implementation of tasks to ensure the safety of assets under their responsibility according to the provisions of Article 10 of this Circular.

3. When detecting acts of embezzlement or taking advantage to steal assets, the Head shall coordinate with supervisory officials to prepare reports and submit them to the Destruction Council and the Supervision Council for prompt handling.

Article 12. Civil Servants and Workers Participating in Currency Destruction Work

1. Civil servants and workers participating in currency destruction work must meet the qualification criteria stipulated by law and be managed according to the分级制度规定，中央银行工作人员、职员和劳动者管理章程，劳动法以及相关文件。

2. In necessary cases, the Issuance and Treasury Department shall cooperate with the Cadre and Organization Department to request the Governor of the State Bank of Vietnam to mobilize civil servants and workers from units under the State Bank of Vietnam to participate in currency destruction work.

Chapter III

SPECIFIC PROVISIONS ON CURRENCY DESTRUCTION

Article 13. Management of the Currency Destruction Warehouse

1. The management of the currency destruction warehouse and the preservation of destroyed currency shall be carried out in accordance with the regulations on the management of the central bank's currency warehouse and the preservation of cash issued by the State Bank of Vietnam.

2. Members managing the currency destruction warehouse

a) Each destruction cluster includes three (3) members participating in the management of the currency destruction warehouse: a member of the Destruction Council, an employee performing accounting duties for the currency destruction warehouse, and the custodian of the currency destruction warehouse.

b) Members managing the currency destruction warehouse shall be considered and decided upon by the Governor of the State Bank of Vietnam.

c) Responsibilities of members managing the currency destruction warehouse

(i) A member of the Destruction Council shall be responsible for organizing and managing the operation of the currency destruction warehouse, ensuring asset security, and overseeing its activities; they have the duty to hold the key to one lock of the outer door of the warehouse; directly open and lock the door to supervise the entry and exit, storage, and preservation of assets within the warehouse; directly participate in inventory checks and sign confirmation on the treasury ledger, individual asset tracking ledger, inventory check report (or inventory ledger), and warehouse card.

(ii) An employee performing accounting duties for the currency destruction warehouse shall be responsible for managing and supervising the entry, exit, and preservation of assets within the warehouse; they have the duty to manage and hold the key to one lock of the inner door of the warehouse; directly open and lock the door to facilitate the entry and exit of assets and their preservation within the warehouse; verify and reconcile accounting records with the treasury ledger to ensure accuracy; directly participate in inventory checks and sign confirmation on the treasury ledger, individual asset tracking ledger, inventory check report (or inventory ledger), and warehouse card.

(iii) The custodian of the currency destruction warehouse shall be responsible for ensuring absolute security of all types of assets stored in the warehouse; manage and hold the key to one lock of the inner door of the warehouse; promptly and fully carry out the entry and exit of destroyed currency according to valid and lawful accounting vouchers; maintain ledgers for each type of destroyed currency, warehouse cards, and other necessary books; record and preserve ledgers and documents completely, clearly, and accurately; organize the arrangement and preservation of assets in the warehouse neatly, scientifically, and hygienically.

3. In cases where members managing the currency destruction warehouse take leave, travel on business, or study for less than fifteen (15) working days, the Chairman of the Destruction Council (for the Northern Destruction Cluster) and the Vice Chairman responsible for the Southern Destruction Cluster (for the Southern Destruction Cluster) shall consider and decide on appointing a substitute. For leaves of fifteen (15) working days or more, the decision shall be made by the Governor of the State Bank of Vietnam.

Article 14. Issuing central warehouse funds for the Destruction Council

1. Based on the quantity and value of various types of money to be destroyed as decided by the Governor of the State Bank and the plan to receive money for each destruction cluster, the Currency Issuance and Treasury Department shall issue transfer orders for the Financial Accounting Department (for the Northern Destruction Cluster) and the Accounting and Finance Office under the Currency Issuance and Treasury Branch (for the Southern Destruction Cluster) to issue warehouse withdrawal slips for destroyed money from the Central Warehouse to be stored in the destroyed money warehouse.

2. Based on the warehouse withdrawal documents for destroyed money, the Central Warehouse shall prepare the Money Handover Record and proceed to hand over the destroyed money to each destruction cluster.

Article 15. Provisions on the handover, storage of destroyed money

1. The Head of Group 1 shall receive money handed over by the Central Warehouse to be stored in the destroyed money warehouse according to sealed bundles (boxes) with lead seals intact, with all required elements clearly recorded on the sealing paper in accordance with the regulations on sealing cash of the State Bank of Vietnam, under the supervision of the internal control department of the Currency Issuance and Treasury Department.

2. Destroyed money stored in the destroyed money warehouse must be classified, neatly arranged in a scientific manner without altering the condition of the sealed bundles (boxes), stacks (bags) of destroyed money.

3. Based on the warehouse withdrawal documents for destroyed money, the Destruction Council shall randomly select a portion of the money according to the ratio of counting each type of money approved by the Chairman of the Destruction Council for Group 1 to hand over to Group 2 for sheet (piece) counting; the remaining amount that does not need to be counted by sheets (pieces) shall be handed over to Group 3 for cutting and destroying.

Article 16. Provisions on counting destroyed money

1. Based on the warehouse withdrawal documents for destroyed money, the managers of the destroyed money warehouse shall issue the warehouse to hand over to Group 1 under the supervision of the internal control department of the Currency Issuance and Treasury Department.

2. The Head of Group 2 shall receive according to sealed bundles (boxes) with lead seals intact, with all required elements clearly recorded on the sealing paper in accordance with the regulations on sealing cash of the State Bank of Vietnam, and hand over to each cashier under the supervision of the Supervisory Board in the following manner:

a) Handover according to full stacks of 10 bundles (banknotes), bags (coins) sealed intact, with all required elements clearly recorded on the sealing paper in accordance with the regulations on sealing cash.

For non-standard circulating money that has been deformed: handover according to bags, bundles sealed intact according to packaging methods and sealing regulations for deformed money.

b) For bundles (bags) that do not contain exactly 1,000 sheets (pieces), partial bundles (bags), handover according to sealed bundles (bags) of money, with all required elements clearly recorded on the sealing paper in accordance with the regulations.

3. After receiving the full number of bundles (bags) of money handed over by the Head, the cashier shall sign off on the internal handover record book, proceed to count to determine the number of sheets (pieces), detect excesses, shortages, mixed types of money, counterfeit money, and money meeting circulation standards. If the bundle (bag) of money contains the correct number of sheets (pieces) and the correct type of money as indicated on the seal, immediately destroy the seal and reseal the bundle (bag).

4. Packaging method for bundles (bags) of money, boxes of metal coins after counting sheets (pieces).

a) For banknotes: use one banknote from the stack to fold horizontally across the stack, arrange ten stacks of the same type of banknotes into one bundle, use string (twine, nylon...) to tightly bind two horizontal loops and one vertical loop around the bundle, affix a seal to the face with the knot of the bundle.

For deformed banknotes that cannot be bundled as described above: place into one bag containing 1,000 sheets, use string (twine, nylon...) to tightly tie the mouth of the bag, affix a seal close to the knot of the bag's mouth.

b) For metal coins, place into a bag containing 1,000 pieces, use string (twine, nylon...) to tightly tie the mouth of the bag, affix a seal close to the knot of the bag's mouth. Metal coin bags are packed in boxes and sealed according to the following specifications:

(i) One box of 5,000 VND denomination: 50 bags;

(ii) One box of 2,000 VND, 1,000 VND, 500 VND denominations: 75 bags;

(iii) One box of 200 VND denomination: 100 bags;

c) When affixing the sealing paper to bundles (bags) of money, separate the two ends of the string. On the sealing paper of the bundle (box), bag (envelope) of money, fully record the date, month, year of counting, type of money, number of sheets (pieces), total amount, name and signature of the counter.

5. During the counting process, if excess, shortage, mixed types of money, counterfeit money, and money meeting circulation standards are found within the bundle (bag) of money, the counter shall report to the supervising staff of the Supervisory Board, the Head of Group 2, or the staff responsible for monitoring and handling excesses and shortages, and the witness (if any) to recheck and sign confirmation on the back of the sealing paper of the bundle (bag) of money, while also signing confirmation in the record book of excesses and shortages during counting.

6. Staff responsible for monitoring and handling excesses and shortages in Group 2 may temporarily borrow a certain amount of money from the money received from Group 1 according to each denomination to make up for bundles (bags) of money lacking sheets (pieces), containing mixed types of money, money meeting circulation standards, and counterfeit money. The temporary borrowing amount shall be recorded in daily books and monitored by the Supervisory Board, and then deposited into the destroyed money warehouse. The remaining borrowed amount shall be destroyed on the final day of destroying money of the same denomination.

7. Storage of money during break times

Before break times and lunchtime, money being counted shall be temporarily bundled (bagged) using string (twine, nylon, rubber bands...); counted and uncounted money shall be separately arranged and stored neatly.

The door of the counting room must be locked and sealed with signatures of the Head of Group 2 and the supervising staff of the Supervisory Board.

8. End-of-day processing

a) The counter shall return to the Head of Group 2 the money that has been counted, the remaining uncounted money (if any) at the end of the day, and sign off on the internal handover record book. The Head of Group 2 shall organize the sealing of bundles (boxes) or stacking into locked mesh carts, affixing seals with signatures of the Heads of Group 2 and the Supervision Counting Group to send to the destroyed money warehouse. The handover between the counter and the Head of Group 2 can be conducted multiple times during the day.

b) Prepare and confirm the record of excess and shortage of money in bundles (bags) of destroyed currency for each State Bank branch in provinces and cities, each State Bank transaction office, each credit organization, and each National Treasury on the territory, accompanied by sealed lists and sealing papers for excess and shortage bundles (bags) of money. For counterfeit money mixed with the money being counted, prepare a separate record and handle it according to regulations.

c) The head of Group 2 prepares a confirmation record of the counting results of destroyed money, including the total amount of counted money, the amount of uncounted money, excess and shortage money, mixed types of money, money meeting circulation standards mixed with destroyed money, and counterfeit money discovered during the count, all signed off by the head of the supervisory group.

d) Mixed types of money, counterfeit money, and money meeting circulation standards shall be recorded in ledgers under the supervision of the Supervisory Council and stored in the destroyed money vault.

đ) The door of the counting room must be locked and sealed with signatures from the head of Group 2 and the supervisory officer of the Supervisory Council.

Article 17. Regulations on Cutting and Destroying Money

1. Based on warehouse withdrawal documents for destroyed money, the head of Group 3 receives money from Groups 1 and 2 according to the method of transferring sealed bundles (bags) of money as stipulated in Clause 2 and Clause 4 of Article 16 of this Circular.

2. Implement cutting and destroying the received money using specialized machines to turn the money into scrap material; collect and store the scrap material in designated locations.

3. During breaks and lunchtime, undestroyed money should be neatly arranged separately. The door of the cutting and destroying room must be locked and sealed with signatures from the head of Group 3 and the supervisory officer of the Supervisory Council.

4. At the end of each working day, the head of Group 3 prepares a confirmation record of complete destruction, signed off by the head of the supervisory group for cutting and destroying money; any undestroyed money remaining on that day (if any) shall be organized by the head of Group 3 to pack into bags (boxes), seal with labels or arrange into locked mesh carts with seals confirmed by the head of the supervisory group for cutting and destroying money, then send to the destroyed money vault.

5. The Director of the Issuance and Treasury Department guides the process of destroying paper and metal money using specialized money destruction machines.

Article 18. Regulations on Ensuring Security and Safety in the Destroyed Money Vault, Handover Area, Counting Area, and Cutting and Destroying Area

1. The handover, counting, and cutting and destroying areas must be separate, with secure doors and locks; during breaks and lunchtime, staff members are not allowed to remain at their workstations, and the group leader must be the last person to lock and seal the door, with seals signed by the group leader and the supervisory officer. During working hours, personnel entering and exiting these areas must sign off in the logbook.

2. Personnel from Groups 1, 2, and 3 responsible for ensuring the safety of assets within their assigned scope.

3. When working inside the destroyed money vault, handover area, counting area, and cutting and destroying area, staff members involved in money destruction tasks and those related to such tasks must wear identification cards and uniforms provided by the Destruction Committee and the Supervisory Council as required; they may not bring communication devices, recording equipment, bags, prohibited flammable or explosive materials, cash, or other contraband into the workplace.

For individuals without responsibilities for money destruction tasks who need to enter or exit the destroyed money vault, handover area, counting area, and cutting and destroying area, written permission from the Deputy Chairperson in charge of the destruction cluster is required.

4. The Director of the Issuance and Treasury Department provides guidance on equipment requirements and entry-exit security measures for the areas specified in Clause 1 of this Article.

5. The Deputy Chairperson in charge of the destruction cluster issues documents assigning management and use of daily keys, and storing backup keys for the handover room, counting room, cutting and destroying room, and internal doors within the destruction area (if applicable); keys for money storage facilities (safes, metal boxes, mesh carts) are issued to relevant individuals.

Chapter IV

HANDLING EXCESS AND SHORTAGE OF DESTROYED MONEY,

COUNTING, AUDITING, AND SUMMARIZING, REPORTING

Article 19. Handling excess and shortage of money for destruction

1. During the process of receiving and delivering money for destruction, if excess or missing bundles (bags) of money, or mixed bundles (bags) of different denominations are discovered; both parties involved shall prepare an on-site record under the supervision of the supervisory officer and handle the excess, shortage, and mixed types according to the current regulations of the State Bank of Vietnam.

If excess or missing stacks (bags) of money are discovered, or if sealing and packaging of money do not comply with standards, both parties involved shall prepare an on-site record under the supervision of the supervisory officer and transfer the stacks (bags) to Team 2 for counting sheets (pieces) and handling excess, shortage, and mixed types according to the current regulations of the State Bank of Vietnam.

2. Monthly, based on the records of counting and summary tables of excess and shortage of money by province/city and Branch of the State Bank of Vietnam, the Destruction Council shall submit summary tables, records of excess and shortage, and sealed bundles (bags) of money with excess or shortage to each branch of the State Bank of Vietnam in provinces/cities and Branch of the State Bank of Vietnam; submit summary tables of excess and shortage to the Department of Finance and Accounting to determine the amount of excess or shortage to make procedures to report credit or debit for each branch of the State Bank of Vietnam in provinces/cities and Branch of the State Bank of Vietnam.

3. The handling of excess or shortage of money at branches of the State Bank of Vietnam in provinces/cities, Branch of the State Bank of Vietnam, credit organizations, and foreign bank branches for individuals named on sealed bundles (bags) or packages (boxes) of money shall be carried out according to the current regulations of the State Bank of Vietnam.

Article 20. Handling mixed types of money, counterfeit money, and money meeting circulation standards discovered through counting

1. For mixed types of money that do not meet circulation standards, suspended circulation money, and counterfeit money discovered through counting shall be destroyed at the end of the destruction period.

2. Money meeting circulation standards discovered through counting shall be entered into the Reserve Fund for Issuance at the Central Treasury at the end of the destruction period.

Article 21. Inventory of the destruction treasury

1. Money for destruction stored in the treasury shall be inventoried once a month at the end of the last working day of the month. The inventory shall be conducted by the Deputy Chairman responsible for the destruction cluster, member of the Destruction Council managing the treasury, Head of the Money Destruction Department, and accounting staff for the destruction treasury, who may also invite additional helpers for the inventory under the supervision of the Supervision Council.

2. The method of inventorying the destruction treasury shall be carried out according to the current regulations on cash inventory of the State Bank of Vietnam.

3. The inventory record of destroyed money shall be prepared in five copies: the Destruction Council retains four copies; one copy is sent to the Supervision Council.

Article 22. Receipts and payments related to money destruction

1. Annually, the Currency Issuance and Treasury Bureau, Currency Issuance and Treasury Sub-bureau shall compile and prepare budgets for receipts and payments serving money destruction to be submitted to the Department of Finance and Accounting as prescribed.

2. Receipts and payments related to money destruction shall be recorded according to current regulations.

Article 23. Books for tracking money destruction

1. The issuance and receipt between the Central Treasury and the Destruction Council, internal transfers among specialized teams shall be fully, promptly, and accurately tracked according to the current accounting system.

2. The head of the destruction treasury shall maintain a general ledger and detailed ledger to track the receipt and dispatch of various types of money; maintain a warehouse card to track each type of money stored in the warehouse.

3. The head of Team 2, the head of Team 3 shall maintain a general ledger and detailed ledger to track various types of money (receipt, dispatch, remaining) within each team, temporary advance amounts; compile monthly, quarterly, and annual reports on counting results, cutting and destruction results.

4. The receipt and dispatch of money among specialized teams shall be documented in a receipt and dispatch record, recorded in the tracking book, and fully signed off by all relevant parties.

Article 24. Compilation and Reporting

1. Monthly, quarterly, and annually, the Council for Destruction shall compile data on the destruction of currency, the results of currency destruction at each destruction cluster, report to the Chairman of the Council for Destruction, and send to the Supervisory Council.

2. At the end of each year of currency destruction, each destruction cluster shall compile data, prepare a record of the complete destruction results at each cluster, with confirmation from the Supervisory Council. The record shall be prepared in five (5) copies: one (1) copy sent to the Financial and Accounting Department, two (2) copies sent to the Issuance and Treasury Department, one (1) copy sent to the Supervisory Council, and one (1) copy retained at the destruction cluster.

3. The Council for Destruction shall prepare an annual summary report on the currency destruction work to submit to the Governor of the State Bank, which includes the following contents:

a) Organization of currency destruction work;

b) Data on various types of destroyed currency;

c) Compliance with regulations on currency destruction and internal rules;

d) Recommendations and proposals.

4. Annually, the Governor of the State Bank shall report the results of the currency destruction work to the Prime Minister, and send copies to the Ministry of Finance.

Chapter V

RESPONSIBILITIES AND BENEFITS OF CIVIL SERVANTS,

 WORKERS PARTICIPATING IN THE CURRENCY DESTRUCTION WORK

Article 25. Responsibilities of civil servants and workers participating in the currency destruction work

1. When working in the currency destruction warehouse, the place of receiving and delivering, counting, and cutting currency, civil servants and workers participating in the currency destruction work shall be responsible for complying with the internal rules and regulations set by the Chairman of the Council for Destruction and the provisions of this Circular.

2. The subjects specified in Article 2 of this Circular shall be responsible for implementing the legal provisions on protecting state secrets in the currency destruction work.

Article 26. Benefits of civil servants and workers participating in the currency destruction work

Members of the Council for Destruction and civil servants and workers participating in the currency destruction work, in addition to salaries, allowances, and wages paid according to regulations, shall also enjoy benefits related to currency destruction and other benefits as stipulated in current guidance documents of the State Bank.

Article 27. Awards and Handling of Violations

1. Groups and individuals who achieve outstanding results in the currency destruction work shall be awarded according to the current regulations of the State Bank regarding competition and awards.

2. Groups and individuals violating the provisions of this Circular shall be subject to disciplinary action depending on the nature and severity of the violation. In cases where currency is lost or missing, compensation for losses must be made and they will be handled according to the law.

3. Civil servants and workers participating in the currency destruction work, if they embezzle or take advantage to steal assets, must compensate one hundred percent (100%) of the value of the missing assets and be dismissed or criminally prosecuted according to the law.

Chapter VI

RESPONSIBILITIES OF UNITS UNDER THE STATE BANK OF VIETNAM

Article 28. Responsibilities of the Issuance and Treasury Department

1. To develop and submit to the Governor of the State Bank for approval plans for the destruction of various types of currency that do not meet circulation standards and suspended circulation currency.

2. To submit to the Governor of the State Bank for decisions to establish the Council for Destruction and to appoint members to participate in managing the currency destruction warehouse.

3. To coordinate with the Supervisory Council and the Council for Destruction to implement currency destruction work as prescribed.

4. To guide procedures for receiving and delivering, counting, cutting paper money and metal coins, and ledgers used in currency destruction work. 5. To implement settlement and accounting for revenues and expenditures serving currency destruction work according to prescribed regulations.

6. To submit to the Governor of the State Bank plans for selling scrap materials from destroyed currency and to coordinate with relevant units to organize and implement them.

Article 29. Responsibilities of the Internal Audit Department

Take the lead and coordinate with relevant units to supervise the destruction of money in accordance with the Governor of the State Bank of Vietnam's regulations on supervising the destruction of money that does not meet circulation standards and money that has been discontinued from circulation.

Article 30. Responsibilities of the Organization and Personnel Department

Serve as the focal point and coordinate with the Issuance and Treasury Management Bureau to advise the Governor of the State Bank of Vietnam on procedures for hiring contractual labor; recruit civil servants and workers from units under the State Bank of Vietnam to participate in the money destruction process.

Article 31. Responsibilities of the Finance and Accounting Department

1. Implement accounting work related to money destruction.

2. Guide accounting practices in the money destruction process.

Chapter VII

IMPLEMENTING PROVISIONS

Article 32. Effectiveness

This Circular takes effect from May 15, 2020.

This Circular replaces Circular No. 27/2012/TT-NHNN dated September 25, 2012, issued by the Governor of the State Bank of Vietnam regarding the destruction of money.

Article 33. Responsibilities for Implementation

The Director of the Office, the Director of the Issuance and Treasury Management Bureau, the Head of the Internal Audit Department, the Head of the Finance and Accounting Department, the Head of the Organization and Personnel Department, and the Heads of units under the State Bank of Vietnam are responsible for implementing this Circular.