Circular No. 15/2019/TT-NHNN amends and supplements certain provisions regarding files and administrative procedures in the foreign exchange management sector. This Circular applies to economic organizations and banks, specifically including foreign currency exchange agency operations, service provision for receiving and paying out foreign currencies, the scope of foreign exchange activities of credit institutions, branches of foreign banks, and indirect foreign investment.
Scope of application
Economic organizations, commercial banks, branches of foreign banks, credit institutions, and units under the State Bank of Vietnam.
Key points
- Economic organizations may agree with authorized credit institutions on placing foreign currency exchange agencies at one or more locations within the area where the economic organization has its headquarters or branch (Article 1, Clause 3 Article 4).
- Report on the installation of public exchange rate announcement boards and signs indicating the name of the authorized credit institution at the transaction location (Article 1, Point d Clause 1 Article 7).
- Report on the installation of public exchange rate announcement boards, signs indicating the name of the authorized credit institution, and the name of the foreign currency exchange agency at the transaction location, accompanied by copies of documents proving compliance with conditions for the location of the foreign currency exchange agency (Article 1, Point c Clause 2 Article 7).
- Amends the file components for credit institutions when conducting other foreign exchange activities on domestic and international markets (Article 3, Point a Clause 2 Article 26).
- Extension of foreign exchange activities of commercial banks and branches of foreign banks based on specific files and conditions (Article 3, Point b Clause 3 Article 29 and Point b Clause 3 Article 29a).
🌐 Social impact of this document
- Positive impact: Reduces the administrative burden on economic organizations when placing foreign currency exchange agencies, making transactions more convenient.
- Negative impact: May lead to unclear responsibilities among parties during the implementation of foreign currency exchange activities.
❓ Frequently asked questions
What is the duration of the effectiveness of this Circular?
This Circular takes effect from November 25, 2019 (Article 7).
Where can economic organizations place foreign currency exchange agencies?
Economic organizations may agree with authorized credit institutions to place foreign currency exchange agencies at one or more locations within the area where the economic organization has its headquarters or branch (Article 1, Clause 3 Article 4).
What documents need to be prepared when implementing foreign exchange activities?
Credit institutions must prepare copies of audited financial reports for three consecutive years prior to the year of filing the application (Article 4, Point b Clause 1 Article 13 and Point b Clause 1 Article 15).
What documents need to be prepared if one wishes to extend foreign exchange activities?
Credit institutions must prepare the necessary files and meet the required conditions for the State Bank of Vietnam to consider extension (Article 3, Point b Clause 3 Article 29 and Point b Clause 3 Article 29a).
To which organizations does this Circular apply?
This Circular applies to economic organizations, commercial banks, branches of foreign banks, credit institutions, and units under the State Bank of Vietnam (Article 6).
Full text
CIRCULAR
Amending and supplementing certain legal normative documentsconcerning administrative procedures and files in foreign exchange management
Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;
Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions dated November 20, 2017;
Pursuant to the Foreign Exchange Decree dated December 13, 2005 and the Decree Amending and Supplementing Certain Articles of the Foreign Exchange Decree dated March 18, 2013;
Exchange ;
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;
The Governor of the State Bank of Vietnam issues this Circular amending and supplementing certain legal documents on administrative procedures in the field of foreign exchange management."n lforeign eintention xchange;No.The Governor of the State Bank of Vietnam issues a Circular amending and supplementing certain legal normative documents concerning administrative procedures and formalities in the field of foreign exchange management.”
The Governor of the State Bank of Vietnam issues this Circular to amend and supplement certain legal normative documents concerning administrative procedures and files in foreign exchange management.
Article 1. Amending, supplementing, and abolishing certain provisions of the Foreign Currency Exchange Agency Regulations issued together with Decision No. 21/2008/QĐ-NHNN dated July 11, 2008 of the Governor of the State Bank of Vietnam
1. Supplement Clause 3 into Article 4 (which has been amended and supplemented by Clause 3 of Article 2 of Circular No. 11/2016/TT-NHNN dated June 29, 2016 amending and supplementing certain legal normative documents on foreign currency service provision, foreign currency exchange agency activities, and individual foreign currency exchange transactions (referred to as Circular No. 11/2016/TT-NHNN)) as follows:
"3. Economic organizations may agree with credit institutions in the agency contract regarding placing foreign currency exchange agencies at one or more locations within the area where the economic organization has its main office or branch."
2. Point d of Clause 1 of Article 7 (which has been amended and supplemented by Clause 6 of Article 2 of Circular No. 11/2016/TT-NHNN) shall be amended and supplemented as follows:
"d) Report on the economic organization's full provision of public foreign exchange rate notice boards and signs indicating the name of the authorized credit institution and the foreign currency exchange agency at the transaction location;"
3. Point c of Clause 2 of Article 7 (which has been amended and supplemented by Clause 6 of Article 2 of Circular No. 11/2016/TT-NHNN) shall be amended and supplemented as follows:
"c) Report on the economic organization's full provision of public foreign exchange rate notice boards and signs indicating the name of the authorized credit institution and the foreign currency exchange agency at the transaction location, along with a commitment letter from the economic organization accompanied by copies of supporting documents (if available) demonstrating compliance with the conditions for the location of the foreign currency exchange agency (in cases of increasing the number of foreign currency exchange agencies)."
4. Abolish Point đ of Clause 1 of Article 7 (which has been amended and supplemented by Clause 6 of Article 2 of Circular No. 11/2016/TT-NHNN).
Article 2. Amending, supplementing, and abolishing certain provisions of Circular No. 34/2015/TT-NHNN dated December 31, 2015 of the Governor of the State Bank of Vietnam guiding foreign currency service provision activities
1. Point d of Clause 3 of Article 11 (which has been amended and supplemented by Clause 3 of Article 1 of Circular No. 11/2016/TT-NHNN) shall be amended and supplemented as follows:
"d) The file components as stipulated in Point d of Clause 1 of this Article."
2. Abolish Point đ of Clause 1 of Article 11, Point d of Clause 1 of Article 14.
Article 3. Amending and supplementing certain provisions of Circular No. 21/2014/TT-NHNN dated August 14, 2014 of the Governor of the State Bank of Vietnam guiding the scope of foreign exchange operations, conditions, procedures, and formalities for approving foreign exchange operations of credit institutions and branches of foreign banks
1. Point a of Clause 2 of Article 26 (which has been amended and supplemented by Clause 26 of Article 1 of Circular No. 28/2016/TT-NHNN dated October 5, 2016 of the Governor of the State Bank of Vietnam amending and supplementing certain provisions of Circular No. 21/2014/TT-NHNN dated August 14, 2014 of the Governor of the State Bank of Vietnam guiding the scope of foreign exchange operations, conditions, procedures, and formalities for approving foreign exchange operations of credit institutions and branches of foreign banks (referred to as Circular No. 28/2016/TT-NHNN)) shall be amended and supplemented as follows:
"a) Meeting the conditions specified for commercial banks under Point b and c of Clause 2 of Article 10 of this Circular;"
2. Point b of Clause 3 of Article 29 (which has been amended and supplemented by Clause 28 of Article 1 of Circular No. 28/2016/TT-NHNN) shall be amended and supplemented as follows:
"b) After the expiration of the permitted period for conducting other foreign exchange activities in domestic and international markets as stated in the approval document with a time limit, if there is a need to continue such activities, based on meeting the conditions and submitting the required documents as specified for commercial banks under Point b and d of Clause 2 of Article 10 and Point a, b, and c of Clause 5 of Article 11 of this Circular and related regulations of the State Bank of Vietnam, the Vietnam Development Bank may be considered and allowed by the State Bank of Vietnam to extend the period for conducting these foreign exchange activities through an extension document of the approval document with a time limit."
3. Point b of Clause 3 of Article 29a (which has been added by Clause 29 of Article 1 of Circular No. 28/2016/TT-NHNN) shall be amended and supplemented as follows:
"b) After the expiration of the permitted period for conducting other foreign exchange activities in domestic and international markets as stated in the approval document with a time limit, if there is a need to continue such activities, based on meeting the conditions and submitting the required documents as specified for commercial banks under Point b and d of Clause 2 of Article 10 and Point a, b, and c of Clause 5 of Article 11 of this Circular and related regulations of the State Bank of Vietnam, the Vietnam Development Bank may be considered and allowed by the State Bank of Vietnam to extend the period for conducting these foreign exchange activities through an extension document of the approval document with a time limit."
Article 4. Amend, supplement, and abolish certain provisions of Circular No. 10/2016/TT-NHNN dated June 29, 2016, issued by the Governor of the State Bank of Vietnam guiding certain contents stipulated in Decree No. 135/2015/NĐ-CP dated December 31, 2015, of the Government on indirect investment abroad.
"b) A copy of the audited financial report for three consecutive years immediately preceding the year of submission;"
2. Point b Clause 1 Article 15 shall be amended and supplemented as follows:
"b) A copy of the audited financial report for three consecutive years immediately preceding the year of submission;"
3. Abolish point e, point g Clause 1 Article 13, and point e Clause 1 Article 15.
Article 5. Abolish Clause 3, Clause 6 Article 1 of Circular No. 11/2016/TT-NHNN.
Article 6. Responsibility for Organizing Implementation
The Director of the Office, Heads of the Department of Foreign Exchange Management, and Heads of units under the State Bank of Vietnam, Governors of the State Bank branches in provinces and centrally-administered cities, Chairmen of the Board of Directors, Chairmen of the Board of Members, General Directors (Directors) of credit organizations, and foreign bank branches are responsible for organizing the implementation of this Circular.
Article 7. Implementation Provisions
This Circular takes effect from November 25, 2019.
DEPUTY DIRECTOR
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