Circular No. 16/2014/TT-NHNN guiding the use of foreign currency accounts and Vietnamese dong accounts of residents and non-residents at permitted banks

CIRCULAR

Guidelines for using foreign currency accounts and Vietnamese dong accounts

of residents, non-residents at permitted banks

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Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Organizations No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Foreign Exchange Ordinance No. 28/2005/PL-UBTVQH11 dated December 13, 2005 and Ordinance No. 06/2013/UBTVQH13 dated March 18, 2013 amending and supplementing certain articles of the Foreign Exchange Ordinance;

Pursuant to Decree No. 156/2013/NĐ-CP dated November 11, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Department of Foreign Exchange Management;

The Governor of the State Bank of Vietnam issues this Circular guiding the use of foreign currency accounts and Vietnamese dong accounts of residents and non-residents at permitted banks.

Article 1. Scope of Regulation

Article 1. This Circular guides the use of foreign currency settlement accounts (hereinafter referred to as foreign currency accounts) and Vietnamese dong settlement accounts (hereinafter referred to as Vietnamese dong accounts) at permitted banks, including:

a) Foreign currency accounts of residents and non-residents who are organizations and individuals;

b) Vietnamese dong accounts of non-residents who are organizations and individuals, and residents who are foreigners.

Article 2. The use of settlement accounts in the following cases shall be carried out in accordance with relevant regulations of the State Bank of Vietnam:

a) Foreign currency accounts and Vietnamese dong accounts for serving capital transactions;

b) Specialized foreign currency accounts;

c) Accounts denominated in the currency of countries sharing borders with Vietnam.

Article 3. Other matters related to foreign currency accounts and Vietnamese dong accounts shall be implemented in accordance with relevant laws.

Article 2. Applicability

1. Commercial banks, branches of foreign banks engaged in foreign exchange business (hereinafter referred to as permitted banks).

2. Permitted banks and non-bank credit institutions engaged in foreign exchange business (hereinafter referred to as permitted credit institutions).

3. Residents and non-residents who are organizations and individuals using foreign currency accounts at permitted banks.

4. Non-residents who are organizations and individuals, and residents who are foreigners using Vietnamese dong accounts at permitted banks.

Article 3. Use of foreign currency accounts by resident organizations

Resident organizations may use foreign currency accounts at permitted banks to conduct the following receipts and payments:

a) Receipt of foreign currency transfers from abroad;

b) Receipt of foreign currency transfers for payment of export goods and services from the accounts of non-resident organizations opened at permitted banks within the country;

c) Deposit back the remaining foreign currency cash withdrawn by employees for overseas trips but not fully spent at the permitted bank where the withdrawal was made. When depositing foreign currency cash into the account, the organization must present to the permitted bank the relevant documents related to the withdrawal from the account and the Entry-Exit Declaration Form confirmed by the customs office regarding the amount of foreign currency cash brought in. The Entry-Exit Declaration Form confirmed by the customs office is only valid for organizations depositing foreign currency cash into foreign currency accounts within sixty days from the date of entry recorded on the Entry-Exit Declaration Form;

- Receipt from purchasing foreign currency transfers at permitted credit institutions;

- Deposit of foreign currency transfers or foreign currency cash into the account for cases allowed to receive foreign currency within the country according to the regulations of the State Bank of Vietnam on the use of foreign exchange on Vietnamese territory.

a) Expenditure to sell foreign currency to permitted credit institutions;

b) Payment for current and capital transactions in accordance with the law on foreign exchange management;

c) Conversion into other foreign currencies in accordance with the regulations of the State Bank of Vietnam;

d) Conversion into other foreign currency payment instruments;

đ) Withdrawal of foreign currency cash for individuals working for the organization when sent abroad on business;

e) Transfer or withdrawal of foreign currency cash to pay salaries, bonuses, and allowances to non-residents and residents who are foreigners;

g) Payment for transactions permitted to be settled in foreign currency within the country according to the regulations of the State Bank of Vietnam on the use of foreign exchange on Vietnamese territory;

h) Transfer for other lawful transactions in accordance with the law on foreign exchange management.

Article 4. Use of foreign currency accounts by resident individuals

Resident individuals are permitted to use foreign currency accounts at authorized banks to conduct the following receipts and payments:

1. Receipts:

a) Receipt of foreign currency transfers from abroad;

b) Receipt of foreign currency transfers for payment of export goods and services from the accounts of non-resident organizations opened at permitted banks within the country;

c) Receipt of foreign currency cash from abroad. Foreign currency cash deposited into the account must be confirmed by the Customs Office according to the regulations on foreign exchange management;

d) Receipt of foreign currency from lawful sources within the country, including:

- Foreign individual residents may receive salaries, bonuses, allowances, and purchase foreign currency from legitimate Vietnamese dong sources;

- Other lawful receipts as prescribed by the laws on foreign exchange management;

a) Expenditure to sell foreign currency to permitted credit institutions;

b) Payment for current and capital transactions in accordance with the law on foreign exchange management;

c) Conversion into other foreign currencies in accordance with the regulations of the State Bank of Vietnam;

d) Conversion into other foreign currency payment instruments;

d) Payments for gifts and donations as prescribed by law;

e) Withdrawal of foreign currency cash;

g) Transfer out of the country for non-resident individual residents;

h) Transfer to deposit foreign currency savings at authorized banks for resident Vietnamese citizens;

i) Transfer funds and make payments for transactions permitted to be settled domestically in foreign currency according to the State Bank of Vietnam's regulations on the use of foreign currency within Vietnam;

3. The use of foreign currency in accounts for inheritance distribution shall be carried out in accordance with relevant laws.

Article 5. Use of foreign currency accounts by non-resident organizations

Non-resident organizations are permitted to use foreign currency accounts at authorized banks to conduct the following receipts and payments:

1. Receipts:

a) Receipt of foreign currency transfers from abroad;

b) Receipt of foreign currency transfers from other non-resident foreign currency accounts within the country;

c) Deposit back the remaining foreign currency cash withdrawn by employees for overseas trips but not fully spent at the permitted bank where the withdrawal was made. When depositing foreign currency cash into the account, the organization must present to the permitted bank the relevant documents related to the withdrawal from the account and the Entry-Exit Declaration Form confirmed by the customs office regarding the amount of foreign currency cash brought in. The Entry-Exit Declaration Form confirmed by the customs office is only valid for organizations depositing foreign currency cash into foreign currency accounts within sixty days from the date of entry recorded on the Entry-Exit Declaration Form;

- Receipts from purchasing foreign currency transfers at authorized credit institutions;

- Deposit of foreign currency transfers or foreign currency cash into the account for cases allowed to receive foreign currency within the country according to the regulations of the State Bank of Vietnam on the use of foreign exchange on Vietnamese territory.

a) Expenditure to sell foreign currency to permitted credit institutions;

b) Payment for current and capital transactions in accordance with the law on foreign exchange management;

c) Conversion into other foreign currencies in accordance with the regulations of the State Bank of Vietnam;

d) Conversion into other foreign currency payment instruments;

đ) Withdrawal of foreign currency cash for individuals working for the organization when sent abroad on business;

e) Payments for transferring funds or withdrawing cash to pay salaries, bonuses, and allowances to non-residents and resident foreign individuals;

g) Payments for transferring out of the country or transferring funds to other non-resident foreign currency accounts;

h) Payments for settling export goods and service payments for residents;

i) Transfer funds and make payments for transactions permitted to be settled domestically in foreign currency according to the State Bank of Vietnam's regulations on the use of foreign currency within Vietnam;

Article 6. Use of foreign currency accounts by non-resident individuals

Non-resident individuals are permitted to use foreign currency accounts at authorized banks to conduct the following receipts and payments:

1. Receipts:

a) Receipt of foreign currency transfers from abroad;

b) Receipt of foreign currency cash from abroad. Foreign currency cash deposited into the account must be confirmed by the Customs Office according to the regulations on foreign exchange management;

c) Receipt of foreign currency transfers from other non-resident foreign currency accounts within the country;

d) Receipt of foreign currency from other lawful domestic income sources, including:

- Salaries, bonuses, allowances, and purchasing foreign currency from legitimate Vietnamese dong sources;

- Other lawful receipts as prescribed by the laws on foreign exchange management;

a) Expenditure to sell foreign currency to permitted credit institutions;

b) Payment for current and capital transactions in accordance with the law on foreign exchange management;

c) Conversion into other foreign currencies in accordance with the regulations of the State Bank of Vietnam;

d) Conversion into other foreign currency payment instruments;

d) Payments for gifts and donations as prescribed by law;

e) Withdrawal of foreign currency cash;

g) Payments for transferring out of the country or transferring funds to other non-resident foreign currency accounts;

h) Payments for transferring funds and making payments for transactions permitted to be settled domestically in foreign currency according to the State Bank of Vietnam's regulations on the use of foreign currency within Vietnam;

3. The use of foreign currency in accounts for inheritance distribution shall be carried out in accordance with relevant laws.

Article 7. Use of Vietnamese dong accounts by non-resident organizations and individuals and resident foreign individuals

Non-resident organizations and individuals and resident foreign individuals are permitted to use Vietnamese dong accounts at authorized banks to conduct the following receipts and payments:

1. Receipts:

a) Receipts from selling foreign currency to authorized credit institutions;

b) Receipts from lawful income sources in Vietnam, including:

- Receipts from bank transfers from supplying goods and services;

- Income from salaries, bonuses, allowances, and various fees;

- Other lawful income sources in Vietnamese dong;

2. Payments:

a) Payments for settlement or withdrawal of cash for consumption in Vietnam;

b) Payment for current and capital transactions in accordance with the law on foreign exchange management;

c) Payments for gifts and donations as prescribed by law (for non-resident individuals and resident foreign individuals);

d) Payments for purchasing foreign currency at authorized credit institutions to transfer out of the country;

d) Payments for other purposes allowed by Vietnamese law;

3. The use of Vietnamese dong in accounts of non-resident individuals and resident foreign individuals for inheritance distribution shall be carried out in accordance with relevant laws.

Article 8. Transfer of foreign currency and Vietnamese dong between accounts of one account holder

1. Resident individuals and organizations, non-resident organizations and individuals are permitted to transfer foreign currency by bank transfer between their own foreign currency accounts opened at different authorized banks or within the same system of one authorized bank, except for resident organizations that are not allowed to transfer foreign currency according to the regulations of the State Bank of Vietnam on foreign exchange transactions of state-owned economic groups and corporations.

2. Non-resident organizations and individuals, and foreign individual residents are permitted to transfer Vietnamese dong by bank transfer between their own Vietnamese dong accounts opened at different authorized banks or within the same system of one authorized bank.

Article 9. Responsibilities of authorized credit institutions and resident and non-resident organizations and individuals

1. Authorized credit institutions have the responsibility:

a) To implement and guide customers in complying with the provisions of this Circular;

b) To establish, inspect, and retain appropriate documents and vouchers to ensure that actual transactions are carried out for legitimate purposes and in compliance with the provisions of this Circular and related laws.

2. Other related organizations and individuals have the responsibility:

a) To strictly comply with the provisions of this Circular;

b) To present the required documents and vouchers as stipulated by authorized credit institutions when conducting foreign exchange transactions and bear legal responsibility for the authenticity of the presented documents and vouchers to authorized credit institutions.

Article 10. Handling of violations

Organizations and individuals violating the provisions of this Circular shall be subject to handling according to the law, depending on the nature and extent of the violation.

Article 11. Implementation Provisions

1. This Circular takes effect from September 15, 2014.

2. The Director of the Office, the Head of the Department of Foreign Exchange Management, the Heads of relevant units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam Branches in provinces and centrally-administered cities, the Chairmen of the Boards of Directors, the Chairmen of the Boards of Members, and the General Managers (Directors) of authorized credit institutions are responsible for organizing the implementation of this Circular./.