Circular No. 20/2011/TT-NHNN on the purchase and sale of foreign currency cash between individuals and credit institutions authorized to operate foreign exchange transactions.

CIRCULAR

Regulations on the purchase and sale of foreign currency cash between individuals and permitted credit institutions

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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;

Based on Decree No. 28/2005/PL-UBTVQH dated December 13, 2005 on Foreign Exchange;

Based on Decree No. 160/2006/NĐ-CP dated December 28, 2006 of the Government detailing the implementation of the Foreign Exchange Decree;

Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

To implement Resolution No. 11/NQ-CP dated February 24, 2011 of the Government on key measures to focus on curbing inflation, stabilizing macroeconomic conditions, and ensuring social welfare,

The State Bank of Vietnam guides the purchase and sale of foreign currency cash between individuals and permitted credit institutions as follows:

Article 1. Scope of Regulation

Article 1. This Circular provides guidance on implementing regulations concerning the purchase and sale of foreign currency cash between individuals and permitted credit institutions, including branches of foreign banks operating in foreign exchange (hereinafter referred to as permitted credit institutions).

Article 2. Individual foreign currency exchange activities with credit institution agents shall be carried out in accordance with current regulations on the agent foreign currency exchange charter.

The use of bank cards, other non-cash payment instruments, or the purchase of foreign currency through transfers at permitted credit institutions for individual payments abroad for legitimate purposes shall be implemented in accordance with current laws.

Article 2. Applicability

Point 1. Vietnamese citizens are allowed to purchase foreign currency cash from permitted credit institutions to meet their personal consumption needs and those of children sharing a passport with their parents, including food, pocket money, and travel expenses abroad related to the following purposes:

a) Studying, receiving medical treatment abroad;

b) Business trips, tourism, and visits abroad.

Point 2. For other legitimate purposes specified in Clause 2, Article 8 of Decree No. 160/2006/NĐ-CP dated December 28, 2006 of the Government detailing the implementation of the Foreign Exchange Decree, individuals may purchase foreign currency cash from permitted credit institutions subject to the availability of foreign currency cash at such credit institutions.

Point 3. Individuals who have lawful income in Vietnamese dong are permitted to purchase foreign currency cash from permitted credit institutions in accordance with current foreign exchange management regulations.

Point 4. Individuals may sell foreign currency cash to permitted credit institutions and credit institution foreign currency exchange agents in accordance with current foreign exchange management regulations.

Article 3. Locations for purchasing and selling foreign currency

Point 1. The purchase of foreign currency cash by individuals shall be conducted at locations authorized to sell foreign currency cash within the network of operations of permitted credit institutions in compliance with the law.

Point 2. The sale of foreign currency cash by individuals shall be conducted at locations authorized to buy foreign currency cash within the network of operations of permitted credit institutions in compliance with the law and at credit institution foreign currency exchange agents.

Article 4. Types of foreign currency that can be purchased

Vietnamese citizens are allowed to purchase foreign currency cash from permitted credit institutions to meet the foreign currency requirements specified in Clause 1, Article 2 of this Circular according to the following principles:

Point 1. They may purchase foreign currency that is the currency of the country where the Vietnamese citizen is traveling.

Point 2. In cases where there is no currency of the country where the Vietnamese citizen is traveling, permitted credit institutions shall sell freely convertible foreign currencies.

Article 5. Limit on Purchasing Foreign Currency

1. Vietnamese citizens have the right to purchase foreign currency cash at credit institutions permitted for the purpose of meeting the foreign currency needs specified in Clause 1, Article 2 of this Circular with a limit of 100 USD/person/day or other equivalent foreign currencies during a stay abroad of up to 10 (ten) days. The above foreign currency limit also applies to children traveling on the same passport as their parents.

2. Credit institutions permitted shall be obligated to sell foreign currency cash to Vietnamese citizens according to the provisions of Clause 1 of this Article based on submitted documents and certificates.

3. Based on their ability to self-balance foreign currency cash sources, credit institutions permitted may sell beyond the limits set out in Clause 1 of this Article to meet the foreign currency needs specified in Clause 1, Article 2 of this Circular.

Article 6. Notification of Purchase and Sale of Foreign Currency Cash

1. Within 15 days from the date of issuance of this Circular, credit institutions permitted conducting foreign currency cash transactions with individuals shall be responsible for:

a) Notifying in writing (sent directly or via postal service) the State Bank of Vietnam (Department of Foreign Exchange Management) about the implementation of foreign currency cash transactions with individuals according to the form attached as Appendix 1 to this Circular.

b) Announcing the list of locations for purchasing and selling foreign currency cash throughout the system on the credit institution's electronic news page.

c) Notifying the list of locations for purchasing and selling foreign currency cash to the State Bank of Vietnam (Department of Foreign Exchange Management) and the State Bank branch in the province or centrally-administered city where the credit institution operates according to the form attached as Appendix 2 to this Circular.

2. Credit institutions permitted that have not yet conducted foreign currency cash transactions with individuals after the effective date of this Circular, when there is a need to conduct such transactions, shall be responsible for notifying the contents stipulated in Clause 1 of this Article within 15 days before implementing the transaction.

3. Within 15 days from the date of changes in foreign currency cash transactions (adding, reducing locations, ceasing operations), credit institutions permitted shall be responsible for notifying and updating the list of foreign currency cash transaction locations in writing (sent directly or via postal service) to the State Bank of Vietnam (Department of Foreign Exchange Management) and the State Bank branch in the province or centrally-administered city where the credit institution operates according to the form attached as Appendix 2 to this Circular.

Article 7. Responsibilities of Authorized Credit Institutions

1. Conducting foreign currency cash transactions with individuals for purposes as prescribed in this Circular after notifying the State Bank.

2. Publicly posting exchange rates for purchasing and selling various types of foreign currency with individuals at foreign currency cash transaction locations, on the credit institution's electronic news page, and being obligated to purchase and sell various types of foreign currency cash in accordance with current laws on exchange rates.

3. Issuing internal procedures for foreign currency cash transactions with individuals, specifying detailed procedures, documents, and certificates related to proving individual foreign currency cash usage and spending abroad to ensure transactions are carried out for the intended purpose and comply with this Circular and other regulations on foreign exchange management.

4. Implementing record-keeping systems related to foreign currency cash transactions with individuals according to the law.

5. Establishing internal guidelines within credit institutions permitted to manage, supervise, and ensure safety in the receipt, storage, and transportation of foreign currency cash according to the State Bank's regulations.

6. Creating favorable conditions to encourage individuals to use non-cash payment methods to meet legitimate spending needs abroad.

Article 8. Responsibilities of the State Bank Branches at Provincial and Central City Levels

1. Direct and guide permitted credit organizations within their jurisdiction to strictly comply with the provisions of this Circular.

2. Inspect foreign currency buying and selling locations of permitted credit organizations within their jurisdiction. Conduct inspections, investigations, and handle violations related to foreign currency buying and selling activities according to the provisions of this Circular.

3. Establish and publicize a telephone number for receiving and processing information related to cash foreign currency buying and selling activities between individuals and permitted credit organizations as stipulated in this Circular through mass media.

Article 9. Responsibilities of Individuals

1. Present all necessary documents and certificates as required by permitted credit organizations and bear legal responsibility for the authenticity of the presented documents and certificates.

2. Use cash foreign currency purchased from permitted credit organizations for the intended purpose and in accordance with the law.

Article 10. Reporting System

Permitted credit organizations shall submit reports in accordance with the following regulations no later than the tenth day of the month following the reporting period:

1. Report to the State Bank Branch at the provincial or central city level within their jurisdiction on the situation of cash foreign currency buying and selling transactions that occurred in that jurisdiction during the month, using the form attached as Appendix 3 to this Circular.

2. Aggregate and report to the State Bank of Vietnam (Department of Foreign Exchange Management) on the situation of cash foreign currency buying and selling transactions across the entire system that occurred during the month, using the form attached as Appendix 3 to this Circular.

Article 11. Implementation Provisions

1. This Circular takes effect from October 15, 2011.

2. The Head of the Office, the Director of the Department of Foreign Exchange Management of the State Bank of Vietnam, the Heads of relevant units under the State Bank of Vietnam, the Governors of State Bank Branches at provincial and central city levels, the Chairpersons of the Board of Directors, the Chairpersons of the Board of Members, and the General Managers (Directors) of permitted credit organizations, foreign bank branches, and related organizations and individuals are responsible for implementing this Circular./.