Circular No. 20/2022/TT-NHNN guiding the one-way transfer of money from Vietnam to foreign countries and payment, transfer of funds for other current transactions of residents who are organizations and individuals.

CIRCULAR

Guidelines for one-way money transfers from Vietnam to foreign countries and

payments, transfers for other current transactions of residents who are organizations and individuals

residence is the organization, individual

On the basis of Law on the State Bank of Vietnam dated June 16, 2010;

On the basis of Law on Credit Institutions dated June 16, 2010; THE LAW AMENDING AND SUPPLEMENTING SEVERAL PROVISIONS OF THE LAW ON CREDIT ORGANIZATIONS dated November 20, 2017;

On the basis of Foreign Exchange Ordinance dated December 13, 2005; The Decree Amending and Supplementing Certain Provisions of the Foreign Exchange Decree dated March 18, 2013;

On the basis of Decree No. 70/2014/ND-CP dated July 17, 2014 of the Government detailing the implementation of certain provisions of the Foreign Exchange Ordinance and the Ordinance amending and supplementing certain provisions of the Foreign Exchange Ordinance;

On the basis of Decree No. 16/2017/ND-CP dated February 17, 2017 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 one-way money transfers from Vietnam to foreign countries and payments, transfers for other current transactions of residents who are organizations and individuals.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular guides the following activities:

a) Activities of purchasing, transferring, carrying foreign currency out of the country by resident organizations for the purpose of one-way money transfer as specified in Clause 1, Article 7 of Decree No. 70/2014/ND-CP dated July 17, 2014 of the Government detailing the implementation of certain provisions of the Foreign Exchange Ordinance and the Ordinance amending and supplementing certain provisions of the Foreign Exchange Ordinance (hereinafter referred to as Decree No. 70/2014/ND-CP);

b) Activities of purchasing, transferring, carrying foreign currency out of the country by resident Vietnamese citizens for the purposes of one-way money transfer as specified in Clause 2, Article 7 of Decree No. 70/2014/ND-CP;

c) Activities of payment, transfer for other current transactions as specified in Point g, Clause 6, Article 4 of the Foreign Exchange Ordinance (as amended and supplemented) (hereinafter referred to as payment, transfer for other current transactions).

2. Transactions of transferring investment funds abroad by resident Vietnamese citizens for the purpose of obtaining citizenship or permanent residence abroad are not within the scope of regulation of this Circular.

Article 2. Applicability

1. Banks, branches of foreign banks permitted to operate and provide foreign exchange services (hereinafter referred to as permitted banks).

2. Organizations and individuals who are residents engaged in one-way money transfers from Vietnam to foreign countries and payment, transfer for other current transactions.

3. Other organizations and individuals related to one-way money transfers from Vietnam to foreign countries and payment, transfer for other current transactions.

Article 3. Explanation of Terms

1. Relatives are those with relationships such as father, mother, father-in-law, mother-in-law, father-in-law, mother-in-law, foster father, foster mother, wife, husband, biological child, adopted child, daughter-in-law, son-in-law, full brother, full sister, full brother, full sister with resident Vietnamese citizens applying to purchase, transfer, carry foreign currency out of the country.

2. Documents proving kinship are documents showing kinship as specified in Clause 1 of this Article in accordance with the provisions of the law.

3. Purchasing foreign currency is the act of residents being organizations and individuals using Vietnamese dong to purchase foreign currency at permitted banks to transfer or carry out of the country for the purposes specified in this Circular.

4. Transferring foreign currency is the act of residents being organizations and individuals transferring foreign currency out of the country through permitted banks.

5. Carrying foreign currency is the act of resident Vietnamese citizens or individuals representing resident organizations carrying foreign currency cash out of the country upon departure.

Chapter II
PURCHASE, TRANSFER, CARRY FOREIGN CURRENCY OUT OF THE COUNTRY

FOR THE PURPOSES OF ONE-WAY MONEY TRANSFERS

OF RESIDENTS WHO ARE ORGANIZATIONS

Article 4. Cases of purchasing, transferring, carrying foreign currency out of the country for one-way money transfer purposes of organizations

1. Cases of purchasing, transferring, carrying foreign currency out of the country to serve the purpose of financial assistance and aid of organizations:

a) Purchasing, transferring, carrying foreign currency out of the country for financial assistance and aid according to commitments and agreements between the State, Government, local authorities at all levels with foreign countries. The source of financial assistance and aid is budget funds or the organization's own funds providing such assistance and aid;

b) Purchasing, transferring foreign currency out of the country for financial assistance and aid to address the consequences of natural disasters, epidemics, and wars. The source of financial assistance and aid is voluntary contributions from domestic organizations and individuals and/or the organization's own funds providing such assistance and aid;

c) Purchasing, transferring foreign currency out of the country to financially support programs, funds, projects established by domestic organizations and/or foreign organizations aimed at supporting and encouraging development in fields such as culture, education (scholarship funding), healthcare. The source of financial support is the organization's own funds providing such support;

2. Cases of one-way money transfers out of the country by organizations for other purposes:

a) Paying prizes to non-residents who are organizations and individuals abroad participating in programs and contests organized in Vietnam in accordance with relevant laws. The prize money comes from non-resident organizations and individuals abroad or resident organizations;

b) Transferring one-way money out of the country for the following purposes from received financial assistance from non-resident organizations and individuals abroad:

(i) Allocating financial assistance funds to foreign members participating in scientific research projects in Vietnam and abroad;

(ii) Repaying financial assistance for implementing projects in Vietnam according to commitments and agreements with foreign parties.

Article 5. Sources of foreign currency transferred, carried out of the country

The sources of foreign currency transferred, carried out of the country for the purposes specified in Article 4 of this Circular include:

1. Foreign currency on settlement accounts.

2. Time deposits in foreign currency.

3. Foreign currency purchased from authorized banks.

Article 6. Purchase of foreign currency for transfer, carry out of the country

1. Organizations that need to purchase foreign currency for transfer, carry out of the country for the purposes specified in Article 4 of this Circular shall follow the guidance of authorized banks.

2. In cases where resident organizations purchase foreign currency from authorized banks to carry out of the country for the purposes specified in point a, Clause 1, Article 4 of this Circular at amounts requiring customs declaration, authorized banks shall issue Certificates for Carrying Foreign Currency Out of the Country upon departure and entry as prescribed.

3. Within the available foreign currency capacity, authorized banks shall sell foreign currency to resident organizations for transfer, carry out of the country for the purposes specified in Article 4 of this Circular.

Article 7. Transfer, carry foreign currency out of the country from foreign currency on settlement accounts, time deposits in foreign currency

1. Organizations that need to use foreign currency on settlement accounts, time deposits in foreign currency for transfer, carry out of the country for the purposes specified in Article 4 of this Circular shall follow the guidance of authorized banks.

2. In cases where resident organizations withdraw foreign currency cash from settlement accounts, time deposits in foreign currency to carry out of the country for the purposes specified in point a, Clause 1, Article 4 of this Circular at amounts requiring customs declaration, they shall comply with the provisions of Clause 2, Article 6 of this Circular.

Article 8. Amount of foreign currency to be purchased, transferred, or taken out of the country

1. The amount of foreign currency to be purchased, transferred, or taken out of the country in cases specified in points a and b, Clause 1, and Clause 2, Article 4 of this Circular shall be based on the amount recorded on relevant documents and certificates.

2. The amount of foreign currency to be purchased or transferred out of the country in cases specified in point c, Clause 1, Article 4 of this Circular shall be based on the amount recorded on relevant documents and certificates but shall not exceed 50,000 USD (Fifty thousand US dollars) or other equivalent foreign currencies for each transaction.

Chapter III
PURCHASE, TRANSFER, AND TAKE FOREIGN CURRENCY OUT OF THE COUNTRY FOR

 ONE-DIRECTIONAL MONEY TRANSFER PURPOSES OF RESIDENTS

 WHO ARE VIETNAMESE CITIZENS

Article 9. Cases of purchasing, transferring, or taking foreign currency out of the country for one-directional money transfer purposes of residents who are Vietnamese citizens

1. Residents who are Vietnamese citizens may purchase, transfer, or take foreign currency out of the country for one-directional money transfer purposes as stipulated in Clause 2, Article 7 of Decree No. 70/2014/NĐ-CP.

2. The act of purchasing, transferring, or taking foreign currency out of the country by residents who are Vietnamese citizens or their lawful representatives or relatives studying or receiving medical treatment abroad shall be carried out in accordance with the guidance of authorized banks in compliance with the provisions of the law.

Article 10. Sources of foreign currency to be transferred or taken out of the country

The sources of foreign currency to be transferred or taken out of the country for purposes specified in Article 9 of this Circular include:

1. Personal-owned foreign currency (foreign currency on current accounts, time deposits in foreign currency, savings deposits in foreign currency, and personal-held foreign currency).

2. Foreign currency purchased from authorized banks.

Article 11. Purchase of foreign currency for transfer or taking out of the country

1. Residents who are Vietnamese citizens requiring the purchase of foreign currency for transfer or taking out of the country for one-directional money transfer purposes as stipulated in Clause 2, Article 7 of Decree No. 70/2014/NĐ-CP shall follow the guidance of authorized banks.

2. In cases where residents who are Vietnamese citizens purchase foreign currency from authorized banks to take out of the country for one-directional money transfer purposes at levels requiring customs declaration, authorized banks shall issue a Certificate for Carrying Foreign Currency Out of the Country upon departure and entry in accordance with regulations.

3. Within the scope of available foreign currency, authorized banks shall sell foreign currency to residents who are Vietnamese citizens for transfer or taking out of the country for one-directional money transfer purposes as stipulated in this Circular.

4. Residents who are Vietnamese citizens requiring foreign currency cash for taking out of the country for purposes of study, medical treatment, work, tourism, or visiting relatives may purchase the currency of the country they are traveling to from authorized banks. If such currency is unavailable, authorized banks shall sell freely convertible foreign currency.

Article 12. Transfer or taking foreign currency from personal-owned foreign currency

1. Residents who are Vietnamese citizens requiring the use of personal-owned foreign currency for transfer or taking out of the country for one-directional money transfer purposes as stipulated in Clause 2, Article 7 of Decree No. 70/2014/NĐ-CP shall follow the guidance of authorized banks, except for cases involving carrying personal-held foreign currency below the level requiring customs declaration.

2. Residents who are Vietnamese citizens carrying personal-owned foreign currency at levels requiring customs declaration out of the country shall comply with the provisions of Clause 2, Article 11 of this Circular.

Article 13. Amounts of foreign currency to be purchased, transferred, or taken out of the country

1. The amounts of foreign currency to be purchased, transferred, or taken out of the country for purposes of studying and medical treatment as stipulated in point a, Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall be based on the costs stated in the notification from the foreign party.

In cases where there is no notification from the foreign party regarding living expenses and other related costs for purposes of studying and medical treatment, apart from tuition fees, hospitalization fees, and other costs already notified by the foreign party, banks are permitted to decide additional amounts of foreign currency to be purchased, transferred, or taken out for these purposes according to points a and b, Clause 4 of this Article.

2. The amounts of foreign currency to be purchased, transferred, or taken out of the country for purposes of working abroad, traveling, visiting relatives abroad as stipulated in point b, Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall be decided by the permitted banks based on the reasonable needs of individuals and according to point b, Clause 4 of this Article.

3. The amounts of foreign currency to be purchased, transferred out of the country for the purpose of paying various fees and charges to foreign parties as stipulated in point c, Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall be based on the costs stated in the notification from the foreign party.

4. The amounts of foreign currency to be purchased, transferred out of the country for the purpose of providing financial support to relatives residing abroad as stipulated in point d, Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall be implemented as follows:

a) Banks are permitted to decide the amounts of foreign currency to be purchased, transferred based on the reasonable needs of individuals and consistent with the purpose of supporting living expenses and stabilizing the life of the person being supported abroad;

b) The amount of foreign currency to be purchased, transferred for one person receiving support abroad in one year shall not exceed the average annual income per capita at current prices of the country where the person being supported resides. Annually, the permitted bank shall update data on the average annual income per capita at current prices of countries published at the latest time on the World Bank's website to serve as the basis for determining the amount of foreign currency to be purchased, transferred for the purpose of supporting relatives abroad;

c) The purchase and transfer of foreign currency out of the country for the purpose of supporting relatives does not apply to cases where relatives are studying, receiving medical treatment, working, traveling, or visiting relatives abroad.

5. The amounts of foreign currency to be purchased, transferred out of the country for the purpose of transferring inheritance money to heirs residing abroad as stipulated in point đ, Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall be based on the value of the assets that the heir is entitled to under the laws on inheritance.

6. The amounts of foreign currency to be purchased, transferred out of the country for the purpose of transferring funds in cases of settlement abroad as stipulated in point e, Clause 2, Article 7 of Decree No. 70/2014/ND-CP shall be based on the value of the assets formed in Vietnam by the person going abroad before acquiring foreign citizenship or before being allowed to reside abroad for settlement purposes according to local regulations.

In cases of transferring funds to pay for costs related to procedures for settling abroad (excluding the value of investment to obtain citizenship or residence abroad), the amounts of foreign currency to be purchased, transferred out of the country shall be based on the costs stated in the notification from the foreign party.

Chapter IV
PAYMENTS AND TRANSFERS OF FUNDS FOR OTHER RECURRING TRANSACTIONS

OF RESIDENTS WHO ARE ORGANIZATIONS AND INDIVIDUALS

Article 14. Payment and transfer of funds for other current transactions

1. The activities of payment and transfer of funds for other current transactions of resident organizations and individuals include:

a) Payments and transfers related to the following activities: temporary importation for re-export, temporary exportation for re-importation, transit, purchasing and selling goods on behalf of foreign traders, hiring foreign traders as agents to sell goods abroad, accepting processing of goods for foreign traders and outsourcing processing of goods overseas, buying and selling goods through foreign commodity exchanges via domestic commodity exchanges that are interconnected with foreign commodity exchanges, and other activities related to international trade as prescribed by laws on commerce;

b) Payments and transfers related to social insurance contributions and social insurance payments;

c) Payments and transfers related to insurance premiums, reinsurance, ceding reinsurance, insurance brokerage, insurance auxiliary services under international treaties to which the Socialist Republic of Vietnam is a member, or compensation and insurance benefits;

d) Payments and transfers pursuant to decisions or judgments having legal effect of courts or arbitration tribunals; or decisions of competent authorities of Vietnam;

đ) Payments and transfers related to fines and compensation for damage to property or injury not covered by insurance;

2. The payment and transfer of funds for current transactions as prescribed in Clause 1 of this Article must be conducted through authorized banks.

Chapter V
IMPLEMENTATION

Article 15. Reporting System

1. Monthly, no later than the 20th day of each month, authorized banks shall report on the situation of purchasing, transferring, and carrying foreign currencies out of the country by resident organizations for the purpose of transferring financial assistance and aid as stipulated in Article 4 of this Circular (in accordance with the form attached to this Circular). The reporting period is from the 15th day of the previous month to the 14th day of the reporting month. Reports shall be sent via email to the address [email protected] of the State Bank of Vietnam.

2. Monthly, authorized banks shall report on the situation of purchasing, transferring, and carrying foreign currencies by resident Vietnamese citizens, and the situation of buying and selling foreign currency cash with individuals as prescribed by the reporting and statistical regulations of the State Bank of Vietnam.

Article 16. Responsibilities of Authorized Banks

1. Strictly implement and guide customers to comply with the provisions of this Circular.

2. Develop and bear responsibility for the contents of internal regulations regarding procedures related to unidirectional fund transfers abroad and payments and transfers for other current transactions, including at least the following contents:

a) Regulations on documents and certificates related to fund transfer transactions to ensure that foreign exchange services are provided in accordance with their intended purposes and in compliance with this Circular and relevant laws;

b) Principles for setting limits on purchasing, transferring, and carrying foreign currencies for unidirectional fund transfers;

c) Monitoring and supervising the data on purchasing, transferring, and carrying foreign currencies by organizations and individuals for unidirectional fund transfers and other current transactions within the same banking system to ensure that the amounts purchased, transferred, and carried do not exceed the amounts recorded on related documents and certificates, and the limits on foreign currencies purchased, transferred, and carried abroad as prescribed in this Circular;

d) Require organizations and individuals to provide written commitments to purchase, transfer, and carry foreign currencies in accordance with the limits on foreign currencies purchased, transferred, and carried abroad as prescribed in this Circular.

3. Check and retain documents and certificates consistent with actual transactions as prescribed in this Circular and relevant laws.

4. Require organizations and individuals who wish to conduct transactions involving the purchase, transfer, and carrying of foreign currencies for unidirectional fund transfers and payment and transfer activities for other current transactions to provide necessary information about the organizations and individuals purchasing, transferring, and carrying foreign currencies and the beneficiaries, including at least the following information:

a) Customer identification information of organizations and individuals purchasing, transferring, and carrying foreign currencies as prescribed by laws on anti-money laundering;

b) Necessary information about the beneficiaries for payment and transfer activities for unidirectional fund transfers and other current transactions: Name of the beneficiary organization or individual, account number of the beneficiary organization or individual, receiving bank (address, country). In cases where there is no account number for an individual beneficiary, provide the ID card number, citizen identification card number, passport number, or equivalent valid legal document.

5. Authorized banks have the right to refuse or not execute transactions of selling, transferring, or issuing Certificates for Carrying Foreign Currencies Out of the Country if organizations or individuals do not provide complete and/or accurate information as prescribed in Clause 4 of this Article.

6. Fully comply with laws on anti-money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction.

Article 17. Responsibilities of organizations and individuals related to the matter

1. Provide complete information to permitted banks as stipulated in Clause 4, Article 16 of this Circular and bear legal responsibility for the authenticity of the information provided to permitted banks.

2. Present relevant documents and certificates when purchasing, transferring, or carrying foreign currency out of the country for the purpose of unidirectional money transfers for individuals and payments, money transfers for other current transactions as prescribed by permitted banks.

3. Present relevant documents and certificates proving the purpose of funding, source of funding, and the decision approving the level of funding by the legal representative of the organization, commitment documents regarding the legality of the funds, and other documents and certificates as prescribed by permitted banks when purchasing, transferring, or carrying foreign currency for the purpose of unidirectional money transfers for organizations (except in cases stipulated in Clause 4 of this Article).

4. Resident organizations transferring money abroad for the purpose of funding and assistance from voluntary contributions as specified in Point b, Clause 1, Article 4 of this Circular shall be responsible for presenting:

a) Documents on raising and receiving voluntary contributions for funding and assistance, including the main contents: Purpose of funding and assistance; beneficiaries of funding and assistance; start and end dates for receiving voluntary contributions; method of receiving contributions through bank transfers and/or cash, with contributions in Vietnamese dong; account information for receiving voluntary contributions;

b) A list including the name, address (if available), and amount contributed by organizations and individuals voluntarily;

c) Certificates proving the amount received from voluntary contributions;

d) A commitment document from the organization stating that the organization will only open one account at a permitted bank to receive voluntary contributions;

đ) Other documents and certificates as prescribed by permitted banks.

5. Bear legal responsibility for the authenticity of the documents and certificates presented to permitted banks.

6. Not to use a set of documents and certificates to purchase, transfer, or carry foreign currency exceeding the amount recorded on the relevant documents and certificates, the levels of foreign currency purchases, transfers, and carries out of the country prescribed in this Circular at one or more permitted banks.

7. Use foreign currency cash purchased from permitted banks for the intended purposes and in accordance with the provisions of the law.

8. Not to purchase, transfer, or carry foreign currency out of the country for the purposes of money laundering, financing terrorism, financing the proliferation of weapons of mass destruction, fraud, deception, and other violations of the law.

9. Resident organizations transferring money abroad for the purpose of funding as specified in Point c, Clause 1, Article 4 of this Circular may only purchase and transfer foreign currency at one permitted bank throughout the entire process of funding each program, fund, or project.

10. Resident organizations and individuals when making payments, transferring money abroad to buy and sell goods through commodity exchanges outside the country must comply with the provisions of this Circular, regulations on buying and selling goods through commodity exchanges outside the country via commodity exchanges in Vietnam that are interconnected with commodity exchanges outside the country, and related regulations.

11. Strictly implement the provisions of this Circular and related laws.

Article 18. Effective Date

1. This Circular takes effect from February 15, 2023.

2. Repeal Circular No. 20/2011/TT-NHNN dated August 29, 2011, issued by the Governor of the State Bank of Vietnam, concerning the purchase and sale of foreign currency cash by individuals from permitted credit institutions.

3. Repeal Clause 3, Article 1 of Circular No. 24/2018/TT-NHNN dated September 28, 2018, issued by the Governor of the State Bank of Vietnam, amending and supplementing certain articles of circulars and consolidated documents with provisions on periodic reporting systems.

4. This Circular amends and supplements certain provisions of the following regulatory legal documents:

a) Amending and supplementing Point b, Clause 1, Article 17 of Circular No. 02/2021/TT-NHNN dated March 31, 2021, issued by the Governor of the State Bank of Vietnam, guiding foreign exchange transactions on the foreign exchange market by permitted credit institutions operating in foreign exchange as follows:

“b) Vietnamese citizens are individuals who purchase foreign currency cash for the purposes of studying, medical treatment, working, traveling, and visiting abroad.”

b) Amending and supplementing Point a, Clause 1, Article 5 of Circular No. 15/2011/TT-NHNN dated August 12, 2011, issued by the Governor of the State Bank of Vietnam, concerning carrying foreign currency cash and Vietnamese dong cash by individuals when exiting and entering the country as follows:

“a) Permitted credit institutions have the responsibility to issue a confirmation letter for individuals (including individuals representing resident organizations) carrying foreign currency cash and Vietnamese dong cash for the purposes specified in Clauses 1, 2, and 3 of Article 7 of Decree No. 70/2014/NĐ-CP dated July 17, 2014, of the Government detailing the implementation of some articles of the Foreign Exchange Law and the Law Amending and Supplementing Certain Articles of the Foreign Exchange Law (in the attached model of this Circular);”

c) Adding Point i, Clause 2, Article 3 of Circular No. 16/2014/TT-NHNN dated August 1, 2014, issued by the Governor of the State Bank of Vietnam, guiding the use of foreign currency accounts and Vietnamese dong accounts of residents and non-residents at permitted banks as follows:

“i) Withdraw foreign currency cash to carry out of the country for the purpose of funding and assistance according to the law on foreign exchange management.”

Article 19. Implementation

The Director of the Office, Heads of the Department of Foreign Exchange Management, Heads of units under the State Bank of Vietnam, permitted banks, organizations, and individuals related to the matter are responsible for implementing this Circular.

 

 

ANNEX

(attached to Circular No. 20/2022/TT-NHNN dated December 30, 2022

of the Governor of the State Bank of Vietnam) 

 

REPORT ON THE SITUATION OF PURCHASING, TRANSFERRING, AND CARRYING FOREIGN CURRENCY OUT OF THE COUNTRY

FOR RESIDENT ORGANIZATIONS FOR THE PURPOSE OF FUNDING AND ASSISTANCE

ABROAD

Month ... Year ...

Respectfully sent to: State Bank of Vietnam (Foreign Exchange Management Department)