Decision No. 258/2000/QD-NHNN On the issuance of the Foreign Exchange Trading Desk Operation Regulation

DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

Regarding the issuance of the Foreign Exchange Trading Counter Operating Regulations

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997;

Pursuant to Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchange management;

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

DECISION:

Article 1. The accompanying Decision promulgates the "Foreign Exchange Trading Counter Operating Regulations."

Article 2. This Decision shall take effect fifteen days from the date of signature and shall supersede Decision No. 103/QĐ-NH7 dated April 3, 1995 of the Governor of the State Bank of Vietnam on the issuance of the "Foreign Exchange Trading Counter Operating Regulations," Directive No. 01/1998/CT-NHNN7 dated January 9, 1998 of the Governor of the State Bank of Vietnam on rectifying foreign exchange trading counter operations, and provisions regarding foreign exchange trading counters set forth in Circular No. 01/1999/TT-NHNN7 dated April 16, 1999 of the State Bank guiding the implementation of Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchange management.

Article 3. The Heads of the Office, Heads of the Department of Foreign Exchange Management, Heads of units under the State Bank, Governors of the State Bank Branches in provinces and centrally administered cities, General Directors (Directors) of credit organizations permitted shall be responsible for implementing this Decision.

FOREIGN EXCHANGE TRADING COUNTER OPERATING REGULATIONS

(Issued together with Decision No.: 258/2000/QĐ-NHNN7 dated August 14, 2000 of

The Governor of the State Bank of Vietnam)

PART I - GENERAL PROVISIONS

Article 1. Scope of application

These regulations govern the activities of foreign exchange trading counters within the territory of the Socialist Republic of Vietnam.

The exchange of currency of neighboring countries at border areas shall be carried out according to specific regulations on foreign exchange management in border areas.

Article 2. DefinitionsIn these regulations, the following terms shall be understood as follows:

1. Foreign currency cash means the currency of another country or common currency of several countries in the form of banknotes, coins, traveler's checks, and other similar payment instruments denominated in foreign currency that are legally circulating and not prohibited for use in transactions by the State Bank and accepted by credit institutions in foreign exchange operations.

2. Foreign exchange transaction is the business of using Vietnamese dong to purchase foreign currency cash and selling foreign currency cash for Vietnamese dong to individual customers.

3. Foreign exchange trading counter is a place authorized by the State Bank to provide foreign exchange services, including:

aDirect foreign exchange trading counters of credit institutions permitted to conduct direct foreign exchange operations (hereinafter referred to as Direct Counters);

b. Foreign exchange trading counters of other organizations acting as agents for foreign exchange transactions for credit institutions permitted to conduct foreign exchange operations and authorized by the State Bank Branches in their respective regions to act as agents for foreign exchange transactions (hereinafter referred to as Agent Counters).

Article 3. Scope of Activities of Foreign Exchange Trading Counters

1. Foreign exchange trading counters may only purchase foreign currency cash from customers and may not sell foreign currency cash to customers (except for Direct Counters as specified in Clause 2 of Article 3 of these Regulations). Agent Counters must sell all purchased foreign currency cash to the commissioned credit institution.

2. Direct Counters located at the headquarters or branch offices of credit institutions permitted or placed in quarantine zones at international border crossings (land, sea, air) may resell foreign currency cash to individual customers holding passports issued by competent authorities of foreign countries (hereinafter collectively referred to as foreign passport holders) in accordance with Article 7 of these Regulations.

PART II - SPECIFIC PROVISIONS

Article 4. Registration for Foreign Currency Exchange Counters of Credit Institutions

1. Credit institutions setting up foreign currency exchange counters outside their main office or branch headquarters must register with the State Bank of Vietnam Branch in the province or city where the counter is located. Credit institutions are only permitted to commence operations at such foreign currency exchange counters after receiving a confirmation letter from the State Bank of Vietnam Branch in the province or city regarding the registration of the foreign currency exchange counter. The registration dossier includes:

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows: Application for registration of foreign currency exchange counter (Annex 1);

b. Copy of the Decision of the General Director (Director) of the credit institution or the person authorized regarding the establishment of the foreign currency exchange counter;

2. Within 5 (five) working days from the date of receipt of complete and valid documents, the State Bank of Vietnam Branch in the province or city must confirm in writing the registration of the foreign currency exchange counter of the credit institution (Annex 2). In case of refusal to confirm, the State Bank of Vietnam Branch in the province or city must provide a written explanation of the reasons.

Article 5. Entrusting Agents for Foreign Currency Exchange:

1. Objects entrusted by credit institutions to act as agents for foreign currency exchange:

a. Organizations that are state-owned enterprises, enterprises of political organizations, political-social organizations, limited liability companies, joint-stock companies, partnerships, private enterprises, cooperatives, foreign-invested enterprises operating in the tourism, entertainment services, hotel, restaurant, supermarket, transportation, gold, silver, precious stones sectors;

The Standing Office of the Council for International Cooperation on Non-Governmental Organizations (Vietnam Friendship Association) is the agency responsible for receiving registration dossiers, leading, and coordinating with member agencies of the Council to examine dossiers and return results of reviews of registration dossiers of foreign non-governmental organizations in Vietnam.. Ticket offices of foreign airlines, maritime, and tourism companies;

of. Credit institutions not yet permitted to conduct foreign exchange activities.

2. Credit institutions permitted to conduct foreign exchange activities shall base on the need to expand the network of foreign currency exchange, reputation, and ability to exchange cash foreign currencies of the above-mentioned organizations to sign agency contracts for foreign currency exchange.

Credit institutions permitted to conduct foreign exchange activities when signing agency contracts for foreign currency exchange must inspect the physical facilities and guide the business procedures for the staff of the agency counter. The contract must include the following main contents: Location of the agency counter;

1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows: . Scope of operation: The agency counter can only purchase foreign currency cash from customers and must sell all the foreign currency cash exchanged back to the credit institution;

The Standing Office of the Council for International Cooperation on Non-Governmental Organizations (Vietnam Friendship Association) is the agency responsible for receiving registration dossiers, leading, and coordinating with member agencies of the Council to examine dossiers and return results of reviews of registration dossiers of foreign non-governmental organizations in Vietnam.. Exchange rate: the buying rate of foreign currency cash from customers and the selling rate of foreign currency cash back to the credit institution;

of. Rights and obligations of the parties involved in the contract;

For coal-fired thermal power plants where the enterprise holds 100% of the registered capital and uses 100% of its own capital to invest in the project approved by the competent authority, E is determined as 100%;. Reserve level;

đ. Time limit for the agency counter to sell the foreign currency cash exchanged back to the credit institution according to the provisions of Article 11 of this Regulation.

Average loan repayment period is 10 years;Article 6. Conditions and Procedures for Issuing License to Act as Agent for Foreign Currency Exchange

1. Conditions for Issuing License to Act as Agent for Foreign Currency Exchange

The objects mentioned in Clause 1, Article 5 of this Regulation, if meeting the following conditions, will be issued a license to act as agent for foreign currency exchange by the State Bank of Vietnam Branch in the province or city where they are located:

. Having a location to set up the agency counter in the center of economy, culture, transportation, or places with a demand for exchanging foreign currency cash;

a. Having sufficient equipment and material conditions to meet the requirements of foreign currency cash exchange activities;

The Standing Office of the Council for International Cooperation on Non-Governmental Organizations (Vietnam Friendship Association) is the agency responsible for receiving registration dossiers, leading, and coordinating with member agencies of the Council to examine dossiers and return results of reviews of registration dossiers of foreign non-governmental organizations in Vietnam.. Having employees who understand the business procedures to provide foreign currency exchange services such as accounting, treasury, distinguishing real and fake money;

ofHaving signed an agency contract for foreign currency exchange with a credit institution.

d. 2. Procedures for Issuing License to Act as Agent for Foreign Currency Exchange

Organizations meeting the conditions stipulated in Clause 1 of this Article and having the need to act as agents for foreign currency exchange for credit institutions permitted to conduct foreign exchange activities must submit an application for issuance of a license to act as agent for foreign currency exchange to the State Bank of Vietnam Branch in the same locality. The dossier includes:

. Application for permission to act as agent for foreign currency exchange (Annex 3);

a. Notarized copy of the Decision on Establishment (or document, paper confirming the opening, placement, establishment of the objects specified in Clause 1 of Article 5 of this Regulation) or Business Registration Certificate;

The Standing Office of the Council for International Cooperation on Non-Governmental Organizations (Vietnam Friendship Association) is the agency responsible for receiving registration dossiers, leading, and coordinating with member agencies of the Council to examine dossiers and return results of reviews of registration dossiers of foreign non-governmental organizations in Vietnam.. Agency contract for foreign currency exchange signed with a credit institution permitted to conduct foreign exchange activities.

ofWithin 7 (seven) working days from the date of receipt of complete and valid documents, the State Bank of Vietnam Branch in the province or city will examine and issue a license to act as agent for foreign currency exchange (Annex 4). In case of refusal to issue a license to an organization, the State Bank of Vietnam Branch in the province or city must provide a written explanation of the reasons.

Buying Back Foreign Currency Upon Departure from the Country

, Clause 1, Clause 2 Article 7a of this Regulation.. Individual customers holding foreign passports during their stay in Vietnam who have exchanged foreign currency for Vietnamese Dong at foreign currency exchange counters but have not spent it all may buy back the foreign currency at the foreign currency exchange counter upon departure from Vietnam according to the provisions of Clause 2, Article 3 of this Regulation. Foreign currency exchange counters may sell foreign currency cash to customers according to the following regulations:

Customers wishing to buy less than 500 USD (five hundred US Dollars) or other foreign currencies of equivalent value must present: passport; air ticket (or train ticket).

1. Customers wishing to buy 500 USD (five hundred US Dollars) or more or other foreign currencies of equivalent value must present passport, air ticket (or train ticket), and invoice for the foreign currency exchanged for Vietnamese Dong.

2. Foreign currency exchange counters can only sell back foreign currency to customers whose names are recorded on the foreign currency exchange invoice. The maximum amount of foreign currency that customers can buy back cannot exceed the amount of foreign currency exchanged recorded on the invoice.

The foreign currency exchange invoice must be clear, without erasures, and the date on the invoice must fall within the period from the last entry date on the passport to the date of requesting to buy back the foreign currency. When selling back foreign currency to customers, the foreign currency exchange counter must reclaim the previous foreign currency exchange invoice.

The foreign currency exchange receipt must be clear, without erasures; the date on the receipt must fall within the period from the most recent entry date recorded in the passport to the date of requesting to resell foreign currency. When reselling foreign currency to customers, the foreign currency exchange counter must reclaim the previous foreign currency exchange receipt.

Article 8. Display of Foreign Currency Types and Exchange Rates

The foreign currency exchange counter must publicly display all types of foreign currencies and applicable exchange rates for transactions at the foreign currency exchange counter.

Article 9. Applicable Exchange Rates

1. The buying and selling exchange rates at the direct foreign currency exchange counter shall be implemented according to the guidelines of the General Director (Director) of the permitted credit institution.

2. The exchange rate for purchasing foreign currency by the agency counter from customers shall be carried out according to the agreement in the agency contract between the credit institution and the agency counter, in compliance with current regulations on foreign currency management.

Article 10. Foreign Currency Exchange Documents of the Foreign Currency Exchange Counter

When exchanging foreign currency for customers, staff at the foreign currency exchange counter must record all prescribed contents in the invoice and update data into the accounting ledger of the foreign currency exchange counter according to the instructions of the credit institution, in compliance with the current accounting system, and must hand over one copy of the invoice to the customer. The agency counter for which credit institution it serves must use invoices issued by that credit institution (invoice model in Appendix 5).

Article 11. Time for Submission or Sale of Foreign Currency, Reserve Level of Foreign Currency

1. For the direct counter: the time for submitting foreign currency cash and the reserve level of foreign currency cash shall be determined by the General Director (Director) of the credit institution.

2. For the agency counter: the agency counter must sell all the foreign currency obtained from exchanges to the credit institution that has appointed it as an agent at the end of each day. In cases where the agency counter is far from the appointing credit institution, the credit institution agrees with the agency counter on the deadline for selling the foreign currency cash obtained to the credit institution, but not exceeding three working days. If the date for selling the exchanged foreign currency coincides with the weekend, holiday, or New Year's break of the appointing credit institution, then the agency counter must sell the foreign currency on the next working day.

The agency counter may retain a certain amount of foreign currency reserves (small denomination foreign currency) to return to customers according to the agreement between the credit institution and the agency counter, but not exceeding 1000 USD (one thousand US dollars) or equivalent foreign currency value.

Article 12. Location of the Foreign Currency Exchange Counter

1. The placement of the location of the foreign currency exchange counter must comply with the following provisions:

a. The agency counter can only be located at places listed in the license issued by the Branch of the State Bank of Vietnam in the province or city.

The Standing Office of the Council for International Cooperation on Non-Governmental Organizations (Vietnam Friendship Association) is the agency responsible for receiving registration dossiers, leading, and coordinating with member agencies of the Council to examine dossiers and return results of reviews of registration dossiers of foreign non-governmental organizations in Vietnam.. The direct counter can only be located at the headquarters, branch offices of the credit institution, and other registered locations with the Branch of the State Bank of Vietnam in the province or city.

2. All foreign currency exchange counters must have a sign clearly displaying the name of the foreign currency exchange counter, the name of the credit institution, or the name of the credit institution authorized as an agent, in both Vietnamese and English (authorized exchange bureau).

Article 13. Handling when Fake Money is Detected

Upon detecting fake money used by customers to exchange foreign currency, the foreign currency exchange counter must prepare a report, temporarily hold the fake money according to current regulations, and immediately notify the nearest police authority to investigate and handle.

CHAPTER III - IMPLEMENTATION

Article 14. Issuance of Licenses and Re-registration for Existing Foreign Currency Exchange Counters

1. For direct counters operating before this Regulation takes effect, within sixty days from the effective date of this Regulation, the credit institution must register with the Branch of the State Bank of Vietnam in the province or city. During the registration period, the direct counter can continue to operate. After the registration period, the direct counter can only continue to operate upon receiving confirmation of registration from the Branch of the State Bank of Vietnam in the province or city. The confirmation period is implemented according to the provisions of Article 4 of this Regulation.

2Within one hundred twenty days from the effective date of this Regulation, the Branches of the State Bank of Vietnam in the provinces and cities will review the agency counters that have been permitted to operate on their territory. Agency counters meeting the conditions stipulated in this Regulation shall have their old licenses revoked and new licenses issued. Agency counters failing to meet the stipulated conditions shall have their licenses revoked, be required to cease operations, or be asked to supplement missing conditions to obtain new licenses. During the supplementation period, agency counters can continue to operate. After the specified period, agency counters not granted new licenses cannot continue to operate.

Article 15. Inspection and Handling

1. The Branch of the State Bank of Vietnam in provinces and cities shall be responsible for inspecting and supervising the foreign currency exchange activities of direct counters and agency counters within their jurisdiction in accordance with the provisions of this Regulation.

Credit institutions shall be responsible for guiding business operations and inspecting the activities of agency counters they have authorized to ensure compliance with the provisions of this Regulation.

2. In case an agency counter violates the provisions of this Regulation, the Branch of the State Bank of Vietnam in provinces and cities has the right to temporarily suspend or revoke the license already issued and notify the credit institution that has authorized it to terminate the agency agreement.

Article 16. Reporting System

1. Each month, before the fifth day of the following month, agency counters must report to the Branch of the State Bank of Vietnam in provinces and cities on the foreign currency exchange situation of the previous month (Annex 6).

2. Every quarter, before the tenth day of the first month of the next quarter, credit institutions must compile the foreign currency exchange situation of their own quarter (including direct counters and agency counters) and report to the Branch of the State Bank of Vietnam in provinces and cities within their jurisdiction (Annex 7).

3. Every quarter, before the twentieth day of the first month of the next quarter, the Branch of the State Bank of Vietnam in provinces and cities must compile the foreign currency exchange situation within their jurisdiction during the quarter and report to the State Bank (Annex 8).

Article 17. Handling cases of foreign currency exchange activities without a license

Periodically or unexpectedly, the Inspection Department of the Branch of the State Bank of Vietnam in provinces and cities will coordinate with relevant agencies to inspect foreign currency exchange activities within their jurisdiction. If organizations or individuals are found engaging in foreign currency exchange activities without a license, they will be documented, and evidence will be temporarily seized for handling according to the law.

Article 18. Handling violations

Organizations or individuals violating the provisions of this Regulation may be subject to administrative penalties or criminal liability depending on the nature and severity of the violation.

Article 19. Supplementing and Amending the Regulation

Any supplementation or amendment to this Regulation shall be decided by the Governor of the State Bank.

ANNEX 1

Name of credit institutionSOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

------------------------

..., date month year...

APPLICATION FOR FOREIGN CURRENCY EXCHANGE COUNTER REGISTRATION

Unit: Equivalent USD: Branch of the State Bank

Province (City)...

Name of credit institution (or branch of credit institution):

Address:

Telephone number: ...Fax number:...

Decision on establishment number:

issued on ...

We hereby apply to the Branch of the State Bank of Vietnam in the province (city) for registration of the number of foreign currency exchange counters of the credit institution (or branch of the credit institution) as follows:

We commit to comply with all current regulations on foreign exchange management by the State.

Head of the unit

(Signature and stamp)

Appendix 2

State Bank of Vietnam

Branch Province, city...

SOCIALIST REPUBLIC OF VIETNAM

. Independence - Freedom - Happiness

Number: ..., day…month…year…

 

CERTIFICATE OF REGISTRATION FOR FOREIGN CURRENCY EXCHANGE COUNTER

DIRECTOR OF THE BRANCH OF THE STATE BANK OF PROVINCE, CITY...

- Based on the Regulation on the operation of foreign currency exchange counters issued together with Decision No. 258/2000/QĐ-NHNN7 dated August 14, 2000 of the Governor of the State Bank of Vietnam;

- Considering the application for registration of foreign currency exchange activities from (name of credit institution or branch of credit institution),

confirms

1. The Branch of the State Bank of Vietnam in the province (city)... confirms that (name of credit institution or branch of credit institution)... has registered the following foreign currency exchange counters:

2. During the course of operation, foreign currency exchange counters must comply with the laws of the Socialist Republic of Vietnam and current regulations on foreign exchange management.

Place of Receipt: Credit organization branch in province/city and basic credit cooperative…

- Credit institution;

- Foreign Exchange Management Department; (Signature and stamp)

- File.

Tel:

NAME OF JOINT STOCK

SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

Number: ___/CV..., date...month...year...

APPLICATION FOR AGENCY LICENSE FOR FOREIGN CURRENCY EXCHANGE

Unit: Equivalent USD: Branch of the State Bank

Province (City)...

Name of organization:

Main office at:

Telephone number: ...Fax number:...

Decision on establishment number:

Issuing authority:...date...

Some key indicators

Business registration certificate number:

Issuing authority:...date...

Business field:

Domestic currency deposit account number:

At Bank:

Foreign currency deposit account number:

At Bank:

Request the authority to consider and issue a license for the unit to act as an agent for foreign currency exchange under the agency agreement signed with ...(credit institution)...number...date...

We commit to comply with all current regulations on foreign exchange management by the State.

Head of the unit

(Signature and stamp)

 

Appendix 4

State Bank of Vietnam

SOCIALIST REPUBLIC OF VIETNAM

Branch Province, city... Independence - Freedom - Happiness

Number: ..., day…month…year…

LICENSE FOR FOREIGN CURRENCY EXCHANGE AGENCY

DIRECTOR OF THE BRANCH OF THE STATE BANK OF PROVINCE, CITY... . .

- Based on the Regulation on the operation of foreign currency exchange counters issued together with Decision No. 258/2000/QĐ-NHNN7 dated August 14, 2000 of the Governor of the State Bank of Vietnam;

- Considering the application for issuance of an agency license for foreign currency exchange counters from (name of organization applying for the license),

DECISION:

Article 1. Approves ...(name of organization applying for the license)...to act as an agent for foreign currency exchange for ...(name of credit institution)...at the following locations:

1...Telephone number:...

2...Telephone number:...

3...Telephone number:...

Article 2. During the course of acting as an agency for foreign currency exchange, the organization must comply with the laws of the Socialist Republic of Vietnam, current laws on foreign exchange management, and other related regulations.

Article 3This license becomes effective from the date of signature.

Place of Receipt: Credit organization branch in province/city and basic credit cooperative…

- Organization;

- Credit institution signing the agency contract; (Signature and stamp)

- Foreign Exchange Management Department;

- File.

… (Name of economic organization) requests to change the Certificate of Registration for Currency Exchange Agent with the following content:

Name and logo of the licensed credit institution Number:

foreign currency exchange invoice

money receipt

Full name:

Name:

Passport number:

Passport No:

Amount exchanged:

Amount received:

-

-

-

Exchange rate:

Exchange Rate:

Amount to pay:

Amount Pay:

Date / /

Date

licensed bank

(foreign currency exchange agency)

 

Certificate of Registration for Change of Currency Exchange Agent No…. date….)

name of organization

----------------

..., day ... month ... year ...

Unit: Equivalent USD: Branch of the State Bank of Vietnam in provinces and cities..........

Report on foreign currency exchange situation

(Month ...year...)

Number of permitted foreign currency exchange service locations:...

Opening balance of the month (converted to USD): ...

Foreign currency exchange turnover in the month (converted to USD):...

Turnover of foreign currency sold to authorized credit institutions in the month (converted to USD): ...

Closing balance of the month (converted to USD): ...

Prepared by Director

Appendix 7

name of credit institution

---------------- -------------

..., day ... month ... year ...

Unit: Equivalent USD: Branch of the State Bank of Vietnam in provinces and cities..........

Report on foreign currency exchange situation

(Quarter ...year...)

Prepared by Director

(signature & stamp)

(Attached detailed report on foreign currency exchange situation in the quarter for each agency counter)

 ANNEX 8

State Bank of Vietnam

Branch Province, city...

Report on foreign currency exchange situation

(Quarter...year...)

Prepared by Director

(signature & stamp)