Decision No. 28/2008/QD-NHNN On the issuance of regulations on the handling of counterfeit money and suspected counterfeit money in the banking sector

Pursuant to …;

Issuing regulations on the handling of counterfeit money and suspected counterfeit money in the banking industry

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GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam 2003;

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;

Pursuant to Decision No. 130/2003/QĐ-TTg dated June 30, 2003 of the Prime Minister on protecting Vietnamese currency;

At the proposal of the Director of the Currency Issue and Treasury Department,

DECISION:

Article 1. Issued herewith "Regulations on the Handling of Counterfeit Money and Suspected Counterfeit Money in the Banking Industry".

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

Article 3. The Heads of the Office, the Director of the Currency Issue and Treasury Department, the Director of the Branch of the State Bank of Vietnam, the Governor of the Provincial Branches of the State Bank of Vietnam, the General Directors (Directors) of credit organizations, and other entities engaged in banking activities are responsible for implementing this Decision.

REGULATIONS

On the Handling of Counterfeit Money and Suspected Counterfeit Money in the Banking Industry
(issued together with Decision No. 28/2008/QĐ-NHNN dated October 10, 2008 of the Governor of the State Bank of Vietnam)

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Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of application

These provisions regulate the seizure of counterfeit money, temporary seizure of suspected counterfeit money, authentication of counterfeit money and suspected counterfeit money, stamping counterfeit money, packaging, receipt and delivery, transportation, and destruction of counterfeit money in the banking industry.

Article 2. Applicability

1. The State Bank of Vietnam, credit organizations, and other entities engaged in banking activities (hereinafter referred to as banks).

2. Organizations and individuals possessing counterfeit money or suspected counterfeit money discovered and seized by banks during cash transactions with banks.

Article 3. Definitions

In these regulations, the following terms are understood as follows:

1. Counterfeit money means money that resembles Vietnamese paper money (cotton paper money, polymer paper money) or metal money but is not issued by the State Bank of Vietnam.

2. Suspected counterfeit money means money whose authenticity has not yet been determined.

Chapter 2.

SPECIFIC PROVISIONS

Article 4. Seizure of counterfeit money

1. During cash transactions with customers, when a suspicious note is detected, the bank bases its conclusion on the notification from the State Bank (or the Ministry of Public Security) regarding the characteristics of counterfeit money, comparing it with the security features of genuine money (or samples) of the same type.

a) If it is confirmed that the suspicious note is counterfeit money already notified by the State Bank (or the Ministry of Public Security), the bank must prepare a record (Annex 1), seize and stamp, punch holes in the counterfeit money; if there is suspicion of circulation of counterfeit money or if five or more counterfeit paper notes (or five pieces for counterfeit metal money) are found in a single transaction, or if the customer does not comply with the bank's procedures for recording and seizing counterfeit money, the bank must report to the nearest public security agency. Stamping and punching holes in counterfeit money shall be carried out in accordance with Article 6 of these Regulations;

b) For counterfeit money not yet reported (new types of counterfeit money), the bank prepares a record (Annex 1), seizes (without stamping or punching holes in the counterfeit money); reports promptly to the nearest public security agency; and reports and sends all new types of counterfeit money within two working days from the date of discovery to the Provincial Branch of the State Bank of Vietnam in the locality. Upon receiving information about new types of counterfeit money, the Provincial Branch of the State Bank of Vietnam immediately reports to the same-level public security agency and the Currency Issue and Treasury Department.

2. Bank staff seizing counterfeit money must be trained in recognizing genuine and counterfeit money.

3. It is strictly prohibited to return counterfeit or suspected counterfeit currency to customers.

Article 5. Temporary seizure of suspected counterfeit money

For suspected counterfeit money, credit organizations and other entities engaged in banking activities prepare a record and temporarily seize the suspected counterfeit money (Annex 2). Within three working days from the date of temporary seizure, credit organizations and other entities engaged in banking activities send the suspected counterfeit money and request the Provincial Branch of the State Bank of Vietnam or the local public security agency to authenticate. The results of the authentication must be communicated in writing to the customer holding the suspected counterfeit money.

Article 6. Stamping counterfeit money

1. Stamp for counterfeit money

The counterfeit money stamp is rectangular; dimensions: 20mm x 60mm, part with the name of the bank: 5mm x 60mm, part with the words "TIỀN GIẢ": 15mm x 60mm; red ink is used.

2. Method of stamping and punching holes in counterfeit money

Stamping counterfeit money on both sides of the counterfeit note and punching four holes in the counterfeit note (two holes on each long side of the counterfeit note using a hole puncher suitable for office use).

Article 7. Packaging and storing counterfeit money

1. Packaging and sealing counterfeit money

a) Counterfeit cotton paper money, counterfeit polymer paper money: 100 counterfeit notes of the same denomination and material are packed into one bundle; ten bundles (1,000 notes) are packed into one package and sealed. In cases where there are fewer than 1,000 notes, they are still packed into a package and sealed;

b) Counterfeit metal money: 100 pieces are packed into a small bag and sealed; ten small bags are packed into a large bag (1,000 pieces), sealed. In cases where there are fewer than 100 pieces, they are packed into a plastic bag and sealed;

c) The State Bank is responsible for packaging and sealing bundles and bags of counterfeit money, and the seals must clearly and fully indicate the elements required by current regulations on sealing cash of the State Bank.

2. Counterfeit money is stored separately in the bank's vault.

Article 8. Receipt and delivery, transportation of counterfeit money

1. Receipt and delivery of counterfeit money between credit organizations and other entities engaged in banking activities and the Provincial Branches of the State Bank of Vietnam, the Branch of the State Bank of Vietnam are conducted by sheet (or piece for counterfeit metal money), submitting in batches (except for new types of counterfeit money submitted according to Point b Clause 1, Article 4 of these Regulations). The bank prepares a record of receipt and delivery of counterfeit money (Annex 3).

The method of transporting counterfeit money is decided by the General Director (Director) of credit organizations and other entities engaged in banking activities, ensuring safety during transportation.

2. The Provincial Branches of the State Bank of Vietnam, the Branch of the State Bank of Vietnam are responsible for verifying the authenticity of each counterfeit note submitted by credit organizations and other entities engaged in banking activities.

In case real money is discovered among counterfeit money submitted, the State Bank branch or the State Bank Trading Department shall prepare a record, require the bank that has seized the money to return an equivalent value to the customer, and report the results to the State Bank within one month. The bank or its employees who seize real money from customers must be responsible for the consequences (if any) towards the customers.

Real banknotes marked with "Counterfeit" shall be recovered, exchanged at equal value (recorded as Credit) for the bank submitting them, and cut at one-eighth of the note's area, packaged, and transferred according to the regulations of the State Bank regarding non-circulating currency.

3. The State Bank branch of provinces and centrally-administered cities, the State Bank Trading Department shall submit counterfeit money to the Central Treasury of the State Bank, the State Bank Branch of Binh Dinh Province at least once every six months, which may be combined with the transfer of money between the State Bank. The method of submission follows the sealed bundles or bags of the submitting bank.

4. For counterfeit money without prior notice (new type of counterfeit money), the State Bank branch of provinces and centrally-administered cities shall submit new types of counterfeit money according to the requirements of the Currency Issuance and Treasury Department; the mode of transportation shall be decided by the Governor of the State Bank branch of provinces and centrally-administered cities, ensuring safety and timeliness.

Article 9. Appraisal of counterfeit money and suspected counterfeit money

1. Any organization or individual requesting an appraisal of counterfeit money or suspected counterfeit money must submit a written request (Annex No. 4) and transfer the counterfeit money or suspected counterfeit money needing appraisal to the State Bank branch of provinces and centrally-administered cities; the Currency Issuance and Treasury Department or the Currency Issuance and Treasury Sub-department.

2. The result of the appraisal by the State Bank branch of provinces and centrally-administered cities; the Currency Issuance and Treasury Department; the Currency Issuance and Treasury Sub-department shall be notified in writing to the organization or individual requesting the appraisal within five working days from the date of receiving the appraisal request. The appraisal shall be conducted free of charge.

3. Handling the results of the appraisal at the State Bank branch of provinces and centrally-administered cities:

a) If the result of the appraisal is genuine money, this genuine money shall be returned to the organization or individual requesting the appraisal or exchanged and recorded as Credit for the bank requesting the appraisal;

b) If the result of the appraisal is counterfeit money with prior notice from the State Bank (or the Ministry of Public Security), the State Bank branch shall seize the counterfeit money; stamp and punch holes in the counterfeit money (if the counterfeit note has not been stamped or punched);

c) If the result of the appraisal is counterfeit money without prior notice (new type of counterfeit money), the State Bank shall seize the counterfeit money (without stamping or punching) and transfer the counterfeit money to the Currency Issuance and Treasury Department according to Clause 4, Article 8 of these Regulations;

d) In case the State Bank branch of provinces and centrally-administered cities cannot determine whether it is genuine or counterfeit money, the money requiring appraisal shall be transferred to the Currency Issuance and Treasury Department for appraisal as soon as possible.

4. Handling the results of the appraisal at the Currency Issuance and Treasury Department, the Currency Issuance and Treasury Sub-department:

a) If the result of the appraisal is genuine money, the genuine money shall be returned to the organization or individual requesting the appraisal or not yet submitted to the State Bank Trading Department (or the State Bank Branch of Ho Chi Minh City) to record as Credit for the bank requesting the appraisal;

b) If the result of the appraisal is counterfeit money with prior notice from the State Bank (or the Ministry of Public Security), the seizure, stamping, punching, and submission to the State Bank Trading Department (or the State Bank Branch of Ho Chi Minh City) shall be carried out. For new types of counterfeit money (without prior notice from the State Bank or the Ministry of Public Security), the seizure shall be carried out without stamping or punching.

5. Counterfeit money or suspected counterfeit money appraised upon request of the Public Security Organs, Border Guard Forces, Customs, after appraisal shall be returned to the requesting unit; counterfeit money shall not be stamped or punched.

6. Bank staff involved in the appraisal of counterfeit money or suspected counterfeit money must have a certificate or certification of training in counterfeit money appraisal issued by the State Bank.

Article 10. Storage and preservation of counterfeit money at the Currency Issuance and Treasury Department

New types of counterfeit money, after appraisal at the Currency Issuance and Treasury Department, shall be stored and preserved to serve operational purposes (except for counterfeit money or suspected counterfeit money appraised under Clause 5, Article 9 of these Regulations). The Currency Issuance and Treasury Department shall submit to the Governor for a decision on the quantity and types of counterfeit money to be stored and preserved.

Article 11. Recovery and destruction of counterfeit money

1. The State Bank shall organize the collection and destruction of counterfeit money submitted by organizations and individuals.

2. The destruction of counterfeit money and real money marked with "Counterfeit" by the State Bank shall be carried out according to the regulations applicable to the destruction of non-circulating currency.

3. The destruction of counterfeit money as evidence in criminal cases shall be carried out according to the laws on enforcement of judgments.

Article 12. Information and reporting on counterfeit money

1. The State Bank branch of provinces and centrally-administered cities, credit institutions, and other organizations engaged in banking activities shall report the amount of counterfeit money seized according to the current regulations of the State Bank.

2. When a bank discovers a new type of counterfeit money or signs of storing, circulating, or transporting counterfeit money, it must promptly notify the public security organs and the State Bank branch of provinces and centrally-administered cities in the locality. The State Bank (Currency Issuance and Treasury Department) shall promptly notify the Ministry of Public Security (Economic Security Protection Bureau) about new types of counterfeit money. The Currency Issuance and Treasury Department shall notify in writing the characteristics of new types of counterfeit money to the Economic Security Protection Bureau (Ministry of Public Security); the Reconnaissance Bureau (Border Guard Command); the State Bank branch of provinces and centrally-administered cities; state-owned credit institutions; the National Treasury to serve anti-counterfeiting work.

Article 13. Accounting and inventory of counterfeit money

Counterfeit money shall be accounted for off-balance sheet and inventoried periodically according to the regulations of the State Bank.

Chapter 3.

IMPLEMENTING PROVISIONS

Article 14. Rewards and penalties

1. Rewards

Annually, organizations and individuals with outstanding achievements in implementing this Regulation shall be considered and decided upon for commendation by the Governor of the State Bank of Vietnam in accordance with the provisions of the law and the banking sector.

2. Disciplinary Actions

Organizations and individuals who violate this Regulation shall be subject to disciplinary action or administrative handling depending on the nature and severity of the violation; in serious cases, they shall be held criminally responsible in accordance with the provisions of the law.

Article 15. Guidance and inspection for implementation

The Issuance and Treasury Department shall be responsible for guiding and inspecting the implementation of this Regulation within the banking sector. The State Bank of Vietnam branch in provincial and centrally-administered city shall inspect the implementation of this Regulation by credit institutions and other organizations engaged in banking activities in their respective areas.