Circular No. 28/2013/TT-NHNN on handling counterfeit and suspected counterfeit currency in the banking sector

CIRCULAR

Rules on handling counterfeit and suspected counterfeit currency in the banking industryg

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

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 Issuance and Treasury Department;

The Governor of the State Bank of Vietnam promulgates this Circular on handling counterfeit and suspected counterfeit currency in the banking industry,

Chapter I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the procedures for seizing counterfeit currency; temporarily seizing suspected counterfeit currency; examining counterfeit and suspected counterfeit currency; stamping counterfeit currency; packaging, receiving, storing, transporting, and destroying counterfeit currency in the banking industry.

Article 2. Applicability

1. The State Bank of Vietnam (referred to as the State Bank), credit organizations, and foreign bank branches.

2. Organizations and individuals having counterfeit or suspected counterfeit currency in cash transactions with entities specified in Clause 1 of this Article.

Article 3. Explanation of Terms

In this Circular, the following terms shall be understood as follows:

1. Counterfeit currency refers to types of currency that resemble Vietnamese currency but were not printed, minted, or issued by the State Bank.

2. New counterfeit currency refers to counterfeit currency that has not been announced by the State Bank (or the Ministry of Public Security) in writing.

3. Suspected counterfeit currency is currency that has not yet been determined to be genuine or counterfeit.

4. Security features are characteristics present on a note to distinguish between genuine and counterfeit currency.

5. Customers refer to organizations and individuals conducting cash transactions with the State Bank, credit organizations, and foreign bank branches.

Chapter II

SPECIFIC PROVISIONS

Article 4. Responsibilities for Confiscating Counterfeit Currency and Temporarily Seizing Suspected Counterfeit Currency

1. Branches of the State Bank in provinces and centrally-administered cities (referred to as State Bank branches), the State Bank Trading Department (referred to as the Trading Department), credit organizations, and foreign bank branches must seize counterfeit currency according to the provisions of Article 5 of this Circular when counterfeit currency is discovered in cash transactions with customers; when suspected counterfeit currency is discovered, they must temporarily seize it according to the provisions of Article 6 of this Circular.

2. Personnel involved in seizing counterfeit currency and temporarily seizing suspected counterfeit currency must be trained in recognizing genuine and counterfeit currency or in the examination of currency.

Personnel involved in examining counterfeit and suspected counterfeit currency at the State Bank must be trained and instructed in the examination of currency.

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

Article 5. Confiscation of Counterfeit Currency

1. In cash transactions with customers, when counterfeit currency is detected, State Bank branches, the Trading Department, credit organizations, and foreign bank branches must compare the suspicious note with the security features of a sample note (or genuine note) of the same type, refer to the State Bank's (or the Ministry of Public Security's) announcement on identifying counterfeit currency, and handle it as follows:

a) If it is confirmed to be counterfeit currency that has been announced by the State Bank (or the Ministry of Public Security) in writing, a record (according to Appendix 1) must be made, the counterfeit currency seized, stamped, and punched. Stamping and punching counterfeit currency shall be carried out according to the provisions of Clause 2, Article 7 of this Circular.

b) If it is determined to be new counterfeit currency, a record (according to Appendix 1) must be made and the counterfeit currency seized without stamping or punching.

Within two working days from the date of seizure of new counterfeit currency, State Bank branches and the Trading Department must notify in writing the Currency Issuance and Treasury Department; credit organizations and foreign bank branches must notify in writing the State Bank branch in their area or the Trading Department.

2. State Bank branches, the Trading Department, credit organizations, and foreign bank branches must promptly notify the nearest public security agency to cooperate and handle the situation when one of the following cases is discovered:

a) Suspicious signs of storing, transporting, or circulating counterfeit currency.

b) New counterfeit currency.

c) Five counterfeit banknotes (or five counterfeit metal coins) or more in a single transaction.

d) Customers refusing to comply with the record-making and confiscation of counterfeit currency.

3. During the counting, sorting, and selection process of money after receiving cash in bundles or bags sealed intact in the banking industry according to the regulations of the State Bank, if counterfeit currency is found, units under the State Bank, credit organizations, and foreign bank branches shall handle it as counterfeit currency found during cash transactions as stipulated in Clauses 1 and 2 of this Article.

Article 6. Temporary Seizure of Suspected Counterfeit Money

1. When suspected counterfeit currency is discovered in cash transactions with customers, State Bank branches, the Trading Department, credit organizations, and foreign bank branches must make a record (according to Appendix 2) and temporarily seize the suspected counterfeit currency.

2. Within five working days from the date of temporary seizure, credit organizations and foreign bank branches must transfer the suspected counterfeit currency, request an examination (according to Appendix 4), and a copy of the record of temporary seizure of suspected counterfeit currency to the State Bank branch in their area or the Trading Department for examination.

Article 7. Stamping and Punching Counterfeit Money

1. Counterfeit stamp:

The counterfeit stamp is rectangular; dimensions: 60mm x 20mm; the unit name section: 60mm x 7mm, the "COUNTERFEIT" section: 60mm x 13mm. The counterfeit stamp uses red ink that does not fade easily.

2. Method of stamping and punching counterfeit money:

Stamp "counterfeit" on both sides of the counterfeit note, once each side, and punch four holes on the counterfeit note (two holes evenly spaced along each long edge of the note using a document punch tool for offices).

Article 8. Packaging and Storage of Counterfeit Money

1. State Bank branches and the Trading Department are responsible for packaging and sealing counterfeit currency. Sealing counterfeit currency shall be carried out according to the State Bank's regulations on sealing currency but must be stamped with "COUNTERFEIT" to distinguish it from genuine currency.

2. Packaging and Sealing Counterfeit Money

a) Counterfeit cotton notes, counterfeit polymer notes: 100 notes of the same denomination and material are packed into one bundle; 10 bundles (1,000 notes) are packed into one package and sealed. If there are fewer than 100 notes, they are packed into envelopes (referred to as packing into envelopes) and sealed; if there are fewer than 1,000 notes, the same procedure of bundling, packaging, and sealing applies.

b) Counterfeit metal coins: 100 pieces of the same denomination are packed into one small bag and sealed; 10 small bags (1,000 pieces) are packed into one large bag and sealed. If there are fewer than 100 pieces or fewer than 1,000 pieces, they are also packed into bags and sealed.

3. Counterfeit money is stored separately in the currency storage of the State Bank system, credit organizations, foreign bank branches.

Article 9. Handover and Transport of Counterfeit Money

1. Credit organizations and foreign bank branches must submit all seized counterfeit currency to the State Bank branch in their area or the Trading Department monthly, except for new counterfeit currency submitted according to Clause 4 of this Article. The submission of counterfeit currency must be recorded item-by-item (according to Appendix 3).

The method of transporting counterfeit money shall be decided by the Chairman of the Board of Members, the Chairman of the Board of Directors, or the General Director (Director) of the credit institution or foreign bank branch to ensure safety during transportation.

2. The State Bank branch and Trading Department shall be responsible for verifying the authenticity of each counterfeit note submitted by credit institutions or foreign bank branches.

In case real money is discovered among the counterfeit money submitted, the State Bank branch and Trading Department shall prepare a record (as per Appendix 5) and issue a written request for the submitting unit to refund the equivalent value to the customer within thirty working days and report the results.

Real notes stamped with "Counterfeit" and punched holes shall have one-eighth of their area cut off by the State Bank branch and Trading Department, exchanged at equivalent value (recorded as Credit) for the submitting unit (no fee for exchanging non-circulation standard money), packaged, and handled according to the regulations of the State Bank for non-circulation standard money.

3. The State Bank branch and Trading Department must submit counterfeit money to the Central Treasury or the State Bank branch in Binh Dinh province at least once every six months (if applicable), combined with the transfer of money by the State Bank. The handover shall be conducted in sealed bundles, packages, or bags and recorded in a record (as per Appendix 3).

4. For new types of counterfeit money, credit institutions or foreign bank branches must submit them to the State Bank branch in their locality or Trading Department within two working days from the date of confiscation. The method of transporting counterfeit money shall be carried out in accordance with Clause 1 of this Article.

The submission of new types of counterfeit money by the State Bank branch and Trading Department shall be carried out upon the request of the Issuance and Treasury Department. The method of transporting new types of counterfeit money shall be decided by the Trading Department Director or the State Bank branch Director to ensure safety and promptness.

Article 10. Authentication of Counterfeit Money and Suspected Counterfeit Money

1. Organizations and individuals requiring authentication of counterfeit or suspected counterfeit money must prepare one set of documents and directly submit it to the State Bank branch in their locality, Trading Department, Issuance and Treasury Department (in Hanoi City), or Issuance and Treasury Sub-department (in Ho Chi Minh City). The documents include:

a) A request for authentication of counterfeit or suspected counterfeit money (as per Appendix 4).

b) Counterfeit or suspected counterfeit money requiring authentication.

2. Within five working days from the date of receiving the authentication request as stipulated in Clause 1 of this Article or from the date of temporarily holding suspected counterfeit money as stipulated in Clause 1 of Article 6 or from the date of receiving suspected counterfeit money as stipulated in Clause 2 of Article 6 or from the date of receiving new types of counterfeit money as stipulated in Clause 4 of Article 9 of this Circular, the State Bank branch, Trading Department, Issuance and Treasury Department, or Issuance and Treasury Sub-department (referred to as the authentication agency) must organize the authentication and notify the result in writing to the requesting organization or individual. The authentication process is free of charge.

3. In cases where it cannot be determined whether the money is genuine or counterfeit, the State Bank branch and Trading Department must issue a written request and transfer the counterfeit or suspected counterfeit money to the Issuance and Treasury Department or Issuance and Treasury Sub-department for further authentication within thirty working days from the date of receipt of the counterfeit or suspected counterfeit money requiring authentication; simultaneously notifying the organization or individual referred to in Clause 1 of this Article or Clause 1 of Article 6 or the credit institution or foreign bank branch referred to in Clause 2 of Article 6 of this Circular.

The method of transporting counterfeit or suspected counterfeit money requiring authentication shall be decided by the State Bank branch or Trading Department Director to ensure safety and convenience.

Within five working days from the date of receiving the authentication result, the State Bank branch and Trading Department must notify the authentication result in writing to the requesting organization or individual.

Article 11. Handling results after appraisal

1. At the Issuance and Treasury Department and Issuance and Treasury Sub-department:

a) If the appraisal result is genuine currency, the genuine amount shall be returned to the organization or individual requesting the appraisal or deposited at the Trading Department when the appraisal is conducted at the Issuance and Treasury Department or the State Bank branch in Ho Chi Minh City when the appraisal is conducted at the Issuance and Treasury Sub-department for reporting to the State Bank branch, credit institution, foreign bank branch requesting the appraisal.

b) If the appraisal result is counterfeit currency with notification from the State Bank (or Ministry of Public Security), it shall be seized, stamped, punched, and deposited at the Central Treasury in Hanoi (Treasury I) or in Ho Chi Minh City (Treasury II).

c) If the appraisal result is new type counterfeit currency, timely notify the Financial Security - Monetary - Investment Bureau of the Ministry of Public Security and seize it. For the Issuance and Treasury Sub-department, report in writing to the Issuance and Treasury Department; transfer new type counterfeit currency to the Issuance and Treasury Department (if required), the method of transportation is decided by the Issuance and Treasury Sub-department, ensuring safety and timeliness. In cases where there is no requirement to transfer to the Issuance and Treasury Department, counterfeit currency shall be stamped, punched, and stored at Treasury II.

New type counterfeit money retained at the Issuance and Treasury Department serves the State Bank's work on preventing and combating counterfeit money as stipulated in Article 12 of this Circular.

2. At the State Bank branch or Trading Department:

a) If the appraisal result is genuine currency, the genuine amount shall be exchanged according to the regulations of the State Bank on exchanging non-circulation standard currency for the organization or individual requesting the appraisal.

b) If the appraisal result is counterfeit currency as notified by the State Bank (or Ministry of Public Security), it shall be seized, stamped, punched, or the appraisal result shall be reported in writing to the organization or individual requesting the appraisal in accordance with Clause 3, Article 10.

c) If the appraisal result is new type counterfeit currency, it shall be seized; immediately notify the Financial Security - Monetary - Investment Room or Economic Security Room (under the provincial or centrally-administered city police) and report in writing about the new type counterfeit currency to the Issuance and Treasury Department. In cases where there is no requirement to submit new type counterfeit currency to the Issuance and Treasury Department as stipulated in Clause 4, Article 9 of this Circular, counterfeit currency shall be stamped, punched, and submitted in accordance with Clause 3, Article 9 of this Circular.

3. At credit institutions or foreign bank branches:

a) If the authentication result is genuine money, the genuine money will be exchanged for the customer according to the State Bank's regulations on exchanging non-circulating standard money.

b) If the appraisal result is counterfeit currency, the appraisal result and the handling of counterfeit currency by the appraisal agency shall be informed to the customer.

4. For counterfeit and suspected counterfeit currency appraised upon request of the Police, Border Guard, Customs, after the appraisal, they shall be returned to the requesting unit without being stamped or punched. The handover and receipt of counterfeit and suspected counterfeit currency shall be recorded in a protocol and clearly state information about the type of currency, quantity, and serial number.

Article 12. Retention of counterfeit currency for anti-counterfeiting work of the State Bank

After analyzing and appraising new type counterfeit currency, the Issuance and Treasury Department may retain and store up to 15 sheets (pieces)/type to serve research, anti-counterfeiting work, and training (except for counterfeit and suspected counterfeit currency appraised under Clause 4, Article 11 of this Circular). In cases requiring retention and storage of more than 15 sheets (pieces)/type, the Issuance and Treasury Department shall submit to the Governor of the State Bank for decision.

Article 13. Collection and Destruction of Counterfeit Money

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

2. The State Bank shall organize the destruction of counterfeit money in accordance with regulations applicable to money that does not meet circulation standards.

3. The destruction of counterfeit money as evidence in criminal cases shall be carried out in accordance with the provisions of the Criminal Procedure Code.

Article 14. Information on Counterfeit Money

1. The State Bank (Issue Department and Treasury) shall conduct analysis and appraisal, and notify in writing the distinguishing features of new types of counterfeit money to the Financial Security Bureau, the Institute of Forensic Science (Ministry of Public Security), the Intelligence Service (Border Guard Command), branches of the State Bank, Trading Departments, the Central Treasury, and the headquarters of state-owned commercial banks for the purpose of preventing and combating counterfeit money.

2. Upon receiving a written notification about new types of counterfeit money from the Issue Department and Treasury, the branch of the State Bank must notify in writing the distinguishing features of new types of counterfeit money to the headquarters of credit organizations (excluding the headquarters of state-owned commercial banks) and foreign bank branches within its jurisdiction.

3. Upon receiving a written notification about new types of counterfeit money from the State Bank, credit organizations and foreign bank branches must notify in writing the distinguishing features of new types of counterfeit money to units within their system to prevent counterfeit money.

4. In necessary cases, the Issue Department and Treasury may publicly announce through mass media or on the website of the State Bank the distinguishing features of counterfeit money appearing in circulation so that organizations and individuals can be vigilant and take proactive preventive measures.

Article 15. Statistical Reports on Counterfeit Money

State Bank of Vietnam branches, Trading Centers, credit organizations, and foreign bank branches shall report statistics on counterfeit money collected according to the reporting system of the State Bank of Vietnam.

Chapter III

IMPLEMENTATION

Article 16. Responsibilities for Guidance and Supervision

1. The Issue Department and Treasury shall be responsible for guiding and supervising the implementation of this Circular.

2. Branches of the State Bank shall supervise the implementation of the provisions of this Circular by credit organizations, branches of credit organizations, and foreign bank branches within their provincial or municipal jurisdictions.

3. Credit organizations and foreign bank branches shall be responsible for guiding and inspecting the implementation of this Circular within their systems.

Article 17. Rewards and Handling of Violations

1. Awards:

Annually, organizations and individuals who have outstanding achievements in implementing this Circular shall be considered for commendation and rewards by the Governor of the State Bank in accordance with the law and banking regulations.

2. Handling Violations:

Organizations and individuals who violate the provisions of this Circular shall be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the nature and severity of the violation.

Article 18. Effective Date

This Circular takes effect from January 20, 2014, and replaces Decision No. 28/2008/QĐ-NHNN dated October 10, 2008, issued by the Governor of the State Bank regarding the handling of counterfeit and suspected counterfeit money in the banking sector.

Article 19. Responsibility for Implementation

The Director of the Office, the Head of the Issue Department and Treasury, the Governors of State Bank branches, the Directors of Trading Departments, the Heads of relevant units within the State Bank system; the Chairmen of the Board of Members, the Chairmen of the Board of Management, and the General Managers (Directors) of credit organizations and foreign bank branches are responsible for enforcing this Circular./.