Circular No. 29/2012/TT-NHNN on supervision of the destruction of banknotes not meeting circulation standards, discontinued banknotes, and the destruction of defective printed banknotes, minted coins, damaged printing paper, and defective minting metal.

CIRCULAR

Provisions on supervision of the destruction of non-circulation standard currency, suspended circulation currency

and the destruction of defective printed currency, defective minted currency, defective printing paper, and defective minting metal

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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;

Based on Decree No. 40/NĐ-CP dated May 2, 2012 of the Government on cash issuance operations; storage, transportation of valuable assets and securities within the State Bank of Vietnam system, credit institutions, and foreign bank branches;

At the proposal of the Internal Audit Department Director;

The Governor of the State Bank of Vietnam issues this Circular to provide for the supervision of the destruction of non-circulation standard currency, suspended circulation currency, and the destruction of defective printed currency, defective minted currency, defective printing paper, and defective minting metal.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular provides for the supervision of the destruction of non-circulation standard currency, suspended circulation currency at the State Bank of Vietnam and the destruction of defective printed currency, defective minted currency, defective printing paper, and defective minting metal at printing and minting facilities (referred to as supervision of currency destruction).

Article 2. Applicability

Units under the State Bank of Vietnam (referred to as the State Bank); printing and minting facilities and organizations and individuals related to currency destruction work; supervision of currency destruction.

2. Ensuring the safety of assets and state secrets in currency destruction activities.

1. Ensuring that the currency destruction process complies with legal regulations.

2. Ensuring confidentiality and asset safety during the currency destruction process.

3. Completing provisions on the destruction of non-circulation standard currency, suspended circulation currency, defective printed currency, defective minted currency, defective printing paper, and defective minting metal to meet the requirements of the currency destruction process.

Article 4. Content of supervision of currency destruction

1. Supervision of the destruction of non-circulation standard currency, suspended circulation currency shall be carried out from the counting and sampling stage until the non-circulation standard currency, suspended circulation currency is cut and destroyed into scrap material.

2. Supervision of the destruction of defective printed currency, defective minted currency, defective printing paper, and defective minting metal shall be carried out from the handover stage from the warehouses of printing and minting facilities to the destruction committee's warehouse until the defective printed currency, defective minted currency, defective printing paper, and defective minting metal are cut and destroyed into scrap material.

Chapter II

ORGANIZATION, DUTIES, LIMITS OF THE DESTRUCTION SUPERVISION COMMITTEE

Article 5. Currency Destruction Supervision Council

1. The Destruction Supervision Committee for non-circulation standard currency, suspended circulation currency and the Destruction Supervision Committee for defective printed currency, defective minted currency, defective printing paper, and defective minting metal (referred to as the Supervision Committee) shall be established by the Governor of the State Bank of Vietnam.

2. The Supervision Committee operates under the principle of democratic centralism, deciding by majority rule. The Chairman of the Supervision Committee is responsible for all activities related to currency destruction supervision.

3. The Supervision Council convenes regularly or urgently according to the Working Regulations of the Supervision Council.

4. Organization of the Currency Destruction Supervision Council for non-circulation standard currency and suspended circulation currency

a) General Supervision Council

Director of the Internal Audit Department: Chairman of the Council;

Deputy Director of the Internal Audit Department: Vice-Chairman of the Council;

Head of the State Bank of Vietnam Representative Office in Ho Chi Minh City: Deputy Chairman of the Committee;

Head of the Department or Division of Internal Audit: Member of the Committee, also Secretary of the Supervision Committee.

b) Supervising the Northern Destruction Group: Central Treasury in Hanoi

Deputy Director of the Internal Audit Department: Vice-Chairman of the Council, responsible for supervising the Northern Destruction Cluster;

One Leader of a Department (or Section) within the Finance and Accounting Department: Member;

One Head of a Department (or Division) under the Legal Affairs Department: Member;

One Head of a Division under the Internal Audit Department: Member of the Committee, Secretary

of the Supervision Committee, also Secretary of the Northern Destruction Group.

c) Supervising the Southern Destruction Group: Central Treasury in Ho Chi Minh City

Head of the State Bank of Vietnam Representative Office in Ho Chi Minh City: Deputy Chairman, responsible for supervising the Southern Destruction Group;

One Head of the State Bank of Vietnam Branch in Ho Chi Minh City: Member;

One Head of a Division of the State Bank of Vietnam Representative Office in Ho Chi Minh City: Member, also Secretary of the Southern Destruction Group.

5. Organization of the Currency Destruction Supervision Council for defective printed currency, defective minted currency, defective printing paper, and defective minting metal

Deputy Director of the Internal Audit Department: Chairman of the Supervision Council;

One Head of a Department (or Division) under the Legal Affairs Department: Member;

One Leader of a Department (or Section) within the Finance and Accounting Department: Member;

One Leader of a Section within the Internal Audit Department: Member, also serving as Secretary of the Supervision Council.

Article 6. Duties and Authorities of the Supervisory Council

1. Coordinate with the Internal Audit Department to submit to the Governor of the State Bank of Vietnam (referred to as the Governor) for approval of the plan to mobilize and assemble staff from units at the headquarters of the State Bank of Vietnam, the State Bank of Vietnam Representative Office in Ho Chi Minh City, and the State Bank of Vietnam Branches in centrally governed cities and provinces (referred to as the State Bank of Vietnam Branch) to participate in the Working Group for the Supervision Committee.

2. Organize supervision of all stages of the destruction process of non-circulation standard currency, suspended circulation currency; defective printed currency, defective minted currency, defective printing paper, and defective minting metal as stipulated in this Circular.

3. Identify deficiencies and shortcomings in the currency destruction process and propose timely measures to prevent and correct them; request the Destruction Committee to temporarily halt actions violating destruction regulations, not ensuring asset safety, or recommend the Governor to suspend the destruction session in case of serious violations.

4. Propose appropriate disciplinary actions or recommend handling individuals who violate the law such as taking advantage, embezzlement, failing to fulfill their responsibilities leading to asset loss in the currency destruction process.

5. Organizing summaries, evaluations, and proposing commendation forms in currency destruction supervision.

6. Reporting to the Governor the results of currency destruction supervision within fifteen working days from the end of the destruction phase.

7. Preserving and retaining documentation on currency destruction supervision in accordance with regulations.

Article 7. Duties and Authorities of the Chairman of the Supervisory Council

1. Issuing the Working Regulations of the Supervision Council.

2. Directing the implementation of the tasks and powers of the Supervision Council as stipulated in Article 6 of this Circular; being responsible before the Governor and the law for currency destruction supervision.

3. Assigning specific tasks to Vice-Chairmen, Members, and the Assistance Team of the Supervision Council.

4. Propose to the Governor to award individuals and groups with achievements in supervising the destruction of currency.

5. Recommend to the Governor disciplinary measures for cases violating regulations on the destruction of currency and supervision thereof.

Article 8. Duties and Authorities of the Deputy Chairperson, Council Members, and Secretary of the Supervisory Council

1. Vice Chairman of the Supervisory Council

a) Implement the division of labor and directives of the Chairperson of the Supervisory Council.

b) When authorized, the Deputy Chairperson shall represent the Chairperson in assuming responsibility for directing and managing all activities of the Supervisory Council for Currency Destruction.

2. Member of the Supervisory Council

a) Fulfill tasks assigned by the Chairperson of the Supervisory Council, and be accountable to the Chairperson of the Supervisory Council for the assigned work.

b) Inspect, supervise, and urge members of the Working Group to comply with regulations.

3. The Secretary of the Supervisory Council

a) Monitor the currency destruction supervision process; compile data, prepare comprehensive and timely reports according to the model specified in Appendix 10, 11 of this Circular.

b) Advise the Chairperson of the Supervisory Council on coordinating with relevant units to handle issues arising during the supervision of currency destruction.

Article 9. The Working Group of the Supervisory Council

1. The Working Group for the Supervision Committee (referred to as the Working Group) consists of officers from the State Bank of Vietnam mobilized according to the decision of the Chairman of the Supervision Committee. The Working Group has a Team Leader, Deputy Team Leader, and members.

2. Officers participating in the Working Group are officers within the establishment, possessing the necessary qualities, capabilities, understanding the operational procedures and regulations on currency destruction and supervision.

3. Annually, based on actual needs and conditions, the Governor decides on the number of officers to be mobilized to join the Working Group from units at the headquarters of the State Bank of Vietnam, the State Bank of Vietnam Representative Office in Ho Chi Minh City, and the State Bank of Vietnam Branches upon the proposal of the Chairman of the Supervision Committee. Heads of units with mobilized officers send the list and brief resumes of the mobilized officers to the Chairman of the Supervision Committee according to the model in Appendix 1 of this Circular.

4. Duties and Authorities of the Working Group

a) Implement the division of labor and directives, and be accountable to the Supervisory Council for the assigned tasks.

b) Directly supervise the currency destruction teams, monitor and grasp the situation of currency destruction supervision. Report the results of supervising the currency destruction process regularly weekly to the Chairman of the Supervision Committee through the Secretaries of the Supervision Groups at each Destruction Group according to the models specified in Appendices 2, 3, 4, 5, 6, 7, 8, 9 of this Circular.

c) When detecting violations concerning the destruction of money, report to the Supervisory Board for timely handling. In cases of serious violations that pose a risk of loss and financial insecurity, measures must be taken to minimize state asset losses such as: drafting a temporary seizure record of the evidence of violation, coordinating with the Destruction Board to take preventive measures and handle the situation promptly, and immediately reporting to the Chairman of the Supervisory Board.

d) Draft a record on the spot for fraudulent acts discovered during the supervision of money destruction and report it promptly to the Supervisory Board.

Article 10. Rights of Participants in Currency Destruction Monitoring

Members of the Supervisory Board and the Supporting Team, in addition to the salary and allowances paid by the State according to the prescribed regulations, also enjoy additional allowances stipulated for staff participating in the work of money destruction.

Chapter III

SUPERVISION OF THE DESTRUCTION OF MONEY THAT DOES NOT MEET CIRCULATION STANDARDS AND SUSPENDED CIRCULATION MONEY

Article 11. Supervision of the counting and sampling of non-standard circulating currency and suspended circulation currency before destruction

The Supervisory Board shall conduct supervision over the counting and sampling of the amount of money in the storage of the Destruction Board on the first day of each destruction period.

If the selected sample of money has an excess or shortage ratio not exceeding 0.01% in value or quantity, or if the number of banknotes meeting circulation standards does not exceed 0.5% in quantity, the Supervisory Board permits the destruction of money to proceed.

If the selected sample of money has an excess or shortage ratio exceeding the aforementioned ratio, the Supervisory Board shall draft a record and request the Destruction Board to continue selecting and counting the money that does not meet circulation standards and suspended circulation money in the Destruction Board's warehouse (the additional quantity to be counted will be decided jointly by both Boards). If the selected sample still exceeds the specified ratio, the Supervisory Board temporarily suspends the destruction of money, while reporting and seeking instructions from the Governor.

Article 12. Supervision of Counting Money

1. Supervise the daily transfer and receipt of money from the storage of the Destruction Board to the Counting Team in accordance with regulations.

2. Supervise the implementation of regulations and procedures for counting and sorting money that does not meet circulation standards and suspended circulation money. All cases detected during the counting process, such as excess, shortage, mixed types, counterfeit money, and money meeting circulation standards, must be recorded and handled according to the regulations of the State Bank.

During the day, any money that the Counting Team fails to count or has already counted but not yet handed over to the Cutting Team must be sealed, with signatures of all relevant parties as required, and returned to the storage of the Destruction Board.

At the end of the day, the supervisory staff confirms the actual counting results on the record drafted by the Destruction Board.

3. During the supervision process, if necessary, the supervisory staff has the right to request a recount of money that has been counted on the same day. For types of money subject to destruction without 100% counting, if the counting results show excess, shortage, mixed types, or if the proportion of money meeting circulation standards among the counted money exceeds the ratio specified in Article 11 of this Circular, the supervisory staff reports to the Supervisory Board and requests the Destruction Board to increase the counting ratio for the type of money with many errors.

Article 13. Supervision of Money Cutting and Cancellation

1. Supervise the transfer and receipt of money between the Counting Team, the Destruction Board, and the Cutting Team at the destruction storage.

2. Supervise the operation of the cutting machine to ensure that the destroyed waste cannot be restored for use as money in any form. At the end of the day, the supervisory staff confirms the actual amount of money cut on the record drafted by the Destruction Board.

3. Supervise the money handed over to the Cutting Team but not fully destroyed on the same day, which is sealed and signed by all relevant parties as required, and returned to the Destruction Board's warehouse.

Article 14. Supervision of compliance with internal rules and working regulations in money destruction work

1. Supervise the implementation of internal regulations, work procedures, and business processes in the money destruction work.

2. Supervise individuals performing tasks when entering and exiting the area where money destruction work is carried out must wear identification cards, wear uniforms without pockets, and protective equipment provided by the Destruction Board; personal belongings may not be brought into the workplace. For those without tasks related to money destruction work, entry and exit require written permission from the competent authority.

3. Supervise the maintenance of records in the money destruction work; supervise the monthly inventory of the storage of the Destruction Board during the implementation of the money destruction work.

4. Seal the counting room and cutting room during break times if money is being stored.

Article 15. Supervision and inspection of accounting for money destruction

Supervise and inspect the recording, summarization of data on money destruction by the Money Destruction Council; check the accuracy and balance between the figures in the books and financial reports and the actual destruction figures.

Chapter IV

SUPERVISION OF THE DESTRUCTION OF DAMAGED PRINTED MONEY, COINED MONEY, AND DAMAGED PRINTING PAPER AND METAL FOR COINAGE

DAMAGED METAL FOR COINAGE

Article 16. Supervision of the receipt and delivery of defective printed and coined money, defective printing paper, and defective metal used for coinage

Supervise the handover and receipt of damaged printed money, coined money, damaged printing paper, and damaged metal for coinage from the warehouses of printing and minting facilities to the Destruction Board's warehouse, and simultaneously verify the accuracy of the actual quantities and structures received in the Destruction Board's warehouse with the data in the Governor's decision.

Article 17. Supervision of the counting of defective printed and coined money, defective printing paper, and defective metal used for coinage

1. Supervise the receipt and delivery of defective printed and coined money, defective printing paper, and defective metal used for coinage between the storage facility of the Money Destruction Council and the Counting Team and vice versa.

2. Supervise compliance with regulations regarding counting. On the same day, if the Counting Team does not fully count the damaged printed money, coined money, damaged printing paper, and damaged metal for coinage, or if they have already counted but not yet handed over to the Cutting Team, these must be sealed and returned to the Destruction Board's warehouse.

3. During the supervision process, if necessary, the supervisory staff may request a recount. All cases detected during the counting process, such as excess, shortage, and mixed types, must be recorded and handled according to the regulations of the State Bank. At the end of the day, the supervisory staff confirms the counting results on the record drafted by the Destruction Board.

Article 18. Supervision of the destruction of defective printed money, defective minted money, defective printing paper, and defective minting metal.

1. Supervise the receipt and delivery of defective printed and coined money, defective printing paper, and defective metal used for coinage from the storage facility of the Money Destruction Council and the Counting Team to the Cutting Team and vice versa.

Clause 2. Supervise the implementation of the destruction of defective printed money, defective minted money, defective printing paper, and defective minting metal in accordance with regulations on the destruction of such items, ensuring that the destroyed waste cannot be restored to its original state in any form.

3. Supervise individuals performing the destruction tasks when entering and exiting the destruction area.

Clause 4. Supervise the sealing of the amount of defective printed money, defective minted money, defective printing paper, and defective minting metal handed over to the destruction team but not fully destroyed on the same day, ensuring that it has the signatures of all relevant parties as required and return it to the storage of the Destruction Council.

At the end of the day, the supervisory staff confirms the actual amount of money destroyed on the record established by the Destruction Council.

Article 19. Supervision of compliance with internal rules and work regulations in the destruction of defective printed and coined money, defective printing paper, and defective metal used for coinage

1. Supervise the implementation of internal rules, regulations, and operational procedures in the destruction of defective printed and coined money, defective printing paper, and defective metal used for coinage.

Clause 2. Check that individuals performing tasks in the destruction area must wear identification cards, uniforms without pockets, and labor protection equipment provided by the Destruction Council; they may not bring personal property into the workplace. For those without destruction duties, entering or leaving the area requires written permission from the competent authority.

3. Supervise the opening of records tracking each stage of the money destruction process.

4. Seal the storage facility of the Money Destruction Council, the counting room, and the cutting room during break times if money is being stored.

Article 20. Supervision of Accounting for the Destruction of Defective Printed Money, Minted Money, Defective Printing Paper, and Defective Minting Metal

Supervise the recording, summarizing, and compiling data on the destruction of defective printed money, defective minted money, defective printing paper, and defective minting metal by the Destruction Council; confirm the accuracy and balance between the figures in the books and accounting reports and the actual destruction figures.

Chapter V

RESPONSIBILITIES OF RELATED UNITS

Article 21. Internal Audit Department

1. Annually, prepare and submit to the Governor the plan for supervising the destruction of money.

2. Lead and coordinate with relevant units to implement the supervision of the destruction of money as stipulated in this Circular.

3. Summarize and report to the Governor the results of the supervision work on the destruction of money.

Article 22. Currency Issuance and Treasury Department

Clause 1. Annually, submit to the Internal Audit Department the plan for the destruction of non-standard circulating money and suspended circulation money approved by the Governor, along with related documents on the implementation of money destruction.

2. Coordinate with the Supervisory Council and the Destruction Committee to carry out the destruction work as prescribed.

3. Provide materials and working tools to support the supervision work on the destruction of non-circulating standard money and suspended circulation money for the Supervisory Council.

Clause 4. The Issuance and Treasury Department (or the Southern Issuance and Treasury Sub-department for the Southern Cluster) shall be responsible for settling accounts and bookkeeping for expenses serving the destruction of money according to prescribed regulations.

Article 23. Organization and Cadres Department

Implement procedures for nominating staff to participate in the Supervision Council, and submit to the Governor for issuance of the decision establishing the Supervision Council as stipulated in this Circular.

Article 24. Money Printing and Minting Facilities

1. Coordinate with the Supervisory Council and the Destruction Committee to carry out the destruction work of defective printed money, minted money, defective printing paper, and defective minting metal as prescribed.

Clause 2. Provide materials and necessary working tools as requested by the Supervision Council; comply with decisions of the Supervision Council regarding the suspension of actions not in accordance with regulations in money destruction work that could lead to loss or insecurity of assets, and the suspension of money destruction work in cases of serious violations.

3. Organize the storage and handle waste products from the Destruction Committee's handover.

Clause 4. During the counting or handover process, if there is an excess or shortage of defective printed money, defective minted money, defective printing paper, and defective minting metal, the printing and minting facilities are responsible for identifying the cause and specific measures for handling the excess or shortage, and report the results of the handling to the Supervision Council. Record and account for the destruction results accurately, promptly, and completely as required.

Article 25. Destruction Committee

Clause 1. The Destruction Council sends the Supervision Council the Governor's decision on money destruction, the decision establishing the Destruction Council, the list of staff participating in money destruction work, and the assignment of tasks to members participating in money destruction work.

2. Carry out the destruction work of money according to the regulations of the State Bank and accept supervision by the Supervisory Council as stipulated in this Circular.

3. Organize the safe storage and transfer of non-circulating standard money, suspended circulation money, and defective printed money, minted money, defective printing paper, and defective minting metal during the destruction process.

4. Upon completion of each destruction phase, the Destruction Committees submit reports on the results of the destruction work to the Chairman of the Supervisory Council.

Article 26. Units at the headquarters of the State Bank, the Representative Office in Ho Chi Minh City, and branches of the State Bank.

Are responsible for arranging sufficient staff to participate in the Supervision Council and the Assistance Team of the Supervision Council.

Chapter VI

IMPLEMENTING PROVISIONS

Article 27. Effective Date

Clause 1. This Circular takes effect from November 30, 2012.

Clause 2. Circular Joint Circular No. 25/2004/TTLT-BTC-BCA-NHNN dated March 26, 2004 guiding the supervision procedure for money destruction; Joint Circular No. 43/2001/TTLT-BTC-BCA-NHNN dated June 13, 2001 guiding the supervision procedure for the destruction of defective printed money and defective printing paper become invalid from the date this Circular takes effect.

Article 28. Implementation Organization

1. The Internal Audit Department shall act as the lead coordinating with relevant units to implement, urge, inspect, and monitor the implementation of this Circular.

Clause 2. The Director of the State Bank Office, the Head of the Representative Office in Ho Chi Minh City, the Director of the Issuance and Treasury Department, the Director of the Issuance and Treasury Sub-department, the Heads of related units under the State Bank; the Chairmen of the Boards of Directors and General Managers of printing and minting facilities are responsible for implementing this Circular./.