Decree No. 40/2012/ND-CP on currency issuance operations; storage and transportation of valuable assets and securities within the State Bank system, credit organizations, and foreign bank branches.

DECREE

On the issuance operations; storage; transportation of valuable assets and securities within the State Bank of Vietnam system, credit organizations, and foreign bank branches

Based on the Law on the Organization of the Government dated December 25, 2001;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010;

At the proposal of the Governor of the State Bank of Vietnam;

The Government promulgates this Decree on the issuance operations; storage and transportation of valuable assets and securities within the State Bank of Vietnam system, credit organizations, and foreign bank branches.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the printing, minting, storage, transportation, issuance, recall, replacement, and destruction of paper money and metallic coins (hereinafter referred to as money); storage and transportation of valuable assets and securities within the State Bank of Vietnam system, credit organizations, and foreign bank branches; costs for money issuance operations.

Article 2. Applicability

1. The State Bank of Vietnam (hereinafter referred to as the State Bank).

2. Credit organizations, foreign bank branches.

Printing and minting facilities; National Treasury; relevant agencies, organizations, and individuals.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. "Cash" refers to various types of paper money and metallic coins issued by the State Bank of Vietnam.

2. "Unissued new money" refers to types of paper money and metallic coins that have been printed or minted and stored in the State Bank of Vietnam's currency warehouses but have not yet been permitted to be issued into circulation.

3. "Money suspended from circulation" refers to types of paper money and metallic coins that are no longer circulating according to the Prime Minister’s Decision.

4. "Money not meeting circulation standards" refers to paper money and metallic coins issued by the State Bank of Vietnam that are currently in circulation but are torn, damaged, or deformed as defined by the State Bank of Vietnam.

5. "Valuable assets" include: gold, precious metals, precious stones, cash foreign currencies, and other types of valuable assets.

6. "Printing and minting facility" refers to organizations engaged in printing and minting activities both domestically and internationally, which design, prepare plates, and print or mint money according to contracts with the State Bank of Vietnam.

Chapter II
PRINTING, MINTING, AND ISSUANCE OF MONEY

PART 1

 PRINTING, MINTING OF MONEY

Article 4. Printing and minting of circulating money and unissued new money

1. The Governor of the State Bank of Vietnam bases on forecasts of the economy's cash demand, reserve money issuance needs, and annual replacement needs for non-circulating standard money to decide on the structure, quantity, and value of additional money to be printed or minted.

2. The State Bank of Vietnam develops a project for printing and minting new unissued money to supplement and replace circulating money, to be submitted to the Prime Minister for approval. The project must include designs for denominations, sizes, weights, images, patterns, and other characteristics of the new money.

Article 5. Banknote Model Design

1. The State Bank of Vietnam organizes the design of money models ensuring high aesthetic appeal, easy recognition, representation of national cultural identity, and alignment with global money design trends.

2. Money design must be compatible with printing and minting materials and technologies; ensure durability and high anti-counterfeiting capabilities; facilitate usage, storage, and handling of money.

3. The State Bank of Vietnam is the owner of the copyright for approved money design models. The artist directly creating the approved money model is recognized as the author or co-author and is entitled to remuneration according to intellectual property laws.

Article 6. Printing and minting of currency

1. The State Bank shall organize the printing and minting of various types of currency, ensuring the following requirements:

a) Accurately and fully reflect the content of the approved currency design model;

b) Comply with the technical standards for each type of currency.

2. The Governor of the State Bank shall stipulate the installation of security elements on banknotes to enhance anti-counterfeiting capabilities.

Article 7. Organization and management of printing and minting of currency

The State Bank shall organize the printing and minting of currency according to the principle:

1. The printing and minting of currency shall be carried out under contracts between the State Bank and printing and minting facilities based on the printing and minting plan and technical standards for each type of currency prescribed by the Governor of the State Bank.

2. The State Bank shall inspect the quality of various types of currency before the printing and minting facility delivers them to the State Bank.

3. In cases where the printing and minting of Vietnamese currency involves the preparation of printing plates and molds and printing and minting abroad, the State Bank shall submit to the Prime Minister for decision.

4. The State Bank shall guide printing and minting facilities in managing each type of printed and minted currency; guide and supervise printing and minting facilities in destroying defective printing paper and defective printed and minted products.

Article 8. Implementation of printing and minting of currency

1. The printing and minting facility shall prepare and be responsible for safely managing equipment, materials, raw materials, and auxiliary materials for printing and minting currency according to the contract.

2. Domestic printing and minting facilities shall develop a technological process for printing and minting currency to be submitted to the Governor of the State Bank for approval.

3. The printing and minting facility shall submit samples of trial printing and minting; original prints and original molds to the Governor of the State Bank for approval before organizing formal printing and minting.

4. The printing and minting facility shall ensure a stable quantity and quality of printed and minted currency according to the technical standards for each type of currency already approved by the Governor of the State Bank.

5. The printing and minting facility shall not use dedicated materials for printing and minting Vietnamese currency to produce other products without prior written approval from the State Bank.

6. The printing and minting facility shall ensure the confidentiality of information related to printing and minting currency as prescribed.

PART 2

ISSUE OF CURRENCY

Article 9. Management of the Issuance Reserve Fund and the Issuance Operational Fund

1. The State Bank shall establish the Issuance Reserve Fund and the Issuance Operational Fund within the State Bank system.

a) The Issuance Reserve Fund shall be managed at the Central Treasury and branch treasuries of the State Bank in provinces and cities.

b) The Issuance Operational Fund shall be managed at the Trading Department Treasury of the State Bank and branch treasuries of the State Bank in provinces and cities.

2. Sources of formation of the Issuance Reserve Fund and the Issuance Operational Fund:

a) The Issuance Reserve Fund includes:

- Newly printed and minted currency received from printing and minting facilities;

- Currency received from the Issuance Operational Fund.

b) The Issuance Operational Fund includes:

- Currency received from the Issuance Reserve Fund;

- Currency collected from circulation.

Article 10. Announcement of issuance of new currency

1. Based on the demand for cash in the economy and the need for monetary stability, the Governor of the State Bank shall submit to the Prime Minister for decision on the issuance of new currency, including the following contents:

a) Denominations of newly issued currency;

b) Time and form of issuance of new currency.

2. The State Bank shall organize announcements through mass media regarding:

a) The Government's policy on issuing new currency;

b) The form and time of issuance of new currency;

c) Denomination, size, weight, and other characteristics of each type of new currency.

Article 11. Issuance of Money

1. The State Bank shall carry out the issuance of money into circulation and the withdrawal of money from circulation through cash receipt and payment activities and other business operations of the State Bank.

2. The State Bank shall ensure the supply of cash to credit institutions, foreign bank branches, and the National Treasury based on the balance of deposit accounts at the State Bank.

Article 12. Selection and Classification of Money

1. The State Bank, credit institutions, foreign bank branches, and the National Treasury shall be responsible for organizing the selection, classification, and processing of money.

2. The State Bank shall guide and inspect the selection, classification, and processing of money.

Chapter III
PRESERVATION OF MONEY, VALUABLE ASSETS AND SECURITIES

Article 13. Principles for Preserving Money, Valuable Assets and Securities

1. Money, valuable assets, and securities within the State Bank system, credit institutions, and foreign bank branches shall be stored in vaults; they shall be classified, counted, packaged, sealed, and arranged separately in different areas within the vaults.

2. Vaults shall be guarded and protected continuously, ensuring safety 24 hours a day.

Article 14. Responsibilities for Preserving Money, Valuable Assets and Securities

1. Printing and minting facilities shall be responsible for safely preserving newly printed or minted money that has not yet been handed over to the State Bank.

2. The State Bank shall be responsible for preserving various types of new money that have not yet been issued, money currently in circulation (including money that does not meet circulation standards), money that has been withdrawn from circulation, valuable assets, and securities within its management scope.

3. Credit institutions and foreign bank branches shall be responsible for preserving money, valuable assets, and securities under their management.

4. The State Bank shall guide and inspect the preservation of money, valuable assets, and securities.

Article 15. Construction and Management of Money Vaults

1. The State Bank shall issue technical standards for money vaults and management systems for money vaults within the State Bank system, credit institutions, and foreign bank branches.

2. The State Bank shall construct central money vaults and branch money vaults of the State Bank in provinces and cities to preserve money, valuable assets, and securities under its management.

3. Credit institutions and foreign bank branches shall establish money vault systems to preserve money, valuable assets, and securities under their management.

Chapter IV
TRANSPORTATION OF MONEY, VALUABLE ASSETS AND SECURITIES

Article 16. Scope and Responsibility for Organizing Transportation

1. The State Bank shall be responsible for organizing the transportation of money, valuable assets, and securities:

a) From printing and minting facilities, airports, ports, and railway stations to central money vaults and vice versa;

b) Between central money vaults;

c) Between central money vaults and branch money vaults of the State Bank in provinces and cities;

d) Between branch money vaults of the State Bank in provinces and cities.

2. Credit institutions and foreign bank branches shall be responsible for organizing the transportation of money, valuable assets, and securities under their management, between credit institutions and foreign bank branches, and between credit institutions, foreign bank branches, and the State Bank.

Article 17. Principles for Transportation

The transportation of money, valuable assets, and negotiable instruments within the State Bank system, credit organizations, and foreign bank branches must ensure the following principles:

1. There must be an order from the competent authority.

2. Transportation must be carried out using specialized vehicles or other means of transport that ensure safety.

3. Adequate manpower must be arranged to escort and protect during transportation trips.

4. The plan and process of transportation must be kept confidential.

5. Cash, valuable assets, and negotiable instruments must be packaged, sealed, and safely stored during transportation.

Article 18. Transportation of Money, Valuable Assets, and Negotiable Instruments

1. The State Bank establishes teams of vehicles tasked with transporting money, valuable assets, and negotiable instruments within its jurisdiction and equips them with specialized vehicles and necessary technical equipment.

2. The State Bank sets technical standards for specialized vehicles and technical equipment; guides and supervises the transportation of money, valuable assets, and negotiable instruments within the State Bank system, credit organizations, and foreign bank branches.

Article 19. Protection of Transportation

1. The Ministry of Public Security organizes forces to ensure the safety of transportation trips involving money, valuable assets, and negotiable instruments of the State Bank.

2. Inspection stations and mobile patrol teams of law enforcement forces shall not conduct roadside inspections on specialized vehicles and means of transport engaged in the transportation of money, valuable assets, and negotiable instruments of the State Bank, credit organizations, and foreign bank branches.

3. Means of transport engaged in the transportation of money, valuable assets, and negotiable instruments of the State Bank are given priority during peak hours, over bridges, ferries, and restricted roads.

4. People's Committees at all levels coordinate with the State Bank, credit organizations, and foreign bank branches to promptly address any incidents occurring during the transportation of money, valuable assets, and negotiable instruments of the State Bank, credit organizations, and foreign bank branches within their jurisdictions.

Chapter V
RECALL, REPLACEMENT, AND DESTRUCTION OF MONEY

PART 1

RECALL AND REPLACEMENT OF MONEY

Article 20. Collection and Exchange of Money Not Meeting Circulation Standards

1. The State Bank, credit organizations, foreign bank branches, and National Treasury organize the collection and exchange of money not meeting circulation standards as prescribed by the State Bank.

2. The State Bank specifies the standards for money not meeting circulation standards; collects and exchanges such types of money; provides guidance and supervision on the implementation of these regulations.

Article 21. Recall and Replacement of Money

1. Announcement of Recall and Replacement of Money

The Prime Minister decides on the cessation of circulation and replacement of various types of money in circulation. Based on the Prime Minister's decision, the State Bank announces through mass media about:

a) The government's policy regarding the cessation of circulation and recall of money from circulation; partial or full replacement of currently circulating money.

b) The form, procedures, and deadlines for recalling various types of money that have ceased circulation.

2. Recall and Replacement of Money

a) The State Bank organizes the recall of various types of money that have ceased circulation as stipulated.

b) Recalled money can be exchanged for other types of money with equivalent value within the deadline set by the State Bank.

c) The issuance of other types of money for replacement is carried out according to the Prime Minister's decision.

PART 2

DESTRUCTION OF MONEY

Article 22. Money for Destruction

Money for destruction includes:

1. Money that does not meet circulation standards.

2. Money suspended from circulation.

Article 23. Organization and Management of Money Destruction

1. After destruction, money for destruction must ensure it cannot be restored for reuse as money.

2. The destruction of money must ensure absolute safety and confidentiality of state secrets.

3. The State Bank organizes and guides the destruction of money, supervises the destruction of money; organizes full, accurate, and timely accounting of the quantity and types of money destroyed.

Article 24. Accounting for Proceeds from Sale of Scrap

Proceeds from the sale of scrap resulting from the destruction of money shall be accounted for as operational income of the State Bank.

Chapter VI
COSTS OF PRINTING, CASTING, STORAGE, TRANSPORTATION, ISSUANCE, RECALL, REPLACEMENT AND DESTRUCTION OF MONEY

Article 25. Regular Costs

Annual regular costs for printing, casting, storage, transportation, issuance, recall, replacement, and destruction of money shall be implemented and managed in accordance with the State Budget Law and financial regulations of the State Bank.

Article 26. Costs of Printing and Casting New Money

Costs related to the printing and casting of new types of money that have not yet been issued shall be separately accounted for according to approved projects by the Government. The Governor of the State Bank manages and audits these costs under confidentiality procedures and reports to the Prime Minister on the contents of expenditures, sending copies to the Ministry of Finance.

Chapter VII
RESPONSIBILITIES OF THE STATE BANK AND RELATED AUTHORITIES

Article 27. Responsibilities of the State Bank

1. Organize the implementation of design, printing, casting, issuance, recall, replacement, classification, and destruction of money; storage and transportation of valuable assets and securities within the State Bank system.

2. Coordinate with competent agencies to detect and prevent prohibited acts stipulated in Article 23 of the Law on the State Bank of Vietnam.

3. Provide guidance on cash management systems within the State Bank system, cash transactions, treasury services, accounting and statistical systems in compliance with laws on accounting and statistics.

Article 28. Responsibilities of the Ministry of Finance

1. Inspect the State Bank's operations related to printing, casting, and destruction of money.

2. Inspect the Treasury System's implementation of relevant provisions of this Decree.

Article 29. Responsibilities of the Ministry of Public Security

1. Ensure security and safety in the operations of the State Bank concerning money issuance, storage, and transportation of valuable assets and securities, and protect the State Bank's money vaults and those of printing and casting facilities.

2. Direct public security forces at all levels to take the lead and coordinate with the State Bank to investigate and handle acts of destroying money; producing, transporting, storing, and circulating counterfeit money.

3. Conduct appraisals of suspected counterfeit money or damaged money when requested.

Article 30. Responsibilities of People's Committees at all levels

1. Cooperate and create favorable conditions for the protection of the State Bank's money vaults and transportation of money, valuable assets, and securities by credit institutions and foreign bank branches within their jurisdiction.

2. Direct specialized sectors to promote awareness among the people to preserve and protect Vietnamese currency; combat acts of destroying money; producing, transporting, storing, and circulating counterfeit money.

Chapter VIII
IMPLEMENTING PROVISIONS

Article 31. Effective Date

1. This Decree takes effect from June 26, 2012.

2. This Decree replaces Decree No. 81/1998/NĐ-CP dated October 1, 1998 of the Government on printing, casting, storage, transportation, and destruction of paper money and metal coins; storage and transportation of valuable assets and securities within the banking system, and Decree No. 87/1998/NĐ-CP dated October 31, 1998 of the Government on issuance, recall, and replacement of paper money and metal coins.

Article 32. Responsibility for Implementation

1. The Governor of the State Bank, the Minister of Finance, and the Minister of Public Security shall be responsible for guiding and inspecting the implementation of this Decree within their respective functions and duties.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the central government shall be responsible for enforcing this Decree./.