Circular No. 58/2024/TT-NHNN on handling counterfeit and suspected counterfeit currency in the banking sector

CIRCULAR

Guidelines on Handling Counterfeit and Suspected Counterfeit Currency in the Banking Sector

 

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

Pursuant to Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to Decree No. 87/2023/NĐ-CP dated December 8, 2023 of the Government stipulating measures for preventing and combating counterfeit currency and protecting Vietnamese currency;

At the proposal of the Director of the Issuance and Treasury Department;

The Governor of the State Bank of Vietnam hereby issues this Circular guiding the handling of counterfeit and suspected counterfeit currency in the banking sector.

 

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the procedures for confiscating counterfeit currency; temporarily seizing suspected counterfeit currency; examining counterfeit and suspected counterfeit currency; stamping and punching counterfeit currency; packaging, receiving, storing, and transporting counterfeit currency within the banking sector.

Article 2. Applicability

1. The State Bank of Vietnam (hereinafter 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. New counterfeit currency refers to counterfeit currency that has not been announced in writing by the State Bank or the Ministry of Public Security.

2. Security features refer to characteristics intentionally integrated onto currency, used to verify and distinguish between genuine and counterfeit currency.

3. Customers are 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. The State Bank's Trading Center (hereinafter referred to as the Trading Center), State Bank branches, credit organizations, and foreign bank branches must confiscate counterfeit currency discovered during cash transactions with customers according to Article 5 of this Circular; they must temporarily seize suspected counterfeit currency according to Article 6 of this Circular; they shall not return counterfeit or suspected counterfeit currency to customers.

2. Personnel responsible for confiscating counterfeit currency and temporarily seizing suspected counterfeit currency must be trained in recognizing genuine and counterfeit currency according to the State Bank’s program or in currency examination procedures.

Personnel responsible for examining counterfeit and suspected counterfeit currency at the State Bank must be trained in currency examination procedures.

Article 5. Confiscation of Counterfeit Currency

1. During cash transactions with customers, when counterfeit currency is detected, State Bank branches, the Trading Center, credit organizations, and foreign bank branches must compare the security features on genuine currency (or sample currency) of the same type or refer to the State Bank’s announcements regarding the characteristics and methods for identifying Vietnamese currency, and compare them with the State Bank’s or the Ministry of Public Security’s announcements regarding counterfeit currency characteristics, and handle as follows:

a) In cases where it can be confirmed that the counterfeit currency has been officially announced in writing by the State Bank or the Ministry of Public Security, it must be confiscated, a record made according to Model No. 01 attached to Decree No. 87/2023/NĐ-CP dated December 8, 2023 of the Government stipulating measures for preventing and combating counterfeit currency and protecting Vietnamese currency, and stamped and punched according to Clause 2 of Article 7 of this Circular.

b) In cases where new counterfeit currency is identified, it must be confiscated and recorded according to Model No. 01 attached to Decree No. 87/2023/NĐ-CP but without stamping or punching.

Within two working days from the date of confiscating new counterfeit currency, State Bank branches and the Trading Center must notify in writing the Currency Issuance and Treasury Department; credit organizations and foreign bank branches must notify in writing the Trading Center or the State Bank branch in the area where the credit organization or foreign bank branch maintains a settlement account (hereinafter referred to as the State Bank branch in the area). The notification content includes information about the type of currency, quantity, serial number, and description of counterfeit currency characteristics.

2. State Bank branches, the Trading Center, credit organizations, and foreign bank branches must promptly notify the nearest public security agency to cooperate and handle when one of the following situations 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 process of counting, sorting, selecting currency, after receiving cash in sealed bundles or bags according to the State Bank’s regulations, if counterfeit currency is discovered, units under the State Bank, credit organizations, and foreign bank branches shall handle it as counterfeit currency discovered during cash transactions as stipulated in Clause 1 and point b, point c of Clause 2 of this Article.

Article 6. Temporary Seizure of Suspected Counterfeit Money

1. In cash transactions with customers, when suspected counterfeit money is discovered, the State Bank branch, Trading Department, credit organization, foreign bank branch must temporarily seize it and prepare a record according to Form No. 02 attached to Decree No. 87/2023/NĐ-CP.

2. Within five working days from the date of temporary seizure, the credit organization, foreign bank branch must transfer the appraisal file in accordance with Clause 1 of Article 10 of this Circular to the State Bank branch in the locality or Trading Department for appraisal.

Article 7. Stamping and Punching Counterfeit Money

1. Counterfeit stamp:

The counterfeit stamp is rectangular; dimensions: 60mm x 20mm; unit name part: 60mm x 7mm, "COUNTERFEIT MONEY" part: 60mm x 13mm. The counterfeit stamp uses red ink that is difficult to fade.

2. Method of stamping and punching counterfeit money:

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

Article 8. Packaging and Storage of Counterfeit Money

1. The State Bank branch, Trading Department is responsible for packaging and sealing counterfeit money. Sealing counterfeit money is carried out according to the State Bank's regulations on sealing cash but must be stamped with "COUNTERFEIT MONEY" on the seal to distinguish it from genuine money.

2. Packaging and Sealing Counterfeit Money

a) Counterfeit cotton paper money, counterfeit polymer money: 100 notes of the same denomination and material are bundled into one pack; ten packs are bundled into one bundle (1,000 notes) and sealed.

b) Counterfeit metal coins: 100 pieces of the same denomination are packed into one small bag and sealed; ten small bags are packed into one large bag (1,000 pieces) and sealed.

c) In cases where the quantity is insufficient to form a bundle (or bag), the State Bank branch, Trading Department also implements packaging and sealing, clearly noting the number of notes (or pieces) for convenience in handover.

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, foreign bank branches must submit all seized counterfeit money to the State Bank branch in the locality or Trading Department on a monthly basis, except for newly seized counterfeit money submitted in accordance with Clause 4 of this Article. The handover of counterfeit money is conducted per note (or piece) and must be recorded according to Form No. 04 attached to Decree No. 87/2023/NĐ-CP.

The method of transporting counterfeit money is decided by the Chairman of the Board of Members, Chairman of the Board of Management, or General Director (Director) of credit organizations, foreign bank branches, ensuring safety during transportation.

2. The State Bank branch, Trading Department is responsible for verifying the authenticity of each counterfeit note handed over by credit organizations, foreign bank branches.

If genuine money is found among the counterfeit money submitted, the State Bank branch, Trading Department will prepare a record according to the attached form in this Circular and issue a document requesting the submitting unit to refund the equivalent value to the customer and report the results within thirty days.

Genuine notes stamped "COUNTERFEIT MONEY" and punched with holes are cut off one-eighth of the note's area by the State Bank branch, Trading Department, exchanged at equal value (credit) for the submitting unit (no fee for exchanging non-circulating standard money), and packaged and handed over as non-circulating standard money according to the State Bank's regulations.

3. The State Bank branch, Trading Department must submit counterfeit money at least once every six months (if any) to the Central Currency Vault. Submission can be combined with the transfer of money in and out of the State Bank.

Handover is conducted in bundles, packages, and sealed bags and recorded according to Form No. 04 attached to Decree No. 87/2023/NĐ-CP.

4. For newly seized counterfeit money, based on the notification of new counterfeit money specified in point b, Clause 1, Article 5 of this Circular, credit organizations, foreign bank branches must submit to the State Bank branch in the locality or Trading Department within five working days from the date of seizure. The transport method is implemented according to Clause 1 of this Article.

Within two working days from the date of receipt of new counterfeit money, the State Bank branch, Trading Department will notify the Issuance and Treasury Department.

5. Based on the notification of new counterfeit money from the State Bank branch, Trading Department at point b, Clause 1, Article 5 and Clause 4, Article 9 of this Circular, the Issuance and Treasury Department will consider and decide to request the submission of new counterfeit money. If there is a request, the State Bank branch, Trading Department will submit new counterfeit money according to the Issuance and Treasury Department's requirements; the transport method for new counterfeit money is decided by the Trading Department Director, State Bank branch, ensuring safety and timeliness. If there is no request, the counterfeit money will be stamped, punched, and submitted according to Clause 3 of this Article.

Article 10. Authentication of Counterfeit Money and Suspected Counterfeit Money by the State Bank

1. Any entity, organization, or individual requesting authentication of counterfeit money or suspected counterfeit money must prepare one set of application documents for authentication in accordance with Clause 2, Article 5 of Decree No. 87/2023/NĐ-CP and submit directly to the State Bank branch, Trading Department, or Issuance and Treasury Department (in Hanoi City) or the Issuance and Treasury Sub-department (in Ho Chi Minh City).

2. Upon receiving the application documents for authentication as stipulated in Clause 1 of this Article or from the date of temporary seizure of suspected counterfeit money as stipulated in Clause 1 of Article 6, the State Bank branch, Trading Department, Issuance and Treasury Department, or Issuance and Treasury Sub-department (hereinafter referred to as the authentication agency) must organize the authentication process. The time limit for conducting the authentication shall be in accordance with Clause 3, Article 5 of Decree No. 87/2023/NĐ-CP.

Within a maximum period of two working days from the completion of the authentication, the authentication agency must notify the results of the authentication in writing to the entity, organization, or individual requesting the authentication.

The authentication process is free of charge.

3. In cases where it is not possible to determine whether the money is genuine or counterfeit, within the latest thirty days from the date of receipt of the counterfeit or suspected counterfeit money requiring authentication, the State Bank branch or Trading Department must issue a written request and transfer such counterfeit or suspected counterfeit money to the Issuance and Treasury Department or Issuance and Treasury Sub-department for further authentication; at the same time, notify the entity, organization, or individual mentioned in Clause 1 of this Article or Clause 1 of Circular 6 or the credit institution or foreign bank branch mentioned in Clause 2 of Circular 6 to be informed.

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

Within a maximum period of five working days from the date of receipt of the authentication results, the State Bank branch or Trading Department must notify the results of the authentication in writing to the entity, organization, or individual requesting the authentication.

Article 11. Handling of Authentication Results

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

a) If the authentication result is genuine money, the genuine money will be returned to the entity, organization, or individual requesting the authentication or deposited into the Trading Department when authenticated at the Issuance and Treasury Department or the State Bank branch in Ho Chi Minh City when authenticated at the Issuance and Treasury Sub-department to report to the State Bank branch, credit institution, or foreign bank branch requesting the authentication.

b) If the authentication result is counterfeit money with a notification from the State Bank or the Ministry of Public Security, the counterfeit money must be seized, stamped, punched, and deposited into the Central Treasury in Hanoi City (Treasury I) or in Ho Chi Minh City (Treasury II).

c) If the authentication result is new type counterfeit money, the Issuance and Treasury Department must promptly inform the Economic Security Bureau of the Ministry of Public Security and seize the counterfeit money. For the Issuance and Treasury Sub-department, a written report must be made to the Issuance and Treasury Department and promptly inform the Ho Chi Minh City Police (Economic Security Division); transfer new type counterfeit money to the Issuance and Treasury Department (if required); the method of transportation is decided by the Issuance and Treasury Sub-department to ensure safety and promptness. In cases where there is no requirement to transfer to the Issuance and Treasury Department, the counterfeit money will be stamped, punched, and stored in 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 authentication result is genuine money, the genuine money will be exchanged for the entity, organization, or individual requesting the authentication according to the State Bank's regulations on exchanging non-circulating standard money.

b) If the authentication result is counterfeit money with a notification from the State Bank or the Ministry of Public Security, the counterfeit money must be seized, stamped, and punched.

c) If the authentication result is new type counterfeit money, it must be seized; immediately inform the local police (Economic Security Division) and notify in writing about the new type counterfeit money to the Issuance and Treasury Department. The submission of new type counterfeit money is carried out in accordance with Clause 4, 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 authentication result is counterfeit money, the result of the authentication and the handling of counterfeit money by the authentication agency must be notified to the customer within a maximum period of five working days from the date of receipt of the authentication result.

4. For counterfeit or suspected counterfeit money authenticated upon request of the Public Security Agency, Military Authority, Customs, People's Procuratorate, or People's Court, after authentication, it will be returned to the requesting unit without stamping or punching. The handover of counterfeit or suspected counterfeit money is recorded in Form No. 04 attached to Decree No. 87/2023/NĐ-CP.

Article 12. Retention of counterfeit money as research materials to serve the work of preventing and combating counterfeit money of the State Bank of Vietnam

After analyzing and appraising new types of counterfeit money, the Issuance and Treasury Department may retain and preserve up to a maximum of 15 pieces (or sheets) per type for research, prevention, and combating counterfeit money and training purposes (except for counterfeit money and suspected counterfeit money appraised according to Clause 4, Article 11 of this Circular). The Issuance and Treasury Department shall monitor, retain, and preserve counterfeit money according to their denominations, serial numbers, and quantities. In cases where more than 15 pieces (or sheets) per type need to be retained and preserved, the Issuance and Treasury Department shall submit to the Governor of the State Bank of Vietnam for decision.

In cases where retention and preservation are not necessary after the period for research, prevention, and combating counterfeit money and training, the Issuance and Treasury Department shall stamp and punch holes in the counterfeit money and submit it to the Central Treasury in Hanoi City (Treasury I).

Article 13. Information on Counterfeit Money

1. The Issuance and Treasury Department (State Bank of Vietnam) shall conduct analysis and appraisal and notify in writing the distinguishing features of new types of counterfeit money to the Economic Security Bureau, Institute of Criminal Science (Ministry of Public Security), Anti-drug and Crime Prevention Department - Border Guard Command (Ministry of National Defense), State Bank of Vietnam branch, Trading Center, and State Treasury to serve the work of preventing and combating counterfeit money.

2. Upon receiving written notification about new types of counterfeit money from the Issuance and Treasury Department, the State Bank of Vietnam branch must notify in writing the distinguishing features of new types of counterfeit money to the head office of credit organizations and foreign bank branches within its jurisdiction.

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

4. If necessary, the Issuance and Treasury Department shall publicly announce through mass media or on the electronic information page of the State Bank of Vietnam the distinguishing features of counterfeit money appearing in circulation so that organizations and individuals can be vigilant and proactively prevent counterfeit money.

Article 14. 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 15. Responsibilities for Guidance and Inspection

1. The Issuance and Treasury Department shall be responsible for guiding and inspecting the implementation of this Circular. The Issuance and Treasury Department shall cooperate with relevant units to develop training programs for counterfeit money identification skills and training programs for recognizing genuine and counterfeit money, to be submitted to the Governor of the State Bank of Vietnam for decision.

2. State Bank of Vietnam branches shall inspect the implementation of the provisions of this Circular for inspection targets within their jurisdiction.

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

Article 16. Effective Date

This Circular takes effect from February 14, 2025, and replaces Circular No. 28/2013/TT-NHNN dated December 5, 2013, issued by the Governor of the State Bank of Vietnam, concerning the handling of counterfeit and suspected counterfeit money in the banking sector.

Article 17. Implementation Organization

Heads of units under the State Bank of Vietnam; credit organizations, and foreign bank branches are responsible for organizing the implementation of this Circular./.