Decree No. 89/2016/NĐ-CP on conditions for foreign exchange trading agency activities and foreign currency receipt and payment service provision by economic organizations.

DECREE

REGULATING CONDITIONS FOR FOREIGN EXCHANGE BROKERAGE ACTIVITIES AND FOREIGN EXCHANGE SERVICE SUPPLYING ACTIVITIES INVOLVING RECEIVING AND PAYING FOREIGN CURRENCY OF ECONOMIC ORGANIZATIONS

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Pursuant to the Law on Government Organization dated June 19, 2015;

BASED ON THE LAW ON THE STATE BANK OF VIETNAM ON JUNE 16, 202010;

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

CamendBASED ON THE INVESTMENT LAW ON NOVEMBER 26, 2014;

BASED ON THE FOREIGN EXCHANGE ORDINANCE ON DECEMBER 13, 2005 AND THE AMENDMENT TO SOME PROVISIONS OF THE FOREIGN EXCHANGE ORDINANCE lON DECEMBER 13, 2005; lBASED ON THE FOREIGN EXCHANGE ORDINANCE AMENDMENT ON MARCH 18, 2013;No.THE GOVERNMENT ISSUES THIS DECREE REGULATING CONDITIONS FOR FOREIGN EXCHANGE BROKERAGE ACTIVITIES AND FOREIGN EXCHANGE SERVICE SUPPLYING ACTIVITIES INVOLVING RECEIVING AND PAYING FOREIGN CURRENCY OF ECONOMIC ORGANIZATIONS

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

THIS DECREE REGULATES CONDITIONS FOR ECONOMIC ORGANIZATIONS CONDUCTING FOREIGN EXCHANGE BROKERAGE ACTIVITIES; CONDITIONS FOR ECONOMIC ORGANIZATIONS CONDUCTING FOREIGN EXCHANGE SERVICE SUPPLYING ACTIVITIES INCLUDING DIRECT FOREIGN EXCHANGE RECEIVING AND PAYING ACTIVITIES AND FOREIGN EXCHANGE BROKERAGE PAYING ACTIVITIES. reason 1. ECONOMIC ORGANIZATIONS CONDUCTING FOREIGN EXCHANGE BROKERAGE ACTIVITIES.i2. ECONOMIC ORGANIZATIONS CONDUCTING FOREIGN EXCHANGE SERVICE SUPPLYING ACTIVITIES INVOLVING RECEIVING AND PAYING FOREIGN CURRENCY..

3. OTHER ORGANIZATIONS AND INDIVIDUALS RELATED TO FOREIGN EXCHANGE BROKERAGE ACTIVITIES AND FOREIGN EXCHANGE SERVICE SUPPLYING ACTIVITIES INVOLVING RECEIVING AND PAYING FOREIGN CURRENCY.

1. PERMITTED CREDIT ORGANIZATIONS ARE BANKS, NON-BANK CREDIT ORGANIZATIONS, AND FOREIGN BANK BRANCHES OPERATING FOREIGN EXCHANGE BUSINESS AND SUPPLYING FOREIGN EXCHANGE SERVICES IN ACCORDANCE WITH LEGAL PROVISIONS.

3. ECONOMIC ORGANIZATIONS (EXCLUDING CREDIT ORGANIZATIONS) ARE ORGANIZATIONS ESTABLISHED AND OPERATING IN ACCORDANCE WITH VIETNAMESE LEGAL PROVISIONS, INCLUDING ENTERPRISES, COOPERATIVES, ASSOCIATIONS OF COOPERATIVES, AND OTHER ORGANIZATIONS ENGAGED IN INVESTMENT AND BUSINESS ACTIVITIES.

2. AUTHORIZED CREDIT ORGANIZATIONS ARE CREDIT ORGANIZATIONS AUTHORIZED TO APPOINT ECONOMIC ORGANIZATIONS AS FOREIGN EXCHANGE BROKERS OR FOREIGN EXCHANGE PAYMENT BROKERS.

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

ARTICLE 4. CONDITIONS FOR ECONOMIC ORGANIZATIONS CONDUCTING FOREIGN EXCHANGE BROKERAGE ACTIVITIES

ECONOMIC ORGANIZATIONS MAY ONLY CONDUCT FOREIGN EXCHANGE BROKERAGE ACTIVITIES AFTER BEING ISSUED A FOREIGN EXCHANGE BROKER REGISTRATION CERTIFICATE BY THE STATE BANK OF VIETNAM. CONDITIONS FOR ECONOMIC ORGANIZATIONS TO BE CONSIDERED AND ISSUED A FOREIGN EXCHANGE BROKER REGISTRATION CERTIFICATE BY THE STATE BANK OF VIETNAM:

2. HAVE A FOREIGN EXCHANGE BROKER LOCATION AT ONE OR MORE LOCATIONS AS FOLLOWS:

a) TOURIST ACCOMMODATION FACILITIES RATED 3 STARS OR HIGHER BY THE NATIONAL ADMINISTRATIVE MANAGEMENT AUTHORITY FOR TOURISM;

b) INTERNATIONAL BORDER GATES (ROAD, AIR, WATERWAY);

c) ENTERTAINMENT ZONES WITH REWARDS FOR FOREIGNERS PERMITTED ACCORDING TO LEGAL PROVISIONS;

d) SALES OFFICES OF FOREIGN AIRLINES, SHIPPING COMPANIES, AND TOURISM COMPANIES AND INTERNATIONAL SALES OFFICES OF VIETNAMESE AIRLINES;

đ) TOURIST AREAS, SHOPPING CENTERS, SUPERMARKETS WITH FOREIGN VISITORS.

3. HAVE MATERIAL RESOURCES MEETING THE REQUIREMENTS FOR FOREIGN EXCHANGE BROKERAGE ACTIVITIES AS FOLLOWS:

a) HAVE A SEPARATE TRANSACTION AREA (ROOM OR COUNTER NOT ATTACHED TO OTHER BUSINESS ACTIVITIES, SPECIALIZED IN FOREIGN EXCHANGE SERVICES);

b) THE TRANSACTION AREA MUST BE EQUIPPED WITH MINIMUM WORKING TOOLS INCLUDING TELEPHONE, FAX MACHINE, SAFE, PUBLIC EXCHANGE RATE BOARD, SIGNBOARD SHOWING THE NAME OF THE AUTHORIZED CREDIT ORGANIZATION AND THE NAME OF THE FOREIGN EXCHANGE BROKER.

4. STAFF DIRECTLY WORKING AT FOREIGN EXCHANGE BROKERAGES MUST HAVE A CONFIRMATION LETTER ISSUED BY THE AUTHORIZED CREDIT ORGANIZATION, CONFIRMING THAT THEY HAVE BEEN TRAINED IN SKILLS TO IDENTIFY REAL AND FAKE FOREIGN CURRENCIES.

5. HAVE FOREIGN EXCHANGE TRANSACTION PROCEDURES AND SECURITY MEASURES DURING FOREIGN EXCHANGE TRANSACTIONS.

6. BE AUTHORIZED BY AN AUTHORIZED CREDIT ORGANIZATION TO BE A FOREIGN EXCHANGE BROKER.

7. AN ECONOMIC ORGANIZATION CAN ONLY BE A FOREIGN EXCHANGE BROKER FOR ONE AUTHORIZED CREDIT ORGANIZATION AND THE ECONOMIC ORGANIZATION CAN NEGOTIATE TO SET UP FOREIGN EXCHANGE BROKERAGES AT ONE OR MORE LOCATIONS IN THE AREA WHERE THE HEADQUARTERS OR BRANCHES ARE LOCATED.

5. There is a business procedure for exchanging foreign currency and security measures to ensure safety during the exchange of foreign currency.

6. It is authorized by a credit institution to act as an agent for exchanging foreign currency.

7. An economic organization may only act as an agent for exchanging foreign currency for one authorized credit institution, and such an economic organization may agree to place foreign currency exchange agents at one or more locations within the area where the economic organization has its main office or branch.

Article 5. Conditions for economic organizations to directly receive and pay foreign currency

1. Conditions for economic organizations to be considered and approved by the State Bank of Vietnam to directly receive and pay foreign currency:

a) Established or registered to operate in accordance with Vietnamese laws;

b) Equipped with facilities and infrastructure ensuring compliance with requirements for receiving and paying foreign currency such as computers, telephones, fax machines;

c) Have contracts with foreign partners regarding foreign currency receipt and payment services;

d) Have a plan for implementing foreign currency receipt and payment services signed by a duly authorized representative.

2. Conditions for economic organizations to be considered and approved by the State Bank of Vietnam to extend the direct receipt and payment of foreign currency activities:

a) Meeting the conditions stipulated in Clause 1 of this Article;

b) The approval document for direct receipt and payment of foreign currency remains valid for at least 30 days from the date of submission of the application;

c) Not violating reporting regulations set by the State Bank of Vietnam for at least four quarters from the date of issuance of the approval document for direct receipt and payment of foreign currency or the most recent extension approval document until the date of requesting an extension.

1. Conditions for economic organizations to be considered and approved by the State Bank of Vietnam to register as agents for foreign currency payments:

a) Established or registered to operate in accordance with Vietnamese laws;

b) Equipped with facilities and infrastructure ensuring compliance with requirements for agency foreign currency payment activities such as computers, telephones, fax machines;

c) Authorized by a credit institution permitted to act as an agent for foreign currency payments.

2. Conditions for economic organizations to be considered and approved by the State Bank of Vietnam to extend registration as agents for foreign currency payments:

a) Meeting the conditions stipulated in Clause 1 of this Article;

b) The approval document for registering as an agent for foreign currency payments remains valid for at least 30 days from the date of submission of the application;

c) Not violating reporting regulations set by the State Bank of Vietnam for at least four quarters from the date of issuance of the approval document for registering as an agent for foreign currency payments or the most recent extension approval document until the date of requesting an extension.

Article 7. Implementation Organization

1. This Decree takes effect from July 1, 2016.

2. The Governor of the State Bank of Vietnam, Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities, and related organizations and individuals are responsible for enforcing this Decree./.