What are the regulations on the operation of bordering exchange agencies in Vietnam? What are the reponsibilities of bordering exchange agencies?
What are the regulations on the operation of bordering exchange agencies in Vietnam?
Operation of bordering exchange agencies are regulated in Article 3 of Circular 04/2023/TT-NHNN as follows:
- Bordering exchange agencies may only use Vietnamese dong to buy cash of bordering countries, except for the case specified in Clause 2 of this Article.
- Bordering exchange agencies located at exit waiting areas at international checkpoints and main checkpoints may sell cash of bordering countries for Vietnamese dong to individuals as specified in Article 4 of this Circular.
- An business entity may agree with an authorized credit institution, in a contract of bordering exchange agency, to set up bordering exchange agencies at one or more locations in the land border areas or border-checkpoint economic zones in the area where the business entity has its head office or branch.
What are the regulations on the operation of bordering exchange agencies in Vietnam? What are the reponsibilities of bordering exchange agencies?
What are the reponsibilities of bordering exchange agencies in Vietnam?
Reponsibilities of bordering exchange agencies are specified in Article 6 of Circular 04/2023/TT-NHNN as follows:
- Bordering exchange agencies must publicly quote the buying rate of bordering currency in cash with Vietnam dong at the location where the bordering exchange agency is located. They must buy the bordering currency from customers according to the quoted exchange rate. Bordering exchange agencies located at exit waiting areas at international checkpoints or main checkpoints must also publicly quote the buying and selling rates of bordering cash with Vietnam dong, and then buy and sell the bordering currency from/to customers at the quoted exchange rates.
- The buying and selling rates of the bordering currency between the authorized credit institution and the bordering exchange agency must comply with the agreement on bordering exchange agency between the authorized credit institution and the business entity acting as bordering exchange agency, in accordance with current regulations on foreign exchange management.
- Record purchase and sale invoices of bordering currencies, update accounting data and books according to the instructions of the authorized credit institution, in accordance with the applicable accounting and accounting regimes. A bordering exchange agency of an authorized credit institution must use the invoice of that authorized credit institution. When exchanging a bordering currency, the agency must give a copy of the invoice to the customer.
- Bordering exchange agencies must strictly comply with agreements on bordering exchange agency contracts signed with authorized credit institutions and legal regulations on exchange of bordering currencies; they must also comply with the law on prevention and control of money laundering.
- In the course of operation, when detecting that a customer uses fake or invalid bordering currencies as a means of trading, the agency must make a record and temporarily seize the amount and notify the competent agency for investigation and sanctions.
What is the time limit for sale of bordering currencies in Vietnam?
The time limit for sale of bordering currencies and required cash balance are specified in Article 5 of Circular 04/2023/TT-NHNN as follows:
- The bordering exchange agency must sell all the bordering country cash (apart from the withholdable cash balance) to the authorized credit institution at the end of each working day. If the bordering exchange agency is located far from the authorized credit institution and travel is difficult, the authorized credit institution may agree with the business entity on a longer time limit for sale of the bordering currency, but not more than 7 working days.
- Bordering exchange agencies may maintain a daily cash balance of a bordering currency up to VND 40,000,000 (Forty million Vietnamese dong) for bordering currency exchange, under an agreement between the authorized credit institution and the business entity. If the bordering exchange agency needs to increase the cash balance, they must follow the legal procedures to revise the certificate of registration of the bordering exchange agency.
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