Vietnam: What is included in the periodical reporting regime for the State Bank branch in border provinces in acting as agents for exchange of bordering countries’ currencies?
- How is the acting as agents for exchange of bordering countries’ currencies regulated?
- What is included in the periodical reporting regime for the State Bank branch in border provinces in acting as agents for exchange of bordering countries’ currencies?
- What are the responsibilities of agents for exchange of bordering countries’ currencies?
How is the acting as agents for exchange of bordering countries’ currencies regulated?
On June 16, 2023, the State Bank of Vietnam has just issued Circular No. 04/2023/TT-NHNN regulating acting as agents for exchange of bordering countries’ currencies.
According to that, the acting as agents for exchange of bordering countries’ currencies are specified in Article 3 of Circular No. 04/2023/TT-NHNN as follows:
- Agents for exchange of bordering countries’ currencies may only operate in the form of using Vietnam dong to buy money from bordering countries of individuals in cash, except for the case specified in Clause 2, Article 3 of Circular No. 04/2023/TT-NHNN.
- Agents for exchange of bordering countries’ currencies located at exit waiting areas at international border gates and main border gates may sell money from bordering countries in cash for Vietnamese dong to individuals according to regulations in Clause 1 Article 4 of Circular No. 04/2023/TT-NHNN.
- Economic organizations may reach agreement with the authorized credit institution in the contract for agents for exchange of bordering countries’ currencies on the placement of a agents for exchange of bordering countries’ currencies at one or more locations in the land border area, border-gate economic zone in the locality where the economic organization has its head office or branch.
Vietnam: What is included in the periodical reporting regime for the State Bank branch in border provinces in acting as agents for exchange of bordering countries’ currencies?
What is included in the periodical reporting regime for the State Bank branch in border provinces in acting as agents for exchange of bordering countries’ currencies?
In Article 8 of Circular No. 04/2023/TT-NHNN stipulating the responsibilities of the State Bank branch in border provinces:
- Issue, re-issue, amend, extend and revoke the certificate of registration of agents for exchange of bordering countries’ currencies to economic organizations in accordance with law.
- Instruct authorized credit institutions and economic organizations to act as agents for exchange of bordering countries’ currencies in their respective localities to fully comply with the provisions of this Circular and relevant laws.
- Implement the periodical reporting regime as prescribed in Clause 2, Article 9 of Circular No. 04/2023/TT-NHNN or irregularly at the request of the Governor of the State Bank of Vietnam on the situation of exchange of bordering countries’ currencies by agents in the area.
- Inspect, examine and supervise money exchange acting as agents for exchange of bordering countries’ currencies in the area. In case of detecting violations of the contents of the Certificate of registration of agents for exchange of bordering countries’ currencies or of the law on money exchange activities of a bordering country, State Bank branches in border provinces shall handle in accordance with relevant laws.
Thus, the State Bank branch in the border province must implement the quarterly reporting regime, no later than the 10th day of the first month of the next quarter, the branch of the State Bank of Vietnam in the border province shall summarize the situation of exchange of bordering countries’ currencies in the area during the quarter and report to the State Bank of Vietnam (Foreign Exchange Management Department) according to the form in Appendix 02 issued together with Circular 04/2023/TT- NHNN.
The report is sent electronically to the email address baocaongoaite@sbv.gov.vn of the State Bank of Vietnam (Clause 2, Article 9 of Circular No. 04/2023/TT-NHNN).
What are the responsibilities of agents for exchange of bordering countries’ currencies?
Responsibilities of agents for exchange of bordering countries’ currencies are specified in Article 6 of Circular No. 04/2023/TT-NHNN as follows:
- To post up, publicly announce the buying exchange rate of money of the bordering country in cash with Vietnamese dong at the location where the agents for exchange of bordering countries’ currencies is located and buy money from countries sharing a border with customers at the posted and announced exchange rates. Particularly, agents for exchange of bordering countries’ currencies are located at exit waiting areas at international border gates or main border gates to list and publicly announce the buying and selling exchange rates of money of bordering countries in cash Vietnamese dong and buy and sell currency of countries sharing a border with customers at the posted and announced exchange rates.
- The exchange rate for buying and selling currency of the bordering country between the authorized credit institution and the agent shall comply with the agreement in the money exchange agency contract of the bordering country between authorized credit institutions and economic organizations acting as agents for exchange of bordering countries’ currencies, in accordance with current regulations on foreign exchange management.
- Implement the regime of recording money purchase and sale invoices of bordering countries, update accounting data and books according to the instructions of the authorized credit institutions, in accordance with the current accounting and accounting regime. Agents for exchange of bordering countries’ currencies for an authorized credit institution shall use the invoice of that authorized credit institution. When exchanging of bordering countries’ currencies, the agent must deliver a copy of the invoice to the customer.
- Agents for exchange of bordering countries’ currencies must strictly comply with agreements in contracts for exchange of bordering countries’ currencies signed with authorized credit institutions and legal regulations on money exchange activities of bordering countries; comply with relevant provisions of the law on prevention and combat of money laundering.
- In the course of operation, if it is discovered that customers use currencies of countries sharing borders that are fake or no longer valid for circulation as a means of purchase and sale, the agent is responsible for making a record, temporarily seizing the this money and notify the competent agency for investigation and handling.
- Implement the periodical reporting regime as prescribed in Clause 1, Article 9 of Circular No. 04/2023/TT-NHNN.
Circular No. 04/2023/TT-NHNN takes effect from August 1, 2023.
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