Vietnam: What are the actions to be taken in case written confirmation of foreign loan registration is cacelled due to fraudulent information, forged documents in applications?
- Which agency has the authority over confirmation of registration or registration for changes of foreign loans in Vietnam?
- When is the written confirmation of foreign loan registration cancelled?
- What are the actions to be taken in case written confirmation of foreign loan registration is cacelled due to fraudulent information, forged documents in applications?
Which agency has the authority over confirmation of registration or registration for changes of foreign loans in Vietnam?
Pursuant to the provisions in Article 20 of Circular No. 12/2022/TT-NHNN on the authority over confirmation of registration or registration for changes of foreign loans in Vietnam as follows:
Authority over confirmation of registration or registration for changes of loans
1. Competent authorities accorded authority over confirmation of registration or registration for changes of loans (hereinafter referred to as competent authorities) are:
a) The State Bank of Vietnam (Department of Foreign Exchange Management): in respect of loan proceeds of more than USD (or other equivalents) 10 (ten) million;
b) State Bank branches of provinces where borrowers’ head offices are located: in respect of loan proceeds of up to USD (or other equivalents) 10 (ten) million other foreign loans denominated in Vietnam dong subject to approval by the Governor of the State Bank of Vietnam.
2. Where there is any increase or reduction in loan proceeds, or any change to currency unit of a loan or the borrower's head office, or the borrower is requested to contact an enterprise whose head office is located within another province or city, which entails changes to the authority in charge of confirmation of registration for changes of loans:
a) The borrower shall submit the application for registration for change of the foreign loan to the authority in charge of confirmation of registration or registration for changes of the latest time.
b) The authority in charge of confirmation of registration or registration for changes of the latest time shall act as the contact point to receive the application for registration for changes of the loan from the borrower. Within 07 (seven) working days of receipt of the application for registration for changes, the authority in charge of confirmation of registration or registration for changes of the latest time shall deliver all of the original application submitted to request registration of changes of loans and copy of application for registration or registration for changes that have already been made to loans (if any) to competent authorities referred to in clause 1 of this Article for further processing activities.
3. Where foreign loans denominated in Vietnam dong are subject to the Governor’s consideration or approval, the Department of Foreign Exchange Management shall act as the contact point or cooperate with relevant affiliates of the State Bank of Vietnam in reporting to the Governor for his consideration or decision according to the delegated authority.
4. The exchange rate used to determine the competent authority in charge of confirmation of the registration and registration for changes in foreign loans is the accounting rate quoted by the Ministry of Finance and applied at the time of signing foreign loan agreements or agreements on changes of the foreign loans in relation to the loan proceeds.
Thus, the agency competent over confirmation of registration or registration for changes of loans is the State Bank of Vietnam.
Vietnam: What are the actions to be taken in case written confirmation of foreign loan registration is cacelled due to fraudulent information, forged documents in applications?
When is the written confirmation of foreign loan registration cancelled?
Pursuant to Article 22 of Circular No. 12/2022/TT-NHNN on cancellation of the written confirmation of registration or registration for changes of loans as follows:
Cancellation of the written confirmation of registration or registration for changes of loans
The competent authority in charge of registration, registration for change of foreign loans shall issue a written cancellation of the confirmation of registration, registration for change of foreign loan in case the application for registration, registration for change of foreign loan contains fraudulent information, forged documents supporting the eligible for registration, registration for change of foreign loan.
Thus, the written confirmation of foreign loan registration is cacelled in case the application for registration, registration for change of foreign loan contains fraudulent information, forged documents.
What are the actions to be taken in case written confirmation of foreign loan registration is cacelled due to fraudulent information, forged documents in applications?
Pursuant to the provisions in Article 24 of Circular No. 12/2022/TT-NHNN on the actions to be taken against foreign loans in case of cancellation of the confirmation of registration, registration for changes of foreign loans due to fraudulent information, forged documents in applications as follows:
Actions to be taken against foreign loans in case of cancellation of the confirmation of registration, registration for changes of foreign loans due to fraudulent information, forged documents in applications
1. Where an application for registration or registration for changes of foreign loan contains fraudulent information, forged documents supporting the eligible for registration, registration for change of foreign loan, the competent authority shall issue a written cancellation of the confirmation of registration, registration for change of foreign loan to the borrower (and to the account service provider, bank providing secured transactions - if any).
2. After receiving the written cancellation of the written confirmation of registration, confirmation of registration for change of foreign loan mentioned in Clause 1 of this Article, the account service provider, the bank providing secured transactions shall not continue to conduct money transfers related to the foreign loan according to the contents stated in the written confirmation of registration, confirmation of registration for change of foreign loan. The account service provider, the bank providing secured transactions shall notify the competent authority in writing of the money transfer transactions related to the foreign loan made through these banks until the date of the written notice of cancellation of the written confirmation of registration or registration changes at the request of the competent authority.
3. From the time when the written confirmation of registration or registration of changes is cancelled, the borrower uses a checking account denominated in Vietnam dong opened at an account service provider to refund outstanding foreign loan proceeds and indebtedness amount (if any).
4. The parties shall decide on using the accounting exchange rate announced by the Ministry of Finance, or the foreign currency buying and selling rate set by the account service provider or other credit institution or foreign bank branch listed in Vietnam at the time the written confirmation of registration or change registration is cancelled or the time of transferred debt repayment to determine the amount in Vietnam dong to be paid to the creditor.
Thus, the actions to be taken against foreign loans in case of cancellation of the confirmation of registration, registration for changes of foreign loans due to fraudulent information, forged documents in applications shall be carried out according to the above provisions.
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