What is electronic currency in Vietnam? What are the means of storing electronic currency in payment transactions in Vietnam?

What is electronic currency in Vietnam?

Clause 12, Article 3 of Decree 52/2024/ND-CP stipulates the definition of electronic funds as follows:

Electronic funds are the stored value of the Vietnamese Dong on electronic mediums provided by banks, branches of foreign banks, or intermediary payment service providers offering e-wallet services, corresponding to the amount prepaid by customers.

What is electronic currency in Vietnam? What are the means of storing electronic currency in payment transactions in Vietnam? - image from the internet

What are the means of storing electronic currency in payment transactions in Vietnam?

According to Clause 6 of Decree 52/2024/ND-CP, the regulations regarding electronic wallets and prepaid cards are as follows:

Electronic Wallets and Prepaid Cards

1. Electronic wallets and prepaid cards are means of storing electronic currency.

2. Banks and branches of foreign banks are authorized to issue and provide electronic wallets and prepaid cards. The supply, issuance, and use of electronic wallets and prepaid cards must comply with the regulations of the State Bank.

3. Intermediary payment service providers offering electronic wallet services must ensure that the total balance across all accounts for payment services linked to electronic wallets held at banks or branches of foreign banks is not lower than the total balance of all the electronic wallets issued to customers. They are only allowed to provide services for electronic wallets linked to the customer's payment accounts or debit cards.

Therefore, the means of storing electronic currency in payment transactions are:

- Electronic wallets

- Prepaid cards

Banks and branches of foreign banks are authorized to issue and provide electronic wallets and prepaid cards. The supply, issuance, and use of electronic wallets and prepaid cards must comply with the regulations of the State Bank.

What are the contents that financial institutions must include in their reports on electronic funds transfer in Vietnam?

Clause 3 of Article 9 in Circular 09/2023/TT-NHNN stipulates the reporting for electronic funds transfer as follows:

Reporting for electronic funds transfer

...

3. Report on electronic funds transfer must contain:

a) Information on transmitting organizations and destination organization, including: business name of the organizations or trading branches; address of head office (or bank identification code for domestic electronic funds transfer or swift code for international electronic funds transfer); destination and transmitting countries;

b) Information on customers that are individuals engaging in electronic funds transfer: full name, date of birth; ID Card or Citizen ID Card or Personal Identification or passport number; visa number (if any); permanent resident registration or current residence (if any) address; nationality (according to transaction documents);

c) Information on customers that are organizations engaging in electronic funds transfer: full business name and abbreviations (if any); head office address; establishment license or enterprise identification or tax identification number; countries where head office of these organizations are located;

d) Information on transactions: account number (if any): amount; type of currency; amount converted to VND (if the money transferred is in foreign currency); reason and purpose of transactions; code of transaction; date of transaction;

dd) Other information requested by anti-money laundering authority for the purpose of anti-money laundering activities from time to time.

Therefore, the report on electronic funds transfer must contain:

- Information on transmitting organizations and destination organization, including: 

+ Business name of the organizations or trading branches 

+ Address of head office (or bank identification code for domestic electronic funds transfer or swift code for international electronic funds transfer)

+ Destination and transmitting countries

- Information on customers that are individuals engaging in electronic funds transfer: 

+ Full name, date of birth

+ ID Card or Citizen ID Card or Personal Identification or passport number

+ Visa number (if any)

+ Permanent resident registration or current residence (if any) address

+ Nationality (according to transaction documents)

- Information on customers that are organizations engaging in electronic funds transfer: 

+ Full business name and abbreviations (if any)

+ Head office address

+ Establishment license or enterprise identification or tax identification number

+ Countries where head office of these organizations are located

- Information on transactions: 

+ Account number (if any)

+ Amount

+ Type of currency

+ Amount converted to VND (if the money transferred is in foreign currency)

+ Reason and purpose of transactions

+ Code of transaction

+ Date of transaction

- Other information requested by anti-money laundering authority for the purpose of anti-money laundering activities  from time to time.

Best regards!