What problems that credit institutions conduct foreign exchange activities are responsible for in Vietnam?

1. What problems that credit institutions conduct foreign exchange activities are responsible for in Vietnam?

Pursuant to Article 16 of Circular 26/2021/TT-NHNN stipulating that credit institutions conduct foreign exchange activities have the following responsibilities:

1. Permitted credit institutions are responsible for:

a) Trades made by traders of permitted credit institutions via trading instruments registered with SBV; authenticity of entitlement of relevant individuals in foreign currency trades with SBV;

b) Adequacy, accuracy, legitimacy, and punctuality of documents, dossiers, and reports submitted to SBV.

2. Permitted credit institutions are responsible for complying with applicable regulations on foreign exchange and:

a) having strict risk management, internal control procedures and systems for foreign currency trade with SBV;

b) comply with regulations on foreign currency position and other regulations on safety assurance in foreign exchange activities of SBV.

2. What responsibilities for Central Banking Department in foreign currency trading in Vietnam?

According to Article 17 of Circular 26/2021/TT-NHNN, Central Banking Department has the following responsibilities:

1. Process documents, review, and verify application for establishment of foreign currency trading connection with permitted credit institutions.

2. Notify foreign currency intervention and foreign currency trading to permitted credit institutions having foreign currency trading connection with SBV; declare reference exchange rates in accordance with regulations of SBV from time to time.

3. Determine fine interest and deal with deferred payment under Clause 3 Article 13 hereof by assessing impact of each instance of deferred payment of permitted credit institutions. a

4. Suspend trade, cancel foreign currency trading connection with permitted credit institutions in accordance with Article 14 hereof.

5. Inform Banking Supervision and Inspection Agency about the lists of permitted credit institutions with established, suspended, and cancelled foreign currency trading connection with SBV.

6. Act as contact point dealing within issues that occur relating to foreign currency trading between SBV and permitted credit institutions.

3. What responsibilities for Department of Monetary Policy in foreign currency trading in Vietnam? 

In Article 18 of Circular 26/2021/TT-NHNN, Department of Monetary Policy has the following responsibilities:

1. Notify approved interventions of SBV to Central Banking Department.

2. Cooperate with Central Banking Department in dealing with issues relating to foreign currency trading between SBV and permitted credit institutions.

4. What responsibilities for Banking Supervision and Inspection Agency in foreign currency trading in Vietnam?  

Pursuant to Article 19 of Circular 26/2021/TT-NHNN stipulating that Banking Supervision and Inspection Agency has the following responsibilities:

1. Provide copies (exemplified copy or certified true copy) of certificate of establishment and operation of credit institutions or certificate of establishment of FBB in Vietnam and documents verifying permission to provide foreign exchange services of credit institutions in domestic market issued by SBV within 2 working days from the date on which written request of Central Banking Department is received.

2. Promptly inform Central Banking Department when permitted credit institutions which perform foreign currency trading with SBV are placed under special control or suspended from engaging in foreign exchange or violating regulations under this Circular.

Best Regards!