Regulations on international payments in cashless payments Vietnam from July 1, 2024

Regulations on international payments in cashless payments Vietnam from July 1, 2024 (Internet image)

Regarding this matter, LawNet would like to answer as follows: 

1. What is international payment?

International payment refers to payment transactions implemented for an organization or individual with a payment account or payment instrument issued outside of Vietnam’s territory. 

International payment systems refer to payment systems established abroad that permit the implementation of international payment transactions.

(Clause 8, 20, Article 3 of Decree 52/2024/ND-CP)

2. Regulations on international payments in cashless payments Vietnam from July 1, 2024

Pursuant to Article 5 of Decree 52/2024/ND-CP, regulations on cashless international payments in Vietnam are as follows:

- Foreign currency payment and international payment shall comply with this Decree, foreign exchange management, users' data protection, cybersecurity, and tax administration laws, anti-money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction laws, and international treaties and agreements that Vietnam is a signatory. The application of commercial practices shall comply with Article 3 of the Law on Credit Institutions 2010.

- Commercial banks and foreign bank branches may participate in international payment systems when they meet the requirements prescribed in Article 21 of Decree 52/2024/ND-CP.

- The provision of payment services and payment intermediary services for clients not residing in Vietnam and foreigners residing in Vietnam to implement payment transactions of goods and services in Vietnam of foreign service providers shall be carried out through commercial banks or foreign bank branches approved by SBV to participate in international payment systems of such foreign service providers.

- Financial switch service providers may connect to international payment systems to carry out international financial switch services when they meet the requirements prescribed in Article 22 of Decree 52/2024/ND-CP.

- Payment intermediary service providers (excluding financial switch service providers) may provide their services for clients for the implementation of payment transactions of foreign goods and services; the payment and settlement of such international transactions shall be carried out through commercial banks or foreign bank branches approved by SBV to engage in foreign exchange on international markets. 

- Parties involved in international payment shall adequately, accurately, and promptly provide information and meet the requirements of state management authorities according to Vietnamese law.

3. Requirements for participation in international payment systems of commercial banks and foreign bank branches in cashless payments Vietnam from July 1, 2024

Requirements for participation in international payment systems of commercial banks and foreign bank branches in Vietnam include:

- Being licensed to engage in basic foreign exchange operations in domestic and international markets.

- Having policies on and procedures for risk management concerning money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction laws that meet the requirements prescribed in anti-money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction laws when participating in international payment systems.

- Having information systems that meet the requirements for management, administration, safety, and confidentiality according to Vietnamese law; intramural regulations on standards of the selection of connections to international payment systems.

- Organizations operating international payment systems are legally established and operated abroad.

(Article 21 of Decree 52/2024/ND-CP)

4. State management responsibilities of SBV regarding cashless payment in Vietnam as of July 1, 2024

State management responsibilities of SBV regarding cashless payment in Vietnam are prescribed as follows:

- Promulgate or request competent authorities to promulgate legislative documents on cashless payment; stipulate the management, connection, and sharing of data for cashless payment.

- Organize, manage, operate, and supervise the national payment system; participate in organizing and supervising the operations of other important payment systems in the economy; supervise the provision of payment services and payment intermediary services.

- Approve the participation in international payment systems of commercial banks and foreign bank branches in writing.

- Issue, revise, and revoke licenses to provide payment intermediary services.

- Approve and revoke documents on the provision of payment service not through clients’ payment accounts of public postal service providers.

- Inspect and handle violations of the law on cashless payment of organizations and individuals within its jurisdiction.

- Manage international cooperation in payment; take charge and cooperate with competent authorities in managing international payment.

(Article 4 of Decree 52/2024/ND-CP)

Duong Thi Hoai Nhi

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