Regulations on the seizure of counterfeit money in Vietnam from February 14, 2025

Regulations on the seizure of counterfeit money in Vietnam from February 14, 2025​ (Image from the Internet)

On December 31, 2024, the Governor of the State Bank of Vietnam issued Circular 58/2024/TT-NHNN providing guidance on handling counterfeit money and suspected counterfeit money in the banking sector.

Regulations on the seizure of counterfeit money in Vietnam from February 14, 2025

In Article 5 of Circular 58/2024/TT-NHNN, the regulations on the seizure of counterfeit money in Vietnam from February 14, 2025, are as follows:

(1) In cash transactions with customers, when a banknote showing signs of being counterfeit is detected, branches and transaction offices of the State Bank, credit organizations, foreign bank branches compare with security features on genuine banknotes (or sample notes) of the same type or notify about the characteristics and identification guidelines of Vietnamese banknotes as published by the State Bank, and compare it with notifications on counterfeit banknotes identification from the State Bank or Ministry of Public Security then handle as follows:

- In cases where it is confirmed as counterfeit money previously notified by the State Bank or Ministry of Public Security in writing, seizure and documentation must be conducted according to Form No. 01 in the appendix issued with Decree 87/2023/ND-CP dated December 8, 2023, of the Government of Vietnam regulating the prevention and control of counterfeit money and safeguarding Vietnamese currency, then stamp and perforate the counterfeit money. Stamping and perforating counterfeit money is performed according to Clause 2, Article 7 of Circular 58/2024/TT-NHNN.

- In cases identified as a new type of counterfeit money, seizure, and documentation must be conducted according to Form No. 01 in the appendix issued with Decree 87/2023/ND-CP but no stamping, no perforating of counterfeit money.

Within 2 working days from the date of seizure of the new type of counterfeit money, branches and transaction offices of the State Bank must notify in writing the Issuance and Treasury Department; credit organizations, foreign bank branches must notify in writing the Transaction Office or State Bank branch in the locality where the credit organization, branch of a credit organization, or foreign bank branch opens a payment account (hereafter referred to as the State Bank branch in the locality). The notification must include information on the type, quantity, serial numbers, and description of features of the counterfeit money.

(2) Branches, transaction offices of the State Bank, credit organizations, foreign bank branches must promptly notify the nearest police agency to coordinate and handle when detecting any of the following cases:

- Suspicion of storage, transportation, circulation of counterfeit money.

- New type of counterfeit money.

- Five counterfeit banknotes (or 5 counterfeit metal coin pieces) or more in a transaction.

- The customer does not comply with the documentation, seizure of the counterfeit money.

(3) During counting, categorizing, and selecting money, after delivering, and receiving cash in sealed bundles or bags within the banking sector as regulated by the State Bank, when counterfeit money is detected, units of the State Bank, credit organizations, foreign bank branches process as in cash transactions with counterfeit money regulated in Clause 1 and Points b, c of Clause 2, Article 5 of Circular 58/2024/TT-NHNN.

Responsibility for seizure of counterfeit money and temporary seizure of suspected counterfeit money in Vietnam from February 14, 2025

- The State Bank Trading Office (hereafter referred to as the Transaction Office), branches of the State Bank, credit organizations, foreign bank branches upon detecting counterfeit money in cash transactions with customers must seize according to regulations at Article 5 of Circular 58/2024/TT-NHNN; when detecting suspected counterfeit money must temporarily seize according to regulations at Article 6 of Circular 58/2024/TT-NHNN; no return of counterfeit or suspected counterfeit money to customers.

- Individuals responsible for the seizure of counterfeit money, and temporary seizure of suspected counterfeit money must be trained in distinguishing genuine and counterfeit money according to the State Bank's program or trained in forensic examination of money.

Individuals responsible for the examination of counterfeit, suspected counterfeit money by the State Bank must be trained in money forensic examination.

More details can be found in Circular 58/2024/TT-NHNN which takes effect from February 14, 2025, and replaces Circular 28/2013/TT-NHNN on handling counterfeit, and suspected counterfeit money in the banking sector.

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