Required Documentation When Receiving Non-Refundable Foreign Currency Aid

According to the regulations, political organizations, socio-political organizations, and non-governmental organizations may use payment accounts in foreign currency or Vietnamese dong opened at commercial banks or foreign bank branches authorized to trade and provide foreign exchange services (hereinafter referred to as authorized banks) to receive foreign currency transfers of funding and non-refundable aid from non-resident organizations and individuals for carrying out the program.

Illustrative image (source: internet)

Article 5 of Circular 34/2019/TT-NHNN stipulates that when receiving non-refundable foreign currency funding and aid from non-resident organizations and individuals, political organizations, socio-political organizations, and non-governmental organizations are responsible for presenting documents and papers proving that the funds are non-refundable aid from non-resident organizations and individuals, as well as other documents as required by the authorized bank; and they are legally liable for the authenticity of the documents and papers presented to the authorized bank.

Additionally, this Circular stipulates that when providing foreign exchange services to political organizations, socio-political organizations, and non-governmental organizations (including receiving and purchasing foreign currency from non-refundable funding and aid of non-resident organizations and individuals), authorized credit institutions are responsible for reviewing, inspecting, and retaining documents and papers appropriate to actual transactions to ensure that the provision of foreign exchange services is executed for the correct purpose and in compliance with legal regulations.

Read the full text of the regulations at Circular 34/2019/TT-NHNN, which is effective from February 14, 2020.

Thu Ba

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