Vietnam: Is it illegal to purchase money with beautiful serial number and exchange high-priced retail currency?

1. Is it illegal to purchase money with beautiful serial numbers at high prices?

First of all, to determine whether "money with a beautiful serial number" can be used as an object for exchange or sale, it must be based on the provisions of the Civil Code. According to Article 105 of the Civil Code 2015 of Vietnam, “property comprises objects, money, valuable papers and property rights”. Thus, money is a property.

Secondly, owner of "money with a beautiful serial number" has the right of disposal in accordance with Article 192 of the Civil Code 2015 of Vietnam, specifically is the “right to transfer ownership rights”.

Thirdly, the transfer of ownership rights of "money with beautiful serial number" can be done through civil transactions (agreement, donation etc.), and must meet the conditions under Article 117 of the Civil Code 2015 of Vietnam as follows:

- Buyers and sellers must be full 15 years old or older, if the buyer or seller is from full 6 years old to under 15 years old, the legal representative (maybe a parent) must agree;

- Participants in the transaction act entirely voluntarily;

- Currently, the law does not prohibit the purchase of money with beautiful serial number at a price higher than the value of cash, however, the sale and purchase of money with beautiful serial numbers must not violate the prohibition of the law such as: purchasing fake money with beautiful serial number, purchasing for the purpose of violation against law etc.

Thus, provided that the above conditions are met, the purchase of money with beautiful serial number at high prices for the purpose of collecting, making gifts, souvenirs, etc. is not against the law. However, 

 ... is not against the law. However, in fact, the majority of money with beautiful serial numbers in large quantities are often fake, so collectors of money with beautiful serial numbers should pay attention and be vigilant to avoid being scammed.

2. Is it illegal to exchange high-priced retail currency for the difference profit?

Recently, the Prime Minister of Vietnam has issued the Directive No. 44/CT-TTg 2020 on strengthening measures to ensure a joyful, healthy, safe and economical Lunar New Year 2021. According to this Directive, in order to well prepare the conditions to serve people to enjoy Lunar New Year 2021, the Prime Minister requested the State Bank of Vietnam to coordinate with relevant authorities to strengthen inspection and timely handle acts of purchasing foreign currency, gold and cash exchange services in small denominations in contravention of the law.

Currently, it is illegal to exchange change in order to enjoy the difference. This act shall be fined up to VND 40 million in accordance with Point a Clause 5 Article 30 of the Decree No. 88/2019/NĐ-CP:

5. A fine ranging from VND 20,000,000 to VND 40,000,000 shall be imposed for committing one of the following violations:

a) performing cash exchange transactions against law;

According to Article 12, 13 of the Circular No. 25/2013/TT-NHNN of the State Bank of Vietnam, people can go to the following places to exchange money to ensure compliance with the law, safety, and no fees:

- State Bank branches;

- Central Banking Department;

- Credit institutions;

- Foreign bank branches;

- State treasuries.

Despite knowing the above acts are illegal, many individuals and organizations still take advantage of the increased demand for change of money on Tet and large profits to commit, even purchasing fake money. Therefore, people must be especially cautious, not for immediate profit to violate the law, concurrently, we should propagate to everyone around and go directly to the aforementioned locations to exchange change if demand.

Hai Thanh

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