Activities of money exchange agent of a bordering country in Vietnam

Activities of money exchange agent of a bordering country in Vietnam (Internet image)

The State Bank of Vietnam promulgated Circular 04/2023/TT-NHNN dated June 16, 2023, regulating activities of money exchange agent of a bordering country in Vietnam

Activities of money exchange agent of a bordering country in Vietnam

Specifically, Article 3 of Circular 04/2023/TT-NHNN stipulates the activities of money exchange agents of bordering countries as follows:

(1) Money exchange agents of bordering countries may only operate in the form of using Vietnamese dong to buy money from bordering countries by individuals, except for the case specified in (2).

(2) Money exchange agents of bordering countries located at exit waiting areas at international border gates and main border gates may sell bordering countries' currency in cash for Vietnamese dong to individuals as prescribed in Article 4 of Circular 04/2023/TT-NHNN.

(3) An economic organization may agree with an authorized credit institution in a money exchange agent contract of a bordering country to place a money exchange agent of a bordering country in a bordering country or more than one location in the land border area, the border-gate economic zone in the locality where the economic organization has its head office or branch.

Responsibilities of money exchange agent of a bordering country in Vietnam

Money exchange agent of a bordering country in Vietnam have the following responsibilities:

- Posting and publicly announcing the buying rate of money from the bordering country in cash with the Vietnamese dong at the location where the money exchange agent of the bordering country is located and buying money from the bordering country with the customer at the exact exchange rate posted and announced.

Particularly, money exchange agents of bordering countries located at exit waiting areas at international border gates or main border gates shall publicly post and announce the exchange rates for buying and selling money of bordering countries in cash with Vietnam dong and buying and selling currency of bordering countries with customers at the posted and announced exchange rates.

- The exchange rate for buying and selling money in the bordering country between the authorized credit institution and the agent is applied as agreed in the currency exchange agency contract of the bordering country between authorized credit institutions and economic organizations acting as money exchange agents of bordering countries, in accordance with current regulations on foreign exchange management.

- Implementing the regime of recording money purchase and sale invoices of bordering countries, updating data and accounting books under the guidance of the authorized credit institution, in accordance with the current accounting regime.

A money exchange agent of a bordering country for an authorized credit institution shall use the invoice of that authorized credit institution. When making a currency exchange in a bordering country, the agent must deliver a copy of the invoice to the customer.

- Money change agents of bordering countries must strictly comply with agreements in money exchange agency contracts of bordering countries signed with authorized credit institutions and legal regulations on money exchange activities of bordering countries; they must also comply with relevant provisions of the law on prevention and combating money laundering.

- In the course of operation, in the event of detecting that customers are using counterfeit currencies of the bordering countries or currencies that are no longer valid for circulation as a means of purchase and sale, the agent shall make a record, temporarily seize this amount, and notify the competent authority for investigation and handling.

- Implementing the periodical reporting regime as prescribed in Clause 1, Article 9 of Circular 04/2023/TT-NHNN.

(Article 6 of Circular 04/2023/TT-NHNN)

More details can be found in Circular 04/2023/TT-NHNN, effective as of August 1, 2023.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE