Supervising destroying money unqualified for circulation by the State Bank of Vietnam

Supervising destroying money unqualified for circulation by the State Bank of Vietnam (Internet image)

Regarding this issue, LawNet provides the following explanation:

On December 28, 2023, the State Bank of Vietnam issued Circular 19/2023/TT-NHNN regulating the supervising destroying money by the State Bank of Vietnam.

1. Supervising tallying and selecting samples of money unqualified for circulation before being destroyed in Vietnam

According to Article 11 of Circular 19/2023/TT-NHNN, the Supervising tallying and selecting samples of money unqualified for circulation before being destroyed is as follows:

- Conducting Supervising tallying and selecting samples of various types of money unqualified for circulation (excluding suspended money, counterfeit money, and illegally damaged money) in the storage of the Destruction Council on the first day of the destruction process. Preparing a report on the results of tallying and selecting samples of money unqualified for circulation before being destroyed according to Form 02 in the Appendix attached to Circular 19/2023/TT-NHNN.

- If the total amount of money selected and tallied according to the above regulations exceeds, falls short, or contains a mix of less than 0.01% in terms of value compared to the total value of the money selected and tallied, or if the total quantity of money that meets circulation standards does not exceed 0.5% of the total number of bills selected and tallied, the Supervision Council allows the destruction of the money.

If the total amount of money selected and tallied exceeds, falls short, or contains a mix that exceeds the above ratios, the Supervision Council prepares a record and proposes to the Destruction Council to increase the amount of money selected and tallied (the additional number of tallies is decided by the two councils in agreement).

If the amount of money selected and tallied still exceeds the above ratios, the Supervision Council proposes to the Destruction Council to temporarily suspend the destruction process, report, and seek guidance from the Governor.

2. Supervising tallying and selecting samples of money unqualified for circulation in Vietnam

Article 12 of Circular 19/2023/TT-NHNN regulates the Supervising tallying and selecting samples of money unqualified for circulation as follows:

- Supervising the daily delivery and receipt of money at the Destruction Tallying Team according to the regulations on money destruction by the State Bank.

- Supervising the process of tallying and selecting samples of money for destruction. Supervising and confirming cases of excess, shortage, mix, counterfeit money, and money that meets circulation standards discovered during the process of tallying and selecting samples of money.

- At the end of the day, the Head of the Team (or Deputy Head) of the Tallying Supervision Team verifies the actual tallying results on the record prepared by the Destruction Council. Money that has not been fully tallied or has been tallied but not delivered to the Destruction Team must be sealed and have the signatures of the Head of the Tallying Supervision Team (or Deputy Head) and the Head of the Money Tallying Team (or Deputy Head) and be returned to the storage of the Destruction Council.

- During the supervision process, the supervising officials have the right to request a re-tallying of the money that has already been tallied to ensure the accuracy of the counted bundles.

- For types of money that are not fully counted during the destruction process, if the counting results reveal excesses, shortages, mixtures, or if the total quantity of money that meets circulation standards exceeds the ratios specified in Section 1, the Assistant Team reports to the Supervision Council and proposes to the Destruction Council to increase the counting ratio for the types of money with significant discrepancies.

3. Supervising the shredding (or boiling) of money unqualified for circulation in Vietnam

- Supervising the daily delivery and receipt of money at the Money Cutting Team according to the regulations on money destruction by the State Bank; supervising and confirming cases of excess, shortage, mix, counterfeit money, and money that meets circulation standards that occur during the delivery and receipt of money at the Money Cutting Team.

- Supervising the process of completely cutting (or boiling) the money for destruction, ensuring that the destroyed material cannot be restored for reuse as money in any form.

- At the end of the day, the Head of the Team (or Deputy Head) of the Cutting Supervision Team confirms the actual amount of money cut (or boiled) on the record prepared by the Destruction Council. Money that has been delivered to the Cutting Team but not completely cut (or boiled) must be sealed and have the signatures of the Head of the Cutting Supervision Team (or Deputy Head) and the Head of the Money Cutting Team (or Deputy Head) and be returned to the storage of the Destruction Council.

(Article 13 of Circular 19/2023/TT-NHNN)

4. Supervising compliance with regulations and implementation of measures to ensure security and safety in the process of destroying money unqualified for circulation in Vietnam

- Supervising the implementation of regulations on security and safety in the process of destroying money by the State Bank.

- Supervising the implementation of internal rules and procedures in the counting and cutting areas for the destruction of money through the surveillance camera system installed in the working room of the Supervision Council.

- Supervising the implementation of regulations for entering and exiting the counting and cutting areas for the destruction of money; supervising cases where individuals without assigned tasks enter the destruction area, requiring written consent from the authorized person according to the regulations on money destruction by the State Bank and notifying the Supervision Council.

- Regularly witnessing the monthly inventory of the destruction money storage by the Destruction Council during the implementation of the destruction work.

- Sealing the counting and cutting rooms during break times and lunch breaks when storing the destruction money.

(Article 14 of Circular 19/2023/TT-NHNN)

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