Thông tư 02/2000/TT-NHNN7

CIRCULAR

GUIDING THE IMPLEMENTATION OF THE PRIME MINISTER’S DECISION No.170/1999/QD-TTg OF AUGUST 19, 1999 ON ENCOURAGING OVERSEAS VIETNAMESE TO TRANSFER MONEY BACK TO THE COUNTRY

In order to encourage and create favorable conditions for overseas Vietnamese and foreigners to transfer foreign currencies back to Vietnam to help their families and next of kin or for other charity purposes on the basis of observing the provisions of Vietnamese law and foreign laws, on August 19, 1999, the Prime Minister issued Decision No.170/1999/QD-TTg encouraging overseas Vietnamese to transfer money back to the country.
Pursuant to Clause 2, Article 10 of the Prime Minister’s Decision No.170/1999/QD-TTg of August 19, 1999 on encouraging overseas Vietnamese to transfer money back to the country, the State Bank guides the implementation thereof as follows:

I. RIGHTS OF BENEFICIARIES

1. To receive transferred amounts in foreign currency(ies) or Vietnam dong (in cash or via account transfers) at their requests;

2. In case they receive transferred amounts in foreign currencies, the beneficiaries may:

a/ Sell them to the licensed credit institutions or foreign currency exchange counters;

b/ Deposit them as foreign-currency savings at the licensed credit institutions;

c/ Transfer them into their personal foreign-currency deposit accounts opened at the licensed credit institutions;

d/ Use foreign-currency amounts for other purposes according to provisions of the Government’s Decree No.63/1998/ND-CP of August 17, 1998 on foreign exchange management, the State Bank’s Circular No.01/1999/TT-NHNN7 of April 16, 1999 guiding the implementation of the said Decree and other relevant current regulations on foreign exchange management.

3. Beneficiaries shall not have to pay income tax for foreign-currency amounts they receive from money transferors.

II. CONDITIONS AND PROCEDURES FOR GRANTING LICENSES FOR PROVIDING SERVICES OF RECEIVING AND DELIVERING FOREIGN CURRENCIES

1. For credit institutions:

a/ A credit institution shall be allowed to provide services of receiving and delivering foreign currencies only after it is granted by the State Bank the license for foreign exchange activities (which include the provision of foreign currency-receiving and delivering services).

b/ The conditions and procedures for licensing credit institutions to conduct foreign exchange activities are prescribed in the State Bank’s Circular No.01/1999/TT-NHNN7 of April 16, 1999 guiding the implementation of the Government’s Decree No.63/1998/ND-CP of August 17, 1998 on foreign exchange management and other relevant current regulations on foreign exchange management.

2. For economic organizations:

2.1. Conditions:

a/ Having in-principle contracts with foreign partners for providing foreign currency receiving and delivering services. Such a contract must clearly state the receiving and delivering mode(s), the rates for sharing the collected money delivery service charge between the economic organization and the foreign partner (for cases where an economic organization receives money from a money transferor through its foreign partner);

b/ Having feasible plans for providing foreign currency receiving and delivering services;

c/ Having networks of convenient and quick delivery to beneficiaries.

2.2. Procedures:

An economic organization, when applying for license for providing foreign currency receiving and delivering services, shall have to submit to the State Bank (the Foreign Exchange Management Department) a dossier set which comprises:

a/ An application for license for providing foreign currency receiving and delivering services;

b/ A plan for providing foreign currency receiving and delivering services;

c/ The in-principle contract with its foreign partner on foreign currency receiving and delivering services (for cases where such economic organization receives money from a money transferor through its foreign partner);

d/ Notarized copies of the decision on establishment of the economic organization, the business registration certificate or the investment license, the operation license;

e/ Comments of the managing agency and the State Bank’s branch in the province or centrally-run city, where such economic organization is located, on such economic organization�s provision of foreign currency receiving and delivering services;

Within 15 working days after receiving the complete and valid dossier, the State Bank (the Foreign Exchange Management Department) shall consider to grant or refuse to grant the license. The refusal to grant the license must be clearly justified in writing.

3. For economic organizations acting as delivery agents for the licensed credit institutions

3.1. Conditions:

a/ Having in-principle agency contracts with the licensed credit institutions;

b/ Having networks of convenient and quick delivery to beneficiaries.

3.2. Procedures:

An economic organization, when applying for a license for acting as a foreign currency delivering agent for a licensed credit institution, shall have to submit to the State Bank’s branch in the province or centrally-run city where it is located a dossier set which comprises:

a/ An application for acting as a foreign currency delivering agent for a licensed credit institution;

b/ The in-principle agency contract with the licensed credit institution;

c/ Notarized copies of the decision on establishment of the economic organization, the business registration certificate or the investment license, the operation license.

Within 15 working days after receiving the complete and valid dossier, the State Bank (the Foreign Exchange Management Department) shall consider to grant or refuse to grant the license. The refusal to grant the license must be clearly justified in writing.

4. Within 30 days after this Circular takes effect, economic organizations that are providing services of receiving and delivering foreign currencies from money transferors or acting as foreign currency delivering agents for licensed credit institutions, shall have to fill in the procedures for applying for new licenses according to the provisions of this Circular.

After the said time limit, those organizations that are not granted new licenses shall have to immediately suspend their activities of providing services of receiving and delivering foreign currencies from money transferors or acting as foreign currency delivering agents for licensed credit institutions.

III. SUSPENSION OR WITHDRAWAL OF LICENSES

The State Bank or the State Bank’s branches in the provinces and centrally-run cities shall, within their respective licensing competence, suspend for a definite time or withdraw licenses from violating organizations in one of the following cases:

1. Organizations shall have their licenses suspended for a definite time in the following cases:

a/ Repeatedly failing to observe the regime of reporting to the Bank the contents stipulated in Part VI of this Circular;

b/ Breaching clauses in contracts signed with foreign partners or foreign currency delivering agency contracts signed with licensed credit institutions, to the extent that the concerned foreign partners or credit institutions request the cancellation of the signed contracts;

c/ Failing to strictly comply with stipulations of licenses granted by the Bank.

2. Organizations shall have their licenses withdrawn in the following cases:

a/ There are evidences that their license application dossiers contain information which have been intentionally falsified;

b/ After a time limit of 12 months from the date of being granted licenses, such organizations fail to provide services of receiving and delivering foreign currencies of money transferors or act as foreign currency delivering agents;

c/ They voluntarily dissolve or are compelled to dissolve by competent State agency(ies) to dissolve;

d/ In case of division, merger, amalgamation or bankruptcy.

IV. MONEY TRANSFER CHARGE

1. Ordinary money transfer through the credit institutions’ system: Licensed credit institutions shall collect money transfer service charges from licensed economic organizations, enterprises providing international postal finance services and beneficiaries according to the State Bank’s regulations on charges for banks’ money transfer services.

2. Money transfer through organizations providing money transfer services: Credit institutions, licensed economic organizations and enterprises providing international postal finance services may reach agreements with their foreign partners on enjoying money transfer service charges, which shall not be collected directly from beneficiaries.

V. ORGANIZATION OF PROPAGANDA

1. The units attached to the State Bank shall undertake the press propaganda, in coordination with the information and press agencies, the Ministry for Foreign Affairs, the Committee for Overseas Vietnamese and the concerned ministries and branches, in order to propagate and popularize the Vietnamese State’s policies on encouraging overseas Vietnamese to transfer money back to the country.

2. The State Bank’s branches in the provinces and centrally-run cities shall coordinate with the information and press agencies and the bodies and branches in their respective localities in propagating and popularizing the Vietnamese State’s policies on encouraging overseas Vietnamese to transfer money back to the country among all organizations and individuals in such localities to make them understand and strictly observe such policies.

VI. REPORTING REGIME

1. In furtherance of Article 8 of the Prime Minister’s Decision No.170/1999/QD-TTg of August 19, 1999, the State Bank requests the concerned General Departments and units to coordinate in implementing the following regulations on reporting regime:

a/ The General Department of Customs shall report to the State Bank (the Foreign Exchange Management Department) on figures and situation on foreign currencies carried along by individuals on exit and/or entry;

b/ The Post and Telecommunications Corporation and other enterprises providing international postal finance services, which are licensed by the General Department of Post and Telecommunications, shall report to the State Bank (the Foreign Exchange Management Department) on figures and situation on receiving and delivering foreign currencies;

c/ The State Bank’s branches in the provinces and centrally-run cities shall report to the State Bank (the Foreign Exchange Management Department) on figures and situation on foreign currency receiving and delivering agency activities of economic organizations in their localities for licensed credit institutions.

d/ Licensed credit institutions and licensed economic organizations shall report to State Bank (the Foreign Exchange Management Department) on figures and situation on receiving and delivering foreign currencies of money transferors.

The above-said concerned General Departments and units shall have to send quarterly reports on the 15th day of the first month of the following quarter at the latest.

2. For each quarter, by the 5th day of the first month of the following quarter at the latest, economic organizations acting as foreign currency delivering agents for licensed credit institutions shall have to report to the State Bank’s branch in the same province or centrally-run city on the figures and situation on domestic foreign currency delivering agents.

3. For each quarter, by the 25th day of the first month of the following quarter at the latest, the Foreign Exchange Management Department shall synthesize and submit a report on figures and situation on transferring foreign currencies into Vietnam by money transferors from overseas and on delivering them to beneficiaries in the country to the State Bank Governor, so that the latter can sign and submit it to the Prime Minister.

VII. IMPLEMENTATION PROVISIONS

1. This Circular takes effect 15 days after its signing. Any amendments and/or supplements to this Circular shall be decided by the State Bank Governor.

2. The State Bank Governor’s Decision No.48/QD-NH7 of February 23, 1995 on transfer of foreign currencies by overseas Vietnamese to the country shall cease to be effective.

3. The director of the Office, the chief inspector, the heads of the concerned units attached to the State Bank, the directors of the State Bank’s branches of the provinces and centrally-run cities and general directors (directors) of the licensed credit institutions and licensed economic organizations shall have to implement this Circular.

APPLICATION FOR PROVIDING SERVICE OF RECEIVING AND PAYMENT OF FOREIGN CURRENCY

To: The State Bank of Vietnam (The Foreign Exchange Control Department)

Name of the Economic Organisation: .......................................................................

Decision on the establishment No.: .........................................................................

Issued by ...................................... date .................................................................

Certificate of business registration No.:

Issued by ...................................... date ...................................................................

Head office is located at: ..........................................................................................

Telephone: ....................................... fax: ................................................................

Pursuant to the conditions for providing the service of receiving and payment of foreign currency stipulated by the State Bank, we have signed an contract in principle with foreign partner on ...................... (or established a Representative Office, Branches of the company in foreign countries) to provide the service of receiving and payment of foreign currency for overseas remitter;

We respectfully request the State Bank (the Foreign Exchange Control Department) consider and issue a license for ........................ to provide the service of receiving and payment of foreign currencies.

We, hereby, confirm that we will strictly follow the current regulations on the foreign exchange control of the Government of Vietnam and are responsible for any violation against the Vietnam law.

APPENDIX II

APPLICATION FOR OPERATION AS AN AGENT IN FOREIGN CURRENCY PAYMENT FOR THE AUTHORISED CREDIT INSTITUTIONS

To: The State Bank of Vietnam (The Foreign Exchange Control Department)

Name of the Economic Organisation: .......................................................................

Decision on the establishment No.: .........................................................................

Issued by ...................................... date .................................................................

Certificate of business registration No.: .

Issued by ...................................... date ...................................................................

Head office is located at: ..........................................................................................

Telephone: ....................................... fax: ................................................................

We are signed the agent contract with………..…..dated…………..……to operate as an agent in foreign currency payment for the credit institution.

We kindly request the Branches of the State Bank in provinces and cities to consider and issue a license for operating as an agent in foreign currency payment for .........................

We, hereby, confirm that we will strictly follow the current regulations on the foreign exchange control of the Government of Vietnam and are responsible for any violation against the Vietnam law.

APPENDIX III

REPORT

(Re: foreign currency carried by individuals upon entry to/exit from Vietnam for the Quarter ....... of 2000 from 1/..../2000 to 1/.../2000)

To: The State Bank of Vietnam (The Foreign Exchange Control Department)

To implement the provisions in Paragraph 2, Article 8 of Decision No. 170/1999/QD-TTg of the Prime Minister on encouraging the Vietnamese residing abroad to transfer money to Vietnam, the General Department of Customs reports on the status of the foreign currency carried by individuals upon entry to/exit Vietnam as follows:

1. Quantity of the Foreign currency carried by individuals upon entry to/exit from Vietnam declared at the Customs office:

2. General evaluation on the status of foreign currency carried by individuals upon entry to/exit from Vietnam

APPENDIX V

REPORT

(Re: receiving and payment of foreign currency by the enterprises in the telecom and post industry for the Quarter ....... of 2000 from 1/..../2000 to 1/.../2000)

To: The State Bank of Vietnam (The Foreign Exchange Control Department)

To implement the provisions in Item 2, Article 8 Decision No. 170/1999/QD-TTg of the Prime Minister on encouraging the Vietnamese residing abroad transfer money to Vietnam, the General Department of Postal services reports on the status of receiving and payment of foreign currency by enterprises in the telecom and post industry as follows:

1. Number of enterprises:

a. Total number of enterprises in the telecom and post industry providing the services of receiving and payment of foreign currency for the overseas remitter at the beginning of the quarter .... 2000 are .........

b. Total number of enterprises in the telecom and post industry which are granted a license to provide the services of receiving and payment of foreign currency for the overseas remitter by the General Department of Postal services during the quarter .... 2000 are .........

c. Total number of enterprises in the telecom and post industry licenses of which are withdrawn or temporarily suspended by the General Department of Postal services during the quarter .... 2000 are .........

2. Status of being payment agents of foreign currency:

3. General evaluation on the status of receiving and payment of foreign currency:

APPENDIX VI

THE STATUS REPORT

(Services of receiving and payment of foreign currency for the Quarter ....... of 200...)

To: The State Bank of Vietnam (The Foreign Exchange Control Department)

1. Status of receiving and payment of foreign currency:

2. Status of authorised agents (in respect to the authorised credit institutions):

a. Total number of economic organisations being agents in foreign currency payment for the credit institution at the beginning the quarter

b. Total number of economic organisations becoming agents of foreign currency payment during the quarter

c. Total number of economic organisations terminating the contract to operate as agents of foreign currency payment during the quarter

d. Amount in USD paid by economic organisations under authorisation of credit institution.

3. General evaluation and proposal on the status of receiving and payment of foreign currency:

APPENDIX VII

THE STATUS REPORT

(Agents of foreign currency payment for the authorised credit institutions for the Quarter ....... of 200...)

To: The State Bank of Vietnam (The Foreign Exchange Control Department)