Thông tư 34/2019/TT-NHNN

CIRCULAR

GUIDANCE ON FOREIGN EXCHANGE MANAGEMENT REGARDING FOREIGN CURRENCY FUNDING OF MICROFINANCE PROGRAMS AND PROJECTS OF POLITICAL ORGANIZATIONS, SOCIO-POLITICAL ORGANIZATIONS AND NON-GOVERNMENTAL ORGANIZATIONS

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law on amendments to the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Ordinance on Foreign Exchange dated December 13, 2005; the Ordinance on amendments to the Ordinance on Foreign Exchange dated March 18, 2013;

Pursuant to the Government’s Decree No. 70/2014/ND-CP dated July 17, 2014 on the implementation of the Ordinance on Foreign Exchange and the Ordinance on amendments to the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree 16/2017/ND-CP dated February 17, 2017 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to Decision No.20/2017/QD-TTg dated June 12, 2017 of the Prime Minister on activities of microfinance programs and projects of political organizations, socio-political organizations and non-governmental organizations;

At the request of the Director of the Foreign Exchange Management Department;

The Governor of the State bank of Vietnam promulgates a Circular providing guidance on foreign exchange management regarding foreign currency funding of microfinance programs and projects of political organizations, socio-political organizations and non-governmental organizations.

Article 1. Scope

This Circular provides guidance on foreign exchange management regarding foreign currency funding of microfinance programs and projects of political organizations, socio-political organizations and non-governmental organizations.

Article 2. Regulated entities

1. Political organizations, socio-political organizations and non-governmental organizations (NGOs) that execute microfinance programs and projects.

2. Other organizations and individuals involving in the mobilization of foreign currency funding for microfinance programs and projects of political organizations, socio-political organizations and NGOs.

Article 3. General rules

1. Political organizations, socio-political organizations and NGOs shall only raise foreign currency funding for microfinance programs/projects in the form of non-refundable aid given by organizations and individuals that are non-residents.

2. Political organizations, socio-political organizations and NGOs shall comply with specialized law regulations on receipt and use of non-refundable aid from non-resident organizations and individuals, regulations on foreign exchange management regarding foreign currency funding in this Circular and relevant laws when they receive and use foreign currency aid for executing microfinance programs/projects.

3. Political organizations, socio-political organizations and NGOs are not allowed to mobilize foreign currency funding for executing microfinance programs/ projects in the forms other than the one specified in Clause 1 of this Article.

Article 4. Receipt of non-refundable aid from non-resident organizations and individuals for executing microfinance programs/projects

Political organizations, socio-political organizations and NGOs shall use their foreign currency or VND checking accounts opened at commercial banks or foreign bank branches licensed to provide foreign exchange services (hereinafter referred to as “licensed banks”) to receive non-refundable aid in foreign currency transferred by non-resident organizations and individuals for executing microfinance programs/projects. To be specific:

1. If receiving non-refundable aid in foreign currency through foreign currency checking accounts, political organizations, socio-political organizations and NGOs shall comply with SBV's regulations on opening and use of foreign currency accounts by resident organizations.

Political organizations, socio-political organizations and NGOs shall sell foreign currency on their foreign currency checking accounts to commercial banks, foreign bank branches or non-bank credit institutions licensed to provide foreign exchange services (hereinafter referred to as “licensed credit institutions”) in accordance with law regulations on foreign currency trading between licensed credit institutions and clients.

2. If receiving non-refundable aid in foreign currency from non-resident organizations and individuals through VND checking accounts, political organizations, socio-political organizations and NGOs shall sell received foreign currency amounts to licensed banks.

Article 5. Responsibility to present documents

When receiving non-refundable aid in foreign currency from non-resident organizations and individuals, political organizations, socio-political organizations and NGOs shall present documents proving that the received foreign currency amounts are the non-refundable aid given by non-resident organizations and individuals and other documents as required by licensed banks, and shall assume legal responsibility for the authenticity of documents presented to licensed banks.

Article 6. Responsibility of licensed credit institutions

When providing foreign exchange services to political organizations, socio-political organizations and NGOs (including the receipt and purchase of foreign currency amounts derived from non-refundable aid given by non-resident organizations and individuals), licensed credit institutions shall consider, examine and keep all documents and vouchers relating to actual transactions so as to ensure that their foreign exchange services are properly provided in accordance with law regulations.

Article 7. Implementation

1. This Circular comes into force from February 14, 2020.

2. Agreements on mobilization of foreign currency funding for executing microfinance programs/ projects concluded by political organizations, socio-political organizations and NGOs before the effective date of this Circular shall remain valid and be implemented in accordance with law regulations applicable at the time of concluding such agreements. Any amendments made to such agreements after the effective date of this Circular must be conformable with regulations herein and relevant laws.

Article 8. Implementation organization

Chief of the Ministry’s Office, the Director of Foreign Exchange Management Department, Heads of SBV’s affiliated units, Directors of SBV’s branches in provinces and central-affiliated cities, Chairpersons of the Boards of Directors, Chairpersons of the Boards of Members and General Directors (Directors) of credit institutions, foreign bank branches, political organizations, socio-political organizations and NGOs executing microfinance programs/projects shall implement this Circular. /.