Thông tư 27/2013/TT-NHNN

CIRCULAR

AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF CIRCULAR NO. 02/2012/TT-NHNN DATED FEBRUARY 27, 2012, ON GUIDING FOREIGN EXCHANGE TRANSACTIONS BETWEEN THE STATE BANK OF VIETNAM AND CREDIT INSTITUTIONS AND FOREIGN BANKS’ BRANCHES

Pursuant to the Law on State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on credit institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Ordinance on Foreign Exchange No. 28/2005/PL-UBTVQH11 dated December 13, 2005;

Pursuant to the Government’s Decree 160/2006/ND-CP dated December 28, 2006 detailing the implementation of the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree No. 96/2008/ND-CP dated August 26, 2008 defining functions, duties, powers and organizational structure of the State Bank of Vietnam;

At the proposal of Director of the Transaction Bureau;

The Governor of the State bank of Vietnam promulgates Circular amending and supplementing a number of articles of Circular No. 02/2012/TT-NHNN dated February 27, 2012, on guiding foreign exchange transactions between the State Bank of Vietnam and credit institutions and foreign banks’ branches,

Article 1. To amend and supplement a number of articles of Circular No. 02/2012/TT-NHNN dated February 27, 2012, on guiding foreign exchange transactions between the State Bank of Vietnam and credit institutions and foreign banks’ branches as follows:

1. Clause 3 Article 4 is amended and supplemented as follows:

“3. Being the credit institutions and foreign banks’ branches that have system of machinery, equipment and means for foreign exchange transaction, such as Bloomberg or Reuters Dealing systems, telephones or other means already been approved by the State Bank of Vietnam (hereinafter referred to as the State bank) for each period.”

2. Article 12 is amended and supplemented as follows:

“Article 12. Means of transaction

Means of foreign exchange transactions between the State Bank and the credit institutions and foreign banks’ branches are via Bloomberg or Reuters Dealing systems, telephone or other means of transaction approved by the State Bank for each period. In case the foreign exchange transactions are made via phone, the credit institutions and foreign banks’ branches must have a tape recorder to ensure the recording of the transactions and keep them for use as necessary.”

3. Clause 1 Article 19 is amended and supplemented as follows:

“1. The credit institutions and foreign banks’ branches having the foreign exchange transaction relation with the State Bank must make report to the State Bank (Transaction Bureau) according to the following provisions:

a) Credit institutions, foreign banks’ branches having the foreign exchange transaction relation with the State Bank and not having subscriber to use means of transaction via the Reuters Dealing system, must make report to the State Bank (Transaction Bureau) on the foreign exchange transaction situation with the other credit institutions and foreign banks’ branches as prescribed in Annex 02 (attached this Circular) not later than at 14:00 PM on the weekly working days;

b) Credit institutions, foreign banks’ branches having the foreign exchange transaction relation with the State Bank and having subscriber to use means of transaction via the Reuters Dealing system, must make report to the State Bank (Transaction Bureau) on the foreign exchange transaction situation with the State bank and the other credit institutions and foreign banks’ branches that have subscribers to use means of transaction via the Reuters Dealing system, according to the process to guide on reporting of foreign exchange transactions via the Reuters Dealing system promulgated by the Governor of State bank.

After foreign transactions between credit institutions, foreign banks’ branches having subscribers to use means of transactions via the Reuters Dealing system have been completed, participants of transactions must report about transactions made on the Reuters Dealing system within 15 minutes. If parties do not perform transactions on the Reuters Dealing system, parties must report on such transactions on the Reuters Dealing system within 45 minutes.”

4. To supplement Clause 4 Article 19 as follows:

“4. The credit institutions and foreign banks’ branches shall be exempted from responsibility of compliance with duration for reporting as prescribed at point b Clause 1 Article 19 of this Circular when occurring the following force majeure incidents:

a) Faults in connecting transmission line from host machine system containing report data of the credit institutions and foreign banks’ branches to the State bank of which cause is originated from the transmission line service providers;

b) The Reuters Dealing system has technical incidents of which cause is originated from the Reuters Dealing service providers;

c) Cases of power loss which are originated from objective causes or power providers;

d) The report host machine system of the State bank has technical malfunctions;

dd) Other cases which are originated from objective causes.

After the incidents have been remedied, the credit institutions and foreign banks’ branches shall made report on transactions already completed but not yet been reported to the State Bank (Transaction Bureau) during time of remedying incidents. Steps to make report about such transactions shall comply with the process to guide on reporting of foreign exchange transactions via the Reuters Dealing system promulgated by the Governor of State Bank.”

5. Article 20 is amended and supplemented as follows:

“Article 20. Temporary suspension of transactions and cancellation of transaction relationships

1. To suspend temporarily foreign exchange transactions from 01 thru 03 months in the following cases:

a) Failing to send reports within the prescribed deadline or content for three (03) times;

b) Failing to send reports for three (03) times;

c) Credit institutions and foreign banks’ branches fail to comply with provisions at Clause 3 Article 19 of this Circular;

d) Credit institutions and foreign banks’ branches are sanctioned administrative violations in foreign exchange activities.

2. To suspend temporarily foreign exchange transactions with credit institutions and foreign banks’ branches during the time these credit institutions and foreign banks’ branches are laid under the status of:

a) Special control;

b) Narrowing or suspending the foreign exchange transaction according to conclusions or notifications of the State bank (the Agency for Banking Inspection and Supervision).

3. To cancel foreign exchange transactions with credit institutions and foreign banks’ branches in the following cases:

a) Credit institutions and foreign banks’ branches are withdrawn permit as prescribed at Clause 1 Article 28 of Law on credit institutions;

b) Credit institutions and foreign banks’ branches fail to satisfy conditions for setting up the foreign exchange transaction relations as prescribed at Clause 2 and Clause 3 Article 4 of this Circular;

c) Credit institutions and foreign banks’ branches commit serious violations in the field of monetary and banking operation according to conclusions or notifications of the State bank (the Agency for Banking Inspection and Supervision).

4. The credit institutions and foreign banks’ branches shall not be permitted to set up again the foreign exchange transaction relation with the State Bank within 01 (one) year from the day of being cancelled the foreign exchange transaction relation. Dossiers of and procedures for setting up again the foreign exchange transaction relation with the State bank of credit institutions and foreign banks’ branches shall comply with Article 6 and Article 7 of this Circular.”

6. Clause 4 Article 22 is amended and supplemented as follows:

“4. Submitting to the Governor for promulgating the following documents:

a) Regulations on management and use of system on collecting and retrieving information of foreign exchange transactions on the inter-bank foreign currency market;

b) The process to guide on reporting of foreign exchange transactions via the Reuters Dealing system.”

Article 2. To annul Article 8 of Circular No. 02/2012/TT-NHNN dated February 27, 2012, on guiding foreign exchange transactions between the State Bank of Vietnam and credit institutions and foreign banks’ branches.

Article 3. Provisions of implementation

1. This Circular takes effect on December 05, 2013.

2. The Chief of office, Director of Transaction Bureau, Heads of units under the State bank, Directors of State Bank’s branches in provinces and central-affiliated cities; Chairman of the Board of Directors, Chairman of Members' Council, Heads of control board, General Directors (Directors) of the credit institutions and foreign banks’ branches are liable to execute this Circular.