Quyết định 258/2000/QD-NHNN7

DECISION

ON THE ISSUANCE OF THE REGULATION ON OPERATION OF THE FOREIGN CURRENCY EXCHANGE COUNTERS

THE GOVERNOR OF THE STATE BANK

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated 12 December, 1997;
Pursuant to the Decree No. 63/1998/ND-CP dated 17 August, 1998 of the Government on foreign exchange control;
Upon the proposal of the Director of the Foreign Exchange Control Department,

DECIDES

Article 1. To issue in conjunction with this Decision the " Regulation on operations of the foreign currency exchange counters".

Article 2. This Decision shall be effective after 15 days since the date of signing and repeal the Decision No. 103/QD-NH7 dated 3 April, 1995 of the Governor of the State Bank on the issuance of the "Regulation on operation of the foreign currency exchange counters", the Instruction No. 01/1998/CT-NHNN7 dated 9 January, 1998 of the Governor of the State Bank on the correction of the operation of the foreign currency exchange counters and provisions relating to the foreign currency exchange counter stated in the Circular No. 01/1999/TT-NHNN7 dated 16 April, 1999 of the State Bank guiding the implementation of Decree No. 63/1998/ND-CP dated 17 August 1998 of the Government on the foreign exchange control.

Article 3. The Director of the Administration Department, the Director of the foreign exchange control Department, Heads of units of the State Bank, Managers of the State Bank branches in provinces, cities under the central Government's management, General Directors (Directors) of authorised credit institutions shall be responsible for the implementation of this Decision.

REGULATION

ON OPERATION OF THE FOREIGN CURRENCY EXCHANGE COUNTERS
(issued in conjunction with the Decision No. 258/2000/QD-NHNN7 dated 14 August, 2000 of the Governor of the State Bank)

Chapter I

GENERAL PROVISIONS

Article 1. Governing scope

This Regulation shall govern the operation of foreign currency exchange counters in the territory of the Socialist Republic of Vietnam.

The exchange of currencies of countries sharing the same border at the border areas shall be carried out in accordance with a separate regulation on the foreign exchange control in the border areas.

Article 2. Interpretation

In this Regulation, following terms shall be construed as follows:

1. Cash in foreign currency shall be the currency of a foreign country or a common currency of several countries in form of banknotes, coins, traveller cheques and similar payment instruments denominated in a foreign currency in accordance with provisions of applicable laws which are legally in circulation and not prohibited by the State Bank from use for transaction and accepted by credit institutions in the foreign currency exchange operation.

2. Foreign currency exchange is the operation whereby the Vietnam Dong is used to purchase the cash in foreign currency from and the cash in foreign currency is sold for the Vietnam Dong to customers being an individual.

3. The foreign currency exchange counter shall be a place permitted by the State Bank for the provision of the foreign currency exchange service, including:

a. Foreign currency exchange counters of authorised credit institutions, which are directly providing the foreign currency exchange service (hereinafter called direct counters);

b. Foreign currency exchange counters of other organisations which operate as foreign currency exchange agent for credit institutions authorised to engage in foreign exchange activities and permitted by State Bank branches in respective provinces, cities to operate as foreign currency exchange agent (hereinafter called agent counters).

Article 3. Scope of activity of foreign currency exchange counters

1. Foreign currency exchange counters shall only be entitled to purchase cash in foreign currency from customers, not entitled to sell cash in foreign currency to customers (except for direct counters as provided for in paragraph 2 Article 3 of this Regulation). Agent counters must sell the entire purchased amount of cash in foreign currency to the authorising credit institutions.

2. Direct counters located at the Head-office or Branch offices of an authorised credit institution or at restricted areas at international border check points (on the road, sea, air transport) shall be entitled to sell cash in foreign currency to customers being an individual carrying passports issued by foreign competent agency (hereinafter called individual carrying foreign passports) in accordance with Article 7 of this Regulation.

Chapter II

DETAILED PROVISIONS

Article 4. Registration of credit institutions foreign currency exchange counters

1. Credit institutions locating foreign currency exchange counters outside their Head-offices, Branch offices must register with respective State Bank branches in provinces, cities where foreign currency exchange counters are located. Credit institutions shall only open foreign currency exchange counters for business upon the availability of a written confirmation by State Bank branch in provinces, cities of the registration of the foreign currency exchange counters. The registration file shall include:

a. The application for the establishment of a foreign currency exchange counter (Appendix 1);

b. A copy of the Decision of the General Director (Director) of the credit institution or an authorised person on the establishment of the foreign currency exchange counter.

2. Within 5 working days from the date of receipt of the complete and valid file, State Bank branches in provinces, cities must confirm in writing the registration of a foreign currency exchange counter (Appendix 2). In case of refusal, State Bank branches in provinces, cities must give a written notice of reasons thereof.

Article 5. Authorisation to operate as a foreign currency exchange agent

1. Subjects authorised by credit institutions to operate as a foreign currency exchange agent:

a. Organisations which are state-owned enterprises, enterprises of political organisations, socio-political organisations, limited companies, joint-stock companies, partnership companies, private companies, co-operatives, enterprises with foreign invested capital doing business in areas of tourism, entertainment services, hotels, restaurants, supermarkets, transportation, Gold, Silver, Germ stones;

b. Ticket offices of foreign airlines, sea lines, tourist companies;

c. Credit institutions, which are not authorised to engage in foreign exchange activities.

2. Authorised credit institutions shall, based on the requirement for the expansion of their foreign currency exchange network, creditability and capability of above mentioned organisations in the foreign currency exchange, enter into a contract on the foreign currency exchange agent.

Upon the execution of the contract on the foreign currency exchange agent, authorised credit institutions must examine the material basis and provide guidance on the operation to the staff of the agent counter. The contract must contain following main contents:

a. Location of the agent counter;

b. Scope of operation: An agent counter shall only purchase cash in foreign currency from customers and must sell the entire purchased amount of cash in foreign currency to the credit institution;

c. Exchange rate: the buying exchange rate for the purchase of cash in foreign currency from customers and the selling exchange rate for the sale of cash in foreign currency to the credit institution;

d. Rights and obligations of parties to the contract;

dd. Limit of the cash in vault;

e. The period within which an agent counter must sell the purchased cash in foreign currency to the authorising credit institution in accordance with provision of Article 11 of this Regulation.

Article 6. Conditions, procedures of the issuance of a permit to operate as a foreign currency exchange agent

1. Conditions of the issuance of a permit to operate as a foreign currency exchange agent

Subjects mentioned in paragraph 1, Article 5 of this Regulation which satisfy following conditions shall be permitted by State Bank branches in provinces, cities to operate as a foreign currency exchange agent:

a. Availability of a location in a centre of economic, cultural, transportation activities or where there is a requirement for the exchange of cash in foreign currency;

b. Availability of equipment and material conditions to satisfy foreign currency exchange activities;

c. Availability of staff who are knowledgeable of the foreign currency exchange service such as accounting, treasury, the differences between real and fake money;

d. Availability of a contract on the foreign currency exchange agent with a credit institution.

2. Procedures of the issuance of a permit to operate as a foreign currency exchange agent

Organisations satisfying conditions mentioned in paragraph 1 of this Article shall, upon their requirement to operate as a foreign currency exchange agent for an authorised credit institution, submit an application file for a foreign currency exchange agent to the State Bank branch in respective province, city. The application file shall include:

a. The application for the operation as a foreign currency exchange agent (Appendix 3);

b. A notarised copy of the Decision on the establishment (or a written confirmation of the open, establishment of subjects provided for in paragraph 1 Article 5 of this Regulation) or the Certificate of business registration;

c. The contract on the foreign currency exchange agent with a credit institution, which is authorised to engage in foreign exchange activities.

Within 7 (seven) working days since the date of receipt of the complete and valid file, State Bank branches in provinces, cities shall consider and issue a permit to operate as a foreign currency exchange agent (Appendix 4). In case of refusal, State Bank branches in provinces, cities must give a written notice of the reasons thereof.

Article 7. Purchase of foreign currency upon exit to home countries

Customers being an individual carrying foreign passports who have exchanged foreign currency for Vietnam Dong at foreign currency exchange counters during their stay in Vietnam, but have not yet spent it completely, shall be entitled to purchase foreign currency at foreign currency exchange counters upon their exit from Vietnam in accordance with provision in paragraph 2, Article 3 of this Regulation. Foreign currency exchange counters shall be entitled to sell cash in foreign currency to customers in accordance with following provisions:

1. Customers who require the purchase of less than US$ 500 (American Dollar five hundred) or other foreign currencies of equivalent value must present: passport, air-ticket (or railway-ticket).

2. Customers who require the purchase of more than US$ 500 (American Dollar five hundred) or other foreign currencies of equivalent value must present passport, air-ticket (railway-ticket) and the receipt of the exchange of foreign currency for Vietnam Dong.

Foreign currency exchange counters shall only sell foreign currency to customers whose names are stated in the receipt of the foreign currency exchange. The amount of foreign currency purchased by customers shall not exceed the exchanged amount of foreign currency stated in the receipt.

The receipt of the foreign currency exchange must be clear, not erased, the date of the receipt must be within the period between the latest entry into Vietnam as stated in the passport and the date of purchase of the foreign currency. Upon the sale of foreign currency to customers, the foreign currency exchange counters must take back the previous receipt of foreign currency exchange.

Article 8. Display of foreign currencies and exchange rates

Foreign currency exchange counters must display publicly foreign currencies and exchange rates, which are applied for the exchange at the counters.

Article 9. Applied exchange rates

1. The buying, selling exchange rates at the direct counters shall be applied in accordance with guidelines of General Directors (Directors) of authorised credit institutions.

2. The buying exchange rate of agent counters applied to customers shall be in compliance with agreements in the agent contract between the credit institution and the agent counters, in accordance with current provisions on the foreign exchange control.

Article 10. Foreign currency exchange voucher of the foreign currency exchange counters

Upon the exchange of foreign currency for customers, staff of a foreign currency exchange counter must write down completely required details in the receipt and update the statistics in the accounting book of the foreign currency exchange counter in accordance with the guidance of credit institutions, in compliance with current accounting regime and give one copy of the receipt to customers. Agent counters shall use receipts of their respective credit institutions. (Pro-forma receipt in Appendix 5).

Article 11. Timing of surrender/sale of foreign currency, the limit of cash in vault

1. For direct counters: the time limit of surrender of cash in foreign currency, the limit of cash in vault shall be stipulated by the General Director (Director) of the credit institution.

2. For agent counters: Agent counters must sell the entire purchased amount of foreign currency to the authorising credit institution at the end of each day. In the event the location of an agent counter is far from the authorising credit institution, the credit institution shall agree with its agent counter on the time limit of the sale of the exchanged amount of cash in foreign currency, but not exceeding 03 working days at the maximum. If the selling day falls on the weekend days, holidays, the selling day shall be the following working day.

The agent counters shall be entitled to retain a certain amount of cash in vault (change in foreign currency) to pay to customers in accordance with the agreement between the credit institution and the agent counters but not in excess of US$ 1,000 (American dollar one thousand) or other foreign currencies of equivalent value.

Article 12. Location of foreign currency exchange counters

1. The location of a foreign currency exchange counter shall be in accordance with following provisions:

a. Agent counters shall be located in locations stated in the permit issued by State Bank branches in provinces, cities;

b. Direct counters shall be located in the Head-office, branch offices of a credit institution and other locations which have been registered with State Bank branches in provinces, cities.

2. Foreign currency exchange counters must state clearly on a plate the name of the foreign currency exchange counter, the name of credit institution or name of authorising credit institution in Vietnamese and English.

Article 13. Settlement upon the detection of fake money

Upon any detection of the use of fake money by customers, foreign currency exchange counters must make a protocol, temporarily seize the fake money in accordance with current provisions and immediately give notice to the nearest police agency for investigation and settlement.

Chapter III

ORGANISATION OF THE IMPLEMENTATION

Article 14. The issuance of the permit and re-registration for operating exchange counters

1. Within 60 days from the effective date of this Regulation, credit institutions shall register with State Bank branches in provinces, cities direct counters that have been operating prior to the effective date of this Regulation. Within this period, these direct counters shall be entitled to continue their operation. After this period, direct counters shall be only entitled to operate if there is a written confirmation by State Bank branches in provinces, cities of the registration. The time limit for the confirmation of the registration shall be in accordance with provision in Article 4 of this Regulation.

2. Within 120 days from the effective date of this Regulation, State Bank branches in provinces, cities shall review agent counters permitted to operate in their locality. Counters satisfying operational conditions provided for in this Regulation shall be granted a new permit, and their previous permits shall be withdrawn; The permits of those that do not satisfy operational conditions provided for shall be withdrawn and their operation must be terminated or they must supplement conditions for the issuance of a new permit. During the period of supplementing the insufficient conditions, those exchange counters shall be entitled to continue their operation. At the completion of the above-mentioned period, agent counters that are not granted new permits, shall terminate their operation.

Article 15. Control and Settlement

1. State Bank branches in provinces, cities shall be responsible for the control, supervision of the exchange activities of the direct counters and agent counters in their locality in accordance with provisions of this Regulation.

Credit institutions shall be responsible for the guidance of operational activities and control of the activities of their authorised exchange counters and their compliance with provisions of this Regulation.

2. In the event of violation by agent counters of provisions of this Regulation, State Bank branches in provinces, cities shall have the right to temporarily terminate or withdraw the permit they have issued and give notice to authorising credit institutions to cancel the agent contract.

Article 16. Reporting regime

1. Foreign currency exchange counters shall submit reports on the performance of foreign currency exchange activities of the previous month to State Bank branches in provinces, cities every month prior to the 5th of the following month. (Appendix 6).

2. Credit institutions shall consolidate the performance of their foreign currency exchange activities during the quarter (including activities of direct exchange counters and agent counters) and submit report to State Bank branches in provinces, cities every quarter prior to the 10th of the first month of the following quarter (Appendix 7).

3. The State Bank branches in provinces, cities shall consolidate the performance of foreign currency exchange activities in their respective locality during the quarter and submit report to the State Bank every quarter prior to the 20th of the first month of the following quarter.

Article 17. Dealing with the exchange activities without a permit

State Bank branch inspection shall, periodically or irregularly, co-operate with competent agencies in their locality to perform the control over the foreign currency exchange activities. If any organisation, individual is found to perform exchange activities without a permit, a protocol shall be made, evidences shall be seized for dealing with in accordance with applicable laws.

Article 18. Dealing with violation

Organisations, which individuals who violate provisions of this Regulation shall, depending of the nature, the seriousness, be dealt with by administrative measures or prosecuted for criminal liability.

Article 19. Supplement, amendment of the Regulation

Any supplement, amendment of this Regulation shall be decided upon by the Governor of the State Bank.

APPENDIX 1

APPLICATION FOR

THE ESTABLISHMENT OF A FOREIGN CURRENCY EXCHANGE COUNTERS

To: The State Bank branch

Province (City) -------------

Name of credit institution (or credit institution branch):

Head office at:

Tel: Fax:

Decision of Establishment No:

Dated: . . . . . . . . . . . .

We would like to register to the State Bank branch in province (city) the number of the foreign currency exchange counters of our credit institution (or credit institution branch) as follows:

We are committed to fully comply with the current provisions on the foreign exchange control of the State Bank.

APPENDIX 2

COFIRMATION FOR THE REGISTRATION OF A FOREIGN CURRENCY EXCHANGE COUNTERS

THE GENERAL MANAGER OF THE STATE BANK BRANCH IN PROVINCE, CITY ------

Pursuant to the Regulation on the operation of a foreign currency exchange counter issued in conjunction with the Decision No. 258/2000/QD-NHNN7 dated 14 August, 2000 of the Governor of the State Bank;
In consideration of the application for the registration of a foreign currency exchange counter by (name of credit institution or credit institution branch)

CONFIRMS

1. State Bank branch in province (city) ------confirm ---------(name of credit institution or credit institution branch)-----------having registered foreign currency exchange counters as follows:

2. During their operation, foreign currency exchange counters shall comply with the Laws of Vietnam, current regulation on the foreign exchange control.

APPENDIX 3

APPLICATION FOR THE OPERATION AS A AN FOREIGN CURRENCY EXCHANGE AGENT

To: The State Bank branch

Province (City) -------------

Name of the organisation:

Head office at:

Tel: Fax:

Decision of Establishment No:

Issued by: ------------------Dated:---------------------------

Charter Capital:

Business Registration No.: ---------------------

Issued by: ------------------Dated:---------------------------

Type of Business: -----------------------------------

VND deposit account No.:

at:

Foreign currency deposit account No. :

at:

Kindly consider and issue of a license to the enterprise to operate as a foreign currency exchange agent according to the foreign currency exchange agent contract with (credit institution)------------No. ---------------signed on --------------------------

We are committed to fully comply with the current provisions on the foreign exchange control of the State Bank.

APPENDIX 4

PERMIT OF A FOREIGN CURRENCY EXCHANGE AGENT

THE GENERAL MANAGER OF THE STATE BANK BRANCH IN PROVINCE, CITY -------

Pursuant to the Regulation on the operation of a foreign currency exchange counter issued in conjunction with the Decision No. 258/2000/QD-NHNN7 dated 14 August, 2000 of the Governor of the State Bank;
In consideration of the application for the registration of a foreign currency exchange counter by (name of credit institution applicant)

DECIDES

Article1. To issue a permit for ------(name of the applicant)-----------to operate as a foreign currency exchange counter for ------------(name of credit institution) ---------at following places:

1.-----------------------------Tel: ----------------------------------------------------

2. ----------------------------Tel: -----------------------------------------------------

3. ----------------------------Tel: -----------------------------------------------------

Article 2. During the operation of the foreign currency exchange counter, the enterprise shall comply with the Laws of Vietnam, regulations on the foreign exchange control and other relevant regulations.

Article 3. This permit shall be effective from the date of singing.

APPENDIX 5

Name and logo of the authoriseded credit institution No:

FOREIGN EXCHANGE

Name:

Passport No:

Amount received:

-

-

-

Exchange Rate:

Amount Paid:

APPENDIX 6

Name of organisation

Date:------------------------------

To: State Bank branch in province, city ------------

REPORT ON FOREIGN CURRENCY EXCHANGE

(Month------------year-----------------)

Number of places are permitted to provide foreign currency exchange service:--------

Cash in vault at the beginning of the month (converted to US$): -------------------------

Foreign currency exchange value in the month (converted to US$): ---------------------

Value of foreign currency sold to authorised credit institution in the month (converted to US$): ------------------------------------------------------------

Cash in vault at the end of the month (converted to US$): --------------------------------

APPENDIX 7

Name of credit institution

---------------------------------------

Date:------------------------------

To: State Bank branch in province, city ------------

REPORT ON FOREIGN CURRENCY EXCHANGE
(Quarter --------year-----------------)

(enclosed: detailed List of the foreign currency exchange in Quarter of each agent counter)

APPENDIX 8

state bank of vietnam

Branch in province, city ---------

REPORT ON FOREIGN CURRENCY EXCHANGE
(Quarter --------year-----------------)