Nghị định 89/2016/ND-CP

DECREE

ON REQUIREMENTS APPLICABLE TO BUSINESS ENTITIES ACTING AS CURRENCY EXCHANGE AGENTS OR PROVIDING FOREIGN CURRENCY RECEIPT AND PAYMENT SERVICES

Pursuant to Law on Organization of the Government dated June 19, 2015;

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;

Pursuant to the Law on employment dated November 26, 2014;

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

At the request of the Governor of the State bank of Vietnam;

The Government promulgates a Decree on requirements applicable to business entities acting as currency exchange agents or providing foreign currency receipt and payment services.

Article 1. Scope

This Decree deals with requirements applicable to business entities that act as currency exchange agents; and to business entities that provide foreign currency receipt and payment services, including direct receipt and payment of foreign currency and currency payment agents

Article 2. Regulated entities

1. Business entities acting as currency exchange agents.

2. Business entities providing foreign currency receipt and payment services.

3. Other organizations and individuals that are related to the currency exchange agents, foreign currency receipt and payment services.

Article 3. Interpretation of terms

For the purposes of this Decree, these terms below shall be construed as follows:

1. Licensed credit institutions are banks, non-bank credit institution and branches of foreign banks that are licensed to trade in and provide foreign exchange services as prescribed by law.

2. Authorizing credit institutions are credit institutions that are licensed to authorize business entities to act as currency exchange agents or currency payment agents.

3. Business entities (excluding credit institutions) are organizations that are established and operate in accordance with Vietnamese law, including enterprises, cooperatives, cooperatives unions and other organizations doing businesses.

Article 4. Requirements pertaining to business entities acting as currency exchange agents

An business entity is entitled to act as a currency exchange agent only after it is issued with a certification of registration of currency exchange agent by the State bank of Vietnam. Requirements for issuance of a certification of registration of currency exchange agent to a business entity by the State bank of Vietnam:

1. It is established or registered in accordance with Vietnamese law.

2. It has its currency exchange agent located in one or more of the following locations:

a) Tourist accommodation establishments ranked at least 3 stars by a tourism authority;

b) International checkpoints (road, air, water);

c) Prize gaming facilities for foreigners which are licensed as prescribed by law;

d) Ticket offices of the airlines, maritime, foreign travel, and international ticket offices of Vietnam airlines;

dd) Tourist areas, shopping malls, and supermarkets where many foreigners visit and go shopping.

3. It has facilities that satisfy the following operational requirements of the currency exchange agent:

a) There is a separate transaction area (transaction room(s) or counter(s) not associated with other business activities, only for currency exchange services);

b) The transaction area must have adequate working equipment, at least including telephones, fax machines, safes, public exchange rate bulletin, signs stated the name of authorizing credit institution and name of currency exchange agent.

4. Each staff member who directly works in the currency exchange agent must have a document certifying that he/she has been trained in recognition of real or fake foreign currencies that is issued by the authorizing credit institution.

5. It has established currency exchange procedures; measures to ensure security and safety in the process of currency exchange.

6. It is authorized by the credit institution to act as a currency exchange agent.

7. A business entity may only acts as a currency exchange agent for an authorizing credit institution and the business entity may agree to set currency exchange agent at one or multiple locations in the area where the organization has its head office or branch located.

Article 5. Requirements pertaining to business entities providing direct foreign currency payment services

1. Requirements applicable to a business entity for approval for direct foreign currency payment services granted by the State bank of Vietnam:

a) It is established or registered in accordance with Vietnamese law;

b) It has equipment and facilities that satisfy the requirements for foreign currency payment services such as: Computers, telephones, fax machines;

c) There is an agreement on foreign currency payment services concluded with foreign partners;

d) There is a plan for foreign currency payment services bearing the signature of the legal representative.

2. Requirements applicable to a business entity for extension of approval for direct foreign currency payment services granted by the State bank of Vietnam:

a) It satisfies the requirements prescribed in Clause 1 of this Article;

b) The approval for direct foreign currency payment services remains valid at least 30 days before the submission date;

c) It does not violate reporting regulations as prescribed by the State bank of Vietnam in at least 4 quarters from the date on which the approval for direct foreign currency payment services or the extension of approval for direct foreign currency payment services is granted.

Article 6. Requirements pertaining to business entities acting as foreign currency payment agents

1. Requirements applicable to a business entity for approval for registration of foreign currency payment agent granted by the State bank of Vietnam:

a) It is established or has business registered in accordance with Vietnamese law;

b) It has equipment and facilities that satisfy the requirements pertaining to foreign currency payment agent: Computers, telephones, fax machines;

c) It is authorized by the credit institution to act as a foreign currency payment agent.

2. Requirements applicable to a business entity for extension of approval for foreign currency payment agent granted by the State bank of Vietnam:

a) It satisfies the requirements prescribed in Clause 1 of this Article;

b) The approval for registration of foreign currency payment agent remains valid at least 30 days before the submission date;

c) It does not violate reporting regulations as prescribed by the State bank of Vietnam in at least 4 quarters from the date on which the approval for registration of foreign currency payment agent or the approval for extension of direct foreign currency payment agent is granted.

Article 7. Implementation

1. This Decree comes into force from July 1, 2016.

2. The Governor of the State bank of Vietnam, Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of the People’s Committees of central-affiliated cities and provinces and relevant organizations or individuals shall implement this Decree./.