From March 15, 2025, the Code of Conduct for Outward Remittances will take effect to control and prevent the exploitation of loopholes to conduct illegal transactions.
Unified and transparent "playground" of records and documents
The need to transfer money abroad is increasingly popular, credit institution has strengthened the development of internal regulations, including regulations on documents and certificates related to money transfer transactions abroad for residents who are Vietnamese citizens.
However, according to the Vietnam Banking Association, in reality, the current overseas money transfer still has some contents that do not meet the needs, are not suitable and are not consistent between credit institutions, and the internal regulations on documents and money transfer documents of each bank are different.
Based on the practical need for one-way remittance abroad for residents who are Vietnamese citizens, the Vietnam Banking Association has proposed to develop a Uniform Code of Conduct and Practice for Remittance Abroad (the Code).
Accordingly, the Code of Conduct was drafted by 27 members of a number of large member banks with experience in foreign exchange activities such as BIDV, Vietcombank, Vietinbank, Agribank, Techcombank, MB, Vpbank and the foreign working group BWG. After more than 15 months of implementation, through many steps, on February 7, 2025, the Code of Conduct was issued and officially took effect from March 15, 2025.
The Code of Conduct provides a framework for the list and principles of providing documents that must be complied with when conducting transactions of purchasing, transferring, and carrying foreign currency abroad by residents who are Vietnamese citizens for the purposes of one-way money transfer from Vietnam to foreign countries: Studying, receiving medical treatment abroad; going on business trips, traveling, visiting abroad; paying fees and charges to foreign countries; providing allowances for relatives living abroad; transferring inheritance money to heirs living abroad; transferring money in case of settling abroad.
The subjects of application are banks and foreign bank branches licensed to conduct business and provide foreign exchange services that are members of the Vietnam Banking Association; Banks and foreign bank branches licensed to conduct business and provide foreign exchange services that are not members of the Vietnam Banking Association but choose to apply the Code of Conduct.
At the Conference on the implementation of the "Uniform Code of Conduct and Practice on the list and principles of providing documents for money transfer "One-way outbound transactions of Vietnamese residents" on the morning of February 27, Ms. Nguyen Cam Tam - Director of BIDV Payment Center - (member of Vietnam Banking Association, focal point for drafting the Code) said that this is the first set of rules that Vietnam Banking Association has coordinated with major commercial banks to build to create a unified and transparent playground for records and documents, avoiding differences in transaction processing views between banks, as well as signs of unfair competition.
According to Ms. Nguyen Cam Tam, the development of the Code of Conduct not only stems from the need to combat money laundering and the exploitation of loopholes to illegally transfer money abroad, but also from the fact that in the transaction process there are situations that are beyond the current legal regulations. "Therefore, if we only rely on legal documents to handle the situation, we will not be able to keep up with reality, while the demand for transactions is increasing, " said Ms. Tam.
Restrict illegal money transfers
The development and promulgation of the Code of Conduct by the Vietnam Banking Association is expected to help banks implement it consistently with customers nationwide, thereby minimizing related risks. At the same time, it will help state management agencies and authorities more effectively control money transfers abroad, limit illegal money transfers, contribute to stabilizing the foreign exchange market, and stabilize exchange rates to attract investors.
For the people, the Code of Conduct facilitates people when they need to make one-way money transfers abroad. Instead of having to go to a bank with appropriate regulations to make money transfers as before, now customers only need to go to the nearest bank to make one-way money transfers abroad, and their money transfer needs will be met.
Assessing the Code, Mr. Nguyen Quoc Hung - Vice Chairman and General Secretary of the Vietnam Banking Association emphasized that the Code will create a unified legal corridor in regulations on money transfer abroad; prevent and limit illegal acts related to money transfer abroad. Promote the responsibility of complying with legal regulations and preventing money laundering of commercial bank and bank officers in the process of providing international money transfer services to customers in a common playground.
In particular, according to Mr. Nguyen Quoc Hung, the Code creates a legal basis to protect banks; at the same time, it is the basis for the State Bank, the State Bank's inspection and supervision agency, and the Ministry of Public Security to rely on this Code to have a common ground in the process of inspection, examination, and assessment of whether banks comply with anti-money laundering regulations or not.
Mr. Nguyen Quoc Hung further stated that the Code of Conduct is not a legal document, but will be the basis for banks to implement it as a market practice. “During the implementation process, the Drafting Committee will continue to absorb and revise the proposed regulations to closely follow the operational practices of credit institutions, ” said Mr. Hung.
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