The State Bank of Vietnam has issued Circular 04/2023/TT-NHNN regulating the activities of currency exchange agents in bordering countries.
The Circular clearly stipulates the activities of currency exchange agents of bordering countries. Accordingly, currency exchange agents of bordering countries are only allowed to operate in the form of using Vietnamese Dong to buy currency of bordering countries from individuals in cash, except for the cases specified in Clause 2 of this Article.
Currency exchange agents of bordering countries located in the exit waiting areas at international border gates and main border gates are allowed to sell currency of bordering countries in cash for Vietnamese Dong to individuals according to regulations.
An economic organization may agree with an authorized credit institution in a currency exchange agency contract of a bordering country to place a currency exchange agency of a bordering country at one or more locations in the land border area or border gate economic zone in the locality where the economic organization has its head office or branch.
Currency exchange agents of bordering countries located in the exit waiting area at international border gates and main border gates are allowed to sell currency of bordering countries in cash to foreign individuals who have completed exit procedures.
In case of selling currency of a bordering country with a value equivalent to VND 20,000,000 (Twenty million Vietnamese Dong) or less, the currency exchange agent of the bordering country shall require the individual to present exit documents in accordance with the provisions of law on exit of foreigners.
In case of reselling currency of a bordering country with a value equivalent to over VND 20,000,000 (Twenty million Vietnamese Dong) to an individual who has exchanged currency of a bordering country, the currency exchange agent of the bordering country shall request the individual to present exit documents in accordance with the provisions of law on exit of foreigners, and the invoice (receipt) of the currency exchange stamped by a licensed credit institution or the currency exchange agent of the bordering country. The invoice (receipt) of the currency exchange is only valid for the individual to use to repurchase currency of the bordering country within 90 days from the date stated on the invoice (receipt). The currency exchange agent of the bordering country must collect the invoice (receipt) of the individual's previous currency exchange.
The maximum limit of currency of a bordering country that an individual can buy back is not more than the amount exchanged stated on the invoice (receipt).
Sale period, cash balance of bordering countries
The currency exchange agent of a bordering country must sell all the cash of the bordering country's currency purchased (in addition to the remaining cash) to the authorized credit institution at the end of each working day. In case the location of the currency exchange agent of a bordering country is far from the authorized credit institution and travel is difficult, the authorized credit institution shall, based on the actual situation, negotiate with the economic organization on the time limit for selling the purchased cash, but not exceeding 07 working days.
Currency exchange agents of bordering countries are allowed to maintain a daily cash balance of the currency of the bordering country according to the agreement between the authorized credit institution and the economic organization, but the maximum balance is not more than VND 40,000,000 (Forty million Vietnamese Dong) to serve the currency exchange activities of the bordering country. In case of need to increase the balance (including cases where the balance exceeds the maximum balance), the economic organization must carry out procedures to adjust the Certificate of registration of currency exchange agents of bordering countries according to the provisions of law.
Responsibilities of authorized credit institutions
According to the Circular, the authorized credit institution shall consider signing a contract for currency exchange agency of the bordering country based on the need to expand the currency exchange network of the bordering country and the economic organization's satisfaction of the conditions to act as a currency exchange agent of the bordering country.
Organize short-term training courses on skills to recognize currency of countries sharing borders, how to record invoices, keep records, skills to make reports arising according to the law on anti-money laundering and issue Certificates to employees of currency exchange agents of countries sharing borders after completing training courses.
Provide software for currency exchange agents of bordering countries to manage and monitor currency exchange activities of bordering countries depending on the conditions of authorized credit institutions and economic organizations acting as currency exchange agents of bordering countries.
Periodically or suddenly inspect and monitor the currency exchange activities of the bordering country of the authorized agent. If the bordering country's currency exchange agent is found to be violating the provisions of the bordering country's currency exchange agency contract and the legal provisions on currency exchange activities of the bordering country, the authorized credit institution shall handle the violation according to the agreements signed in the bordering country's currency exchange agency contract.
In case of termination of a currency exchange agency contract with a bordering country, within 10 working days from the date of contract termination, the authorized credit institution must notify in writing the State Bank branch in the border province in the area.
This Circular takes effect from August 1, 2023.
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