Currency exchange is only permitted at designated locations.
Recently, news that a resident of Can Tho city was fined 90 million VND for selling 100 USD at a gold shop has caused a stir in public opinion.
According to Decree 96/2014/ND-CP on regulations for administrative sanctions in the field of currency and banking (Decree 96), a fine of 80-100 million VND will be imposed for the act of buying and selling foreign currency at organizations not authorized to exchange foreign currency.
For the act of paying for goods and services in foreign currency in violation of the law, the penalty can be as high as 200-250 million VND.
In addition, the supplementary penalty is the confiscation of all foreign currency and Vietnamese dong involved in the violation.
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| Currency exchange is only permitted at authorized locations. |
According to lawyers, current law stipulates that only banks are licensed to buy, sell, exchange, and trade foreign currency.
A few gold shops are authorized to act as foreign exchange dealers under bank authorization, but they are only allowed to buy foreign currency, not sell it. Furthermore, any foreign currency transactions with other organizations are illegal.
Lawyer Truong Thanh Duc, Chairman of the Board of Members of BASICO Law Firm, stated that the decision by the People's Committee of Can Tho City to impose the aforementioned fine was not incorrect.
Prior to Decree 96, the administrative penalty for buying and selling foreign currency at organizations not authorized to collect or exchange foreign currency, as stipulated in the Ordinance on Handling Administrative Violations, was up to 500 million VND, without exception. This was the highest penalty under the Ordinance on Handling Administrative Violations.
However, many people are unaware of this regulation. Ms. Nguyen Kim Anh, residing on Kim Nguu Street in Hanoi, stated that she specializes in importing goods from abroad and has a high demand for foreign currency exchange.
"I had never heard of or known about the regulation that could result in a fine of up to 90 million VND for purchasing goods from unlicensed locations," said Ms. Nguyen Kim Anh.According to Mr. Nguyen Ngoc Canh, Director of the Foreign Exchange Management Department (State Bank of Vietnam), foreign currency exchange is now very convenient. Foreign currency exchange points are widespread, from urban to rural areas, from city centers to suburbs…
Commercial banks, bank branches, and transaction offices all have the function of exchanging foreign currency. People who want to buy or sell foreign currency can go to commercial banks.
According to Mr. Nguyen Ngoc Canh, in addition to the network of branches and transaction points of commercial banks, as of September 30, the State Bank of Vietnam had licensed 580 other foreign exchange dealers nationwide.
The State Bank of Vietnam's regulations clearly state that credit institutions must publish a list of locations for buying and selling foreign currency cash throughout their system on their websites.
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| Legitimate currency exchange points must display signs so that people can easily identify them. |
People can access the websites of credit institutions to find out the exact locations where foreign currency can be legally bought and sold, and conduct these transactions at these locations to avoid penalties. Legal foreign currency exchange points all display signs and licenses.
Previously, on October 23, the People's Committee of Can Tho City issued a decision to impose an administrative fine of 90 million VND on Mr. Nguyen Ca Re (38 years old, residing in An Hoa ward, Ninh Kieu district) for exchanging 100 USD at a gold shop, and confiscated nearly 2.3 million VND that he had exchanged.
The People's Committee of Can Tho City also fined Nhan Dat Jewelry Thao Luc Production and Trading Co., Ltd. (Thao Luc gold shop, Cai Khe ward, Ninh Kieu district) 180 million VND for the act of purchasing foreign currency from an organization not authorized to exchange foreign currency.
