Currency exchange is only allowed at designated locations.
Recently, the news that a resident in 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 administrative sanctions for violations in the monetary and banking sector (Decree 96), a fine of VND80-100 million will be imposed for violations of buying and selling foreign currency at organizations not licensed to exchange foreign currency.
For the act of paying for goods and services in foreign currency in violation of the law, the fine is up to 200-250 million VND.
In addition, the additional penalty is confiscation of all foreign currency and Vietnamese Dong for the violation.
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| Foreign currency exchange is only possible at licensed 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 agents by banks, but they are only allowed to buy foreign currency, not sell it. In addition, any foreign currency transactions with other organizations are illegal.
Lawyer Truong Thanh Duc, Chairman of the Board of Members of BASICO Law Firm, said that the decision of the People's Committee of Can Tho City to impose the above fine was not wrong.
Before Decree 96, the administrative penalty for the act of buying and selling foreign currency at an organization not permitted to collect and exchange foreign currency under the Ordinance on Handling Administrative Violations was up to 500 million VND, without exception. This is the highest penalty in the Ordinance on Handling Administrative Violations.
However, many people do not know about this regulation. Ms. Nguyen Kim Anh in Kim Nguu Street, Hanoi, said that she specializes in importing goods from abroad and has a high demand for foreign currency exchange.
“I have never heard of or known about the regulation that you will be fined up to 90 million VND if you buy at an unlicensed location,” said Ms. Nguyen Kim Anh.Mr. Nguyen Ngoc Canh, Head of the Foreign Exchange Management Department (State Bank), said that foreign currency exchange is very convenient now. Foreign currency exchange points cover from urban to rural areas, from the center to the 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 has licensed 580 other foreign currency exchange agents nationwide.
The State Bank's regulations clearly state that credit institutions must announce the list of locations for buying and selling foreign currency cash in the entire system on the credit institution's website.
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| Legal foreign currency exchange points must have signs for people to recognize. |
People can visit the websites of credit institutions to know exactly where to buy and sell foreign currency legally, and buy and sell foreign currency at these locations to avoid being fined. Legal foreign currency exchange points all have signs and licenses.
Previously, on October 23, the People's Committee of Can Tho City issued a decision to administratively fine Mr. Nguyen Ca Re (38 years old, in An Hoa ward, Ninh Kieu district) 90 million VND for exchanging 100 USD at a gold shop, and confiscated nearly 2.3 million VND that had been exchanged.
Can Tho City People's Committee also fined Nhan Dat Jewelry Thao Luc Trading Production Company Limited (Thao Luc gold shop, Cai Khe ward, Ninh Kieu district) VND180 million for buying foreign currency at an organization not authorized to exchange foreign currency./.
