The State Bank of Vietnam has proposed a range of penalties for violations in the field of currency and banking, as outlined in the latest draft decree. The amendments to Decree 88/2019/NĐ-CP aim to align with the Law on Credit Institutions of 2024 and current legal documents.
Specifically, Article 27 of the draft decree modifies the provisions related to the purchase and sale of foreign currencies between individuals or at unauthorized institutions. If the value of the transaction is below 1,000 USD (or equivalent in other currencies), a warning will be issued. Similarly, the use of foreign currencies for payments of goods and services below this threshold will also be subject to disciplinary action if it does not comply with regulations.
Monetary penalties ranging from 10 to 20 million VND will be imposed on individuals who buy or sell foreign currencies among themselves or at unauthorized institutions, with the value of the transaction ranging from 1,000 USD to less than 10,000 USD (or equivalent in other currencies)…
Notably, the penalty amount will increase depending on the value of the foreign currency involved in the violation. The highest penalty, ranging from 80 to 100 million VND, will be applied to cases where the transaction value exceeds 100,000 USD (or equivalent) in unauthorized purchases or sales of foreign currency between individuals or at unauthorized institutions. Similar penalties will be imposed for payments made in foreign currencies of equivalent value if they do not adhere to the prescribed regulations.
Heavy Penalties for Unauthorized USD Transactions in Vietnam |
Additionally, the draft decree proposes a maximum fine of 200-250 million VND for violations in the foreign exchange sector, including the import and export of foreign currencies and Vietnamese cash that do not comply with regulations, as well as engaging in foreign exchange activities without a license.
Supplementary penalties are also clearly defined and may include the confiscation of the foreign currencies or Vietnamese cash involved in the violation and the suspension of foreign exchange activities for a period of 3 to 6 months for non-compliant credit institutions and foreign bank branches.
Violations related to the display of foreign exchange rates, such as failure to display or unclear display that causes confusion for customers, will also be subject to corresponding penalties.
According to the State Bank of Vietnam, the amendments to Decree 88/2019/NĐ-CP aim to ensure alignment with the Law on Credit Institutions of 2024 and current legal regulations. The goal is to deter violations and enhance the effectiveness of management and law enforcement in the field of currency and banking.
Thai Phuong
– 15:07 20/05/2025
