Can individuals open foreign currency accounts?

Thanks to the development of technology, trade and the opening of international trade, international transactions are becoming more and more convenient. However, individuals and organizations engaged in foreign currency transaction activities must still comply with legal regulations. So for individuals, can they open foreign currency accounts and what are the relevant regulations on this issue? Find out in the article below.

Answer: Can individuals open foreign currency accounts?

According to Circular 16/2014, individuals can use foreign currency accounts at banks and are entitled to conduct revenue and expenditure transactions in accordance with Article 4 for resident individuals and Article 6 for non-resident individuals in Circular 16/2014.

Therefore, individuals can open foreign currency accounts in accordance with this Circular.

Can individuals open foreign currency accounts?

Regulations to keep in mind for individuals when opening a foreign currency account

Regulations on receipts and expenditures of allowed foreign currency accounts

Article 4 of Circular 16/2014/TT-NHNN stipulates that residents being individuals are allowed to use foreign currency accounts at permitted banks to carry out the following revenue and expenditure transactions:

Revenue:

It is possible to receive foreign currency transfers from abroad, collect payments for export of goods and services from the account of a non-resident organization at a domestic bank.

The collection of foreign currency cash from abroad must be confirmed by customs at the border gate in accordance with the provisions of law.

Collect foreign currency from lawful sources in the country, including receipt of salaries, bonuses, allowances, purchase of foreign currency from Vietnamese dong and other lawful revenues in accordance with regulations of the State of Vietnam.

Expenditures:

It is permissible to sell foreign currency to credit institutions, transfer money and make payments for transactions in accordance with the provisions of law.

Expenditures converted into other foreign currencies, transferred to payment instruments in foreign currencies. It is also possible to withdraw foreign currency cash, donate and pay in accordance with the provisions of law.

Transfer foreign currency abroad, transfer to savings, spend money transfer and pay domestic foreign currency transactions in accordance with regulations of the State Bank.

On the other hand, Article 6 of Circular 16/2014/TT-NHNN stipulates that non-residents who are individuals are allowed to use foreign currency accounts at permitted banks to carry out the following revenue and expenditure transactions:

Autumn:

• Receive foreign currency transfers from other countries;
• Receipt of cash foreign currency from bearers from abroad. The deposit of foreign currency in cash into the account must be certified by the customs of the border gate in accordance with the law on foreign exchange management;
• Collect foreign currency transfers from foreign currency accounts of other non-residents in Vietnam;
• Receive foreign currency from other lawful sources of revenue in the country, including:

(i) Salaries, bonuses, allowances, purchase of foreign currency from Vietnamese dong sources in accordance with the provisions of law

(ii) Other lawful revenues as prescribed by the law on foreign exchange management.

Limb:

• Sale of foreign currency to permitted credit institutions;
• Make money transfers and payments for current and capital transactions in accordance with the law on foreign exchange management;
• Convert into other foreign currencies according to regulations of the State Bank of Vietnam;
• Conversion to other payment instruments in foreign currency;
• Expenditures and gifts in accordance with the provisions of law;
• Foreign currency withdrawal in cash;
• Make money transfers abroad or transfer funds to other non-residents’ foreign currency accounts;
• Make money transfers and payments for transactions permitted for domestic settlement in foreign currencies in accordance with regulations of the State Bank of Vietnam on the use of foreign exchange in the territory of Vietnam.

Can foreign currency and Vietnamese dong be transferred between accounts of 1 account holder?

Allowed. Specifically, Article 8 of Circular 16/2014/TT-NHNN stipulates that:

Both residents and non-residents, including organizations and individuals, may make foreign currency transfers between foreign currency accounts they own at different banks or within the same permitted banking system. Unless the resident is an organization and is not allowed to transfer foreign currency according to regulations of the State Bank of Vietnam on foreign currency purchase and sale transactions of enterprises belonging to economic groups or state corporations.

Non-residents, including organizations and individuals, as well as residents who are foreign individuals, are allowed to convert Vietnamese Dong between Vietnamese Dong accounts they own at different banks or within the same permitted banking system.

What are the responsibilities of individuals (Stay and Non-Stay) in the use of foreign currency?

• Strictly implement the provisions of Circular 16/2014/TT-NHNN;
• Provide papers and documents at the request of permitted credit institutions when conducting foreign exchange transactions and take responsibility for the authenticity of the papers and documents they provide to permitted credit institutions.

Siglaw Law Firm

Phone: (+84) 961 366 238

Email:

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