THE GOVERNMENT -------	THE SOCIALIST REPUBLIC OF VIETNAM Independence– Freedom – Happiness ---------------
No. 40/2012/ND-CP	Hanoi , May 2, 2012

 

DECREE

ON THE ISSUANCE OF MONEY, THE PRESERVATION AND TRANSPORT OF VALUABLE PROPERTY AND VALUABLE PAPERS IN THE SYSTEM OF THE STATE BANK, BRANCHES OF FOREIGN BANKS AND CREDIT INSTITUTIONS

Pursuant to the Law on Organization of the Government on December 25, 2001;

Pursuant to the Law on the State Bank of Vietnam on June 16, 2010;

Pursuant to the Law on Credit Institutions on June 16, 2010;

At the proposal of the Governor of the State Bank of Vietnam,

The Government promulgates the Decree on the issuance of money, the preservation and transport of valuable property and valuable papers in the system of the State Bank, branches of foreign banks and credit institutions.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree prescribes the process of printing, minting, the preservation, transport, issuance, withdrawal, replacement and destruction of banknotes and coins (hereinafter referred to as money); the preservation and transport of valuable property and valuable papers in the system of the State Bank, branches of foreign banks and credit institutions; and the expenses on the issuance of money.

Article 2. Subjects of application

1. The State Bank of Vietnam (hereinafter referred to as the State Bank),

2. Branches of foreign banks and credit institutions.

3. Money printing and minting facilities; the State Treasury; and other relevant agencies, organizations and individuals.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. “Cash” means banknotes and coins issued by the State Bank.

2. “Unissued new money” means banknotes and coins which have been printed and minted and are stored in the State Bank's money vault but not yet permitted to be circulated.

3. “Money suspended from circulation” means banknotes and coins that are no longer valid for circulation under the Prime Minister's decision.

4. “Money unfit for circulation” means circulating banknotes and coins issued by the State Bank, that have been torn, damaged or deformed as specified by the State Bank.

5. “Valuable property” includes gold, precious metals, gems, foreign currencies in cash and other types of valuable property.

6. “Money printing and minting facility” means an organization engaged in printing and minting money at home or abroad that design, print and mint money under contracts with the State Bank.

Chapter II

MONEY PRINTING, MINTING AND ISSUE

Section 1. PRINTING AND MINTING MONEY

Article 4. Printing and minting of money in circulation, printing and minting new money unissued

1. Depending on the annual forecast about the demand for cash of the economy, the need for money issue reserve and the need for replacement of money unfit for circulation, the Governor of the State Bank shall make decisions on the mechanism and volume of the printing and minting money in circulation.

2. The State Bank shall formulate and submit the project of printing and minting of new kinds of money not yet issued for supplementing or replacing money in circulation to the Prime Minister for approval. This project must contain the designs, denominations, sizes, weight, pictures, patterns and other features of such new kinds of money.

Article 5. Graphic design of money

1. The State Bank shall organize the design of money and ensure that they are aesthetic, distinctive, able to represent national culture and follow the world’s money design trend.

2. The design of money must suit the materials and the printing technology; ensure high durability and anti-counterfeiting capacity; and ensure convenience for the use, preservation and handling of money.

3. The State Bank shall act as owner of the copyright on the approved designs of all kinds of money. The artists who directly creating the approved money design shall be recognized as the authors or co-authors and shall be paid under the law on intellectual property.

Article 6. The prepress process of money printing and minting

1. The State Bank shall organize the prepress process of money printing and minting satisfying the following requirements:

a/ Correctly and fully displaying the details of the approved designs;

b/ Satisfying the technical standards of each kind of money.

2. The Governor of the State Bank shall specify the embedment of security features on the money in order to improve the anti-counterfeiting capacity.

Article 7. The organization and management of money printing and minting

The State Bank shall organize the money printing and minting process on the following principles:

1. The money printing and minting process is carried out under the contracts between the State Bank and money printing and minting facilities on the basis of the money printing and minting plans and the technical standards of each kind of money as specified by the Governor of the State Bank.

2. The State Bank shall inspect the quality of all kinds of money before the money printing and minting facilities hand over money to the State Bank.

3. In case the Vietnamese money is printed or minted abroad, or the mould is made abroad, or the prepress process is done abroad, the Governor of the State bank must obtain the approval from the Prime Minister.

4. The State Bank shall guide money printing and minting facilities to manage each kind of money printed and minted; guide and supervise money printing and minting facilities destructing damaged money, damaged printing paper or damaged printing or minting products.

Article 8. Money printing and minting

1. Money printing and minting facilities shall prepare and safely manage the equipment, supplies, raw materials and ancillary materials serving the money printing and minting under contracts.

2. Domestic money printing and minting facilities shall develop and submit the technological process of money printing and minting and submit to the Governor of the State Bank for approval.

3. The money printing and minting facilities shall submit the printed or minted samples, the printing plates and the molds to the Governor of the State Bank for approval before officially carry out the printing and minting process.

4. Money printing and minting facilities shall sustain the quantity and quality of money printed and minted in accordance with technical standards of each kind of money approved by the Governor of the State Bank.

5. Money printing and minting facilities must not use materials specialized for printing and minting Vietnamese money to produce other products unless they obtain prior written consent from the State Bank.

6. Money printing and minting facilities shall ensure the confidentiality of information relating to money printing and minting as prescribed.

Section 2. MONEY ISSUANCE

Article 9. Management of issue reserve funds and issue operation funds

1. The State Bank shall establish the issue reserve funds and issue operation funds in the system of the State bank.

a/ Issue reserve funds shall be managed at Central money vaults and money vaults provincial branches of the State Bank;

b/ Issue operation funds shall be managed at money vaults of the State Bank's Transaction Center and money vaults of provincial branches of the State Bank.

2. Sources of issue reserve funds and issue operation funds:

a/ An issue reserve fund is provided by:

- Newly printed and minted money from money printing and minting facilities;

- Money from issue operation funds.

b/ An issue operation fund is provided by:

- Money from issue reserve funds;

- Money collected from circulation.

Article 10. Announcing the issuance of new kinds of money

1. Depending on the demand for cash of the economy and currency stabilization requirements, the Governor of the State Bank obtain the decision from the Prime Minister on the issuance of new kinds of money, including:

a/ The new denominations;

b/ The time and methods for issuing new kinds of money.

2. The State Bank shall announce the following contents on means of mass media:

a/ The Government's decision on the issuance of new kinds of money;

b/ The time and methods for issuing new kinds of money;

c/ The denominations, sizes, weight and other features of each kind.

Article 11. The issuance of money

1. The State Bank shall issue money for circulation and collect money from circulation through its cash collection and payment activities and other operational activities.

2. The State Bank must satisfy the demand for cash from branches of foreign banks and credit institutions and the State Treasury on the basis of the balance of their deposit accounts at the State Bank.

Article 12. Selection and classification of money

1. The State Bank, credit institutions, foreign bank branches and the State Treasury are responsible for selecting, classifying and handling money.

2. The State Bank shall guide and inspect the selection, classification and handling of money.

Chapter III

PRESERVATION OF MONEY, VALUABLE PROPERTY AND VALUABLE PAPERS

Article 13. Principles of preserving money, valuable property and valuable papers

1. Money, valuable property and valuable papers in the system of the State Bank, branches of foreign banks and credit institutions shall be preserved in money vaults; classified, counted, packed, sealed, and stored in separate areas in the money vault.

2. Vaults shall be constantly guarded and protected 24/24.

Article 14. Responsibility to preserve money, valuable property and valuable papers

1. Money printing and minting facilities must preserve newly printed and minted money not yet handed over to the State Bank.

2. The State Bank must preserve new kinds of money unissued, money in circulation (including money unfit for circulation), money suspended from circulation, valuable property and valuable papers within its scope of management.

3. Branches of foreign banks and credit institutions must preserve money, valuable property and valuable papers under their management.

4. The State Bank must guide and inspect the preservation of money, valuable property and valuable papers.

Article 15. Construction and management of vaults

1. The State Bank shall issue technical standards for money vaults and regulations on the management of the money vaults in the system of the State Bank, branches of foreign banks and credit institutions.

2. The State Bank shall build central money vaults and money vaults of provincial branches of the State Bank for preserving money, valuable property and valuable papers under its management.

3. Branches of foreign banks and credit institutions shall build money vaults for preserving money, valuable property and valuable papers under their management.

Chapter IV

TRANSPORT OF MONEY, VALUABLE PROPERTY AND VALUABLE PAPERS

Article 16. Scope of and responsibility for transport

1. The State Bank shall organize transport of money, valuable property and valuable papers:

a/ From money printing and minting facilities, airports, ports and train stations to central money vaults and vice versa;

b/ Among central money vaults;

c/ Between central money vaults and the money vaults of provincial branches of the State Bank;

d/ Among the money vaults of provincial branches of the State Bank.

2. Branches of foreign banks and credit institutions shall organize the transport of money, valuable property and valuable papers under their management among themselves, and between them and the State Bank.

Article 17. Transport principles

The transport of money, valuable property and valuable papers in the system of the State Bank, branches of foreign banks and credit institutions must comply with the following principles:

1. Having the transport order from competent authorities.

2. The Money, valuable property and valuable papers must be transported in specialized vehicles or other safe means of transport.

3. The money, valuable property and valuable papers transported must be sufficiently escorted.

4. The transport plans and processes must be confidential.

5. Money, valuable property and valuable papers must be packed and sealed and safely preserved during the transport.

Article 18. Transport of money, valuable property and valuable papers

1. The State Bank shall set up transport teams specialized in transporting money, valuable property and valuable papers under their management. These teams will be provided with specialized vehicles and necessary technical equipment.

2. The State Bank shall define technical standards for specialized vehicles and technical equipment; and guide and inspect the transport of money, valuable property and valuable papers in the system of the State Bank, branches of foreign banks and credit institutions.

Article 19. Protection of transport

1. The Ministry of Public Security shall send forces to protect the transport of money, valuable property and valuable papers of the State Bank.

2. The checkpoints and mobile patrol teams of law enforcement forces must not stop and check specialized vehicles transporting money, valuable property and valuable papers of the State Bank, branches of foreign banks and credit institutions while they are moving .

3. Vehicles transporting money, valuable property and valuable papers of the State Bank are given priority during rush hours, when crossing bridges, on ferries and to enter blocked roads.

4 People's Committees at all levels shall cooperate with the State Bank, branches of foreign banks and credit institutions in promptly settling problems arising during the transport of money, valuable property and valuable papers of the State Bank, branches of foreign banks and credit institutions locally.

Chapter V

THE WITHDRAWL, REPLACEMENT AND DESTRUCTION OF MONEY

Section 1: THE WITHDRAWAL AND REPLACEMENT OF MONEY

Article 20. Collecting and exchanging of money unfit for circulation

1. The State Bank, credit institutions, foreign bank branches and the State Treasury shall collect and exchange money unfit for circulation under the State Bank's regulations.

2. The State Bank shall define standards for identifying money unfit for circulation; collect and exchange kinds of money unfit for circulation; and guide and examine implementation of these regulations.

Article 21. Money withdrawal and replacement

1. Announcement of money withdrawal and replacement

The Prime Minister shall make decisions on suspending the circulation and replacing the kinds of money in circulation. Depending on the Prime Minister's decision, the State Bank shall announce the following contents on means of mass media:

a/ The Government's policy on suspending the circulation and withdrawing the money suspended from circulation; on partially or completely replacing the kinds of money in circulation;

b/ The forms, procedures and time limit for withdrawing the kinds of money suspended from circulation.

2. Money withdrawal and replacement

a/ The State Bank shall organize the withdrawal of the kinds of money suspended from circulation as prescribed;

b/ The kinds of money withdrawn shall be exchanged for other kinds of money with equivalent value within the time limit specified by the State Bank;

c/ The issuance of substitute kinds of money shall be carried out under the Prime Minister's decision.

Section 2. MONEY DESTRUCTION

Article 22. Money that must be destructed

Money that must be destructed includes:

1. Money unfit for circulation.

2. Money suspended from circulation.

Article 23. Organizing and managing the money destruction

1. After being destroyed, the money destructed must not be able to be restored and re-used as money.

2. The money destruction must ensure absolute safety and ensure the State’s secret.

3. The State Bank shall organize, guide and supervise the destruction of money and the adequate, accurate and prompt accounting of the quantity and kinds of money destructed.

Article 24. Settlement of money from scrap sale

The money from the sale of scrap from the money destructed shall be recorded to the State Bank's receipts from professional operations.

Chapter VI

EXPENSES ON MONEY PRINTING, MINTING, PRESERVATION, TRANSPORT, ISSUANCE, WITHDRWAL, REPLACEMENT AND DESTRUCTION

Article 25. Regular expenses

Annual regular expenses on money printing, minting, preservation, transport, issue, withdrawal, replacement and destruction shall be paid and managed under the Law on the State Budget and the State Bank's financial regulations.

Article 26. Expenses on printing and minting new money

Expenses on printing and minting new kinds of money not yet issued shall be separately recorded under the project approved by the Government. The Governor of the State Bank shall manage and examine such expenses under confidentiality regulations and simultaneously report the expenses to the Prime Minister and the Ministry of Finance.

Chapter VII

RESPONSIBILITIES OF THE STATE BANK AND RELEVANT AGENCIES

Article 27. Responsibilities of the State Bank

1. Organizing the design, printing, minting, issue, withdrawal, replacement, classification and destruction of money; preserving and transporting money, valuable property and valuable papers in the State Bank's system.

2. Cooperating with functional agencies in detecting and preventing prohibited acts specified in Article 23 of the Law on the State Bank of Vietnam.

3. Guiding the regulations on cash management within the State Bank's system, cash transactions, budgetary services, and the accounting and statistics regulations under the law on accounting and statistics.

Article 28. Responsibilities of the Ministry of Finance

1. Inspecting the printing, minting and destruction of money carried out by the State Bank .

2. Inspecting the implementation of relevant provisions of this Decree of the State Treasuries.

Article 29. Responsibilities of the Ministry of Public Security

1. Securing the money issuance, the preservation and transportation of valuable property and valuable papers of the State Bank, protecting the money vaults of the State Bank and money vaults of money printing and minting facilities.

2. Directing public security agencies at all levels in cooperating with the State Bank in investigating and handling acts of destructing money, making, transporting, storing or circulating counterfeit money.

3. Examining items suspected to be counterfeit money or destructed money.

Article 30. Responsibilities of People's Committees at all levels

1. Cooperating in and facilitating the protection of money vaults and the transport of money, valuable property and valuable papers of the State Bank, branches of foreign banks and credit institutions in localities.

2. Directing professional sectors in disseminating the awareness of preserving and protecting the Vietnamese currency; preventing acts of destructing money, or making, transporting, storing and circulating counterfeit money.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 31. Effect

1. This Decree takes effect on June 26, 2012.

2.This Decree supersedes the Government's Decree No. 81/1998/ND-CP of October 1, 1998, on the printing, minting, preservation, transport and destruction of banknotes and coins; on the preservation and transport of valuable property and valuable papers within the banking system; and the Government's Decree No. 87/1998/ND-CP of October 31, 1998, on the issuance, withdrawal and replacement of banknotes and coins.

Article 32. Implementation responsibility

1. The Governor of the State Bank, the Minister of Finance and the Minister of Public Security shall, within the ambit of their functions and tasks, guide and inspect the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies and Presidents of provincial-level People's Committees are responsible for the implementation of this Decree./.

 

FOR THE GOVERNMENT THE PRIME MINISTER Nguyen Tan Dung