05 Mar New Provisions on Bank Accounts of Foreign Representative Office in Vietnam
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According to Circular No. 32/2016/TT-NHNN guiding the opening and maintenance of current accounts at payment service providers and under the provisions of this Circular, the organizations without legal person status such as family households, cooperative groups, private enterprises, foreign representative offices and lawyer’s offices are not eligible for opening current accounts. Many current accounts of the organizations without legal person status such as family households, cooperative groups, private enterprises, lawyers’ offices, etc. which have been opened before Circular 32 takes effect shall be closed before March 01, 2018.
However, on February 12, 2018, State Bank of Vietnam promulgated Circular no. 02/2018 amending, supplementing to some articles in Circular no. 32/2016/TT-NHNN as follows:
Before March 01, 2019 (Previously, the change was required to be done before March 01, 2018) banks, foreign bank branches shall cooperate with customers who are family households, cooperative groups, foreign representative offices other organizations without legal person status in re-signing the contract on opening, using current account to convert to:
- Personal current account
- Or legal person’s current account
- Or joint current account
- Or closing the account if requested by the customer
Before June 01, 2018, banks, foreign bank branches shall notify the customers of the conversion of current account’s form; instead of before June 01, 2017 as before.
Remarkably, this Circular no longer requires banks, foreign bank branches to close the accounts which are current accounts of family households, cooperative groups, other organizations without legal person status that have not completed the conversion.
This Circular shall take effect since February 12, 2018.
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