Was there a violation of the law?

Online money exchange is widespread.

Simply searching for phrases like "exchange small denominations" or "exchange new banknotes" on social media platforms like Facebook and Zalo will immediately bring up thousands of posts advertising money exchange services. Groups and communities dedicated to exchanging small denominations and new banknotes are also very active, with a large number of members.

Besides attractive offers such as "low exchange fees," "guaranteed genuine money," "unopened banknotes," and competitive exchange rates, account holders are also willing to deliver money to your location and allow you to inspect it before receiving it. Agreements on exchange rates, denominations, quantities, and delivery addresses are exchanged via private messages.

The surge in exchanging lucky money for Lunar New Year 2024: Is this a violation of the law?

Contacting several Facebook accounts advertising money exchange services, and requesting to exchange 10 million VND, one account named HGM stated that the exchange fee would vary depending on the quantity and denomination.

Accordingly, the smaller the denomination, the higher the exchange fee. For 1,000-5,000 VND notes, the exchange fee is 8-15%; for 10,000-50,000 VND notes, the fee is 7%; and for 100,000-200,000 VND notes, the fee is 3%. Therefore, exchanging approximately 1 million VND for notes in denominations of 1,000-5,000 VND will cost around 80,000-150,000 VND in fees. Customers exchanging 50 million VND or more will receive a more favorable rate, from 2.5% to 4%.

Small denominations of money and new banknotes are widely advertised for sale online during the Lunar New Year.

It can be seen that new banknotes of smaller denominations, especially those in complete sets or bundles, are highly sought after by traders due to their scarcity.

"We operate year-round, with large quantities readily available, so you can rest assured. Our banknotes are top quality, in their original bundles and packaging. The current fees are very low, so you should exchange them soon because they'll skyrocket in a few days," the HGM account holder offered.

Not only can these vendors exchange banknotes of all denominations, with immediate availability, but they also supply large quantities of new banknotes wholesale and retail. When asked why these money exchange vendors can still supply large quantities of new banknotes while the State Bank of Vietnam restricts the issuance of new banknotes to banks, account holder TH explained: "The new banknotes are saved from the previous year. Whenever the banks have new banknotes, we take advantage of the opportunity to exchange and store them to serve customers during Tet (Lunar New Year)."

Beware of currency exchange "traps".

A characteristic of online currency exchange is that transactions are usually conducted via social media. Customers wishing to exchange money can transfer 30-50% of the total amount needed, provide their address, and someone will deliver the new currency to their location, with the customer paying the remaining amount. Some account holders even deliver the money in person and allow customers to inspect it before receiving it.

However, many people, upon receiving their money, found that the bundles were tampered with, mixed with old, torn, or even counterfeit bills. A user named NN lamented: "Previously, I often asked acquaintances to exchange money for new bills to give as New Year's gifts. This year, because I couldn't get anyone to exchange it for me, I searched online for a cheaper place to exchange money before Tet. I exchanged 5 million dong in 20,000 dong notes and paid 350,000 dong in fees. However, when I counted it again, I found 200,000 dong missing and many old bills mixed in. When I called the person who exchanged the money, they said that I had to check the money immediately upon receipt, and if I took it home, I would be responsible. Anyone needing to exchange new money should be wary because scams are rampant."

With such a large profit margin, this type of illegal business can yield substantial returns.

Notably, among the tens of millions of results on Google regarding exchanging new banknotes and small denominations, alongside websites offering this service, there is also a significant amount of information indicating that the practice of exchanging new banknotes and small denominations for profit from the difference is illegal and subject to severe penalties. However, driven by high profits and disguised as technology, this illicit money exchange service is becoming increasingly sophisticated.

Fines range from 40 to 80 million VND.

Regarding this practice, a leader of the State Bank of Vietnam stated that, according to Articles 12 and 13 of Circular No. 25/2013/TT-NHNN, the acts of individuals and organizations exchanging new banknotes and small denominations for a percentage of the difference are illegal.

These acts may be subject to fines ranging from 20 to 40 million VND for individuals and 40 to 80 million VND for organizations (according to Clause 5, Article 30, Section 8, Chapter 2 of Government Decree 88/2019 on administrative penalties in the monetary and banking sector).

Regarding jurisdiction, in cases where an organization engages in illegal currency exchange activities and is fined between 40 and 80 million VND, the authority to impose the penalty rests with the Director of the Banking Inspection and Supervision Department, the Chief Inspector of Banking Inspection and Supervision, or the head of the inspection team as prescribed.

Depending on the severity of the offense, evidence may be confiscated. For example, the Director of the Banking Inspection and Supervision Department has the authority to impose fines up to 250 million VND; and confiscate evidence and means used in administrative violations with a value not exceeding 500 million VND.

Recently, in a directive on ensuring the celebration of the Lunar New Year of the Year of the Dragon 2024, Prime Minister Pham Minh Chinh requested the State Bank of Vietnam to effectively organize the regulation and supply of cash, meeting the cash needs of the economy in terms of both value and denomination structure; and to ensure the security and safety of cash reserves during the Lunar New Year of the Year of the Dragon 2024.

In addition, the State Bank of Vietnam directed credit institutions to organize foreign exchange services effectively and strengthen foreign currency exchange activities to serve the needs of foreign tourists.

At the same time, coordinate with relevant authorities to strengthen inspections, promptly detect and strictly handle acts of buying and selling foreign currency, exchanging money, etc., that violate the law.

Source link: https://thanhnien.vn/no-ro-doi-tien-li-xi-tet-nguyen-dan-2024-co-vi-pham-phap-luat-185231230094037568.htm