Borrowing and lending abroad from 20,000 USD or more must be declared.

The State Bank is seeking comments on the draft Circular guiding foreign exchange management at the International Finance Center in Vietnam.

The draft stipulates that members' loans and overseas lending do not have to be registered but still have to be declared, with a threshold of 20,000 USD or more, to monitor capital flows.

The International Financial Center in Vietnam will contribute to promoting sustainable economic development. Illustrative photo

The draft consists of 10 chapters and 40 articles, of which the most prominent are regulations on payment accounts of members and foreign investors.

According to the representative of the State Bank, in order to have a basis for monitoring capital flows, the draft Circular stipulates that members must declare loans/loans with a value of 20,000 USD or more. This is a reference value from the regulations on anti-money laundering for large transactions in the country.

The amount of money transferred abroad without declaration is 1,000 USD, however this is a relatively small value, not suitable for the nature of the lending transaction of the member of the International Finance Center.

Another point worth noting is the regulation on procedures for declaring loans from foreign organizations and individuals and loans to foreign countries. Accordingly, loans from foreign organizations and individuals and loans to foreign organizations and individuals of members with 100% charter capital owned by foreign investors do not have to go through registration procedures, but must still be declared.

In addition, overseas loans must undergo formal approval procedures before disbursement or before changing registered loans such as: Loans from commercial banks/or from non-commercial bank members with an agreed loan term of 365 days or less or a loan value not exceeding 5 million USD or equivalent foreign currency.

Source: https://hanoimoi.vn/vay-cho-vay-ra-nuoc-ngoai-tu-20-000-usd-tro-len-phai-khai-bao-715719.html