Banking and Finance Archives

On 13 August 2025, the Ministry of Finance released the draft decree on International Financial Centre Establishment in Vietnam (“Draft Decree”) for public consultation. The Draft Decree has been prepared pursuant to Resolution No. 222/2025/QH15 of the Vietnamese National Assembly dated 27 June 2025 on an International Financial Centre in Vietnam (“Resolution 222”), which sets out policies, mechanisms, and incentives aimed at attracting and meeting the requirements of the international financial community.

The Draft Decree provides detailed regulations and guidance on the implementation of Articles 8 and 9 of Resolution 222.

Key highlights of the Draft Decree

1. Establishment of International Financial Centres

Vietnam will establish two International Financial Centres (“IFCs”) located in Ho Chi Minh City and Da Nang City, with clearly defined geographical boundaries determined by the respective People’s Committees.

The official names will be:
– Vietnam International Financial Centre in Ho Chi Minh City; and
– Vietnam International Financial Centre in Da Nang City.

The IFCs are designed to promote sustainable finance, foster the development of green financial products, and mobilize resources for energy transition and green transition projects, thereby contributing to Vietnam’s socio-economic development.

2. Membership and operation of the new IFCs

The IFCs will introduce new, specific membership and operational frameworks in Vietnam:

An IFC membership registration dossier must include:
(i) a business registration certificate;
(ii) the audited financial statements for the past two years; and
(iii) a commitment to the implementation plan and operational areas of the IFC.
Termination of membership will occur if an entity fails to comply with Vietnamese laws or its commitments to the IFC. A one-year grace period (until 31 December of the following year) is allowed for rectification of compliance deficits.
IFC investors will be prioritized for important projects in Vietnam. For infrastructure projects, investors must complete implementation within five years and cannot transfer the project for ten years (except in special Government-approved cases).
Governance agencies under Articles 10 – 13 of the Draft Decree:

(a) Each IFC in HCMC and Da Nang will have its own management agency. These two management agencies will oversee all IFC activities and operate an online membership registration system integrated with the National Business Registration Portal – simplifying procedures.

(b) Two supervisory agency models are proposed in the Draft Decree for consultation purposes:
(i) one in which there is an independent supervisory agency headquartered in either HCMC or Da Nang; or
(ii) another model with two supervisory agencies, one in each city.

(c) A Specialized Court will handle investor disputes, with the option for disputes to be referred to an international arbitration center, if agreed by the parties.

3. Financial arrangements of the IFCs

Revenue sources for an IFC will include:
(i) voluntary contributions and sponsorships;
(ii) income from service provision and lawful activities; and
(iii) allocations from the state budget.
Funds will be used by an IFC to:
(i) deliver its designated public services;
(ii) cover the IFC’s management and operational costs; and
(iii) provide finance services and related activities.

4. Recommended actions for stakeholders

Interested stakeholders should consider the following next steps:

Monitor Legislative Progress: Closely track the final amendments to the Draft Decree and any forthcoming guiding circulars to maintain a clear and current understanding of the legal landscape.

Conduct a Strategic Review: Undertake a thorough assessment of how the specific provisions—particularly regarding tax, labor, and foreign exchange—will impact your proposed business model and investment structure.

Develop an Implementation Plan: Formulate a detailed roadmap for operational readiness and compliance to facilitate a timely and efficient entry into the IFCs upon effectiveness of the decree following 1 September 2025.

Navigating Vietnam’s evolving regulatory environment requires specialized expertise. Should you require further information or detailed legal assistance regarding the implications of the Draft Decree, please contact DFDL.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

The Central Bank of Myanmar (“CBM”) has issued new rules on Export Proceeds Requirements for Exporters (“Notification”). These rules impose strict obligations on exporters to repatriate foreign currency earnings, reconcile proceeds with banks, and comply with documentary requirements. Non-compliance can result in blacklisting both companies and their directors, with severe legal and commercial consequences.

Key Requirements

1. Export licensing and shipment

Exporters must obtain export licenses through the Ministry of Commerce’s TradeNet 2.0 system, sign sales contracts with foreign buyers, and secure an Export Declaration (“ED”) from Customs before shipment. The Myanmar Port Authority issues a Bill of Lading (“B/L”) during loading.

2. Repatriation of proceeds

The Notification states that the exporters must repatriate foreign currency proceeds within 30 days for exports to ASEAN countries and 60 days for exports to non-ASEAN countries. Failure to comply with this may lead to prosecution under the Foreign Exchange Management Law (“FEML”), punishable by imprisonment of up to one year, fines, or both.

Please see our ‘Banking Compendium’ discussing the CBM laws and regulations on this aspect in 2023-24 here.

3. Bank reconciliation

Exporters must immediately reconcile export proceeds with their Authorized Dealer Banks (“AD Banks”), confirming which ED the proceeds correspond to and providing full supporting documents (ED, sales contract, invoice, B/L).

The Notification states that if the documentation is incomplete or inconsistent, the proceeds will remain on CBM’s outstanding list.

4. Monitoring and enforcement

The CBM will monitor compliance through its Foreign Exchange Management System (FEMS), which will cross-check Customs data with bank reports. AD Banks will notify exporters regarding outstanding proceeds and set deadlines for reconciliation.

If exporters fail to act, the CBM will escalate the matter to the Ministry of Commerce, which may suspend import-export licenses. Action Task Forces may also contact exporters directly in Yangon, Naypyidaw, and Mandalay to facilitate repayment. Continued non-compliance will result in blacklisting.

5. Blacklisting and consequences

The Notification states that companies that fail to repatriate or reconcile proceeds face blacklisting. Additionally, the directors of the company may also be blacklisted.

Among other things, blacklisting restricts banking and financial services, suspends licenses, prevents directors from entering or leaving Myanmar, and causes reputational and investor confidence losses.

6. Removal from blacklist

To lift blacklisting, exporters must repatriate all outstanding proceeds, complete reconciliation, and apply to the CBM with bank confirmation. CBM would then instruct DICA to cross-check the directors’ involvement in other companies and verify that no related company holds outstanding export obligations before recommending removal.

7. Special circumstances

If exporters cannot repatriate proceeds due to deterioration of the goods, damage, defects, or re-export requirements, they must submit timely supporting documents to the CBM. The CBM may approve cancellation of such obligations after examination.

8. Other compliance obligations

The Notification additionally states the following:

(i) Exporters must ensure that the ED specifies the correct bank.
(ii) If the receiving bank differs, exporters must complete a bank name change process, which the CBM processes within one working day.
(iii) Exporters must request formal amendments through their banks if discrepancies exist between ED data and received proceeds.

What Exporters Must Do to Comply

Repatriate proceeds on time: Deposit foreign currency proceeds within 30/60 days of export.
Reconcile immediately: Match funds to the correct ED with complete supporting documentation.
Verify ED details: Ensure EDs specify the correct bank; request amendments or bank name changes promptly.
Maintain complete records: Keep accurate contracts, invoices, Bills of Lading, and EDs for all transactions.
Act quickly on discrepancies: Submit amendment requests through banks if mismatches occur.
Engage with banks proactively: Respond promptly to AD bank notifications and deadlines.
Use exception procedures when necessary: Submit documentation for damaged, defective, or re-exported goods without delay.

Conclusion

The CBM seems to have adopted a zero-tolerance approach to export proceeds compliance applicable to companies and their related entities. This stems from the fact, and as indicated in the Notification, that, some exporters do not stay updated on regulatory requirements and instead delegate the entire export process to agents or employees. In some cases, such agents or employees use the company’s name while another business actually carries out the exports. Even when export proceeds are received by the bank, exporters often fail to complete the required reconciliation on time, which places both the company and its directors at risk of being blacklisted.

In line with the requirements under the Notification, exporters must establish internal systems to monitor export payments, reconcile promptly with banks, and maintain accurate records.

Failure to comply triggers escalating enforcement measures, including blacklisting and prosecution. Additionally, companies and directors must treat these requirements as a compliance priority to safeguard their operations and reputations.

If you have not subscribed to our newsletter please do so by clicking here. While you are here, please feel free to read our recent publications covering the automobile sector (here), cybersecurity (here) and labour and employment issues in M&A (here). If you wish to see our services list, please click on ‘Solutions’ on our page here.

On 30 May 2025, the Non-Bank Financial Services Authority issued Prakas No. 046 on the Issuance of Infrastructure Bonds (“Prakas”), establishing the regulatory framework governing the issuance and post-issuance obligations of infrastructure bonds in Cambodia. The Prakas aims to ensure that such issuances are conducted in an efficient, effective, accountable, and transparent manner.

Key Highlights of Prakas No. 046

This Prakas outlines the regulatory framework for infrastructure bond issuance in Cambodia. The key provisions include:

Scope of Application
Types of infrastructure Bonds
Eligible Infrastructure Assets for Bonds Issuance
Issuance Requirements
Post-Issuance Requirements
Penalties

Should you need any further information or assistance or navigating the regulatory requirements, please reach out to us via the contacts below.

Click “Download” button to continue reading in detail for each key highlight of this Prakas.

On 24 June 2025, the Central Bank of Myanmar (“the CBM”) issued Notification No. 16/2025 (“the Notification”), announcing the formation of the Central Committee for the Issuance of Central Bank Digital Currency (“the Committee”), with prior approval from the State Administration Council dated 1 May 2025. The Committee is tasked with overseeing the research, development, and potential implementation of a digital kyat.

Chaired by the CBM Governor, it includes high-level officials from the Information Technology and Cyber Security Department, the Ministry of Transport and Communications, the Ministry of Planning and Finance, the Financial Regulation Department, and the Myanmar Banks Association.

The Notification states that the Committee is responsible for engaging with stakeholders, organizing workshops, reviewing research, and coordinating with local and international experts. It must define procedures, prepare and implement a phased plan for central bank digital currency (“the CBDC”) rollout, and ensure alignment with the approved strategy.

The Notification further states that the Committee will study global CBDC models, assess their impacts, and evaluate technologies such as ledger systems, databases, and cybersecurity frameworks. Furthermore, the Committee will supervise the development of relevant legal and regulatory frameworks, manage operational aspects including human resources and budgeting, oversee the setup of technical infrastructure, and form and supervise working committees as required.

The Accounting and Auditing Regulator (“AAR“), under the Non-Bank Financial Services Authority (“FSA“) Issued Instruction No. 023/25 on May 22, 2025. This instruction outlines the procedures and formalities for enterprises and non-profit organizations to prepare and submit Annual Financial Reports via the Digital Financial Reporting Platform.

Key Highlights:

Platform Use: In accordance with Prakas No. 039 FSA.P., dated May 20, 2025, on the implementation of the Financial Reporting Reduction Framework and the AAR Digital Financial Reporting Platform, all entities who use the “Digital Financial Reporting Platform” to prepare and submit annual Financial Reports to the AAR must adhere to the formalities and procedures.
Account Setup: Entities must register via www.acar.gov.kh, link their E-FILING account, and obtain a Financial Reporting Identification Number (FIN) if needed.
Report Preparation: Financial data must be entered using an Excel template or imported from approved accounting systems. A service fee is payable via KHQR.
Automated Compliance Verification: The enterprise or organization shall verify the financial reports using the automated compliance verification. The compliance verification includes Genuine Errors (must fix) and Possible Errors (recommended review).
Digital Approval: Directors approve reports using a secure 4-digit code sent via email, certifying accuracy of the financial reports.
Final Submission: Approved reports are submitted to AAR’s E-FILING system with payment of the annual filing fee via KHQR.

This initiative aims to streamline reporting, enhance accuracy, and ensure timely compliance. Support is available via QR codes embedded in the instruction.

Bookkeeping services, required to be undertaken by a licensed firm in Cambodia, are provided by Mekong Accounting Services Co., Ltd, a member of the DFDL group, a corporate member of the Kampuchea Institute of Certified Public Accountants and Auditors and licensed by the Accounting and Auditing Regulator of Cambodia.

Recent incidents of fraudulent withdrawals from mobile financial service accounts have been reported. In light of these incidents, we wish to draw attention to the previously issued, yet still highly relevant, guidelines under Central Bank of Myanmar Notification No. 22/2023 dated 15 September 2023.

These guidelines outline key procedures for addressing mobile financial service fraud, including the following:

Immediate Reporting by Victims : Fraud victims must promptly report the incident to their bank or mobile wallet operator and the nearest police station, which must open a case without delay and notify the provider via phone, fax, or email.
Account Freezes and Reporting: Banks or mobile wallet operators must verify the complaint, and if confirmed, freeze the relevant accounts for 72 hours, share KYC details with authorities, and report transactions to the CBM and Financial Intelligence Unit (FIU) within 24 hours.
Police Confirmation and Account Handling: If the police confirm a case, the investigation proceeds; otherwise, account freezes are lifted after 72 hours. Requests to reopen accounts must be referred to the CBM with input from investigators.
Interagency Coordination: The CBM, FIU, and Myanmar Police Force will continue to coordinate on legal proceedings, information gathering, and management of temporary account freezes in accordance with the law.

Be aware as these protections roll out!

Data is the new currency — and Thailand’s digital economy is demanding the infrastructure to match.

As the Kingdom accelerates its digital transformation, data centers are becoming the backbone of Thailand’s AI, cloud, fintech, and broader tech ecosystem. Backed by strong government support and policy momentum, the digital infrastructure landscape is evolving rapidly, and opportunities are growing just as fast.

This focused, high-impact seminar walks you through the essential pillars of entering and scaling in Thailand’s data center sector. Whether you’re exploring entry or looking to deepen your footprint, this session delivers the frameworks and insights you need to move with agility and impact.

Core Focus Areas

Market Entry and Compliance Strategy: Strategic entry into Thailand’s data center market through regulatory approvals, licensing, and alignment with legal frameworks.
Real Estate and Finance: Evaluation of site viability, zoning restrictions, and structuring of financing options.
Power Infrastructure and Supply: Ensuring stable, high-capacity power sources to meet data center demand, with consideration for grid stability, future scalability, direct PPAs, and green energy availability.
Data Privacy and Governance: Thailand PDPA-driven practices for compliant data management, storage, and cross-border transfers.

Walk away with actionable insights, deal frameworks, and regulatory updates that will help you navigate and expand your data center investments in Thailand.

Who Should Attend?
Investors, infrastructure developers, data center operators, business executives, general counsels, and digital economy stakeholders looking to tap into Thailand’s fast-growing digital infrastructure sector.

Special Offering:
1:1 meeting available upon request.

Reserve your spot now by clicking “Register Here”.

On 29 April 2025, the Government of Vietnam issued Decree No. 94/2025/ND-CP (“Decree 94”), establishing a controlled testing environment or “Regulatory Sandbox” for Fintech solutions in the banking sector. Effective from 1 July 2025, Decree 94 allows credit institutions, foreign bank branches, and Fintech companies to pilot innovative products under the supervision of the State Bank of Vietnam (“SBV”). The initiative aims to foster financial innovation and inclusion while mitigating risks associated with emerging technologies.

The primary objectives of the Regulatory Sandbox are

to stimulate innovation in the Vietnamese banking and financial sector;
enhance financial inclusion by supporting accessible and efficient services; and
allow both regulators and industry players to better understand the risks and benefits of emerging Fintech solutions.

Below are the key features and notable provisions of Decree 94:

1. Establishment of a Controlled Testing Environment (Regulatory Sandbox)

Decree 94 introduces a regulatory sandbox framework in Vietnam, allowing eligible entities to test Fintech innovations in a controlled environment for a period of up to two years, with possible extensions. Testing is confined to Vietnam and is subject to SBV supervision. The sandbox provides a legal foundation for piloting new technologies prior to full-scale deployment, facilitating regulatory feedback and making iterative improvements.

2. Eligible Fintech Solutions for Testing

Fintech solutions initially permitted to participate in the sandbox include:

Credit Scoring Solutions: Technologies aimed at assessing the creditworthiness of individuals or organizations.
Data Sharing via Open Application Programming Interfaces (Open APIs): Solutions enabling secure data exchange between banks and third-party providers, based on customer consent.
Peer-to-Peer (P2P) Lending Platforms: Platforms that directly connect lenders with borrowers, bypassing traditional intermediaries.

3. Eligible Participants and Entry Criteria

Entities eligible to participate in the sandbox include:

- Credit institutions not under special control;
- Foreign bank branches; and
- Fintech companies legally established in Vietnam.

Applicants must demonstrate that their solutions promote financial inclusion, offer clear consumer benefits, and incorporate robust risk management and consumer protection frameworks. Fintech companies are required to meet specific qualifications, including:

- Legal compliance and operational capability;
- An established track record;
- Leadership with relevant academic qualifications and a minimum of two years of management experience in finance, banking, or technology; and
- High internal feasibility and potential for post-sandbox commercialization.

4. Specific Regulations and Enhanced Scrutiny for Peer-to-Peer (P2P) Lending

Decree 94 imposes strict requirements for P2P lending solutions in the Regulatory Sandbox, mandating operational safeguards like managing maximum loan exposure per borrower, utilizing National Credit Information Centre (CIC) data, processing transactions through bank accounts or licensed e-wallets, and limiting loan terms to two years. Fintech companies must be wholly Vietnamese-owned, with legal representatives and CEOs undergoing rigorous background checks (no criminal record or penalties, no conflicting roles), and their IT systems must be Vietnam-based, meeting high standards for security, privacy, continuity, and pre-operational testing.

5. Application, Approval, and Operational Process

Organizations applying to participate in the Regulatory Sandbox must submit a detailed dossier to the SBV, including an application form, Fintech solution description, testing plan, risk management protocols, personnel qualifications, and legal establishment documents. The SBV reviews applications, may consult other agencies or conduct on-site inspections, and issues a Certificate of Participation outlining the approved solution, testing scope, duration, and conditions, with testing required to start within 90 days.

6. Operational Limitations and Supervisory Oversight

Sandbox testing must be conducted entirely within Vietnam—cross-border testing is prohibited. Participants are restricted to the activities approved under their Certificate of Participation. For example, P2P lending firms may not provide loan guarantees or engage in unrelated services. Regular reporting and compliance monitoring by the SBV are mandatory throughout the testing period.

Future Implications

The practical experiences and data gathered from the Regulatory Sandbox will serve as a crucial empirical basis for the SBV and other relevant authorities to consider in developing or refining the broader legal and regulatory framework governing Fintech activities in Vietnam.

On March 21, 2025, the Central Bank of Myanmar (CBM) issued an order revising the interest rate on average excess reserve funds held in Myanmar Kyat (CAB) above the minimum reserve requirement. This decision, made during the Monetary Policy Committee Meeting (1/2025) on February 28, 2025, aims to enhance bank liquidity, stabilize the banking sector, and ensure an accurate interest rate structure.

Key updates include:

Increased Interest Rate: The interest rate on average excess reserve funds has been raised from 3.8% to 6%.
Eligibility Requirements: Banks must maintain an average excess reserve in the range of 7 billion Kyat to 50 billion Kyat, to qualify for interest payments.
Periodic Review: CBM will periodically adjust the minimum and maximum reserve thresholds and the interest rate based on market conditions.
Interest Calculation and Payment Date: Interest will be calculated based on the last day of the maintenance period and credited to banks’ accounts on a T+2 basis. Payments will start from March 26, 2025, covering the maintenance period until April 22, 2025.
Applicability: These adjustments apply uniformly to state-owned banks, private banks, and foreign bank branches operating under retail banking service licenses.

Previous Notifications (2023 & 2024)

To provide context, CBM had previously addressed reserve requirements and excess reserve interest rates through Directive No. 4/2024, issued on April 30, 2024. This directive replaced Directive No. 9/2023 and its related order letter from April 5, 2023.

Under Directive No. 4/2024:

CBM increased the minimum reserve requirement ratio for banks in Myanmar Kyat from 3.5% to 3.75%, with 3% held as deposits at CBM and 0.75% as cash.
The interest rate on average excess reserves was set at 3.8%, applicable to excess reserves between 7 billion Kyat and 50 billion Kyat.
Banks were required to comply with these new thresholds by the last day of each maintenance period to avoid penalties.

“They are very experienced in cross-border transactions, very commercial and solution-driven. The team is recognised for their experience in a broad range of domestic and international projects, as well as for their work on corporate financig deals.” – Legal500 2025

“DFDL’s Bangladesh office regularly advises foreign and domestic clients on cross-border transactions. The team of lawyers is noted for its strong expertise in TMT, energy and infrastructure projects, as well as M&A deals. The team also covers bond documentation and issuance mandates. The firm draws on its network across the ASEAN region to handle international mandates.” – Chambers Asia Pacific 2025

DFDL is pleased to announce the release of the Myanmar Banking Compendium 2025!

Authored by our experts, Nishant Choudhary (Partner, Managing Director) and Surath Bhattacharjee (Senior Legal Adviser), this compilation covers the latest updates in legislations within the banking and finance sector from June 2023 to December 2024. It meticulously tracks the publicly available notifications, focusing on key topics such as:

Export earnings
Border trade payment frameworks
Foreign exchange conservation measures
Regulation of financial institutions
Reserve requirements of banks

This compendium is a valuable resource for anyone interested in understanding the recent developments in foreign exchange and banking regulations in Myanmar. We hope you find it useful and informative.

Download the article on below download button.

The year 2021 was marked by several changes in Myanmar. The change in government, along with the COVID-19 crisis, led to significant legislative developments that may have not yet been tracked by legal experts and industry players.

In this compendium, DFDL has tracked all relevant notifications, directives, announcements, guidelines and clarifications related to the banking and finance sector issued by the Central Bank of Myanmar and the Ministry of Commerce to provide a summarized analysis of the latest legislative developments that have taken place in Myanmar.

The compendium has been divided into specific subject matters for the convenience of readers, providing a sequential timeline of the developments that have taken place, an overview of the present position, and as a holistic guide to various stakeholders.

The information provided here is for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

The NBC has passed a new regulation permitting commercial banks and payment settlement institutions to provide services relating to cryptoassets pursuant to Prakas B7-024-735 Prokor on Transactions Related to Cryptoassets on 26 December 2024 (“Prakas on Cryptoassets” or “the regulation”).

Historically, the NBC (together with the Securities and Exchange Regulator of Cambodia and the General-Commissariat of National Police) issued a joint statement in 2018 that prohibited any activities related to crypto currencies without holding a license from the relevant authorities.

The Prakas on Cryptoassets formally permits commercial banks and payment settlement institutions operating under the NBC supervision to provide services relating to crypto assets and, for commercial banks, to hold cryptoasset exposure, subject to prior approval from the NBC. Legal entities may also provide services relating to cryptoassets subject to receipt of license from the NBC.

The required conditions and procedures for prior approval (for commercial banks and payment institutions) and license (for legal entities) to act as CASPs pursuant to Clause 20 of this regulation will be set out in a separate regulation.

The regulation defines certain key terminologies used in digital assets. These include cryptoassets, crypto asset exposure, CASPs, e-wallet, tokenization and stablecoin.

Of note, cryptoassets are defined as:

a unit having value in digital, created by using cryptography and distributed ledger technology (DLT) or similar technology;
cryptoassets include tokenized traditional assets; unbacked cryptoassets; stablecoin; utility token and security token;
cryptoassets do not include central bank digital currency (CBDC);
cryptoassets may be traded, transferred and used for payment or investment purposes or access to goods/services via digital system;
cryptoassets do not include digital representation of fiat currencies, securities or other financial instruments, for the purposes of regulating cryptoasset service providers pursuant to this regulation.

CASPs refer to any legal entities that provide services or engage in activities relating to cryptoassets on behalf of customers, namely (a) exchange against official currencies or other crypto assets; (b) transfer services; (c) custody and administration.

Cryptoassets are classified into two groups:

Group 1 refers to cryptoassets that are digital representation of traditional financial instruments or the value of which refers to traditional assets or a pool of traditional assets known as reference assets. Group 1 is further divided into Group 1a (i.e., tokenized securities) and Group 1b (i.e., stablecoins). Group 1a and/or Group 1b must satisfy common and specific conditions as stated under Prakas on Crypto Assets.

On the other hand, Group 2 includes all crypto assets that do not meet the criteria of Group 1, particularly unbacked crypto assets, not tokenized traditional assets or stablecoins.

Commercial banks may provide services or engage in activities relating to cryptoassets for their own accounts (only for Group 1 but not Group 2) or their customers pursuant to Clause 20 of the regulation. Commercial banks must implement existing prudential treatment on exposure to Group 1, with Group 1a exposures not exceeding 5% of Common Equity Tier 1 Capital (CET1 Capital) and Group 1b exposures not exceeding 3% of CET1 Capital. Further, commercial banks must file a quarterly report on the nature and value of cryptoasset exposures pursuant to the appendix attached with the regulation.

In addition to the operational restrictions and prudential requirements, the regulation sets out governance frameworks to supervise crypto asset exposures of commercial banks.

Failure to comply with any provisions under the regulation will subject commercial banks, payment settlement institutions and CASPs to disciplinary sanctions pursuant to Article 52 of the Law on Banking and Financial Institutions. In addition to disciplinary sanctions, the NBC may impose fines on commercial banks that do not comply with the operational restrictions, cryptoasset exposures or reporting requirements.

The NBC will issue two new regulations relating to cryptoassets over the coming months. This will include a regulation on the required conditions and procedures to apply for prior approval or license as CASPs and a regulation on cryptoasset exposures by commercial banks.

Should you have any questions about this new regulation, please feel free to contact us at [email protected].

The recently announced 2025 edition of Chambers Asia-Pacific has ranked DFDL in 6 countries, 11 departments and 19 practitioners! Congratulations to our practitioners who have been ranked in their respective practice areas below. We extend our gratitude to our clients for their unwavering support and to Chambers for this incredible recognition. This continues to reinforce our mission to provide unparalleled legal services and inspires us to keep pushing boundaries and achieving new heights.

Bangladesh

Shahwar Jamal Nizam, Band 1 (Corporate & Finance) and Band 2 (Projects & Energy)
Mahboob Aziz, Up and Coming (Corporate & Finance and Projects & Energy)
Tarannum Tasnim, Up and Coming (Projects & Energy)

Cambodia

Chris Robinson, Band 1 (General Business Law)
Martin Desautels, Vietnam expertise based abroad (General Business Law)
Guillaume Massin, Band 2 (General Business Law)
Clint O’Connell, Band 4 (General Business Law)
Vansok Khem, Band 4 (General Business Law)
Chuan How Tan, Singapore expertise based abroad (General Business Law)

Laos

Audray Souche, Thailand expertise based abroad (General Business Law)
Kristy Newby, Band 1 (General Business Law)
Senesakoune Sihanouvong, Band 1 (General Business Law)
Standré Bezuidenhout, Band 2 (General Business Law)

Myanmar

Nishant Choudhary, Band 2 (General Business Law)
Thida Aye, Band 3 (General Business Law)

Thailand

Audray Souche, Band 2 (Projects & Energy)
Paul Volodarsky, Band 3 (Real Estate)

Vietnam

Jérôme Buzenet, Band 2 (Corporate/M&A) and Band 3 (Projects, Infrastructure & Energy)
Hanh Tran, Band 5 (Corporate/M&A)
Martin Desautels, Band 3 (Projects, Infrastructure & Energy)
Phong Anh Hoang, Band 3 (Projects, Infrastructure & Energy)

Click here for more info: https://chambers.com/law-firm/dfdl-asia-pacific-8:2564

The State Bank of Vietnam (SBV) has recently released a draft Circular outlining proposed regulations for the opening and use of Vietnam Dong bank accounts by foreign investors engaging in indirect investment activities (“Draft Circular”). This initiative aims to streamline and standardize the management of foreign indirect investment in Vietnam.

The Draft Circular is open for public consultation for the next 60 days, during which it may undergo revisions prior to its official issuance. Once effective, it will replace Circular No. 05/2014/TT-NHNN (“Circular 05”), which has governed the use of indirect investment capital accounts (“IICA”) since its issuance on12 March 2014.

Key Provisions Under Circular 05

Circular 05 currently regulates several critical aspects of indirect investment in Vietnam, including:

Eligibility of investors to open IICAs.
Various forms of foreign indirect investment in Vietnam.
Authorized usage of IICAs.
Rights and obligations of credit institutions permitted to open IICAs and the investors.
Reporting obligations, supervision and inspection regime, and sanctions.

Addressing Existing Gaps

One significant discrepancy in Circular 05 lies in its terminology, which differs from the Ordinance on Foreign Exchange Control No. 28/2005/PL-UBTVQH11 (“OFEC”). The OFEC refers to these accounts as indirect investment accounts (IIAs) instead of IICAs. The Draft Circular seeks to resolve this inconsistency while supporting the growth of Vietnam’s stock exchange market by introducing several key improvements.

Highlights of the Draft Circular

1. Simplified Procedures for Opening IIAs

Under Circular 05, opening and closing IICAs required strict compliance with regulations set by permitted banks. This process was often complicated by inconsistent guidance and the need for foreign investors to consularize or legalize documents issued abroad. The Draft Circular introduces a more straightforward process for opening IIAs, as specified in Article 4, eliminating the requirements for consularization and legalization of foreign-issued documents.

2. Permission for Multiple IIAs at the same bank

The Draft Circular allows foreign investors to open multiple IIAs within the same licensed bank in specific scenarios:

Foreign securities companies can open two IIAs corresponding to their two issued securities transaction codes.
Foreign investment funds, foreign institutions managed by many foreign fund management companies can open multiple IIAs corresponding to the securities transaction codes of different investment funds.
Foreign state-owned investment organizations or investment and finance organizations owned by international finance organizations that Vietnam is a member of can open multiple IIAs corresponding to their issued securities transaction codes.

This flexibility accommodates diverse investment needs and enhances operational efficiency for foreign investors.

3. Enhanced Guidance on IIA Usage

The Draft Circular mandates that all foreign indirect investment transactions must be conducted through an IIA. Importantly:

Funds in IIAs cannot be transferred to term or savings deposits;
When opening a new IIA at a different bank, all funds must be transferred from the existing IIA to the new account; and
The existing IIA must be closed within five business days of the new account’s opening – a stipulation absent in Circular 05.

Expected Enactment

The Draft Circular is expected to undergo the final appraisals before the end of 2024. If the foregoing timing is met, the Draft Circular will come into effect in early 2025.

The information provided is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.