The Cases of Transferring Money from Vietnam Abroad

How to transfer money from Vietnam abroad?

In the context of international economic integration, more and more foreign investors are coming and investing in Vietnam. Besides, many Vietnamese individuals and organizations have also implemented many investment activities, living, traveling… abroad. Therefore, there are needs to transfer money from Vietnam abroad.

For the control of the State Bank of Vietnam, the transfer money from Vietnam abroad has to be made through bank transfer at banks in Vietnam.

Cases when money could be transferred abroad from Vietnam?

According to the provisions of Vietnamese laws on foreign exchange management, domestic individuals and organizations are allowed to transfer money  abroad in the following cases:

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How to transfer money from Vietnam abroad

For individuals being Vietnamese citizens, they are entitled to buy, transfer or bring foreign currencies overseas according to the State Bank’s regulations for the following purposes: to study and receive medical treatment abroad; traveling; business trip; visiting abroad; to pay charges and fees to foreign countries; allowances for relatives members living abroad; transfer of inheritance money to overseas heirs; transfer money in case of permanent residence abroad; One-way money transfer for other legitimate needs.

For enterprises, they are allowed to transfer money from Vietnam abroad when performing the following cases:

Carrying out payment and transferring money related to the import or export of goods and/or services; payment of payments and remittances related to commercial credits and short-term bank loans; make payments and transfers related to direct and indirect investment income; transfer money when being allowed to reduce direct investment capital; payment of debts and interest of foreign loans; make one-way money transfers; payment and other remittance according to regulations of the State Bank of Vietnam.

What are legal implication of violation of transferring money abroad?

Transferring money abroad from a country with foreign exchange control policies with the intention of avoiding capital outflow restrictions can have serious legal implications. These implications can vary depending on the specific laws and regulations of the country involved, but some common legal consequences might include:

Violation of Foreign Exchange Regulations:

Most countries with foreign exchange controls have regulations in place to manage the movement of funds across borders. Transferring money in violation of these regulations can lead to fines, penalties, or legal action.

Financial Penalties:

Governments may impose significant financial penalties on individuals or entities found to be in breach of foreign exchange control policies. These penalties can be substantial and may far exceed the amount of money attempted to be transferred.

Criminal Charges:

In some cases, transferring money abroad in violation of foreign exchange controls can be considered a criminal offense. Individuals involved could face criminal charges, which might result in fines, imprisonment, or both.

Confiscation of Funds:

Authorities may have the power to confiscate the transferred funds, especially if the transfer is deemed illegal. This could result in a complete loss of the transferred amount.

Blacklisting:

Individuals or entities involved in illegal capital flight might be blacklisted by the government, which can have wide-ranging consequences including difficulty in conducting business, obtaining loans, or engaging in other financial transactions.

Damage to Reputation:

Being involved in activities that violate foreign exchange control regulations can damage an individual’s or a company’s reputation, making it difficult to establish trust with financial institutions, business partners, and other stakeholders.

Legal Proceedings:

Governments may initiate legal proceedings to recover the funds that were transferred in violation of foreign exchange controls. This can lead to costly and time-consuming legal encounters.

Civil Lawsuits:

Individuals or entities negatively affected by the illegal transfer might take legal action to seek compensation or restitution.

International Agreements:

If the country has international agreements or treaties related to financial crimes and money laundering, there could be cross-border legal cooperation, leading to further complications.

It’s important to note that the specifics of the legal implications will depend on the country’s laws, regulations, and the nature of the transaction. Before attempting to transfer money abroad to avoid capital outflow restrictions, individuals and entities should seek legal advice from professionals who are well-versed in the relevant laws and regulations of both the originating and receiving countries.

About ANT Lawyers, a law firm in Vietnam

ANT Lawyers, a law firm in Vietnam helps clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. We have attorneys in HanoiHo Chi Minh and Danang, and will help customers comply while doing business in Vietnam.

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