Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity
Bank of Laos No. 580/BoL
Vientiane capital, dated 8 July 2019
Decision
On the Money Transfer/Bring In-Out of Commercial Banks to and from Lao PDR
- Pursuant to the Law on International Finance Management Ref. No. 55/NA, dated 22 December 2014;
- Pursuant to the Decision on the Money Transfer/Bring In-Out of Commercial Banks to and from Lao PDR, No 433/BoL, dated 06 June 2011;
- Pursuant to the Notification on the money transfer of Commercual Banks and Financial Institution into Laos, No 493/BoL, dated 28 December 2016;
- Pursuant to the study and proposal of the Department Of Monetary Policy.
The Governor of the Bank of Lao PDR Issues the Decision
Chapter 1
General Provisions
Article 1 Objectives
This Decision sets out the rules, regulations and procedures on the money transfer/bring In-Out of Commercial Banks to and from Lao PDR to manage the transactions of commercial banks and foreign commercial banks branch in complaince with with the laws and uniformity of implementation, aim to provide the management of foreign currency in compliance with relevant laws and regulations and contribute to manage foreign currency effectively.
Article 2 Money Transfer In-Out of Lao PDR
Money transfer In-Out of Lao PDR is a transfer or bring cash In-Out of commercial Banks and the foreign commercial banks branches to and from Lao PDR, which transfer money In-Out of the Lao PDR is a international transection by using international banking transaction system and to bring cash In-Out of Lao PDR is an international cash flow transaction through international border checkpoints.
Money transfers In-Out of Lao PDR of commercial banks must comply with the laws and regulations of the Bank of Lao PDR in each period.
Article 3. Terms of used
This decision applies to commercial banks and branches of foreign commercial banks that obtained legally license to do business in the Lao PDR.
Chapter 2
Money Transactions In Out of the Lao PDR
Article 4 Transfers money in to Lao PDR
The Commercial banks that wants to transfer foreign currency to Lao PDR in order to support business operations can transfer money to its deposit account which is open to the Banking Services Department without the permission of the Monetary Policy Department, but the commercial banks must report all remittances to the Monetary Policy Department of Lao PDR on weekly basis.
The Commercial Banks must report its remittances to the Lao PDR through the Banking Services Department’s system and transfers it through the bank's own system as formal and submit the transfers report to the Monetary Policy Department by next Monday of follwing week.
Article 5. Transfering money from Lao PDR
Any time that the commercial banks wants to transfer foreign currency oversea from Lao PDR must be obtained approval by the Department of Monetary Policy and the requests for transfer money from Lao PDR must be attached the transfer certificates including the amount, currency and objective as specified in the attachment for a transfer requesting in complaince with collectely and completely of each objective. The money transfer from Lao PDR shall submit documents as a form providing by the Monetary Policy Department and attachement documents based on cases as follows:
- Payment of goods-services and investment for customers
All transfers out of Lao PDR must be attached the transfer certificates of clients in comply with the foreign currency utilization as specified in Article 10 Paragraph 1 of the Foreign Currency Management and the related regulations of the Bank of Lao PDR sets out in periodically, as well as a detailed transcript of the transaction as a form providing by the Monetary Policy Department. In case the payment of goods or services or foreign loan for clients that are dividing in multiple payments, the commercial banks must informe the clients to summary of past payments as well as proof of the transaction in order to provide information to the Monetary Policy Department.
- Foreign credit tranfer of the commercial banks shal include documents as following:
- A copy of the foreign loan permit issued by the Commercial Banking Management Department;
- A copy of the proof of tax liability interest on such loan or a copy of the tax liability certificates issued by the relevant authorities (if applicable).
- Transfer of dividends to shareholders in overseas of the commercial banks and profits transfer of the Foreign Commercial Banks Branches to the Head Quarter Office shall include documents as following:
- A copy transfer permits of profit or dividend out/from Lao PDR issuing by the Commercial Banking Management Department;
- A copy of taxes certificates related to shareholders' equity in the case of dividend transfer overseas (if applicable)
- Transfer money out/from of Lao PDR for any purposes rather then defined in this Article, the Commercial Banks shall provide the relevant attached documents for the purpose of requesting a properly and completely of remittances from the Lao PDR in complaince with the laws and regulations.
Article 6 Import of Cash In-Out of Lao PDR
Any time that the Commercial banks wishing to bring cash In-Out of the Lao PDR must be obtain permission from the Monetary Policy Department by submitting a requests letter as the Bank of the Lao PDR’s form and including cash flow information such clear, accurate and complete as well as relevant attached documents to the Monetary Policy Department for consideration.
Authorized Commercial Banks to transfer/bring cash In-Out of the Lao PDR shall report such cash flow transfer to the Monetary Policy Department after its completion within 2 working days.
Article 7 Permit Consideration
The Monetary Policy Department is responsible for the consideration of remittances and cash transfer/bring In-Out of the Lao PDR based on the recommendations of the commercial banks on the basis of providing accuratly and completely documents of each purpose and compliance with the laws and regulations of the Bank of the Lao PDR.
The Monetary Policy Department will examine, permision letter of the transfer/bring In-Out cash of the Lao PDR for commercial banks which have accurately and completely documents within 01 working days.
The Bank of the Lao PDR may require other documents related to the remittances In-Out of the Lao PDR based on consideration as necessary.
Article 8 Transfer of services fees In-Out of Lao PDR
Transfer of services fees In-Out of Lao PDR, the commercial banks shall follow the regulations as specified by the Banking Services Department in each period.
Chapter 3
Final provisions
Article 9 Implementation
The Monetary Policy Department, Banking Services Department to monitor the implementation of this Decision effectively.
Commercial Banks and Foreign Commercial Banks Branches are strictly obliged to implement this Decision.
Article 10 Effectiveness
This Decision is effective from the date of its signature and displaces the Decision on the Money Transfer/Bring In-Out of Commercial Banks to and from Lao PDR, No 433/BoL, dated 06 June 2011 and the Notification on the money transfer of Commercual Banks and Financial Institution into Laos, No 493/BoL, dated 28 December 2016.
Any Decisions or regulations that were previously into forced which are in conflict with this Decision shall be terminated.
Governor of the Bank of Lao PDR
(Sign and Seal)
Sonesay SITHPHASAY
PDF
PDFPlease share your feedback below and help us improve our content.