1. Introduction
In the context of increasingly deep international economic integration, transactions involving foreign currencies have become common in commercial activities, investment, and civil life. However, in order to ensure the stability of the monetary market, control cash flows, and implement the State’s foreign exchange management policies, Vietnamese law imposes strict regulations on the purchase, sale, payment, and use of foreign currencies.
In practice, many individuals and organizations still engage in non-compliant foreign currency transactions, such as trading foreign currency between individuals, conducting transactions at unauthorized exchange points, or making payments for goods and services in foreign currency contrary to regulations. These acts may be subject to administrative sanctions and, in certain serious cases, may also give rise to criminal liability.
This article aims to analyze the concept of foreign currency, identify illegal foreign currency trading practices under current regulations, and clarify whether such acts may constitute criminal offenses under Vietnamese law.
2. Definition of Foreign Currency under the Law
Pursuant to Clause 1, Article 2 of Circular No. 07/2012/TT-NHNN issued by the State Bank of Vietnam:
“Foreign currency means the currency of another country or territory, or a common currency such as the Euro or other currencies used in international and regional payments.”
Accordingly, foreign currency includes currencies such as USD, EUR, JPY, and other commonly used international currencies. The management and trading of foreign currency in Vietnam must comply with foreign exchange control regulations to ensure financial market stability and safeguard national monetary policy.
3. Illegal Foreign Currency Trading Practices
Under Article 27 of Decree No. 340/2025/ND-CP on administrative penalties in the monetary and banking sector, violations relating to foreign currency transactions may be subject to administrative sanctions at varying levels depending on the nature and value of the transaction.
3.1. Violations Subject to Warning
A warning is applied to minor violations, including:
- Buying or selling foreign currency between individuals with a value of less than USD 1,000 (or equivalent);
- Conducting foreign currency transactions at unauthorized exchange organizations with a value below USD 1,000;
- Making payments for goods or services in foreign currency in violation of the law with a value below USD 1,000.
Although these acts may not cause serious consequences, they still violate the State’s foreign exchange management regulations.
3.2. Violations Subject to Fines from VND 10 Million to VND 20 Million
Pursuant to Clause 2, Article 27 of Decree No. 340/2025/ND-CP, individuals may be fined from VND 10,000,000 to VND 20,000,000 in the following cases:
- Trading foreign currency between individuals valued from USD 1,000 to under USD 10,000;
- Conducting transactions at unauthorized foreign exchange organizations within this value range;
- Making unlawful payments in foreign currency for goods or services within this range;
- Repeated commission of minor violations.
3.3. Violations Subject to Fines from VND 20 Million to VND 30 Million
This penalty applies to higher-value transactions or violations in foreign exchange management, such as:
- Trading foreign currency between individuals valued from USD 10,000 to under USD 100,000;
- Transactions at unauthorized exchange organizations of similar value;
- Unlawful foreign currency payments within this range;
- Failure to publicly post or clearly display foreign exchange rates.
3.4. Violations Subject to Fines from VND 30 Million to VND 50 Million
More serious violations in foreign exchange activities include:
- Non-compliance with regulations governing foreign exchange agents;
- Illegally transferring or carrying foreign currency into or out of Vietnam;
- Listing prices of goods, services, contracts, or land use rights in foreign currency contrary to regulations;
- Fraudulent documentation in foreign exchange transaction registration procedures.
3.5. More Serious Violations
Acts such as:
- Trading foreign currency between individuals valued at USD 100,000 or more;
- Opening or using foreign currency accounts overseas in violation of regulations;
- Providing unauthorized foreign currency payment services;
- Conducting foreign exchange activities without a license;
may be subject to fines ranging from VND 80 million to VND 250 million, depending on the case.
3.6. Additional Sanctions
In addition to monetary fines, supplementary measures may be applied pursuant to Clause 10, Article 27 of Decree No. 340/2025/ND-CP, including:
- Confiscation of foreign currency or Vietnamese dong related to the violation;
- Suspension of the right to use a foreign exchange agent certificate for 1 to 3 months;
- Suspension of foreign exchange operations of credit institutions for 3 to 6 months.
Thus, most illegal foreign currency trading activities in practice are primarily subject to administrative sanctions.
4. Can Illegal Foreign Currency Trading Lead to Criminal Liability?
Not all violations involving foreign currency give rise to criminal liability. However, in certain cases where elements of a crime are present under the 2015 Penal Code, individuals may be subject to criminal prosecution.
4.1. Smuggling
Pursuant to Point a, Clause 1, Article 188 of the 2015 Penal Code:
Any person who illegally trades goods, Vietnamese currency, foreign currency, precious metals, or gemstones across borders valued from VND 100,000,000 to under VND 300,000,000, or below this threshold but having previously been administratively sanctioned or convicted for similar acts, may be subject to a fine from VND 50 million to VND 300 million or imprisonment from 6 months to 3 years.
4.2. Illegal Transportation of Currency Across Borders
Pursuant to Point a, Clause 1, Article 189 of the 2015 Penal Code:
Any person who illegally transports Vietnamese currency or foreign currency across borders valued from VND 100,000,000 to under VND 300,000,000, or reoffends after administrative sanctions, may be subject to a fine from VND 20 million to VND 200 million, non-custodial reform for up to 2 years, or imprisonment from 3 months to 2 years.
4.3. Money Laundering
Pursuant to Clause 1, Article 324 of the 2015 Penal Code:
Any person who conducts financial transactions to conceal the illegal origin of money or assets derived from criminal activities shall be subject to imprisonment from 1 to 5 years.
Where foreign currency is used to conceal illegal funds or legitimize criminal proceeds, foreign currency trading or transactions may be considered acts of money laundering.
5. Conclusion
Vietnamese law provides strict regulations on foreign currency-related activities to ensure effective foreign exchange management and maintain financial market stability. Most illegal foreign currency trading practices, such as transactions between individuals or dealings at unauthorized exchange points, are subject to administrative sanctions under Decree No. 340/2025/ND-CP, along with supplementary measures such as confiscation or suspension of operations.
However, in serious cases involving smuggling, illegal cross-border transportation of currency, or money laundering, individuals may be subject to criminal liability under the 2015 Penal Code. Therefore, individuals and organizations engaging in foreign currency transactions must comply with legal regulations and conduct transactions only through licensed foreign exchange institutions in order to avoid legal risks.
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