BOL introduces new regulations on foreign currency deposit accounts

BOL introduces new regulations on foreign currency deposit accounts

The Bank of the Lao PDR (BOL) has announced it will begin implementing new regulations for managing foreign currency deposit accounts from April 5, 2025, to ensure the proper use of foreign currency within the country.

Under the new agreement, there won’t be any restrictions on opening and using foreign currency deposit accounts by individuals, businesses and organisations, whether domestic or foreign.

Deposits, withdrawals and transfers within Laos can continue without limitations. The new regulations do not affect deposit accounts used for international trade and investment transactions, such as payments for imported goods or foreign investment funds, which will remain governed by existing regulations.

To enhance the transparency and security of transactions, the agreement introduces conditions for opening and using foreign currency deposit accounts. For example, individuals and businesses must prove they possess foreign currency or have a legitimate source of foreign currency income to open an account. Transfers between different account holders will be subject to a 0.5 percent transaction fee, with a minimum charge of US$1 and a maximum of US$50 per transaction. In addition, daily transfer limits have also been introduced. For example, individuals can transfer up to US$1,000 without documentation. Transfers exceeding this amount require proof of purpose. Businesses can transfer up to US$10,000 without supporting documents, while larger transfers must include relevant documentation.

Similarly, organizations can transfer up to US$20,000 without restrictions, but higher amounts require documentation. Money transfers can be done through various banking service channels, including mobile banking applications, ATMs and bank branches.

For transactions requiring supporting documents, users can submit copies directly at bank branches or upload scanned documents via mobile banking apps. Acceptable documents include invoices, contracts, family census records, and other relevant papers issued by the payer or recipient.