Update to the BOL’s Rules on Offshore Bank Accounts

On 24 March 2026, the Bank of the Lao PDR (“BOL”) issued Decision No. 251/BOL on the Management of Offshore Bank Account Openings (the “Decision”), which applies to Lao residents who wish to open bank accounts overseas, but not to commercial banks and financial institutions.

Who can open an offshore bank account?

An offshore bank account may be opened by the following:

• Individuals who do not require prior approval from the BOL to open an offshore bank account, such as students, diplomats, government delegates, and Lao workers employed overseas (“Exempt Persons”).
• Individuals, legal entities, and organizations require prior approval from the BOL to open an offshore bank account to conduct the following activities (“Approval-Required Persons”):
  • Receipt and repayment of loans during the loan term
  • Receipt of funds from fundraising through a stock exchange listing
  • Support for foreign direct investment and investment in a stock exchange, and the establishment of branches or representative offices overseas
  • Support for the distribution of goods and services that require payment overseas, including for product displays and e-commerce purposes

What types of offshore bank accounts can be opened?

The allowed offshore bank accounts are current accounts and savings accounts. Other types of bank accounts will be considered on a case-by-case basis by the Foreign Currency Management Department of the BOL (“FCMD”).

Offshore bank account approval process and timeline

For new account approval requests

An application with a complete set of the required supporting documents (as specified in the Decision) must be submitted to the FCMD or the relevant regional office of the BOL in hardcopy or electronically.

The approval process takes up to 10 working days from the date the FCMD receives a complete application. If the application is denied, the FCMD will notify the applicant in writing explaining the reason.

For replacement of a current approval

For accounts for which there is already an approval, a request can be made to the FCMD to consider issuing a new approval to replace the former version in the event of any significant change to the approval’s contents (such a change in signatory), or if the approval is dirty, torn, or damaged.

Official fees

Official fees must be paid at the time the application/request is submitted to the FCMD, and are as follows:

• LAK1 million per application, per account for new accounts.
• LAK500,000 to replace a previously issued approval.

Fund remittance to offshore bank accounts

Any persons granted approval to open an offshore bank account may remit money in foreign currency out of the Lao PDR to the offshore bank account, provided that the amount does not exceed the limit specified in the approval. All remittances must be conducted through a single commercial bank, in accordance with the application and supporting documents required by that commercial bank.

Prohibitions and penalties

The Decision specifies a number of prohibitions and their accompanying penalties. Generally, for the first minor violation, the offender will be subject to administrative guidance and a written warning. After that, monetary fines will apply as below.

Exempt Persons are prohibited from:

• Using offshore bank accounts in a manner inconsistent with the Decision, which carries a penalty of LAK50 million.
• Failing to report account activity to the BOL upon request, which carries a penalty of LAK30 million.

Approval-Required Persons are prohibited from:

• Using offshore bank accounts in a manner inconsistent with the approval, which carries a penalty of LAK50 million.
• Depositing and/or remitting funds into an offshore bank account exceeding the amount specified in the approval, which carries a penalty of LAK10 million.
• Failing to report account activity to the BOL for more than three consecutive quarters, or reporting incorrect information, which carries a penalty of LAK30 million.
• Failing to close an offshore bank account and notify the BOL after the purpose for which the account was opened has been fulfilled, which carries a penalty of LAK30 million.

For both Exempt Persons and Approval-Required Persons, further repeat violations will be subject to a fine equal to twice the amount of the most recent penalty imposed.

For more information on this alert, or any other queries on Lao regulations on offshore bank accounts, please contact the undersigned or your usual VDB Loi adviser.