Decree No. 174/2024/ND-CP on prescribing penalties for administrative violations against regulations on insurance business

 

DECREE

PRESCRIBING PENALTIES FOR ADMINISTRATIVE VIOLATIONS AGAINST REGULATIONS ON INSURANCE BUSINESS

Pursuant to the Law on Government Organization dated June 19, 2015; the Law providing amendments to the Law on Government Organization and the Law on Organization of Local Governments dated November 22, 2019;

Pursuant to the Law on penalties for administrative violations dated June 20, 2012; the Law providing amendments to the Law on penalties for administrative violations No. 67/2020/QH14 dated November 13, 2020;

Pursuant to the Law on Insurance Business dated December 09, 2000; the Law providing amendments to the Law on Insurance Business dated November 24, 2010; the Law providing amendments to the Law on Insurance Business and the Law on Intellectual Property dated June 14, 2019;

Pursuant to the Law on Business Insurance dated June 16, 2022;

Pursuant to the Law on Anti-money Laundering dated November 15, 2022;

Pursuant to the Law on Anti-terrorism dated June 12, 2013;

At the request of the Minister of Finance of Vietnam;

The Government promulgates a Decree prescribing penalties for administrative violations against regulations on insurance business.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Decree deals with administrative violations, terminated and ongoing administrative violations; penalties, fines, remedial measures for each administrative violation; entities incurring penalties; power to impose penalties, specific fines to be imposed by each title holder and power to record administrative violations in insurance business sector.

2. Penalties for insurance business-related administrative violations in other fields which are not prescribed in this Decree shall be imposed according to the documents prescribing such fields.

Article 2. Regulated entities

1. Vietnamese and foreign organizations and individuals (hereinafter referred to as “entities”) that commit the administrative violations against regulations on insurance business as prescribed herein.

2. The organizations mentioned in Clause 1 of this Article include:

a) Life insurance companies, non-life insurance companies, health insurance companies, reinsurance companies, insurance brokerage companies; branches of foreign non-life insurance companies, branches of foreign reinsurance companies (hereinafter referred to as “foreign branch in Vietnam”);

b) Representative offices of foreign insurance companies, foreign reinsurance companies, foreign insurance brokerage companies or foreign finance and insurance corporations in Vietnam (hereinafter referred to as “foreign representative office in Vietnam”);

c) Organizations operating as insurance agents;

d) Mutual microinsurance organizations;

dd) Organizations providing auxiliary insurance services (including insurance companies, insurance brokerage companies and other organizations that have juridical person status);

e) Other relevant organizations as prescribed herein.

3. Persons that have the power to impose administrative penalties, persons that have the power to make records of administrative violations, and other relevant authorities and entities as prescribed herein.

Article 3. Penalties and remedial measures

1. Fine shall be the primary penalty imposed upon an entity for committing an administrative violation in insurance business sector.

2. Warnings shall be given to the individuals aged from 14 to under 16 for committing the administrative violations prescribed herein.

3. Fines imposed upon violating entities:

a) The fines for the administrative violations prescribed herein are imposed upon individuals, except the fines in Article 9, Article 10, clause 2 Article 11, Article 12, Article 14, clause 2 Article 15, Article 16, clause 2 Article 18, Article 20, Article 21, clause 2 Article 22, Article 24, Article 25, point b, point c clause 1 and point c clause 2 Article 27, Article 28, Article 33, clause 1 Article 38, Article 40 hereof which are imposed upon organizations;

b) The fine imposed upon an organization is twice as much as that imposed upon an individual for committing the same administrative violation;

c) The maximum fine for an administrative violation in insurance business sector imposed upon an individual is VND 100.000.000; that imposed upon an organization is VND 200.000.000.

4. Additional penalties: Suspension of operations for a fixed period.

5. Remedial measures:

a) Enforced restoration to the initial state as prescribed in point a clauses 1 Article 28 of the Law on penalties for administrative violations;

b) Enforced announcement or compliance with regulations on announcement or notification or correction of information;

c) Actuaries are compelled to fulfill all tasks as prescribed in law; insurance companies, reinsurance companies, foreign branches in Vietnam, or mutual microinsurance organizations that employ actuaries are compelled to fulfill all tasks as prescribed in law;

d) Enforced provision of documents used for concluding insurance policies which are still unexpired at the time of violation detection for the relevant policyholders;

dd) Enforced provision of explicit and adequate explanations about insurance benefits, disclaimer clause, rights and obligations of the policyholder covered by the insurance policies which are still unexpired at the time of violation detection for the relevant policyholders;

e) Enforced provision of the proof of conclusion of the insurance policies which are still unexpired at the time of violation detection for the relevant policyholders;

g) Enforced notification of provision of insurance services and products online to the Ministry of Finance of Vietnam;

h) Enforced strict compliance with regulations of law;

i) Enforced termination of employment of persons directly perform insurance brokerage or insurance agent activities;

k) Enforced return of License for establishment and operation or License for establishment of foreign representative office in Vietnam;

l) Enforced return of illegally obtained amounts of money.

Article 4. Prescriptive periods

1. The prescriptive periods for imposition of penalties for administrative violations in insurance business sector shall comply with provisions of Article 6 of the Law on penalties for administrative violations.

2. Determination of prescriptive periods of administrative violations in insurance business sector:

a) The prescriptive period of an ongoing administrative violation in insurance business sector shall commence to run from the day on which the violation is discovered by the on-duty competent official;

b) The prescriptive period of a terminated administrative violation shall commence to run from the day on which the commission of violation ends.

3. The ending date of a violation in insurance business sector which is used for determining the prescriptive period of that violation is the date on which regulations of law are strictly obeyed, except those cases specified in clause 4 of this Article. Where it is impossible to determine the date on which regulations of law are strictly obeyed, the ending date of a violation in insurance business sector which is used for determining the prescriptive period of that violation shall be the date of detection of that violation.

4. Ending dates of some violations in Chapter II hereof, which are used for determining the prescriptive periods of such violations, are provided for as follows:

a) Regarding the act of forging the documents included in an application for License for establishment and operation which has been issued as prescribed in Article 6 hereof, the ending date of the violation shall be the date on which such documents are found to be forged;

b) Regarding the act of failing to issue procedures/regulations, or failing to approve reinsurance/retrocession scheme, or failing to formulate policies/internal regulations in risk management prescribed in point b clause 1 Article 9, point a clause 1 Article 13, point b clause 1 Article 33 hereof, the ending date of the violation shall be the date on which the procedures/regulations are issued, or the reinsurance/retrocession scheme is approved, or policies/internal regulations in risk management are formulated as prescribed by laws;

c) Regarding the violations against regulations on reporting prescribed in point b clause 2 Article 8, clause 1 Article 12, point b clause 1 Article 20, point b clause 2 Article 32, point d clause 1 Article 33, point b clause 1 Article 34, point c clause 1 Article 35, point d clause 1 Article 36, Article 37 and Article 39, the ending date of the violation shall be the date on which the report is submitted in accordance with regulations of law;

d) Regarding violations against regulations on announcement of information prescribed in Article 39 hereof, the ending date of the violation shall be the date on which the announcement is made or the announcement with adequate contents and correct format is made as prescribed.

Article 5. Principles for determining fines and suspension periods in case of aggravating and mitigating factors; repeated administrative violations

1. When determining the fine amounts imposed on the entities that commit violations under both aggravating and mitigating circumstances, the aggravating circumstance shall be reduced or relieved according to the one-for-one rule under which a mitigating circumstance is offset against an aggravating circumstance.

2. The specific amount of fine imposed for a violation is provided for as follows:

a) If none of mitigating and aggravating circumstances exists, the average fine in the fine range for that violation shall be imposed;

b) In case 01 mitigating circumstance exists, the average of the average fine and the minimum fine in the fine range for that violation shall be imposed;

c) In case 02 or more mitigating circumstance exist, the minimum fine in the fine range for that violation shall be imposed;

d) In case 01 aggravating circumstance exists, the average of the average fine and the maximum fine in the fine range for that violation shall be imposed;

dd) In case 02 or more aggravating circumstance exist, the maximum fine in the fine range for that violation shall be imposed.

3. In case fixed-period suspension of operation is imposed as an additional penalty, the specific suspension period is provided for as follows:

a) If none of mitigating and aggravating circumstances exists, the average suspension period in the range of suspension periods for that violation shall be imposed;

b) In case 01 mitigating circumstance exists, the average of the average suspension period and the minimum suspension period in the range of suspension periods for that violation shall be imposed;

c) In case 02 or more mitigating circumstance exist, the minimum suspension period in the range of suspension periods for that violation shall be imposed;

d) In case 01 aggravating circumstance exists, the average of the average suspension period and the maximum suspension period in the range of suspension periods for that violation shall be imposed;

dd) In case 02 or more aggravating circumstance exist, the maximum suspension period in the range of suspension periods for that violation shall be imposed.

4. Repeated administrative violations:

An entity that repeatedly commits an administrative violation shall incur penalties for each commission or repetition of that violation, unless such repeated commission of a violation is considered an aggravating circumstance as prescribed in Article 13, clause 2 Article 16, Article 17, Article 18, Article 19, clause 3 Article 20, Article 23, Article 24, Article 25, Article 27, clause 3 Article 30, Article 31 hereof.

Chapter II

ADMINISTRATIVE VIOLATIONS, PENALTIES AND REMEDIAL MEASURES

Section 1. VIOLATIONS AGAINST REGULATIONS ON ESTABLISHMENT AND OPERATION

Article 6. Penalties for violations against regulations on applications in case license has been issued

A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:

1. An application for issuance or renewal of a License for establishment of foreign representative office in Vietnam contains fraudulent information provided with the aim of satisfying eligibility conditions for issuance or renewal of the license.

2. An application for issuance of License for establishment and operation contains fraudulent information provided with the aim of satisfying eligibility conditions for issuance of a License for establishment and operation to an insurance company, reinsurance company, foreign branch in Vietnam, insurance brokerage company or mutual microinsurance organization.

Article 7. Penalties for violations against regulations on License for establishment and operation, License for establishment of foreign representative office in Vietnam

1. A fine ranging from VND 10.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:

a) Failing to announce information on a foreign representative office in Vietnam or making such announcement in contravention of regulations of law and/or provisions of clause 4 Article 76 of the Law on Insurance Business No. 08/2022/QH15;

b) Failing to publicly announce contents of the issued License or License for establishment and operation and the official date of business commencement or making such announcement in contravention of regulations of law and/or provisions of clause 2 Article 72, Article 135 of the Law on Insurance Business No. 08/2022/QH15;

c) Failing to notify the satisfaction of requirements for official commencement of business or failing to give such notification by the deadline prescribed by law and/or in clause 3 Article 73 of the Law on Insurance Business No. 08/2022/QH15;

2. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed for the act of altering the License for establishment and operation or License for establishment of foreign representative office in Vietnam.

3. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed for changing the charter capital or allocated capital before obtaining a written approval for such change from the Ministry of Finance as prescribed by law and/or in point b, clause 1 Article 74, point b clause 1 Article 136 of the Law on Insurance Business No. 08/2022/QH15.

4. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:

a) Performing insurance business, reinsurance or retrocession activities before the official date of business commencement as prescribed in clause 2 Article 72, clause 4 Article 73 of the Law on Insurance Business No. 08/2022/QH15;

b) Engaging in insurance business, reinsurance, retrocession or insurance brokerage without obtaining a License for establishment and operation;

c) Engaging in insurance business, reinsurance, retrocession or insurance brokerage against the issued License for establishment and operation;

d) Doing activities or business directly related to the contents and/or scope of an administrative violation resulting in suspension of operation of the violating entity which is still unexpired or while the License for establishment and operation has been revoked or has expired;

dd) Doing business activities against the issued License for establishment of foreign representative office in Vietnam or while this License has been revoked as prescribed by law and/or in Article 61 of the Decree No. 46/2023/ND-CP or has expired.

5. Remedial measures:

a) The entity that commits the violation in clause 1 or 2 of this Article is compelled to announce or comply with regulations on announcement or notify or correct information;

b) The entity that commits the violation in clause 2 of this Article is compelled to return the issued License for establishment and operation or License for establishment of foreign representative office in Vietnam;

c) Enforced restoration of the initial state which has been altered due to the violation in clause 3 or 4 of this Article.

Article 8. Penalties for violations against regulations on split-off, split-up, consolidation, merger, conversion of business type, dissolution of enterprises and shutdown of foreign branches in Vietnam

1. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for carrying out dissolution of an insurance company, reinsurance company or insurance brokerage company or shutdown of a foreign branch in Vietnam in contravention of law and/or provisions of Article 115, point e clause 1 Article 136 of the Law on Insurance Business No. 08/2022/QH15, clause 5 Article 17, Article 55, Article 72 of the Decree No. 46/2023/ND-CP.

2. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for one of the following violations against regulations on split-off, split-up, consolidation, merger or conversion of business type of an insurance company, reinsurance company, insurance brokerage company or foreign branch in Vietnam:

a) Carrying out split-off, split-up, consolidation, merger or conversion of business type before obtaining a written approval from the Ministry of Finance as prescribed by law and/or in point e clause 1 Article 74, point e clause 1 Article 136 of the Law on Insurance Business No. 08/2022/QH15;

b) Failing to provide the Ministry of Finance with a report on the results of the split-off, split-up, consolidation, merger or conversion of business type which is carried out according to the plan approved by the Ministry of Finance as prescribed by law and in clause 4 Article 23, clause 4 Article 71 of the Decree No. 46/2023/ND-CP .

3. Remedial measures:

Enforced restoration of the initial state which has been altered due to the violation in clause 1 or point a 2 of this Article.

Section 2. VIOLATIONS AGAINST REGULATIONS ON OPERATION ORGANIZATION

Article 9. Penalties for violations against regulations on operation organization of insurance companies, reinsurance companies, foreign branches in Vietnam, and mutual microinsurance organizations

1. A fine ranging from VND 60.000.000 to VND 100.000.000 shall be imposed upon an insurance company, reinsurance company, foreign branch in Vietnam, or mutual microinsurance organization for committing one of the following violations:

a) The corporate organizational structure of the insurance company, reinsurance company, foreign branch in Vietnam, or mutual microinsurance organization fails to comply with regulations of law and/or provisions of Article 79 of the Law on Insurance Business No. 08/2022/QH15, Article 20 of the Decree No. 21/2023/ND-CP ;

b) The insurance company, reinsurance company, foreign branch in Vietnam, or mutual microinsurance organization fails to issue its rules, regulations and procedures as prescribed by law and/or in point c clause 2 Article 73 of the Law on Insurance Business No. 08/2022/QH15, clause 2 Article 26, clause 4 Article 39 of the Decree No. 21/2023/ND-CP ;

c) The insurance company, reinsurance company, or foreign branch in Vietnam fails to carry out financial management as prescribed by law and/or in clause 2 Article 108 of the Law on Insurance Business No. 08/2022/QH15.

2. A fine ranging from VND 140.000.000 to VND 180.000.000 shall be imposed upon an insurance company, reinsurance company, foreign branch in Vietnam, or mutual microinsurance organization for committing one of the following violations:

a) The insurance company, reinsurance company, or foreign branch in Vietnam fails to keep General Director (Director) and/or Actuary as prescribed by law and/or in clause 4 Article 80 of the Law on Insurance Business No. 08/2022/QH15.

b) Manager(s) and/or controller(s) of the insurance company, reinsurance company, or foreign branch in Vietnam fail(s) to meet eligibility requirements and standards laid down in law and/or in Article 81 of the Law on Insurance Business No. 08/2022/QH15, Article 26, Article 27, Article 28, Article 29, Article 30 of the Decree 46/2023/ND-CP ;

c) Chairperson of the Management Board, General Director (Director) and/or Actuary(ies) of the mutual microinsurance organization fails to meet eligibility requirements and standards laid down in law and/or in Article 24, clause 1, clause 2, clause 3 Article 25 of the Decree No. 21/2023/ND-CP ;

d) Breaking the office-holding principles laid down in Article 82 of the Law on Insurance Business No. 08/2022/QH15;

dd) Replacing the Chairperson of the Management Board (Chairperson of the Board of Members), General Director (Director) and/or Actuary(ies) before obtaining a written approval from the Ministry of Finance of Vietnam as prescribed by law and/or in point dd clause 1 Article 74 of the Law on Insurance Business No. 08/2022/QH15.

3. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in Clause 1 or Clause 2 of this Article.

Article 10. Penalties for violations against regulations on managers of insurance brokerage companies

1. A fine ranging from VND 140.000.000 to VND 180.000.000 shall be imposed upon an insurance brokerage company for committing one of the following violations:

a) Deputy Director or Deputy General Director, Chief Accountant, or head of operations department of the insurance brokerage company fails to satisfy eligibility standards laid down in law and/or in clause 1 Article 138 of the Law on Insurance Business No. 08/2022/QH15, Article 79, Article 80 of the Decree No. 46/2023/ND-CP .

b) Chairperson of the Management Board or Chairperson of the Board of Members, Director or General Director fails to satisfy eligibility standards laid down in law and/or in Article 77, Article 78 of the Decree No. 46/2023/ND-CP ;

c) Replacing Chairperson of the Management Board or Chairperson of the Board of Members, Director or General Director before obtaining a written approval from the Ministry of Finance of Vietnam as prescribed by law and/or in point dd clause 1 Article 136 of the Law on Insurance Business No. 08/2022/QH15.

2. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in Clause 1 of this Article.

Article 11. Penalties for violations against regulations on actuaries

1. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed upon an actuary for:

a) Failing to perform his/her duties as assigned by the insurance company, reinsurance company, foreign branch in Vietnam, or mutual microinsurance organization as prescribed by law and/or in point c clause 4 Article 82 of the Law on Insurance Business No. 08/2022/QH15, clause 3 Article 25 of the Decree No. 21/2023/ND-CP ;

b) Failing to adequately perform his/her duties as assigned by the insurance company, reinsurance company, or foreign branch in Vietnam as prescribed by law and/or in clause 4 Article 82 of the Law on Insurance Business No. 08/2022/QH15, clause 3 Article 25 of the Decree No. 21/2023/ND-CP ;

2. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed upon an insurance company, reinsurance company, foreign branch in Vietnam, or mutual microinsurance organization for committing one of the following violations: failing to employ actuary(ies) or failing to employ actuary(ies) to perform all of the duties prescribed in law and/or in clause 4 Article 82 of the Law on Insurance Business No. 08/2022/QH15, clause 3 Article 25 of the Decree No. 21/2023/ND-CP .

3. Remedial measures:

a) Enforced strict compliance with regulations of law in case of commission of the violation in point a clause 1 of this Article;

b) The actuary who commits the violation in point b clause 1 of this Article is compelled to adequately perform his/her duties as prescribed by law;

c) The insurance company, reinsurance company, or foreign branch in Vietnam that commits the violation in clause 2 of this Article is compelled to employ actuary(ies) to perform all duties as prescribed by law.

Article 12. Penalties for violations against regulations on changes requiring approval or notification

1. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed upon an insurance company, reinsurance company, insurance brokerage company, or foreign branch in Vietnam for committing one of the following violations: failing to give notification to the Ministry of Finance or failing to give such notification by the deadline prescribed by law and/or in clause 3 Article 74, clause 2 Article 136 of the Law on Insurance Business No. 08/2022/QH15;

2. A fine ranging from VND 50.000.000 to VND 70.000.000 shall be imposed upon an insurance company, insurance brokerage company, reinsurance company, or foreign branch in Vietnam for changing its name and/or relocating its headquarters address before obtaining a written approval from the Ministry of Finance of Vietnam as prescribed by law and/or in point a clause 1 Article 74, point a clause 1 Article 136 of the Law on Insurance Business No. 08/2022/QH15.

3. A fine ranging from VND 160.000.000 to VND 200.000.000 shall be imposed upon an insurance company, reinsurance company, insurance brokerage company, or foreign branch in Vietnam for approval from the Ministry of Finance of Vietnam for committing any violation against regulations on changes requiring written approval from the Ministry of Finance as prescribed by law and/or in point d, point g clause 1 Article 74, point c, point d clause 1 Article 136 of the Law on Insurance Business No. 08/2022/QH15.

4. Remedial measures:

a) Enforced strict compliance with regulations of law in case of commission of the violation in clause 1. clause 2, or clause 3 of this Article;

b) Enforced restoration of the initial state which has been altered due to the violation in clause 3 of this Article.

Article 13. Penalties for violations against regulations on engagement in reinsurance, retrocession by insurance companies, reinsurance companies, foreign branches in Vietnam, and mutual microinsurance organizations

1. A fine ranging from VND 50.000.000 to VND 70.000.000 shall be imposed for committing one of the following violations:

a) Failing to approve the reinsurance or retrocession scheme as prescribed by law;

b) Using a reinsurance or retrocession scheme which does not have adequate contents as prescribed by law;

c) Organizing the implementation of a reinsurance or retrocession scheme in contravention of regulations of law.

2. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:

a) Reinsuring or retroceding all of the insured or reinsured liabilities under an insurance policy or reinsurance contract to one or some domestic and foreign insurance companies, reinsurance companies, or foreign insurance companies accepting retrocession, and other foreign branches in Vietnam;

b) The applied retention fails to comply with regulations of law;

c) Engaging in the insured-designated reinsurance or finite reinsurance against regulations of law;

d) Reinsuring or retroceding to a foreign insurance company or foreign reinsurance company that fails to meet relevant eligibility requirements as prescribed by law;

dd) Accepting reinsurance of the same risks which have been retroceded against regulations of law.

3. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 1, or clause 2 of this Article (for unexpired insurance policies or contracts);

Article 14. Penalties for violations against regulations on transfer of insurance policy portfolios

1. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed upon an insurance company or branch of foreign non-life insurance company for committing one of the following violations:

a) Carrying out the transfer of the portfolio of insurance policies before obtaining a written approval from the Ministry of Finance as prescribed in clause 1 Article 93 of the Law on Insurance Business No. 08/2022/QH15;

b) Failing to transfer the portfolio of insurance policies as prescribed by law and/or in Article 91 of the Law on Insurance Business No. 08/2022/QH15;

c) The transferor continues entering into new insurance policies in the transferred line of insurance as prescribed in clause 4 Article 34 of the Decree No. 46/2023/ND-CP .

2. Remedial measures:

a) Enforced strict compliance with regulations of law in case of commission of the violation in clause 1 of this Article;

b) Enforced restoration of the initial state which has been altered due to the violation in clause 1 of this Article.

Article 15. Penalties for violations against regulations on insurance claims, insurance payout

1. The following fines shall be imposed for colluding with insurance policies in settling insurance claims and/or paying out claims against regulations of law; forging documents or deliberately falsifying information to reject insurance claims or payment for claims when insurable events occur; forging documents or deliberately falsifying information shown in documents required for filing claims for insurance coverage and payout; causing self-harm or self-injury or deliberately self-inflicted loss or damage to property to claim insurance benefits, unless otherwise prescribed in laws and if not liable to criminal prosecution:

a) A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed if any of the abovementioned violations results in the illegally obtained amount of less than VND 10.000.000 or causes damage assessed at less than VND 20.000.000;

b) A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed if any of the abovementioned violations results in the illegally obtained amount of from VND 10.000.000 to less than VND 15.000.000 or causes damage assessed at from VND 20.000.000 to less than VND 30.000.000;

c) A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed if any of the abovementioned violations results in the illegally obtained amount of from VND 15.000.000 to less than VND 20.000.000 or causes damage assessed at from VND 30.000.000 to less than VND 50.000.000.

2. A fine ranging from VND 160.000.000 to VND 200.000.000 shall be imposed upon a corporate legal entity for performing any act of frauds described in clause 1 Article 213 of the 2015 Criminal Code (as amended in 2017) if the violation involves an illegally obtained amount of less than VND 200.000.000 or causes damage assessed at less than VND 400.000.000 or is not serious to the extent that a criminal prosecution is brought.

3. Remedial measure:

Enforced return of the illegally obtained amount in case of commission of the violation in clause 1 or clause 2 of this Article.

Section 3. VIOLATIONS AGAINST REGULATIONS ON PROVISION OF INSURANCE PRODUCTS

Article 16. Penalties for violations against regulations on provision of insurance products

1. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed upon an insurance company, branch of foreign non-life insurance company, mutual microinsurance organization or insurance brokerage company for failing to notify the Ministry of Finance within 07 working days from the day on which it provides insurance services/products online of the information on its profiles, insurance services/products, method of providing insurance services/products, and other information concerning its provision of insurance services/products online.

2. A fine ranging from VND 60.000.000 to VND 100.000.000 shall be imposed upon an insurance company or branch of foreign non-life insurance company for committing one of the following violations:

a) Failing to provide the policyholder with documents necessary for conclusion of the insurance policy as prescribed by law and/or in point a clause 2 Article 20 of the Law on Insurance Business No. 08/2022/QH15;

b) Failing to give the policyholder with explicit and adequate explanations about insurance benefits, disclaimer clause, rights and obligations of the policyholder when concluding the insurance policy as prescribed by law and/or in point b clause 2 Article 20 of the Law on Insurance Business No. 08/2022/QH15;

c) Failing to provide the policyholder with the proof of conclusion of the insurance policy as prescribed by law and/or in Article 18 of the Law on Insurance Business No. 08/2022/QH15;

d) Using threats and force to obtain the consent to an insurance policy, as prescribed in clause 5 Article 9 of the Law on Insurance Business No. 08/2022/QH15.

3. Remedial measures:

a) The entity that commits the violation in clause 1 of this Article is compelled to notify the Ministry of Finance of its provision of insurance services/products online;

b) Enforced provision of documents necessary for concluding insurance policies which are still unexpired at the time of violation detection for the relevant policyholders in case of commission of the violation in point a clause 2 of this Article;

c) Enforced provision of explicit and adequate explanations about insurance benefits, disclaimer clause, rights and obligations of the policyholder covered by the insurance policies which are still unexpired at the time of violation detection for the relevant policyholders in case of commission of the violation in point b clause 2 of this Article;

d) Enforced provision of the proof of conclusion of insurance policies which are still unexpired at the time of violation detection for the relevant policyholders in case of commission of the violation in point c clause 2 of this Article.

Article 17. Penalties for violations against regulations on provision of life insurance, health insurance by insurance companies, branches of foreign non-life insurance companies, and mutual microinsurance organizations

1. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:

a) Rules, terms and conditions of insurance do not comply with regulations of law;

b) Summaries of rules, terms and conditions of insurance of life insurance/health insurance products do not comply with regulations of law;

c) Sales illustration materials of life insurance products do not comply with regulations of law;

d) Insurance application form, questionnaire related to the insured risks, insured subject matters of life insurance/health insurance products do not comply with regulations of law;

dd) Insurance flyers for life insurance/health insurance products do not comply with regulations of law;

e) Information, advertising on life insurance products do not comply with regulations of law;

g) Failing to strictly comply with regulations of law on investment-linked insurance, retirement insurance and/or health insurance products.

2. Additional penalty:

The entity that commits the violation in point g clause 1 of this Article shall be suspended from performing a part of contents/scope of business specified in the issued License for establishment and operation which is directly related to the violation for a fixed period of 01 – 03 months.

3. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 1 of this Article.

Article 18. Penalties for violations against regulations on insurance products, insurance commissions of insurance companies, branches of foreign non-life insurance companies, and mutual microinsurance organizations

1. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:

a) Providing insurance products in the lines of life insurance, health insurance, motor vehicle insurance or microinsurance before obtaining the Ministry of Finance’s approval of the premium calculation methods and bases or modifications thereto as prescribed by law and/or in clause 3 Article 87, clause 2 Article 145 of the Law on Insurance Business No. 08/2022/QH15, Article 32 of the Decree No. 46/2023/ND-CP , Article 6 of the Decree No. 21/2023/ND-CP ;

b) Failing to comply with the methods and bases for calculation of insurance premiums for insurance products in the lines of life insurance, health insurance, motor vehicle insurance or microinsurance which have been approved by the Ministry of Finance as prescribed by law and/or in clause 3 Article 87, clause 2 Article 145 of the Law on Insurance Business No. 08/2022/QH15.

2. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed upon an insurance company, branch of foreign non-life insurance company, or mutual microinsurance organization for settling or paying insurance agent commissions, rewards, grants for insurance agents and other interests specified in insurance agent agreements against regulations of law.

3. Additional penalty:

The entity that commits the violation in clause 1 or clause 2 of this Article shall be suspended from performing a part of contents/scope of business specified in the issued License for establishment and operation which is directly related to such administrative violation for a fixed period of 01 – 03 months.

4. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 1 or clause 2 of this Article.

Article 19. Penalties for violations against regulations on compulsory insurance of non-life insurance companies, branches of foreign non-life insurance companies

1. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:

a) Refusing to sell compulsory insurance to individuals/organizations, unless otherwise prescribed by law;

b) Failing to comply with the scope of insurance coverage, disclaimer of insured liabilities, insurance premiums, deductibles, limit of liability and/or minimum sum insured for compulsory insurance as prescribed by law and/or in Article 6, Article 7, Article 8, Article 24, Article 25, Article 26, Article 33, Article 34, Article 37, Article 42, Article 43, Article 45, clause 2 Article 48, Article 49, Article 51, Article 55, Article 56, Article 58 of the Decree No. 67/2023/ND-CP ;

c) Failing to separate the part of compulsory insurance in case of expansion of insurance conditions, increase in sum insured and corresponding insurance premiums under an existing insurance policy as prescribed by law and/or in clause 3 Article 4 of the Decree No. 67/2023/ND-CP ;

d) Offering promotion or discount on compulsory civil liability insurance of motor vehicle owners, as prescribed in clause 1 Article 75 of the Decree No. 67/2023/ND-CP ;

dd) Failing to set up and maintain 24/7 availability of hotlines to receive information on accidents and loss, instruct and reply to policyholders, the insured and relevant parties with issues concerning compulsory insurance as prescribed by law and/or in clause 3 Article 75 of the Decree No. 67/2023/ND-CP ;

e) Failing to integrate the feature of searching for Certificate of compulsory civil liability insurance of motor vehicle owner on the website/web portal of the insurance company as prescribed by law and/or in clause 4 Article 75 of the Decree No. 67/2023/ND-CP ;

g) Granting insurance certificates which do not have adequate contents as prescribed by law and/or in clause 2 Article 10, clause 1 Article 27 of the Decree No. 67/2023/ND-CP ;

h) Making contributions to the Motor vehicle insurance fund against regulations of law and/or provisions of clause 11 Article 75 of the Decree No. 67/2023/ND-CP ;

i) Failing to provide and/or update information to the database of compulsory civil liability insurance of motor vehicle owners as prescribed by law and/or in clause 13 Article 75 of the Decree No. 67/2023/ND-CP ;

k) Failing to record calls to the hotlines as prescribed by law and/or in clause 3 Article 75 of the Decree No. 67/2023/ND-CP ;

l) Failing to comply with regulations on coverage period as prescribed by law and/or in Article 9, Article 36, Article 44, Article 50, Article 57 of the Decree No. 67/2023/ND-CP ;

m) Paying, advancing indemnity against regulations of law and/or provisions of Article 12, Article 13, Article 28, Article 29, Article 39, Article 40, Article 46, Article 47, Article 52, Article 53, Article 59, Article 60 of the Decree No. 67/2023/ND-CP .

2. Additional penalty:

The entity that commits the violation in point b clause 1 of this Article shall be suspended from performing a part of contents/scope of business specified in the issued License for establishment and operation which is directly related to such administrative violation for a fixed period of 01 – 03 months.

3. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 1 of this Article.

Article 20. Penalties for violations against regulations on methods for provision of cross-border insurance services

1. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed upon an insurance company, foreign branch, or insurance brokerage company that is issued with a License in Vietnam for committing one of the following violations:

a) Failing to retain and providing the documents proving that the provider of cross-border insurance services in Vietnam satisfies the eligibility requirements as prescribed by law and/or in clause 1 Article 90 of the Decree No. 46/2023/ND-CP ;

b) Failing to submit reports on engagement in provision of cross-border insurance services to the Ministry of Finance or submitting such reports against regulations of law and/or provisions of clause 2 Article 90 of the Decree No. 46/2023/ND-CP ;

2. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed upon a foreign-invested economic organization or foreigner working in Vietnam for committing one of the following violations:

a) Participating in insurance schemes abroad without using services rendered by insurance brokerage companies that are duly issued with the License for establishment and operation in Vietnam as prescribed by law and/or in Article 6 of the Law on Insurance Business No. 08/2022/QH15.

b) Participating in insurance schemes of foreign insurance companies that fail to meet eligibility requirements for rendering cross-border insurance services as prescribed by law and/or in Article 86 of the Decree No. 46/2023/ND-CP .

3. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed upon an insurance company, foreign branch, or insurance brokerage company that is issued with a License in Vietnam for committing one of the following violations:

a) Using foreign insurance/insurance brokerage companies providing cross-border insurance/insurance brokerage services in Vietnam that fail to satisfy all of the eligibility requirements for rendering cross-border insurance services as prescribed by law and/or in Article 86 of the Decree No. 46/2023/ND-CP ;

b) Using foreign organizations providing cross-border insurance auxiliary services in Vietnam that fail to satisfy all of the eligibility requirements for rendering cross-border insurance auxiliary services as prescribed by law and/or in Article 87 of the Decree No. 46/2023/ND-CP ;

c) Using an organization providing cross-border insurance/insurance brokerage services that is not headquartered in the country or territory of which the Government has entered into an international trade convention containing specific agreements on provision of cross-border insurance services in Vietnam with the Government of Vietnam as prescribed by law and/or in clause 1 Article 85 of the Decree No. 46/2023/ND-CP .

d) Using an organization providing cross-border insurance services not through an insurance brokerage company that is issued with a License for establishment and operation in Vietnam as prescribed by law and/or in clause 1 Article 88 of the Decree No. 46/2023/ND-CP .

4. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 1 of this Article.

Section 4. VIOLATIONS AGAINST REGULATIONS ON INSURANCE BROKERAGE, INSURANCE AGENT, INSURANCE AUXILIARY SERVICES AND FOREIGN REPRESENTATIVE OFFICES IN VIETNAM

Article 21. Penalties for violations against regulations on purchase of professional liability insurance by insurance brokerage companies

A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed upon an insurance brokerage company for failing to fulfill the obligation to purchase professional liability insurance tailored for its insurance brokerage services as prescribed by law and/or in point dd clause 2 Article 137 of the Law on Insurance Business No. 08/2022/QH15.

Article 22. Penalties for violations against regulations on purchase of professional liability insurance by insurance auxiliary service providers

1. A fine ranging from VND 10.000.000 to VND 30.000.000 shall be imposed upon an individual providing consulting services for failing to purchase professional liability insurance providing coverage and protection for his/her provision of consulting services as prescribed by law and/or in clause 4 Article 142 of the Law on Insurance Business No. 08/2022/QH15.

2. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed upon an organization providing insurance auxiliary services for failing to purchase professional liability insurance specific to type of insurance auxiliary services it renders as prescribed by law and/or in clause 4 Article 142 of the Law on Insurance Business No. 08/2022/QH15.

Article 23. Penalties for violations against regulations on insurance brokerage

1. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed for committing one of the following violations:

a) Failing to enter into written agreements with clients when rendering insurance brokerage services or entering into written agreements which do not clearly indicate the insurance brokerage service provided, validity of the agreement, rights and obligations of each party as prescribed by law;

b) Preventing policyholders or insured persons from providing information related to insurance policies or inciting policyholders or insured persons not to give details about insurance policies; doing promotion in the form of promises to provide illegal benefits to incite clients to enter into insurance policies; inciting policyholders to nullify insurance policies remaining in effect to purchase new insurance policies, as prescribed in point a, point b, point c clause 3 Article 137 of the Law on Insurance Business No. 08/2022/QH15;

c) Failing to ensure privacy and security for information provided by clients, insurance companies, reinsurance companies and foreign branches in Vietnam, except as requested by the competent regulatory authority or agreed by clients, insurance companies, reinsurance companies and foreign branches in Vietnam as prescribed by law and/or in point a clause 2 Article 137 of the Law on Insurance Business No. 08/2022/QH15;

d) Failing to pay clients compensation for any loss or damage caused during the process of rendering insurance brokerage services as prescribed by law and/or in point b clause 2 Article 137 of the Law on Insurance Business No. 08/2022/QH15;

dd) Failing to disclose authorized pieces of information to clients as prescribed by law and/or in point c clause 2 Article 137 of the Law on Insurance Business No. 08/2022/QH15.

2. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed for committing one of the following violations:

a) Advising clients to conclude insurance policies with an insurer or branch of foreign non-life insurance company whose insurance terms and conditions are less competitive than those of another insurer or branch of foreign non-life insurance company with the aim of earning a higher broking commission, as prescribed in point d clause 3 Article 137 of the Law on Insurance Business No. 08/2022/QH15;

b) Providing clients with false information or information irrelevant to insurance terms and conditions imposed by insurance companies or branches of foreign non-life insurance companies, as prescribed in point dd clause 3 Article 137 of the Law on Insurance Business No. 08/2022/QH15.

3. A fine ranging from VND 50.000.000 to VND 70.000.000 shall be imposed for using persons who directly providing insurance brokerage services but do not meet relevant eligibility requirements as prescribed by law and/or in clause 2 Article 138 of the Law on Insurance Business No. 08/2022/QH15.

4. Additional penalty:

The entity that commits one of the violations in clause 2 of this Article shall be suspended from providing insurance services which are directly related to such administrative violation for a fixed period of 01 – 03 months.

5. Remedial measures:

a) Enforced strict compliance with regulations of law in case of commission of the violation in Clause 1 or Clause 2 of this Article;

b) The insurance brokerage company is compelled to stop using persons who directly provide insurance brokerage services in contravention of regulations as prescribed in clause 3 of this Article for a period of 12 months from its receipt of the decision on imposition of administrative penalties.

Article 24. Penalties for violations against regulations on insurance agents

1. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed upon an insurance company, branch of foreign non-life insurance company, or mutual microinsurance organization for committing one of the following violations:

a) Using a person who is acting as an insurance agent for another insurance company or branch of foreign non-life insurance company operating in the same line of insurance as that of the insurance company or branch of foreign non-life insurance company for which he/she is acting as an insurance agent against regulations of law and/or provisions of clause 1 Article 127 of the Law on Insurance Business No. 08/2022/QH15;

b) Using a person who is acting as an insurance agent for another mutual microinsurance organization against regulations of law and/or provisions of clause 1 Article 127 of the Law on Insurance Business No. 08/2022/QH15;

c) Using an organization as an insurance agent without obtaining the written approval from the insurance company, branch of foreign non-life insurance company, or mutual microinsurance organization for which this organization is acting as an insurance agent against regulations of law and/or provisions of clause 2 Article 127 of the Law on Insurance Business No. 08/2022/QH15;

d) Using organizations/persons that do not meet eligibility requirements for insurance agents as prescribed by law and/or in Article 125 of the Law on Insurance Business No. 08/2022/QH15, Article 62 of the Decree No. 46/2023/ND-CP ;

dd) Issuing an insurance policy in case the recording, which is made as prescribed by law, does not contain the policyholder’s certification that the policyholder voluntarily participates in insurance and that the insurance policy is appropriate to their financial capacity and insurance demands;

e) Entering into an additional individual agent contract with an employee of the organization rendering insurance agent services in order to market the same insurance policy;

g) Failing to organize training and knowledge updating sessions to be provided for insurance agents as prescribed by law and/or in point b clause 2 Article 128 of the Law on Insurance Business No. 08/2022/QH15.

2. A fine ranging from VND 60.000.000 to VND 100.000.000 shall be imposed upon an insurance company, branch of foreign non-life insurance company, or mutual microinsurance organization for failing to adopt measures for inspecting and supervising execution of insurance agent contracts, and measuring the performance in insurance product consulting and offering activities of insurance agents and staff members of organizations rendering insurance agent services as prescribed by law; detecting but failing to take actions against insurance agents that commit one of the following violations:

a) Providing false information and advertisements about insurance services and scope of business of insurance companies, branches of foreign non-life insurance companies and mutual microinsurance organizations, insurance terms and conditions prejudicing legitimate rights and interests of policyholders, as prescribed in point a clause 3 Article 129 of the Law on Insurance Business No. 08/2022/QH15;

b) Preventing policyholders from providing information about insurance policies, or inciting policyholders or insured persons not to declare information relating the insurance policies, as prescribed in point b clause 3 Article 129 of the Law on Insurance Business No. 08/2022/QH15;

c) Competing for clients by precluding, enticing, bribing and threatening employees or clients of other insurance companies, branches of foreign non-life insurance companies, mutual microinsurance organizations, insurance agents or insurance brokerage companies, as prescribed in point c clause 3 Article 129 of the Law on Insurance Business No. 08/2022/QH15;

d) Inciting clients to nullify insurance policies that are in effect in any form, as prescribed in point d clause 3 Article 129 of the Law on Insurance Business No. 08/2022/QH15;

dd) Failing to provide insurance product consulting, offering and marketing services and/or information about insurance products, insurance companies, branches of foreign non-life insurance companies or mutual microinsurance organizations to policyholders in an adequate and accurate manner as prescribed by law and/or in point d clause 2 Article 129 of the Law on Insurance Business No. 08/2022/QH15;

e) Failing to give policyholders with explicit and adequate explanations about insurance benefits, disclaimer clause, rights and obligations of the policyholder as prescribed by law and/or in point d clause 2 Article 129 of the Law on Insurance Business No. 08/2022/QH15;

g) Declaring information for policyholders without obtaining approval from policyholders, as prescribed in point d clause 2 Article 129 of the Law on Insurance Business No. 08/2022/QH15;

h) Failing to explain to policyholders that purchase of insurance products is not a prerequisite for using other products/services of the organization rendering insurance agent services as prescribed by law;

i) Providing consulting and offering services, and arranging for conclusion of investment-linked insurance policy for a client within 60 days before or after disbursement of the loan amount in full;

k) Failing to comply with regulations on provision of investment-linked insurance products through insurance agents as prescribed by law.

3. Remedial measures:

a) Enforced strict compliance with regulations of law in case of commission of the violation in clause 1 or clause 2 of this Article;

b) The insurance company, branch of foreign non-life insurance company or mutual microinsurance organization is compelled to stop using the insurance agents directly involved in any of the violations in clause 1 and clause 2 of this Article for a period of 12 months from its receipt of the decision on imposition of administrative penalties.

Article 25. Penalties for violations against regulations on issuance and revocation of insurance practicing certificates, insurance agent practicing certificates, insurance brokerage practicing certificates and practicing certificates in insurance auxiliary services

1. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed upon an insurance company, branch of foreign non-life insurance company or mutual microinsurance organization for providing training programs for insurance agent practicing certificates which fail to comprise adequate training contents as prescribed by law and/or in clause 2 Article 130 of the Law on Insurance Business No. 08/2022/QH15.

2. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed upon a domestic insurance training institution for issuing and revoking insurance practicing certificates, insurance brokerage practicing certificates and/or practicing certificates in insurance auxiliary services against regulations of law and/or provisions of clause 6 Article 81, clause 2 Article 139, clause 4 Article 143 of the Law on Insurance Business No. 08/2022/QH15.

3. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 1 or clause 2 of this Article.

Article 26. Penalties for violations committed by foreign representative offices in Vietnam

1. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed for committing one of the following violations:

a) Changing name, nationality, address of the insurance company, foreign reinsurance company, foreign finance and insurance corporation, foreign insurance brokerage company or changing name or registered business lines of or relocating the foreign representative office in Vietnam against regulations of law and/or provisions of clause 2 Article 77 of the Law on Insurance Business No. 08/2022/QH15;

b) Failing to notify changes as prescribed by law and/or in clause 4 Article 76 of the Law on Insurance Business No. 08/2022/QH15.

2. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 1 of this Article (except changes in registered business lines of a foreign representative office in Vietnam).

Article 27. Penalties for violations against regulations on provision of insurance auxiliary services of insurance auxiliary service providers

1. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed for committing one of the following violations committed during provision of insurance auxiliary services:

a) Failing to protect client privacy and personal information of clients or using client’s information to serve purposes other than permitted ones or providing information for any third party without client’s consent, unless such information is provided as prescribed by law;

b) An organization providing insurance auxiliary services provides loss assessment services and support for payment of insurance claims against insurance policies whereunder this organization is also the policyholder, insured or beneficiary;

c) An insurance brokerage company provides loss assessment services for insurance policies that it has arranged to conclude;

d) Failing to use written contracts for provision of insurance auxiliary services.

2. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed for committing one of the following violations committed during provision of insurance auxiliary services:

a) Providing types of insurance auxiliary services other than the permitted ones;

b) Providing insurance auxiliary services while failing to satisfy eligibility requirements for provision of insurance auxiliary services as prescribed by law;

c) An organization that does not have juridical person status provides one of the following insurance auxiliary services: insurance risk assessment, insurance actuarial service, loss assessment or support for payment of insurance claims.

3. Additional penalties:

a) The individual who commits the violation in point b clause 2 of this Article shall be suspended from provision of insurance auxiliary services for a fixed period of 01 – 03 months;

b) The organization that commits the violation in point a or b clause 2 of this Article shall be suspended from provision of insurance auxiliary services for a fixed period of 01 – 03 months.

Article 28. Penalties for violations against regulations on capital

1. A fine ranging from VND 160.000.000 to VND 200.000.000 shall be imposed upon an insurance company, reinsurance company, insurance brokerage company, foreign branch in Vietnam, or mutual microinsurance organization for committing one of the following violations:

a) Maintaining the owner’s equity lower than the legal capital as prescribed by law and/or in clause 2 Article 94 of the Law on Insurance Business No. 24/2000/QH10;

b) Maintaining the paid-in charter capital lower than the minimum required amount of charter capital as prescribed by law and/or in clause 2 Article 64 of the Law on Insurance Business No. 08/2022/QH15;

c) Maintaining the charter capital and owner’s equity lower than the minimum required amount of charter capital as prescribed by law and/or in clause 3 Article 138 of the Law on Insurance Business No. 08/2022/QH15; maintaining the working capital lower than the minimum required amount of establishment capital as prescribed in clause 2 Article 36 of the Decree No. 21/2023/ND-CP ;

d) Failing to maintain the capital adequacy ratio as prescribed by law and/or in clause 2 Article 95 of the Law on Insurance Business No. 08/2022/QH15.

2. Additional penalty:

The entity that commits the violation in clause 1 of this Article shall be suspended from performing a part or all of contents/scope of business specified in the issued License for establishment and operation which is directly related to such administrative violation for a fixed period of 01 – 03 months.

3. Remedial measure:

Enforced strict compliance with regulations of law on capital and capital adequacy ratio in case of commission of the violation in Clause 1 of this Article.

Article 29. Penalties for violations against regulations on compulsory deposit

1. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed for committing one of the following violations:

a) Making deposit against regulations of law and/or provisions of clause 1, clause 2 Article 96 of the Law on Insurance Business No. 08/2022/QH15, Article 37 of the Decree No. 21/2023/ND-CP ;

b) Using or withdrawing deposited amounts against regulations of law and/or provisions of clause 3, clause 4 Article 96 of the Law on Insurance Business No. 08/2022/QH15.

2. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 1 of this Article.

Article 30. Penalties for violations against regulations on technical provisions and compulsory reserves

1. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed for setting aside the compulsory reserve fund against regulations of law and/or provisions of clause 1, clause 2 Article 98 of the Law on Insurance Business No. 08/2022/QH15, clause 1 Article 42 of the Decree No. 21/2023/ND-CP .

2. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed for committing one of the following violations:

a) Failing to register technical provisioning methods and bases with the Ministry of Finance of Vietnam or setting aside technical provisions before obtaining approval from the Ministry of Finance of Vietnam as prescribed by law and/or in clause 3 Article 97 of the Law on Insurance Business No. 08/2022/QH15, Article 45 of the Decree No. 46/2023/ND-CP ;

b) Using the compulsory reserve fund against regulations of law.

3. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:

a) Setting aside technical provisions against the methods and bases registered with the Ministry of Finance of Vietnam as prescribed by law and/or in Article 45 of the Decree No. 46/2023/ND-CP ;

b) Using technical provisions against regulations of law and/or provisions of clause 2 Article 38, clause 2 Article 40, clause 2 Article 42 of the Decree No. 46/2023/ND-CP ;

c) Setting aside technical provisions without certification given by actuaries as prescribed by law and/or in clause 1 Article 38 of the Decree No. 46/2023/ND-CP ;

d) Setting aside technical provisions against regulations of law and/or provisions of clause 2 Article 97 of the Law on Insurance Business No. 08/2022/QH15; Article 38 of the Decree No. 21/2023/ND-CP .

4. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 1, clause 2, point a, point b or point d clause 3 of this Article.

Article 31. Penalties for violations against regulations on investment of funds

1. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed for committing one of the following violations:

a) Failing to separately record and monitor assets invested in using the owner’s equity and those assets invested in using the idle capital derived from technical provisions;

b) A reinsurance company that concurrently engages in life reinsurance, non-life reinsurance and health reinsurance fails to separately record and monitor assets invested in using the idle capital derived from technical provision for each type of its reinsurance services.

2. A fine ranging from VND 50.000.000 to VND 70.000.000 shall be imposed for committing one of the following violations against investment rules:

a) Making investment using funding sources other than those prescribed by law and/or in clause 1 Article 99 of the Law on Insurance Business No. 08/2022/QH15;

b) Making investment using idle capital derived from technical provision against regulations of law and/or provisions of Article 61, Article 62 of the Decree No. 73/2016/ND-CP ; clause 3 Article 39 of the Decree No. 21/2023/ND-CP ;

c) Making investment accounting for more than 30% of total investment fund in companies belonging to the same group of companies having mutual ownership relationship as prescribed by law and/or in point d clause 2 Article 99 of the Law on Insurance Business No. 08/2022/QH15;

d) Making investments using the owner’s equity against regulations of law and/or provisions of Article 46 of the Decree No. 46/2023/ND-CP ; making investments using the establishment capital, compulsory reserve fund and idle capital derived from technical provision of a mutual microinsurance organization against regulations of law and/or provisions of clause 3 Article 39 of the Decree No. 21/2023/ND-CP ;

dd) Making fiduciary investment through a trustee that fails to obtain a license to perform fiduciary investment activities falling within the scope of such fiduciary investment as prescribed by law and/or in point g clause 2 Article 99 of the Law on Insurance Business No. 08/2022/QH15.

3. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:

a) Using borrowed funds for making direct investment or fiduciary investment in securities, real estate business or contribution of capital to other enterprises against regulations of law and/or provisions of point c clause 2 Article 99 of the Law on Insurance Business No. 08/2022/QH15;

b) Making investments in any form in return for those of shareholders, capital-contributing members or their related persons as prescribed in the Law on enterprises, except in case of deposits made at such shareholders or members that are credit institutions, against regulations of law and/or provisions of point dd clause 2 Article 99 of the Law on Insurance Business No. 08/2022/QH15;

c) Using technical provisions for making outward investments in any form against regulations of law and/or provisions of point b clause 2 Article 99 of the Law on Insurance Business No. 08/2022/QH15;

d) Purchasing corporate bonds issued to serve certain purposes of restructuring of debts of the issuer against regulations of law and/or provisions of point e clause 2 Article 99 of the Law on Insurance Business No. 08/2022/QH15;

dd) Engaging in the forms of investment which are prohibited as prescribed by law and/or in clause 3 Article 99 of the Law on Insurance Business No. 08/2022/QH15;

e) Making outward investment against regulations of law and/or provisions of Article 100 of the Law on Insurance Business No. 08/2022/QH15, except the cases prescribed in clause 3 Article 12 of this Decree.

4. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 2 or clause 3 of this Article.

Section 5. VIOLATIONS AGAINST REGULATIONS ON SOLVENCY, RISK MANAGEMENT, INTERNAL CONTROL AND INTERNAL AUDIT

Article 32. Penalties for violations against regulations on financial safety requirements to be satisfied during operation of enterprises

1. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed for failing to submit reports on current financial status and causes of insolvency risk in a timely manner as prescribed by law and/or in clause 2 Article 78 of the Law on Insurance Business No. 24/2000/QH10.

2. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:

a) Failing to implement or improperly implementing one or some of the plans for restoring the solvency and strengthening organization and operation of the insurance company facing insolvency risk as approved by the Ministry of Finance as prescribed by law and/or in clause 1 Article 79 of the Law on Insurance Business No. 24/2000/QH10;

b) Failing to send a written notification to the Ministry of Finance of the actual status, causes and remedial measures taken as prescribed by law and/or in clause 1 Article 67 of the Decree No. 73/2016/ND-CP ;

c) Failing to comply with requirements regarding restoration of solvency as prescribed by law and/or in clause 2 Article 79 of the Law on Insurance Business No. 24/2000/QH10, clause 2 Article 67 of the Decree No. 73/2016/ND-CP ;

d) Remitting profits abroad without satisfying the capital adequacy and solvency requirements as prescribed by law and/or in point a clause 1 Article 107 of the Law on Insurance Business No. 08/2022/QH15.

3. Remedial measures:

a) Enforced strict compliance with regulations of law in case of commission of the violation in clause 1, point a, point b or point c clause 2 of this Article;

b) Enforced restoration of the initial state which has been altered due to the violation in point d clause 2 of this Article.

Article 33. Penalties for violations against regulations on risk management, internal control and internal audit

1. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed upon an insurance company, reinsurance company, or foreign branch in Vietnam for committing one of the following violations against regulations on risk management:

a) Failing to organize risk management as prescribed by law;

b) Failing to formulate policies or internal regulations on risk management as prescribed by law;

c) Failing to check risk tolerance in terms of capital and solvency as prescribed by law;

d) Failing to submit risk management reports to the Ministry of Finance as prescribed by law;

dd) Submitting risk management reports which do not have adequate contents as prescribed by law.

2. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed upon an insurance company, reinsurance company, or foreign branch in Vietnam for committing one of the following violations against regulations on internal control:

a) Performing internal control activities without complying with internal control rules as prescribed by law;

b) Their compliance department fails to perform or insufficiently performing its duties as prescribed by law.

3. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed upon an insurance company, reinsurance company, or foreign branch in Vietnam for committing one of the following violations against regulations on internal audit:

a) Failing to carry out annual assessment of internal control activities as prescribed by law.

b) Failing to carry out annual internal audit as prescribed by law.

4. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 1, clause 2, or clause 3 of this Article.

Article 34. Penalties for violations against regulations on implementation of remedial measures

1. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed for committing one of the following violations in case of compulsory implementation of remedial measures:

a) Failing to select and carry out or improperly carrying out one or some remedial measures as prescribed by law and/or in clause 1, clause 2 Article 111 of the Law on Insurance Business No. 08/2022/QH15;

b) Failing to send a written notification to the Ministry of Finance of the actual status, causes and remedial measures taken as prescribed by law and/or in clause 1 Article 111 of the Law on Insurance Business No. 08/2022/QH15.

2. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations committed during the implementation of remedial measures:

a) Remitting profits abroad, distributing profits and/or paying dividends, as prescribed in point a clause 3 Article 111 of the Law on Insurance Business No. 08/2022/QH15;

b) Increasing acceptance of reinsurance, as prescribed in point b clause 3 Article 111 of the Law on Insurance Business No. 08/2022/QH15.

3. Remedial measures:

a) Enforced strict compliance with regulations of law in case of commission of the violation in clause 1 or clause 2 of this Article;

b) Enforced restoration of the initial state which has been altered due to the violation in point a clause 2 of this Article.

Article 35. Penalties for violations against regulations on implementation of early intervention measures

1. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed for committing one of the following violations:

a) Failing to formulate a plan for correction of the capital adequacy ratio or failing to formulate such a plan within the prescribed time limit as prescribed by law and/or in clause 2 Article 112 of the Law on Insurance Business No. 08/2022/QH15;

b) Failing to organize implementation of the plan for correction of the capital adequacy ratio or failing to organize implementation of such plan within the prescribed time limit as prescribed by law and/or in clause 2, clause 3 Article 112 of the Law on Insurance Business No. 08/2022/QH15;

c) Failing to submit report on the actual status, causes and the plan for correction of the capital adequacy ratio to the Ministry of Finance or failing to submit such a report by the prescribed deadline as prescribed by law and/or in clause 2 Article 112 of the Law on Insurance Business No. 08/2022/QH15.

2. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations committed during the implementation of early intervention measures:

a) Remitting profits abroad, distributing profits and/or paying dividends, as prescribed in point a clause 5 Article 112 of the Law on Insurance Business No. 08/2022/QH15;

b) Increasing acceptance of reinsurance, as prescribed in point a clause 5 Article 112 of the Law on Insurance Business No. 08/2022/QH15;

c) Purchasing treasury stocks, as prescribed in point b clause 5 Article 112 of the Law on Insurance Business No. 08/2022/QH15;

d) Expanding lines, scope and duration of business, as prescribed in point c clause 5 Article 112 of the Law on Insurance Business No. 08/2022/QH15.

3. Remedial measures:

a) Enforced strict compliance with regulations of law in case of commission of the violation in clause 1 or clause 2 of this Article;

b) Enforced restoration of the initial state which has been altered due to the violation in point a clause 2 of this Article.

Article 36. Penalties for violations against regulations on implementation of control measures

1. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed for committing one of the following violations:

a) Failing to hire a qualified independent audit organization to review and assess the current financial status, determine the real value of charter capital, allocated capital and solvency, or failing to do so within the prescribed time limit as prescribed by law and/or in clause 3 Article 113 of the Law on Insurance Business No. 08/2022/QH15;

b) Failing to formulate a plan for correction of the capital adequacy ratio or failing to formulate such a plan within the prescribed time limit as prescribed by law and/or in clause 4 Article 113 of the Law on Insurance Business No. 08/2022/QH15;

c) Failing to organize implementation of the plan for correction of the capital adequacy ratio or failing to organize implementation of such plan within the prescribed time limit as prescribed by law and/or in clause 4, clause 5 Article 113 of the Law on Insurance Business No. 08/2022/QH15;

d) Failing to submit report on the actual status, causes and the plan for correction of the capital adequacy ratio to the Ministry of Finance or failing to submit such a report by the prescribed deadline as prescribed by law and/or in clause 4 Article 113 of the Law on Insurance Business No. 08/2022/QH15.

2. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for one of the following violations committed during the implementation of a control measure:

a) Remitting profits abroad, distributing profits and/or paying dividends, as prescribed in point a clause 7 Article 113 of the Law on Insurance Business No. 08/2022/QH15;

b) Increasing acceptance of reinsurance, as prescribed in point a clause 7 Article 113 of the Law on Insurance Business No. 08/2022/QH15;

c) Purchasing treasury stocks, as prescribed in point a clause 7 Article 113 of the Law on Insurance Business No. 08/2022/QH15;

d) Expanding lines, scope and duration of business, as prescribed in point a clause 7 Article 113 of the Law on Insurance Business No. 08/2022/QH15;

dd) Contributing capital to establish an enterprise; purchasing real property as business office or working location or vault facility for direct provision of services, as prescribed in point b clause 7 Article 113 of the Law on Insurance Business No. 08/2022/QH15;

e) Investing in high-risk assets or performing business activities causing any reduction in the capital adequacy ratio, as prescribed in point c clause 7 Article 113 of the Law on Insurance Business No. 08/2022/QH15.

3. Remedial measures:

a) Enforced strict compliance with regulations of law in case of commission of the violation in clause 1 or clause 2 of this Article;

b) Enforced restoration of the initial state which has been altered due to the violation in point a clause 2 of this Article.

Article 37. Penalties for violations against regulations on fulfillment of responsibilities in case of implementation of remedial, early intervention or control measures

A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed for failing to submit reports on outcomes of application of such measures and how the situation is improved to the Ministry of Finance as prescribed by law and/or in clause 3 Article 114 of the Law on Insurance Business No. 08/2022/QH15.

Article 38. Penalties for violations against regulations on separate management of owner’s equity and insurance premiums, distribution of surpluses

1. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed upon an insurance company, reinsurance company, or foreign branch in Vietnam for committing one of the following violations:

a) Failing to register the principles for separate management of the owner’s equity and insurance premiums with the Ministry of Finance as prescribed by law and/or in clause 1 Article 101 of the Law on Insurance Business No. 08/2022/QH15, clause 1 Article 51 of the Decree No. 46/2023/ND-CP ;

b) Carrying out the separate management of the owner’s equity and insurance premiums against the principles registered with and approved by the Ministry of Finance as prescribed by law and/or in clause 1 Article 101 of the Law on Insurance Business No. 08/2022/QH15;

c) Failing to register the method for distribution of surpluses of dividend-paying life insurance policyholder fund with the Ministry of Finance before application as prescribed by law and/or in clause 4 Article 101 of the Law on Insurance Business No. 08/2022/QH15;

d) Failing to properly apply the methods for distribution of surpluses approved by the Ministry of Finance as prescribed by law and/or in clause 2, clause 4 Article 101 of the Law on Insurance Business No. 08/2022/QH15.

2. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed for committing one of the following violations:

a) A life insurance company fails to separately manage, individually record and monitor assets, capital sources, revenues, expenses and incomes of dividend-paying life insurance policies according to the method approved by the Ministry of Finance as prescribed by law and/or in clause 2 Article 101 of the Law on Insurance Business No. 08/2022/QH15;

b) A life insurance company transfers assets and offsetting deficits of the policyholder fund against regulations of law and/or provisions of Article 101 of the Law on Insurance Business No. 08/2022/QH15.

3. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:

a) Failing to carry out the separate management of the owner’s equity and insurance premiums as prescribed by law and/or in clause 1 Article 101 of the Law on Insurance Business No. 08/2022/QH15;

b) Failing to carry out distribution of surpluses as prescribed by law and/or in clause 2, clause 4 Article 101 of the Law on Insurance Business No. 08/2022/QH15.

4. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 1, clause 2, or clause 3 of this Article;

Section 6. VIOLATIONS AGAINST REGULATIONS ON REPORTING AND INFORMATION DISCLOSURE

Article 39. Penalties for violations against regulations on reporting and information disclosure, updating of information on agents

1. A fine ranging from VND 10.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:

a) Failing to submit reports by the deadline prescribed by law;

b) Failing to adequately submit all types of reports as prescribed by law and/or in clause 1 Article 106 and clause 5 Article 138 of the Law on Insurance Business No. 08/2022/QH15, Article 34 of the Decree No. 21/2023/ND-CP prescribing microinsurance products, clause 2 Article 75 of the Decree No. 67/2023/ND-CP prescribing compulsory civil liability insurance of motor vehicle owners, compulsory fire and explosion insurance, and compulsory insurance in construction investment sector;

c) Failing to notify the Ministry of Finance of disclosed pieces of information by the deadline prescribed by law and/or in clause 3 Article 117, clause 8 Article 138 of the Law on Insurance Business No. 08/2022/QH15.

2. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed for committing one of the following violations:

a) Information/figures included in submitted reports is inadequate or inaccurate as prescribed by law;

b) Disclosing information in an inaccurate or inadequate manner as prescribed by law and/or in clause 1 Article 117, clause 8 Article 138 of the Law on Insurance Business No. 08/2022/QH15, Article 45 of the Decree No. 21/2023/ND-CP ;

c) Failing to disclose information in the form and by the deadline prescribed by law and/or in clause 2 Article 117, clause 8 Article 138 of the Law on Insurance Business No. 08/2022/QH15, Article 44 of the Decree No. 21/2023/ND-CP .

3. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed for committing one of the following violations:

a) Failing to submit required reports as prescribed by law and/or in Article 106, Article 138 of the Law on Insurance Business No. 08/2022/QH15, Article 34 of the Decree No. 21/2023/ND-CP ;

b) Submitting annual financial statements which do not bear confirmatory opinions given by independent auditor as prescribed by law and/or in clause 1, clause 2 Article 105 of the Law on Insurance Business No. 08/2022/QH15;

c) Failing to carry out disclosure of information as prescribed by law and/or in clause 1 Article 117, Article 138 of the Law on Insurance Business No. 08/2022/QH15; Article 44, Article 45 of the Decree No. 21/2023/ND-CP ;

d) Failing to notify the Ministry of Finance of disclosed pieces of information as prescribed by law and/or in clause 3 Article 117, clause 8 Article 138 of the Law on Insurance Business No. 08/2022/QH15.

4. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed for failing to register and update biodata about persons acting as insurance agents and staff members of organizations rendering insurance agent services that are directly involved in insurance agent services in the insurance industry database as prescribed by law and/or in clause 4 Article 127, point l clause 2 Article 128 of the Law on Insurance Business No. 08/2022/QH15.

Section 7. VIOLATIONS AGAINST REGULATIONS ON ANTI-MONEY LAUNDERING, ANTI-TERRORISM FINANCING, COUNTER TO FINANCING OF PROLIFERATION OF WEAPONS OF MASS DESTRUCTION IN LIFE INSURANCE BUSINESS

Article 40. Penalties for violations against regulations on anti-money laundering, anti-terrorism financing, counter to financing of proliferation of weapons of mass destruction in life insurance business

1. The following fines shall be imposed upon a life insurance company for committing violations against regulations on customer identification, collection, updating and verification of customer’s identity; responsibility to formulate internal regulations and report, provide and retain information/documents:

a) A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed for failing to identify customers or failing to update and verify customer’s identity as prescribed by law and/or in Article 9, Article 10, Article 11, Article 12, Article 13, Article 14 of the Law on anti-money laundering, clause 1 Article 34 of the Law on anti-terrorism, point a clause 2 Article 22 of the Decree No. 81/2019/ND-CP ;

b) A fine ranging from VND 30.000.000 to VND 60.000.000 shall be imposed for failing to carry out special supervision of certain unusual transactions as prescribed by law and/or in Article 20 of the Law on anti-money laundering;

c) A fine ranging from VND 30.000.000 to VND 60.000.000 shall be imposed for failing to strictly comply with regulations on retention, protection of confidentiality of information, documents, records and reports on anti-money laundering and anti-terrorism financing as prescribed by law and/or in Article 38, Article 40 of the Law on anti-money laundering, Article 34 of the Law on anti-terrorism;

d) A fine ranging from VND 40.000.000 to VND 80.000.000 shall be imposed for failing to promulgate and comply with internal regulations on anti-money laundering, anti-terrorism financing, and counter to proliferation of weapons of mass destruction and proliferation financing as prescribed by law and/or in Article 24 of the Law on anti-money laundering, Article 34 of Law on anti-terrorism, and Article 22 of the Decree No. 81/2019/ND-CP ;

dd) A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for failing to carry out assessment of risks of money laundering, terrorism financing or financing of proliferation of weapons of mass destruction; failing to update annual risk assessment results, failing to submit risk assessment results and updates or failing to submit them by the prescribed deadline, failing to disseminate risk assessment results and updates in the entire system of each reporting entity according to regulations of law on anti-money laundering, anti-terrorism and counter to financing of proliferation of weapons of mass destruction;

e) A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for failing to formulate regulations on classification of customers, failing to carry out classification of customers by risk level, or failing to develop the procedures for managing risks of money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction according to regulations of law on anti-money laundering, anti-terrorism and counter to financing of proliferation of weapons of mass destruction;

g) A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for failing to promulgate policies/procedures for identification and assessment of money laundering risks before providing new products or services; or existing products or services using innovative technologies as prescribed by law and/or in Article 19 of the Law on anti-money laundering;

h) A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing any violation against regulations on responsibilities relating to foreign politically exposed persons (PEPs) as prescribed by law and/or in Article 17 of the Law on anti-money laundering.

2. The following fines shall be imposed upon a life insurance company for committing violations against regulations on provision of anti-money laundering information, prohibited acts in anti-money laundering, reporting on large-value transactions, suspicious transactions and electronic funds transfer:

a) A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for failing to strictly comply with regulations on reporting on large-value transactions, suspicious transactions and electronic funds transfer as prescribed by law and/or in Article 25, Article 26, Article 34 of the Law on anti-money laundering;

b) A fine ranging from VND 30.000.000 to VND 60.000.000 shall be imposed for obstructing the provision of information serving the performance of anti-money laundering tasks as prescribed by law and/or in Article 8 of the Law on anti-money laundering;

c) A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for failing to report and provide information, documents, records and reports to serve the performance of anti-money laundering, anti-terrorism financing, and counter to proliferation of weapons of mass destruction at the request of competent authorities as prescribed by law and/or in Article 39 of the Law on anti-money laundering, Article 33 of Law on anti-terrorism, and Article 22 of the Decree No. 81/2019/ND-CP ;

d) A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for the act of organizing, participating in or facilitating, assisting in the conduct of money laundering which is not serious to the extent that a criminal prosecution is brought as prescribed by law and/or in Article 8 of the Law on anti-money laundering;

dd) A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for failing to take transaction postponement measures, or failing to submit reports to competent authorities as prescribed by law and/or in Article 44 of the Law on anti-money laundering; failing to freeze accounts, seal or confiscate assets as prescribed by law and/or in Article 45 of the Law on anti-money laundering.

3. The following fines shall be imposed upon a life insurance company for committing violations against regulations on anti-terrorism financing:

a) A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for failing to submit reports to anti-terrorism forces upon detection of any terrorism financing signs or acts as prescribed by law and/or in Article 33 of the Law on anti-terrorism;

b) A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for failing to submit reports on transactions suspected of terrorism financing; failing to apply provisional measures or failing to submit reports on application of provisional measures when there is a suspicion that a customer or a customer’s transaction is related to terrorism financing or that a customer is on the Blacklist.

4. The following fine shall be imposed upon a life insurance company for committing any violation against regulations on counter to proliferation of weapons of mass destruction:

A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for failing to notify competent authorities upon its detection of any act of proliferating weapons of mass destruction and financing such proliferation or any other act of violating regulations of law on weapons of mass destruction as prescribed by law and/or in Article 25 of the Decree No. 81/2019/ND-CP .

5. Remedial measure:

Enforced strict compliance with regulations of law in case of commission of the violation in clause 1, clause 2, clause 3 or clause 4 of this Article.

6. If a life insurance company commits any violation against regulations on anti-money laundering, anti-terrorism financing or counter to financing of proliferation of weapons of mass destruction in the insurance sector which is not yet prescribed in this Decree, it shall incur penalties for such a violation in accordance with the Government’s Decree on penalties for administrative violations in money and banking sector.

Section 8. POWER TO IMPOSE PENALTIES FOR ADMINISTRATIVE VIOLATIONS AGAINST REGULATIONS ON INSURANCE BUSINESS

Article 41. Power to impose penalties for administrative violations against regulations on insurance business

1. Persons assigned to perform specialized inspection tasks of the Insurance Supervisory Authority affiliated to the Ministry of Finance shall have the power to:

a) Issue warning;

b) Impose a fine up to VND 500.000;

c) Impose the remedial measures specified in clause 5 Article 3 hereof.

2. Heads of specialized inspection teams established by the Insurance Supervisory Authority affiliated to the Ministry of Finance shall have the power to:

a) Issue warning;

b) Impose a fine up to VND 50.000.000;

c) Suspend operations for a fixed period;

d) Impose the remedial measures specified in clause 5 Article 3 hereof.

3. Director of the Insurance Supervisory Authority shall have the power to:

a) Issue warning;

b) Impose a fine up to VND 100.000.000;

c) Suspend operations for a fixed period;

d) Impose the remedial measures specified in clause 5 Article 3 hereof.

4. Directors of Provincial-level Police Departments shall have the power to:

a) Issue warning;

b) Impose a fine up to VND 50.000.000;

c) Impose the remedial measures mentioned in clause 5 Article 3 hereof.

5. Directors of the Economic Security Department, Police Department for Investigation into Corruption, Economy and Smuggling-related Crimes, Police Department for Administrative Management of Social Order, Investigation Police Department for Social Order Crimes, and Fire and Rescue Police Department shall have the power to:

a) Issue warning;

b) Impose a fine up to VND 100.000.000;

c) Impose the remedial measures mentioned in clause 5 Article 3 hereof.

6. Banking inspectors shall have the power to:

a) Issue warning;

b) Impose a fine up to VND 500.000;

c) Impose the remedial measures mentioned in clause 5 Article 3 hereof.

7. Directors of Branches of SBV Banking Supervision Agency shall have the power to:

a) Issue warning;

b) Impose a fine up to VND 70.000.000;

c) Impose the remedial measures mentioned in clause 5 Article 3 hereof.

8. The Head of the SBV Banking Supervision Agency shall have the power to impose the following penalties for the violations prescribed in clause 2 Article 40 hereof:

a) Issue warning;

b) Impose a fine up to VND 100.000.000;

c) Impose the remedial measures mentioned in clause 5 Article 3 hereof.

Article 42. Rules for determination and division of power to impose penalties for administrative violations against regulations on insurance business

1. Heads of specialized inspection teams shall have the power to impose penalties for administrative violations determined as part of the scope and contents of inspections within the inspection time limits as prescribed in law on inspection. When the inspection time limit expires according to regulations of law on inspection but no penalty imposition decision is made due to objective reasons, the violation must be transferred to the person competent to impose penalties.

2. In case an administrative violation in the insurance business sector falls under the jurisdiction of multiple title holders, the title holder who handles the case first shall be responsible for handling with such administrative violation.

3. If penalties, fines, additional penalties and remedial measures that need to be imposed for a violation go beyond the authority prescribed herein, the person that has the power to impose penalties for the violation and is currently handling the violation shall immediately transfer the case to the competent authority or person for imposing penalties.

4. The penalties for administrative violations imposed by the title holders prescribed in Article 41 herein are incurred by individuals. In case of fines, a title holder who has the power to impose penalties may impose a fine which is twice as much as that imposed upon an individual upon an organization for committing the same violation.

5. Division of power to impose penalties for administrative violations to title holders prescribed in Article 41 hereof:

a) The title holders specified in clause 1, clause 2, clause 3 Article 41 hereof shall have the power to impose penalties for the administrative violations prescribed herein, except those violations prescribed in clause 2, clause 3, clause 4 Article 40 hereof;

b) The title holders of people’s public security forces specified in clause 4, clause 5 Article 41 hereof shall have the power to impose penalties for the administrative violations prescribed in Article 15, point d clause 2 Article 16, point b clause 1 Article 39, Article 40 hereof;

c) The title holders of the State Bank of Vietnam specified in clause 6, clause 7, clause 8 Article 41 hereof shall have the power to impose penalties for the administrative violations prescribed in clause 1, clause 2 Article 40 hereof.

Article 43. Power to make records of administrative violations against regulations on insurance business

1. When detecting any violations against regulations on insurance business, the title holders specified in Article 41 hereof are entitled to make records of administrative violations as prescribed.

2. People’s police officers, competent persons who are performing their duties as assigned in legislative documents or administrative documents promulgated by competent authorities or officers are entitled to make records of administrative violations in accordance with regulations of law.

Article 44. Implementation of penalties and remedial measures

1. Implementation of decisions on imposition of penalties for administrative violations shall be subject to provisions of Section 2 Chapter III Part 2 of the Law on penalties for administrative violations and the Government’s Decree No. 118/2021/ND-CP dated December 23, 2021 elaborating and providing guidelines for implementation of the Law on penalties for administrative violations.

2. Any records, documents, instruments or papers recording the enforcement or execution of penalties and/or remedial measures must be included in the dossiers on imposition of penalties for administrative violations as prescribed in Article 57 of the Law on penalties for administrative violations.

Chapter III

IMPLEMENTATION

Article 45. Effect

1. This Decree comes into force from February 15, 2025.

2. Provisions on penalties for administrative violations against regulations on insurance business in Article 1 through Article 33 of the Government’s Decree No. 98/2013/ND-CP dated August 28, 2013 prescribing penalties for administrative violations against regulations on insurance and lottery business, as amended in the Government’s Decree No. 48/2018/ND-CP dated March 21, 2018, Government’s Decree No. 80/2019/ND-CP dated November 01, 2019 and Government’s Decree No. 102/2021/ND-CP dated November 16, 2021 are abrogated.

3. Point a clause 1 Article 28, clause 1, point a, point b, point c clause 2 Article 32 hereof take effect until December 31, 2027 inclusively.

4. Point d clause 1 Article 28, point dd clause 3 Article 31, Article 34, Article 35, Article 36, Article 37 hereof come into force from January 01, 2028.

5. If any legislative documents referred to in this Decree are amended or superseded, the new ones shall apply.

Article 46. Transition

1. If, after the effective date of this Decree, a violating entity files a complaint against the administrative penalty imposition decision which has been issued before the effective date of this Decree, such a complaint shall be settled in accordance with the Decree prescribing penalties for administrative violations against regulations on insurance business in effect at the time of commission of the violation.

2. The administrative violations which have been committed and terminated before the effective date of this Decree but have been detected afterwards or are put under consideration shall be handled in accordance with the Decrees prescribing penalties for administrative violations against regulations on insurance business in effect at the time of commission of the violation, except the cases where this Decree does not provide for legal liability or impose less serious legal liability, regulations herein shall apply.

Article 47. Implementation organization

Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces or central-affiliated cities, and regulated entities of this Decree are responsible for the implementation of this Decree./.