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THE GOVERNMENT OF VIETNAM |
THE SOCIALIST REPUBLIC OF VIETNAM |
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No. 340/2025/ND-CP |
Hanoi, December 25, 2025 |
PRESCRIBING PENALTIES FOR ADMINISTRATIVE VIOLATIONS IN MONETARY AND BANKING SECTOR
Pursuant to the Law on Government Organization No. 63/2025/QH15;
Pursuant to the Law on Handling of Administrative Violations No. 15/2012/QH13, as amended by the Law No. 67/2020/QH14 and the Law No. 88/2025/QH15;
Pursuant to the Law on State Bank of Vietnam No. 46/2010/QH12;
Pursuant to the Law on Credit Institutions No. 32/2024/QH15, as amended by the Law No. 96/2025/QH15;
Pursuant to the Law on Deposit Insurance No. 06/2012/QH13;
Pursuant to the Law on Anti-money Laundering No.14/2022/QH15;
Pursuant to the Counter-Terrorism Law No. 28/2013/QH13;
Pursuant to the Law on Negotiable Instruments No. 49/2005/QH11;
Pursuant to the Ordinance on Foreign Exchange No. 28/2005/PL-UBTVQH11, as amended by the Ordinance No. 06/2013/UBTVQH13;
At the request of the Governor of the State Bank of Vietnam (“SBV”);
The Government of Vietnam promulgates a Decree prescribing penalties for administrative violations in monetary and banking sector.
1. This Decree deals with administrative violations, penalties, fines, remedial measures and implementation thereof, power to impose penalties and power to make records of administrative violations in monetary and banking sector.
2. Administrative violations in monetary and banking sector include:
a) Violations against regulations on management and use of licenses, and prohibited acts;
b) Violations against regulations on organization, administration and management
c) Violations against regulations on shares, share certificates and stakes;
d) Violations against regulations on capital mobilization and service charges;
dd) Violations against regulations on credit extension, offer and acceptance of trusteeship, and interbank operations;
e) Violations against regulations on credit information-related activities and provision of credit information services;
g) Violations against regulations on foreign exchange operations and gold trading;
h) Violations against regulations on payment, cash and vault management, and provision of treasury services;
i) Violations against regulations on purchase of and investment in fixed assets, real estate business and consulting services of credit institutions and foreign bank branches (FBBs);
k) Violations against regulations on guarantee of safe operation of credit institutions and FBBs;
l) Violations against regulations on deposit insurance and fund for maintenance of prudence of the system of people’s credit funds;
m) Violations against regulations on anti-money laundering; anti-terrorism financing; counter to financing of proliferation of weapons of mass destruction;
n) Violations against regulations on provision of information and reporting;
o) Violations against regulations on obstruction of inspection and examination, and failure to comply with requests of competent officials;
p) Violations against regulations on debt trading and settlement;
q) Violations against regulations on information technology security for banking operations.
Article 2. Entities incurring administrative penalties
1. This Decree applies to organizations or individuals that commit administrative violations in the monetary and banking sector.
2. The organizations mentioned in clause 1 of this Article include:
a) Credit institutions; domestic branches, transaction offices, representative offices and administrative units of credit institution; FBBs; representative offices of foreign credit institutions and other foreign organizations performing banking operations;
b) Enterprises and their affiliates (including branches and representative offices);
c) Co-operatives, cooperative unions, and their affiliates (including branches and representative offices);
d) Other organizations duly established and operating in Vietnam.
Article 3. Repeated administrative violations
If an organization or individual repeatedly commits any of the administrative violations prescribed in this Decree, such repeated commission of the violation shall be considered as aggravating circumstance, except cases of administrative violations prescribed in Article 7; Article 9; Article 10; Article 11; clause 2 Article 27; clauses 2, 8 Article 28; clause 2 Article 40; Article 57; Article 58; Article 61 of this Decree where the violating entity shall incur penalties for each violation.
Article 4. Time of completion of administrative violations
Ending dates of some violations in Chapter II hereof, which are used for determining the running of prescriptive periods of such violations, shall be determined as follows:
1. Regarding violations against regulations on changes requiring written approval from the State Bank of Vietnam (hereinafter referred to as “SBV”) as prescribed in Article 8 of this Decree, the ending date of the violation shall be the date on which the changed content subject to SBV’s approval no longer exists or the date on which the original state before change is restored.
2. Regarding violations against regulations on receipt of deposit, credit extension, offer and acceptance of trusteeship, or interbank operations specified in point a clause 2 Article 15; points b, dd, e, g clause 3, clause 5, point b clause 6, clause 8 Article 17; point a clause 1 Article 19; clauses 5, 6 Article 21 of this Decree, the ending date of the violation shall be the date on which relevant parties fulfill their obligations under an agreement or contract involving that violation.
3. Regarding violations against regulations on notification, disclosure and publishing of information, or provision of information, documents and reports as prescribed in clause 1 Article 11; point a clause 1 Article 15; point a clause 1 Article 16; point n clause 1 Article 17; point d clause 4 Article 21; point c clause 1 Article 25; points a, c clause 3 Article 27; point a clause 3 Article 28; point dd clause 1 Article 33; point a clause 1 Article 35; point a clause 1 Article 44; clause 1 Article 52; Article 56 of this Decree, the ending date of the violation shall be the date on which the information, document or report is disclosed or published, or modifications or additions to the disclosed or published information, document or report are made.
4. Regarding violations against regulations on registration, notification, following of administrative procedures, submission and promulgation of internal regulations, rules and plans specified in Article 10; point b clause 2 Article 11; points d, dd, e, g clause 3 Article 27; point a clause 2 Article 32; points a, b clause 3 Article 35; clause 2 Article 47 of this Decree, the ending date of the violation shall be the date of registration, notification, following of administrative procedures, submission, promulgation or modification of such internal regulations, rules or plans.
5. Regarding violations against regulations on prudential ratios, classification of assets, off-balance-sheet (OBS) items, creation and use of risk provisions specified in Article 41; points a, b, c clause 1 Article 42 of this Decree, the ending date of the violation shall be the date on which regulations on prudential ratios, classification of assets, OBS items, creation and use of risk provisions are strictly observed or the date on which the violating entity is relieved from the responsibility to carry out classification of assets and OBS items, or to create and use risk provisions involving the violation.
6. Regarding violations other than those specified in clauses 1, 2, 3, 4, 5 of this Article, the person having the power to impose administrative penalties shall, pursuant to regulations of law in force and depending on actual facts of the violation, determine the ending date of the violation as the basis for determining the running of the prescriptive period for that violation.
Article 5. Penalties, fines, power to impose fines, remedial measures and penalty imposition rules
1. Primary penalties:
a) Warning;
b) Fine.
2. Additional penalties:
a) Suspension of licenses for a fixed period. To be specific: certificate of registration of foreign exchange agent or certificate of registration of agent for exchange of bordering countries’ currencies shall be suspended for 01 – 03 months;
b) Suspension of operations for fixed periods. To be specific: suspension of foreign exchange operations for 03 – 06 months; suspension of trusteeship operations for 01 – 03 months; suspension of debt trading for 03 – 06 months; suspension of provision of credit information services for 01 – 03 months; suspension of use of information technology services rendered by a third party for 01 – 03 months; suspension of gold bullion trading for 06 – 09 months; suspension of import of gold materials for 09 – 12 months; suspension of grant of loans for outward investments for 01 – 06 months;
c) Confiscation of the exhibits and instrumentalities used for committing administrative violations, confiscation of foreign currencies, Vietnamese Dong and gold.
3. Fines and power to impose fines:
a) The fine for every administrative violation prescribed in Chapter II hereof is imposed on a violating individual. The fine imposed on an organization is twice as much as the one imposed on an individual for committing the same administrative violation;
b) The fine imposed for an administrative violation committed by a person working at a people’s credit fund or microfinance institution or their affiliate shall be 10% of the corresponding fine prescribed in Chapter II hereof; The fine imposed on the people’s credit fund or the microfinance institution or their affiliate shall be twice as much as the fine imposed on the person working there;
c) The fines imposed by each title holder specified in III hereof are incurred by individuals, and determined on the basis of the maximum fines imposed on individuals specified in points a and b of this clause. A title holder is entitled to impose a fine which is twice as much as that imposed upon an individual upon an organization for committing the same administrative violation.
4. Remedial measures:
a) Enforced transfer of profits illegally obtained from the administrative violation to state budget; enforced return of erased or altered licenses;
b) Enforced return of improperly collected fees or amounts to payers; enforced return or recovery of trust assets for trustors; enforced return of collected deposit insurance premiums, and recovery of paid deposit insurance payouts; enforced repurchase or resale of debts;
c) Enforced recovery of outstanding debts; enforced recovery of improperly used funds; enforced divestment; prohibition of conversion of corporate bonds into shares; prohibition of exercise of bond-attached warrants; enforced repurchase of corporate bonds sold to subsidiaries that still hold such bonds;
d) Enforced establishment of funds in accordance with law regulations; enforced classification of assets and creation of risk provisions in respect of outstanding debts and ongoing administrative violations; enforced reversal of improperly used risk provisions, and recording of debts settled with risk provisions on the balance sheet as prescribed;
dd) Enforced compliance with ratios, limits and restrictions as prescribed by law; enforced correction of false information; enforced submission of adequate and accurate reports; enforced issuance and submission of internal regulations or rules as prescribed by law; enforced posting of the copy of certificate of deposit insurance; enforced provision of adequate information and/or documents; enforced freezing of accounts; enforced removal of account freeze;
e) Enforced compliance with regulations of law on information technology security for banking operations; enforced compliance with regulations of law on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction; enforced compliance with regulations of law on payment; enforced compliance with regulations of law on credit extension;
g) Enforced sealing and punching of counterfeit money;
h) Enforced suspension of listing of shares on foreign securities markets; enforced termination of operations; enforced termination of one or some banking operations; enforced termination of contracts for supply of insurance products and payment of costs and/or compensation for damage caused by such termination of contracts for supply of insurance products at the request of customers;
i) Prohibition of expansion of operating network and areas until the credit institution has fully remedied its violations;
k) Suspension of dividend distribution until the violation has been fully remedied;
l) Proposed revocation of license; certificate of registration of foreign exchange agent; certificate of registration of agent for exchange of bordering countries’ currencies; license to open and use foreign currency account abroad; license for gold bullion trading; written approval for provision of payment services without customers’ checking accounts; license for provision of payment intermediary services; certificate of eligibility to provide credit information services;
m) Proposed suspension or dismissal by competent authorities of violating persons and/or persons responsible for the violation from holding administration, management or control positions; proposed prohibition of them from holding administration, management or control positions at credit institutions or FBBs; proposed removal from office and implementation by a credit institution or FBB of other appropriate measures against violating persons within its competence;
n) Enforced dismissal or discharge, or proposed issuance by competent authorities of decisions on dismissal or discharge, of elected or appointed persons who commit administrative violations.
5. Exchange rates between USD and other foreign currencies are determined according to the following provisions:
a) For USD: the central rate quoted by SBV at the time of commission of the administrative violation.
b) For other foreign currencies: the cross rate of such foreign currency to VND through USD, calculated using the exchange rate of USD to VND which is the central rate quoted by SBV and the exchange rate of such foreign currency to USD which is the exchange rate quoted on Reuters or Bloomberg, or on other means in respect of foreign currencies which are not available on Reuters or Bloomberg, at the time of commission of the administrative violation.
6. During the consideration of the violations in point b clause 4, point a clause 5 Article 7; points b, c clause 5 Article 17; clause 2 Article 22; clause 3 Article 23; clause 3 Article 25; point o clause 4 Article 27; clause 1, points a, b clause 5, points b, c, d, e, i clause 6, points a, d clause 7 Article 30; points a, e clause 4 Article 31; point a clause 6, point d clause 7 Article 32; point b clause 4 Article 44; point a clause 1 Article 52; clause 3 Article 55 of this Decree, if the violation is suspected of a crime, the competent person who is handling the case must transfer all documents relating to the violation suspected of crime to the authority competent to institute criminal proceedings as prescribed in Article 62 of the Law on Handling of Administrative Violations. In case the entity that commits the violation suspected of a crime is not liable to criminal prosecution, they shall incur administrative penalties as prescribed in this Decree.
Article 6. Implementation of remedial measures
The implementation of certain remedial measures against violations in monetary and banking sector is subject to the following provisions:
1. Regarding the remedial measure that is proposed revocation of license, certificate of registration of foreign exchange agent, certificate of registration of agent for exchange of bordering countries’ currencies, license to open and use foreign currency account abroad, license for gold bullion trading, written approval for provision of payment services without customers’ checking accounts, license for provision of payment intermediary services, or certificate of eligibility to provide credit information services:
Within 03 working days from the issue date of the penalty imposition decision, the person issuing that decision shall send a written request to a competent authority for application of this remedial measure.
2. Regarding the remedial measure that is proposed suspension, dismissal or prohibition of violating persons and/or persons responsible for the violation from holding administration, management and control positions at credit institutions or FBBs:
Within 03 working days from the issue date of the penalty imposition decision, the person issuing that decision shall send a written proposal or request to a competent authority for application of this remedial measure.
3. Regarding the remedial measure that is enforced return of erased or altered license: pursuant to the penalty imposition decision, the violating entity shall return the erased or altered license to the licensing authority.
4. Regarding the remedial measure that is enforced transfer of profits illegally obtained from the administrative violation to state budget:
a) The amount of profits illegally obtained shall be determined by the person having the power to impose administrative penalties and specified in the penalty imposition decision or the decision to impose the remedial measure;
b) The amount of profits illegally obtained from an administrative violation includes all profits obtained by the violating entity from the time of commission of the violation until the ending date of the violation or the issue date of the penalty imposition decision or the decision to impose remedial measure;
c) If an entity commits multiple violations, the amount of profits illegally obtained from each violation shall be determined. If an entity repeats a violation, the amount of profits illegally obtained from each commission of the violation shall be determined;
d) Profits illegally obtained from an administrative violation as prescribed in this Decree are objects, money, valuable papers or other assets which are obtained from the violation, determined on the basis of contracts and/or agreements performed by the violating entity, and must be transferred to state budget;
dd) The amount of profits illegally obtained from an administrative violation shall be determined according to the following provisions:
The amount of monetary profits illegally obtained from a violation is total amount of money obtained by the violating entity from that violation, minus costs directly constituting the violation, taxes and fees payable, determined according to documents and records provided by the violating entity to prove the legitimacy and validity of such costs;
The illegal profits being valuable papers are all types of valuable papers obtained by the violating entity from the violation. If the valuable papers have been transferred, the amount of profits illegally obtained shall be total proceeds actually received at the time of transfer; if the valuable papers have been illegally hidden or destroyed, the amount of profits illegally obtained shall be determined according to the book values recorded by issuers of such valuable papers when they are hidden or destroyed, after deducting all direct costs of such valuable papers, taxes and fees payable, determined according to documents and records provided by the violating entity to prove the legitimacy and validity of such costs.
The illegal profits being objects or other assets obtained from the violation are other assets as defined in the Civil Code.
e) Regarding the violation specified in Article 13 of this Decree, in addition to the illegal profits determined according to provisions of point dd of this clause, an additional amount of illegal profits is determined as follows:
Where the violating entity has sold the number of shares involving the violation: Amount of illegal profits = Dividends distributed in cash + Dividends distributed in valuable papers (equivalent value determined upon receipt of dividends) + Volume of shares involving the violation x (Average selling price of shares – Average purchasing price of shares) – Taxes, fees payable.
Where the violating entity has not yet sold the number of shares involving the violation: Amount of illegal profits = Dividends distributed in cash + Dividends distributed in valuable papers (equivalent value determined upon receipt of dividends) + Volume of shares involving the violation x (Price of shares at the time of discovery of the violation – Average purchasing price of shares) – Taxes, fees payable.
ADMINISTRATIVE VIOLATIONS, PENALTIES AND FINES
Section 1. VIOLATIONS AGAINST REGULATIONS ON MANAGEMENT AND USE OF LICENSES, AND PROHIBITED ACTS
Article 7. Article 4. Violations against regulations on licenses granted by SBV, and prohibited acts
1. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed for using documents containing an organization’s name different from the one specified in its license during its operation.
2. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed for failing to fulfill, or failing to maintain the fulfillment of, conditions for inauguration of domestic branches or transaction offices of a credit institution.
3. A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for failing to fulfill conditions for inauguration as prescribed by the Law on Credit Institutions.
4. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Borrowing, lending, leasing, letting out, trading, or transferring a license, except the case prescribed in point b clause 4 Article 31 hereof;
b) Erasing or altering the contents of a license, if not liable to criminal prosecution, except the case prescribed in point b clause 4 Article 31 hereof.
5. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for committing one of the following violations:
a) Falsifying documents proving the satisfaction of eligibility requirements enclosed with the application for license, if not liable to criminal prosecution, except the case prescribed in clause 2 Article 22, point a clause 4 Article 31 hereof;
b) Conducting operations against the license, except the cases prescribed in clause 1, point b clause 6 of this Article; clause 6 Article 21; point c clause 8 Article 27; points c, dd clause 5, point a clause 6 Article 28; point d clause 4 Article 31 hereof;
c) A transaction office performs operations which it is not allowed to perform in accordance with regulations of law on operating network of commercial banks.
6. A fine ranging from VND 300.000.000 to VND 400.000.000 shall be imposed for committing one of the following violations:
a) Continuing to carry out operations after a competent authority has issued a decision on restriction, suspension or termination of operations as prescribed by the Law on the State Bank of Vietnam;
b) Carrying out banking operations or other business operations other than those specified in the issued license, except the case specified in point dd clause 4 Article 8 hereof.
7. A fine ranging from VND 400.000.000 to VND 500.000.000 shall be imposed for committing one of the following violations:
a) Carrying out banking operations without obtaining a license, except the cases prescribed in point c clause 8 Article 27; points d, dd clause 5, clause 8 Article 28; clause 6 Article 31 hereof;
b) Committing any violation against regulations on use of terms relating to banking operations as prescribed in the Law on Credit Institutions;
c) Unlawfully intervening in banking operations or other business operations of credit institutions or FBBs;
d) Committing any violation against regulations on sale of optional insurance products in combination of provision if banking products and services in any shape or form as prescribed in the Law on Credit Institutions.
8. Remedial measures:
a) Enforced transfer of profits illegally obtained from any of the violations in clause 4, points a, b clause 5, clause 6 and point a clause 7 of this Article to state budget;
b) Proposed revocation of the license if any of the violations prescribed in points a, b clause 5 and point a clause 6 of this Article is committed;
c) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs if any of the violations prescribed in clause 4, points a, b clause 5, clause 6 and point a clause 7 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
d) Enforced return of erased or altered licenses to licensing authorities or persons if the violation in point b clause 4 of this Article is committed;
dd) Enforced implementation of measures for termination of contracts for supply of insurance products and payment of costs and/or compensation for damage caused by such contract termination at the request of customers if the violation in point d clause 7 of this Article is committed.
Article 8. Violations against regulations on changes requiring written approval by SBV
1. A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for performing one of the following acts before obtaining SBV’s written approval:
a) Changes in name and/or operating duration of a credit institution or FBB;
b) Suspension of business for 05 working days or more;
c) A credit institution’s establishment of a domestic branch or transaction office; establishment of a domestic representative office or administrative unit; establishment of an overseas branch, representative office or subsidiary bank.
2. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for trading or transferring stakes of the owner; trading or transferring stakes of a capital-contributing member; carrying out purchase or receipt of transfer of shares which makes the purchaser or transferee become a majority shareholder, before obtaining a written approval from SBV.
3. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for making changes in the charter capital or allocated capital before obtaining a written approval from SBV as prescribed by the Law on Credit Institutions.
4. A fine ranging from VND 200.000.000 to VND 250.000.000 shall be imposed for performing one of the following acts before obtaining SBV’s written approval:
a) A credit institution’s relocation of its headquarters, branch or transaction office, a FBB’s relocation;
b) Listing shares on foreign securities markets;
c) A credit institution’s change of the governing branch of its transaction office;
d) Voluntarily shutting down a branch or transaction office of a credit institution;
dd) Performing banking operations and/or other business operations;
e) A commercial bank’s change of the legal form of its overseas subsidiary bank.
5. A fine ranging from VND 250.000.000 to VND 300.000.000 shall be imposed for performing one of the following acts before obtaining SBV’s written approval:
a) Establishing or acquiring a subsidiary or associate company as prescribed in the Law on Credit Institutions;
b) A credit institution’s contribution of capital or purchase of shares as prescribed in point b clause 4 Article 111 of the Law on Credit Institutions;
c) Participating in international payment systems, unless otherwise prescribed by law;
d) Providing non-cash payment services without customers’ checking accounts.
6. A fine ranging from VND 400.000.000 to VND 500.000.000 shall be imposed for split-off, split-up, consolidation, merger or conversion of legal form by a credit institution or FBB before obtaining a written approval from a competent authority.
7. Remedial measures:
a) Suspension of distribution of dividends until the registered charter capital requirement is met if the violation prescribed in Clause 3 of this Article is committed;
b) Enforced divestment from the subsidiary or associate company or enforced transfer of shares/stakes if the violation prescribed in point a or b Clause 5 of this Article is committed;
c) Enforced suspension of listing of shares on foreign securities markets if the violation in point b clause 4 of this Article is committed;
d) Enforced shutdown of the domestic branch or transaction office; domestic representative office or administrative unit; overseas branch, representative office or subsidiary bank of the credit institution, and enforced transfer of profits illegally obtained from the violation in point c clause 1 of this Article;
dd) Enforced termination of banking operations and/or other business operations and enforced transfer of profits illegally obtained from the violation in point dd clause 4 of this Article;
e) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs if any of the violations prescribed in clause 2, clause 4, and point h clause 5 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Section 2. VIOLATIONS AGAINST REGULATIONS ON ORGANIZATION, ADMINISTRATION AND MANAGEMENT
Article 9. Violations against regulations on organization, administration and management
1. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:
a) Committing any violation against regulations on Board of Directors, Board of Members, Board of Controllers and General Director (Director) as prescribed in Article 50, Article 51, Article 55, Article 69, clause 1 Article 77, Article 87, Article 91, Article 95 of the Law on Credit Institutions;
b) Failing to dismiss, discharge, remove from office or implement other measures against Deputy General Director (Deputy Director), or Chief Accountant when they fail to fulfill eligibility requirements and standards as prescribed by the Law on Credit Institutions;
c) Failing to convene or convening General Meeting of Shareholders or General Meeting of Members against regulations of law;
d) A credit institution’s failure to notify SBV of election, appointment or replacement of its legal representative, or sending of such notification against regulations of law;
dd) A FBB’s failure to notify SBV of appointment or replacement of its General Director (Director), or sending of such notification against regulations of law.
2. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Electing or appointing persons who are prohibited from concurrently holding multiple positions as prescribed in the Law on Credit Institutions;
b) Failing to discharge members of the Board of Directors, members of the Board of Members, members of the Board of Controllers, or General Director (Director) when they fail to fulfill eligibility requirements and standards as prescribed by the Law on Credit Institutions.
3. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Appointing persons who are prohibited from holding positions as prescribed in clauses 2, 3 Article 42 of the Law on Credit Institutions;
b) Appointing persons who fail to fulfill eligibility requirements and standards as prescribed by law to hold the positions specified in clause 5 Article 41 of the Law on Credit Institutions, except the case specified in point a of this clause or point a clause 5 of this Article.
4. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for electing or appointing title holders who fail to fulfill eligibility requirements and standards as prescribed in clauses 1, 2, 3 and 4 Article 41 of the Law on Credit Institutions and regulations on people’s credit funds, microfinance institutions, and cooperative banks, except the cases specified in point a clause 3, point a clause 5 of this Article.
5. A fine ranging from VND 200.000.000 to VND 250.000.000 shall be imposed for committing one of the following violations:
a) Electing or appointing persons who are prohibited from holding positions as prescribed in clause 1 Article 42 of the Law on Credit Institutions;
b) Electing or appointing persons whose names are not specified in the recommended personnel list approved by SBV.
6. Remedial measures:
The credit institution or FBB is compelled to dismiss or discharge elected or appointed persons, or a competent authority may be requested to do so, if any of the violations in point b clause 1, and clauses 2, 3, 4 and 5 of this Article is committed.
Article 10. Violations against regulations on promulgation of charter and internal regulations
1. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:
a) Failing to send one or more of written internal regulations to SBV as prescribed by law;
b) Failing to send the charter or amended charter of the credit institution to SBV as prescribed in the Law on Credit Institutions;
c) Promulgating internal regulations which do not have adequate contents as prescribed by law.
2. A fine ranging from VND 40.000.000 to VND 80.000.000 shall be imposed for committing one of the following violations:
a) Failing to promulgate one or some internal regulations as prescribed by law, except the case prescribed in clause 2 Article 47 hereof;
b) Promulgating internal regulations whose contents do not comply with regulations of law, except the case prescribed in clause 2 Article 47 hereof.
3. Remedial measures:
a) Enforced submission of internal regulations, charter or amended charter to SBV, if the violation in point a or b clause 1 of this Article is committed;
b) Enforced promulgation of internal regulations in accordance with regulations of law if any of the violations prescribed in point c clause 1 and clause 2 of this Article is committed.
Article 11. Violations against regulations on internal control system and independent audit
1. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for failing to submit reports on internal or independent audit results or failing to submit reports on internal control system as prescribed by law.
2. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Failing to select independent audit organization to audit or provide assurance about the internal control system over preparation and presentation of financial statements in the next fiscal year in accordance with regulations of law;
b) Failing to notify SBV of the selected independent audit organization within 30 days as prescribed in the Law on Credit Institutions.
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) The internal audit department fails to fulfill all of its duties defined in clause 2 Article 58 of the Law on Credit Institutions and relevant laws;
b) Failing to carry out independent audits as prescribed in the Law on Credit Institutions and relevant laws;
c) Failing to carry out senior management oversight, internal control, risk management and internal capital adequacy assessment as prescribed by law.
4. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for failing to establish an internal audit department affiliated to the Board of Controllers.
5. A fine ranging from VND 200.000.000 to VND 250.000.000 shall be imposed for failing to build an internal control system as prescribed in the Law on Credit Institutions.
Section 3. VIOLATIONS AGAINST REGULATIONS ON SHARES, SHARE CERTIFICATES AND STAKES
Article 12. Violations against regulations on shares, share certificates, limit on capital contribution, transfer and return of stakes
1. A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:
a) Failing to issue physical share certificates within 30 days from the date of inauguration of a new credit institution or within 30 days from the date on which the shareholder makes full payment for subscribed shares in case a credit institution increases its charter capital;
b) Failing to meet the requirement on the percentage and duration for holding shares by founding shareholders as prescribed in the Law on Credit Institutions;
c) Committing violations against law regulations on limit on capital contribution, capital contribution percentage, transfer and return of stakes to capital-contributing members in accordance with regulations of law;
d) Failing to develop or failing to comply with the roadmap for ensuring compliance with limits on holding of shares by shareholders, shareholders and their related persons in accordance with regulations of law;
2. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Allowing holding of shares by shareholders or shareholders and their related persons in excess of the limits specified in the Law on Credit Institutions or in contravention of provisions of clause 11 Article 210 of the Law on Credit Institutions;
b) Carrying out the repurchase of shares from shareholders resulting in, upon completion of payment for such repurchased shares, failure to achieve the prudential ratios for banks or the actual value of charter capital smaller than the legal capital of a credit institution as prescribed in of the Law on Credit Institutions;
c) Founding shareholders’ transfer of shares in contravention of the Law on Credit Institutions, except the case prescribed in point b clause 1 of this Article.
3. Remedial measures:
a) Enforced completion of the sale of shares exceeding the prescribed limits within a maximum duration of 06 months from the effective date of the penalty imposition decision, if the violation in point a clause 2 of this Article is committed;
b) Enforced maintenance of prudential ratios within a maximum duration of 06 months if the violation prescribed in point b clause 2 of this Article is committed;
c) Suspension of distribution of dividends until remedial measures against the violation are fully implemented, if the violation in point a or b cause 2 of this Article is committed;
d) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs if any of the violations prescribed in clause 2 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 13. Violations against regulations on capital contribution and purchase of shares
1. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Using funds other than the charter capital and reserve fund for making capital contribution or purchasing shares inconsistently with the Law on Credit Institutions;
b) Failing to develop or failing to comply with the roadmap for ensuring compliance with regulations on limits on capital contribution and purchase of shares of credit institutions and their subsidiaries in accordance with regulations of law.
2. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for engaging in business operations specified in clause 2 Article 111 of the Law on Credit Institutions without establishing or acquiring subsidiary or associate companies.
3. A fine ranging from VND 200.000.000 to VND 250.000.000 shall be imposed for committing one of the following violations:
a) Purchasing or holding shares of other credit institutions without complying with SBV’s regulations on conditions and limits;
b) Making capital contribution to, buying or receiving transfer of shares from a credit institution against provisions of point c clause 1 Article 62 of the Law on Credit Institutions.
4. A fine ranging from VND 250.000.000 to VND 300.000.000 shall be imposed for committing one of the following violations:
a) Committing any violation against regulations on limits on capital contribution and purchase of shares of credit institutions and their subsidiaries prescribed in the Law on Credit Institutions or committing violations against transition provisions in clause 5 Article 210 of the Law on Credit Institutions;
b) Committing any violation against regulations on capital contribution and purchase of shares laid down in Article 142 of the Law on Credit Institutions.
5. Remedial measures:
a) Enforced recovery of improperly used funds, if the violation prescribed in point a clause 1 of this Article is committed;
b) Enforced divestment or transfer of shares in respect of the capital contributed or shares acquired against regulations, if any of the violations in clauses 3, 4 of this Article is committed;
c) Suspension of distribution of dividends until remedial measures against the violation are fully implemented, if any of the violations prescribed in this Article is committed;
d) Enforced transfer of profits illegally obtained from any of the violations in point a clause 1, clause 2, and clause 3 of this Article;
dd) Prohibition of expansion of operating network and areas until the violation prescribed in this Article has been fully remedied;
e) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if any of the violations prescribed in clauses 1, 2, 3 and 4 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 14. Violations against regulations on offering and transfer of shares
1. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for transferring shares while holding a position prescribed in clause 1 Article 64 of the Law on Credit Institutions.
2. A fine ranging from VND 250.000.000 to VND 300.000.000 shall be imposed for transferring shares in contravention of provisions of clause 2 Article 64 of the Law on Credit Institutions.
3. Remedial measures:
Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs if any of the violations prescribed in this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Section 4. VIOLATIONS AGAINST REGULATIONS ON CAPITAL MOBILIZATION AND SERVICE CHARGES
Article 15. Violations against regulations on taking of deposits
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 notify or publicly post information about taking of deposits, which must be notified or publicly posted as prescribed by law;
b) Taking deposits against the notified or publicly posted information;
c) Failing to follow procedures for taking and paying out deposits as prescribed by law;
d) Committing any violation against regulations on issuance of certificates of deposits to enterprises.
2. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Taking deposits from entities other than eligible entities as prescribed by law;
b) Taking deposits in contravention of regulations of law, except the cases prescribed in clause 1, point a clause 2 of this Article.
Article 16. Violations against regulations on deposit interest rates, service charges, trading and provision of derivatives
1. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:
a) Failing to openly post deposit interest rates and service charges as prescribed, except the case specified in point a clause 1 Article 15 hereof;
b) Posting deposit interest rates and service charges in a manner which is unclear and may mislead customers;
c) Collecting service charges in contravention of regulations of law, except the cases specified in point a clause 4 Article 17, point m clause 4 Article 27 hereof.
2. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed for applying the deposit interest rates or service charges other than the posted ones.
3. A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for committing any violations against regulations on deposit interest rates or regulations on trading and provision of interest-rate derivatives, currency derivatives, commodity derivatives and other derivatives, except the cases prescribed in clause 1, clause 2 of this Article and point a clause 8 Article 27 hereof.
4. Remedial measures:
a) Enforced return of improperly collected fees or interest amounts to payers, or, in case of unknown payers, enforced transfer of such fees or amounts to state budget, if any of the violations in clauses 1, 2 of this Article is committed;
b) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if any of the violations prescribed in clause 3 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Section 5. VIOLATIONS AGAINST REGULATIONS ON CREDIT EXTENSION, OFFER AND ACCEPTANCE OF TRUSTEESHIP, AND INTERBANK OPERATIONS
Article 17. Violations against regulations on credit extension
1. A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for committing one of the following violations:
a) Failing to retain adequate credit extension-related documents as prescribed by law;
b) Failing to openly post or provide adequate information and documents to customers as prescribed by law;
c) Receiving and settling complaints of customers in contravention of regulations of law on grant of consumer loans;
d) Failing to provide professional training for employees in accordance with regulations of law on grant of consumer loans;
dd) Committing any violation against regulations on maximum outstanding balance of consumer loans and outstanding balance of loans granted to an individual customer for living expenses;
e) Failing to issue a bracket of interest rates on consumer loans for each period or issuing such a bracket without adequate contents as prescribed by law on grant of consumer loans;
g) Committing any violation against regulations on ratio of total outstanding balance of consumer loans directly disbursed to customers to total outstanding balance of consumer credit.
2. A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:
a) Failing to inspect and supervise the use of borrowed capital and debt repayment by customers in accordance with regulations of law;
b) Committing any violation against regulations on measures to expedite and recover debts laid down in law on grant of consumer loans;
c) A specialized finance company’s commission of violations against regulations on minimum ratio of outstanding balance from its principal credit extension operation to its total outstanding credit balance.
3. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:
a) Preparing a credit extension agreement or contract which does not have adequate contents required by law;
b) Granting exemption or reduction of interests on credit extensions before promulgating internal regulations;
c) Approving debt rescheduling or delinquency in contravention of regulations of law;
d) Imposing rates of interest on credit extensions against regulations of law;
dd) Collecting interests on delinquent debts and late payment interests against regulations of law;
e) Collecting overdue loan debts against regulations of law;
g) Extending credit to recipients that do not provide information, documents and data as prescribed by law or that provide inadequate ones;
h) Committing any violation against regulations on effective periods of guarantee commitments or guarantee agreements.
4. A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed for committing one of the following violations:
a) Collecting extension of credit-related fees against regulations of law, except cases of extension of credit via credit cards;
b) Employing disbursement methods other than the prescribed ones, except the case prescribed in point g clause 4 Article 27 hereof;
c) Committing any violation against regulations on electronic extension of credit, and identification and verification of customer identification information for the purposes of electronic extension of credit, except the cases prescribed in Article 61 hereof.
5. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Extending credit without entering into a written agreement or contract;
b) Extending credit to organizations or individuals located or residing outside operating areas of a people’s credit fund or extending credit to organizations or individuals that do not meet eligibility requirements as prescribed by law, if not liable to criminal prosecution;
c) Extending credit without guarantee or extending credits with preferential conditions to the entities prescribed in clause 1 Article 135 of the Law on Credit Institutions, if not liable to criminal prosecution;
d) Committing any violation against regulations on credit extension in clauses 9, 10 Article 70, clause 3 Article 135 of the Law on Credit Institutions;
dd) Granting loans to meet the fund demands which must be rejected as prescribed by law;
e) Signing agreements or commitments on issuance of guarantee beyond the jurisdiction prescribed by law;
g) Providing factoring for one or some cases in which factoring is not allowed as prescribed by law;
h) Providing guarantee for financial obligations which are not eligible for guarantee as prescribed by law;
i) Committing any violation against regulations on provision of guarantee to non-resident customers.
6. A fine ranging from VND 80.000.000 to VND 120.000.000 shall be imposed for committing one of the following violations:
a) Committing any violation against regulations on credit extension limits in clauses 2, 4 Article 135, clauses 1, 2 and 8 Article 136 of the Law on Credit Institutions;
b) Extending credit in other forms without obtaining a written approval from SBV;
c) Committing any violation against regulations on maximum loan amounts granted by credit institutions for outward investment.
7. A fine ranging from VND 120.000.000 to VND 180.000.000 shall be imposed for committing violations against limits on and conditions for extension of credit for investment and trading in shares or corporate bonds by credit institutions and FBBs.
8. A fine ranging from VND 250.000.000 to VND 300.000.000 shall be imposed for extending credit to the entities prescribed in clauses 1, 3, 4, 5 and 6 Article 134 of the Law on Credit Institutions.
9. Additional penalties:
Grant of loans for outward investment shall be suspended for a fixed period of 01 – 06 months, if the violation in point c clause 6 of this Article is committed.
10. Remedial measures:
a) Enforced recovery of the amounts of credit extended beyond the prescribed limits within a maximum duration of 06 months from the effective date of the decision on administrative penalty imposition, if any of the violations prescribed in points a, c clause 6, clause 7 of this Article is committed;
b) Enforced recovery of debts within a maximum duration of 06 months from the effective date of the decision on administrative penalty imposition, if any of the violations prescribed in points b, c, dd clause 5, point b clause 6, clause 8 of this Article is committed;
c) Enforced compliance with regulations of law within a maximum duration of 01 month from the effective date of the decision on administrative penalty imposition, if any of the violations prescribed in points d, e clause 1, point a clause 2 of this Article is committed;
d) Enforced compliance with ratio of total outstanding balance of consumer loans directly disbursed to customers to total outstanding balance of consumer credit within a maximum duration of 06 months from the effective date of the decision on administrative penalty imposition, if the violation in point g clause 1 of this Article is committed;
dd) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if any of the violations prescribed in clause 5, point a clause 6, clause 7 and clause 8 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 18. Violations against regulations on service introduction points
A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed for committing one of the following violations:
1. Failing to enter into contracts for establishment of service introduction points.
2. Entering into a contract for establishment of service introduction point which does not clearly state responsibilities and rights of the parties to the contract and the validity period of the contract.
3. Performing operations other than those permitted by law at service introduction points.
Article 19. Violations against regulations on offer and acceptance of trusteeship
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) Offering/accepting trusteeship to/from ineligible trust beneficiaries or beyond the scope prescribed by law;
b) Entering into trust agreements which are made inconsistently with law regulations.
2. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for failing to comply with trust principles when offering or accepting trusteeship.
3. Additional penalty:
Offer and acceptance of trusteeship of the violating credit institution or FBB shall be suspended for a fixed period of 01 – 03 months, if the violation prescribed in this Article is committed.
4. Remedial measures:
a) Enforced return or recovery of trust assets for trustors, if the violation prescribed in this Article is committed;
b) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if any of the violations prescribed in this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 20. Violations against regulations on purchase and sale of corporate bonds laid down in law on credit institutions
1. A fine ranging from VND 15.000.000 to VND 30.000.000 shall be imposed for failing to monitor and supervise the use of proceeds earned from issuance of corporate bonds.
2. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Committing any violation against regulations on purchase of convertible bonds or warrant-linked bonds, except the case specified in point c clause 4 of this Article;
b) Failing to use non-cash payment services when making payments for bond purchase and sale transactions.
3. A fine ranging from VND 50.000.000 to VND 80.000.000 shall be imposed for violating principles for purchase and sale of corporate bonds, except the cases specified in clauses 1, 2, 4 of this Article.
4. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Failing to carry out appraisal of corporate bonds in order to make decision on purchase of corporate bonds;
b) Purchasing corporate bonds issued by an enterprise for the purpose of restructuring its debts, raising funds for contributing capital to or purchasing shares from other enterprises, or increasing its working capital;
c) A FBB’s purchase of convertible bonds or warrant-linked bonds;
d) Selling corporate bonds to its own subsidiaries, except the case where a credit institution acting as a transferee under a mandatory transfer plan sells corporate bonds to the commercial bank that is transferred under such a mandatory transfer plan;
dd) Purchasing corporate bonds from an issuer that has changed the purpose of proceeds earned from its bond issuance as prescribed by law prior to the date on which the credit institution purchases bonds but such issuer is not rated at the highest level under the credit institution’s internal credit rating system at the most recent rating.
5. Remedial measures:
a) Enforced recovery of funds used for purchasing corporate bonds within a maximum duration of 01 year from the effective date of the decision on administrative penalty imposition, if the violation prescribed in point b, c or dd Clause 4 of this Article is committed;
b) Prohibition of conversion of corporate bonds into shares; prohibition of exercise of bond-attached warrants, if the violation prescribed in point c Clause 4 of this Article is committed;
c) Enforced repurchase of corporate bonds sold to its own subsidiaries within a maximum duration of 01 month from the effective date of the decision on administrative penalty imposition, if the violation prescribed in point d Clause 4 of this Article is committed.
d) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs if any of the violations prescribed in clause 4 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 21. Violations against regulations on interbank operations
1. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:
a) Updating and retaining information relating to lending/borrowing transactions, or buying/selling forward of valuable papers in contravention of regulations of law;
b) Failing to confirm transactions as prescribed;
c) Preparing lending agreements or agreements for repurchase of valuable papers whose format or contents do not comply with regulations of law;
d) Buying/selling valuable papers in currencies other than the ones prescribed by law;
dd) Carrying out rediscounting of negotiable instruments in currencies other than the ones prescribed by law;
e) Entering into agreements on rediscounting of negotiable instruments which do not have adequate contents as prescribed by law.
2. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:
a) Failing to strictly comply with regulations on terms of lending, borrowing, making/taking deposits; buying/selling forward of valuable papers; rediscounting of negotiable instruments;
b) Failing to make payment for lending/borrowing transactions; making/taking of deposits; buying/selling forward of valuable papers in VND via the interbank electronic payment system as prescribed by law;
c) Failing to follow procedures for buying/selling of valuable papers as prescribed;
d) Lending, borrowing, making or taking deposits beyond the authorized scope as prescribed by law;
dd) Purchasing promissory notes, treasury bills or deposit certificates whose remaining term to maturity is not conformable with regulations of law.
3. A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed for conducting lending/borrowing transactions outside the premises of a FBB in Vietnam.
4. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Failing to comply with general rules for conducting lending/borrowing transactions; buying/selling forward of valuable papers between credit institutions and/or FBBs;
b) Making deposits at other credit institutions in contravention of regulations of law;
c) Failing to carry out re-assessment of customers for re-determining credit limit for each customer as prescribed by law;
d) Failing to comply with regulations on provision of information for lenders to serve their re-assessment of customers and determination of transaction limits.
5. A fine ranging from VND 80.000.000 to VND 120.000.000 shall be imposed for committing one of the following violations:
a) Carrying out buying/selling forward of valuable papers which are banned from trading;
b) Buying/selling valuable papers issued by non-bank credit institutions in contravention of regulations of law;
c) Carrying out rediscounting of negotiable instruments which do not meet eligibility requirements for rediscounting as prescribed by law.
6. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for lending, borrowing, buying or selling valuable papers in foreign currencies beyond the scope of foreign exchange operations licensed by SBV.
7. Remedial measures:
Proposed suspension of violating entities and/or persons responsible for the violation from holding the management or supervision position for 01 – 03 months, proposed dismissal or prohibition from holding the management or supervision position at a credit institution or FBB, if any of the violations prescribed in clause 5 and clause 6 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Section 6. VIOLATIONS AGAINST REGULATIONS ON CREDIT INFORMATION AND PROVISION OF CREDIT INFORMATION SERVICES
Article 22. Violations against principles and conditions for provision of credit information services
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 maintain the fulfillment of one of eligibility requirements for provision of credit information services as prescribed by law;
b) Failing to enter into agreements or commitments on provision of credit information services in writing or in other forms having equivalent legal validity as prescribed by law;
c) Failing to disclose information as prescribed by law.
2. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed for falsifying documentary evidences of eligibility enclosed with the application for issuance or modification of certificate of eligibility to provide credit information services, if not liable to criminal prosecution.
3. A fine ranging from VND 200.000.000 to VND 250.000.000 shall be imposed for providing credit information services without having a certificate of eligibility to provide credit information services issued by SBV.
4. Remedial measures:
a) Enforced transfer of profits illegally obtained from the administrative violation prescribed in clause 2 or 3 of this Article to state budget;
b) Proposed revocation by competent authorities of certificate of eligibility to provide credit information services, if the violation prescribed in Clause 2 of this Article is committed;
Article 23. Violations against regulations on credit information collection and processing
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) Collecting credit information beyond the authorized scope as prescribed by law;
b) Collecting credit information on borrowers without obtaining their consent, unless such information is collected at the request of a competent authority;
c) Using negative information on borrowers to create credit information products against regulations of law;
d) Obstructing others’ lawful collection of credit information.
2. A fine ranging from VND 40.000.000 to VND 80.000.000 shall be imposed for deliberately falsifying credit information.
3. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for illegally collecting, providing, exchanging or using credit information classified as state secrets, if not liable to criminal prosecution.
4. Additional penalties:
a) The instrumentalities for committing the violation prescribed in clause 3 of this Article shall be confiscated;
b) Provision of credit information services shall be suspended for a fixed period of 01 – 03 months, if the violation prescribed in Clause 2 or 3 of this Article is committed.
5. Remedial measures:
Enforced correction of false information, if the violation prescribed in Clause 2 of this Article is committed.
Article 24. Violations against regulations on credit information security and retention
A fine ranging from VND 40.000.000 to VND 80.000.000 shall be imposed for committing one of the following violations:
1. Failing to comply with regulations or procedures for information confidentiality and information technology security when providing credit information services in accordance with regulations of law.
2. Failing to retain credit information on borrowers for at least 05 years from the date on which the credit information service provider collects such information.
3. Failing to carry out periodic review and assessment of internal regulations for their appropriateness and compliance with regulations of law.
4. Failing to adopt measures for protecting credit information against loss, unauthorized access, use or disclosure.
5. Failing to adopt data recovery solutions in the event of data corruption, loss, or damage, and plans for operational restoration following such events.
Article 25. Violations against regulations on access to and use of credit information products and services, and exchange and provision of credit information
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) Exchanging, providing or copying credit information and/or credit information products for improper purposes or ineligible entities or third parties against regulations of law;
b) Failing to provide users with warnings about principles and scope of using credit information products;
c) Failing to publicly disclose principles and scope of use, procedures for access to and use, and prices of credit information services.
2. A fine ranging from VND 40.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:
a) Altering or changing credit information and/or credit information products and providing them for a third party against regulations of law;
b) Providing or exchanging credit information, or providing credit information products without obtaining the borrower’s written consent or against regulations of law;
c) Obstructing others’ lawful use of credit information.
3. A fine ranging from VND 100.000.000 to VND 200.000.000 shall be imposed for taking advantage of credit information-related activities to seek personal profits or infringe on the interests of the State or legitimate rights and interests of other organizations and individuals, if not liable to criminal prosecution.
4. Additional penalty:
The provision of credit information services shall be suspended for a fixed period of 01 – 03 months, if the violation prescribed in Clause 2 of this Article is committed.
5. Remedial measures:
Enforced transfer of profits illegally earned from any of the violations in point a clause 1, and points a, b clause 2 of this Article to state budget.
Article 26. Violations against regulations on correction of errors in borrowers’ credit information
A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for committing one of the following violations:
1. Failing to reply or give written response to requests for correction of errors, or failing to notify error correction results as prescribed by law.
2. Failing to make error correction or cooperate in correcting errors in borrowers’ credit information, or failing to correct and re-send reporting data within the time limit prescribed by law.
Section 7. VIOLATIONS AGAINST REGULATIONS ON FOREIGN EXCHANGE OPERATIONS AND GOLD TRADING
Article 27. Violations against regulations on foreign exchange operations
1. A warning shall be issued for committing one of the following violations:
a) Selling/buying foreign currency between individuals, if the value of foreign currency sold or bought is less than USD 1.000 (or equivalent value in another foreign currency);
b) Selling/buying foreign currency at an unlicensed currency exchange organization, if the value of foreign currency sold or bought is less than USD 1.000 (or equivalent value in another foreign currency);
c) Making payment for goods or services in foreign currency against regulations of law, if total payment is less than USD 1.000 (or equivalent value in another foreign currency).
2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:
a) Selling/buying foreign currency between individuals, if the value of foreign currency sold or bought is from USD 1.000 to under USD 10.000 (or equivalent value in another foreign currency); selling/buying foreign currency between individuals, if the value of foreign currency sold or bought is less than USD 1.000 to (or equivalent value in another foreign currency) in case of recidivism or repeated violation;
b) selling/buying foreign currency at an unlicensed currency exchange entity if the value of foreign currency sold or bought is from USD 1.000 to under USD 10.000 (or equivalent value in another foreign currency); selling/buying foreign currency at an unlicensed currency exchange organization, if the value of foreign currency sold or bought is less than USD 1.000 to (or equivalent value in another foreign currency) in case of recidivism or repeated violation;
c) Making payment for goods or services in foreign currency against regulations of law, if total payment is less than USD 1.000 (or equivalent value in another foreign currency) in case of recidivism or repeated violation; making payment for goods or services in foreign currency against regulations of law, if total payment is from USD 1.000 to under USD 10.000 (or equivalent value in another foreign currency).
3. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:
a) Failing to post currency buying and selling rates at transaction offices as prescribed by law;
b) Posting currency buying and selling rates in an unclear manner which may mislead customers;
c) Failing to openly post or publish the exchange rate between VND or foreign currency and token used in prize-winning electronic games for foreigners or casino business; posting or publishing the exchange rate between token and VND or foreign currency used in prize-winning electronic games for foreigners or casino business against law regulations;
d) Failing to comply with regulations of law on registration and notification with SBV in respect of changes relating to a foreign exchange agent or an agent for exchange of bordering countries’ currencies; or notification of changes in outward investment-related foreign exchange transactions;
dd) Failing to comply with regulations of law on notification and application for SBV’s approval for modification, extension or termination of contract for provision of foreign currency receipt and payment services;
e) Failing to comply with regulations of law on application for SBV’s approval for modification of the license for foreign currency receipt and payment and other foreign currency operations in case of changes in the name of the provider of prize-winning electronic games for foreigners, or the casino enterprise, or for extension or re-issuance of such a license; or for modification of the license to open and use foreign currency account abroad in case of changes in the name of the account holder, or for extension of term of use of the foreign currency account abroad;
g) Failing to comply with regulations of law on administrative procedures for registration or registration of changes in foreign loans or international bond issues; registration or registration of changes in loans to non-residents and collection of debts arising from guarantees provided for non-residents; registration or registration of changes in outward investment-related foreign exchange transactions; registration of proprietary trading limit; registration of temporary proprietary trading limit; registration of trust limit; registration of temporary trust limit and other administrative procedures for other funding transactions;
h) Selling/buying foreign currency between individuals, if the value of foreign currency sold or bought is from USD 10.000 to under USD 100.000 (or equivalent value in another foreign currency);
i) Selling/buying foreign currency at an unlicensed currency exchange organization, if the value of foreign currency sold or bought is from USD 10.000 to under USD 100.000 (or equivalent value in another foreign currency);
k) Making payment for goods or services in foreign currency against regulations of law, if total payment is from USD 10.000 to under USD 100.000 (or equivalent value in another foreign currency);
l) Selling/buying foreign currency at rates other than those announced by SBV, except the cases prescribed in point dd and point m clause 4 of this Article; collecting foreign currency transaction fees against regulations of law.
4. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Entering into an agreement on foreign exchange agent or agent for exchange of bordering countries’ currencies with an ineligible organization; failing to provide instructions for or to inspect the foreign exchange agent or agent for exchange of bordering countries’ currencies in accordance with regulations of law;
b) Failing to discharge responsibilities of a foreign exchange agent or agent for exchange of bordering countries’ currencies as prescribed by law; concurrently acting as a foreign exchange agent or agent for exchange of bordering countries’ currencies for two or more credit institutions in contravention of regulations of law;
c) Making payment for negotiable instruments in foreign currency against regulations on foreign exchange operations in Article 9 of the Law on Negotiable Instruments and relevant laws;
d) Failing to comply with regulations of law on opening, closing and use of accounts in Vietnam for conducting one of the following operations: Foreign investments in Vietnam; Vietnam’s outward investments; foreign borrowing and debt repayment; grant of loans to non-residents and recovery of debts thereof, issuance of securities abroad by resident organizations; issuance of securities in Vietnam by non-resident organizations and other funding transactions;
dd) Making the actual buying, selling or exchange rate exceed the prescribed exchange rate margin by means of setting exchange rates, commissions or brokerage fees in cash or in kinds and other promotions for buying/selling foreign currency in any forms;
e) Concurrently acting as a foreign currency paying agent for two or more economic organizations in contravention of regulations of law;
g) Carrying out disbursement and repayment of foreign loans; carrying out reimbursement and collection of loans granted to non-residents; collecting debts arising from guarantees provided for non-residents; transferring funds for making foreign investments in Vietnam or Vietnam’s outward investments against regulations of law, unless this violation is a result of the commission of the violation in point d clause 4 of this Article;
h) Transferring or carrying foreign currency or VND abroad or into Vietnam against regulations of law, except the case prescribed in clause 9 of this Article;
i) Authorizing or re-authorizing an economic organization or credit institution to act as a foreign currency paying agent against regulations of law;
k) Failing to comply with regulations of law on opening, closing and use of specialized foreign currency accounts for foreign currency receipt and payment services;
l) Failing to discharge the responsibility of the credit institution or the economic organization acting as a foreign currency paying agent, or the economic organization directly receiving and making payments in foreign currency, to make updates to accounting records and retain documents in accordance with regulations of law;
m) Failing to comply with regulations of law on collection of service charges and application of exchange rates when providing foreign currency receipt and payment services;
n) Carrying out transactions, quotation or determination of prices in contracts or agreements, or posting or publishing prices of goods, services or land use rights, or performing other similar acts (including converting or adjusting prices of goods or services or contract or agreement prices) in foreign currency in contravention of regulations of law;
o) Falsifying or forging documents submitted when following administrative procedures for registration or registration of changes in outward investment-related foreign exchange transactions; registration or registration of changes in foreign loans or international bond issues; registration or registration of changes in loans to non-residents and collection of debts arising from guarantees provided for non-residents, if not liable to criminal prosecution.
5. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:
a) Opening, closing or using foreign currency accounts abroad against regulations of law;
b) Providing payment or money transfer services for transactions relating to foreign loans, loans to non-residents, collection of loans granted to non-residents, provision of guarantee for non-residents, foreign investments in Vietnam, Vietnam’s outward investments and other funding transactions against regulations of law;
c) Failing to comply with regulations of law on exchange of tokens by providers of prize-winning electronic games for foreigners or casino enterprises;
d) Failing to comply with regulations of law on opening, closing and using of specialized foreign currency accounts for prize-winning electronic games for foreigners and casino business operations;
dd) Failing to transfer the foreign currency amounts exceeding the prescribed limit of foreign currency cash on hand to the specialized foreign currency account opened at a licensed bank, in case the revenue in foreign currency cash earned from the provision of prize-winning electronic games for foreigners or casino business exceeds the limit of foreign currency cash on hand prescribed by law;
e) Selling/buying foreign currency between individuals, if the value of foreign currency sold or bought is USD 100.000 or more (or equivalent value in another foreign currency);
g) Selling/buying foreign currency at an unlicensed currency exchange organization, if the value of foreign currency sold or bought is USD 100.000 or more (or equivalent value in another foreign currency);
h) Making payment for goods or services in foreign currency against regulations of law, if total payment is USD 100.000 or more (or equivalent value in another foreign currency);
i) Failing to discharge responsibilities of a foreign exchange agent or agent for exchange of bordering countries’ currencies as prescribed by law, in case of recidivism; concurrently acting as a foreign exchange agent or agent for exchange of bordering countries’ currencies for two or more credit institutions in contravention of regulations of law, in case of recidivism.
6. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Extending credit or making domestic debt repayments in foreign currency in contravention of regulations of law, except the cases prescribed in Article 17 hereof;
b) Opening, closing or using foreign currency accounts abroad against regulations of law, in case of recidivism;
c) Failing to comply with regulations of law on foreign borrowing and debt repayment, except the cases prescribed in point g clause 3, points d, g clause 4, point b clause 5, point a clause 7 of this Article.
7. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for committing one of the following violations:
a) Using foreign loans for the purposes other than the ones approved according to regulations on eligibility requirements for foreign loans without the Government’s guarantee; failing to comply with regulations of law on grant of loans to non-residents and collection of debts arising therefrom; provision of guarantee for non-residents and other funding transactions, except the cases prescribed in point g clause 3, points d, g clause 4, point b clause 5, point c clause 6 of this Article;
b) Carrying out foreign currency transactions between credit institutions, or between credit institutions and their customers in contravention of SBV’s regulations, except the case prescribed in point a clause 8 of this Article;
c) Failing to maintain foreign currency positions as prescribed by law.
8. A fine ranging from VND 200.000.000 to VND 250.000.000 shall be imposed for committing one of the following violations:
a) Trading or providing foreign exchange derivatives in contravention of regulations of law;
b) Exporting or importing foreign currency or VND cash in contravention of regulations of law, except the case prescribed in point d of this clause;
c) Carrying out foreign exchange operations without possessing a license granted by a competent authority, with an expired license or after the license is revoked, or against the license, except the cases prescribed in Point d Clause 4 Points a, d Clause 5 of this Article;
d) Exporting or importing foreign currency cash without obtaining SBV’s written approval.
9. Penalties for carrying foreign currency or VND abroad or into Vietnam without declarations or with declarations made in contravention of regulations of law shall be imposed according to the Decree prescribing penalties for administrative violations in customs sector.
10. Additional penalties:
a) Foreign currency or VND cash shall be confiscated, if any of the violations prescribed in Clause 2, Points h, i, k Clause 3, Point h Clause 4, Points e, g, h Clause 5, Point d Clause 8 of this Article is committed;
b) Certificate of registration of foreign exchange agent or certificate of registration of agent for exchange of bordering countries’ currencies shall be suspended for a fixed period of 01 – 03 months, if the violation in Point b Clause 4 of this Article is committed;
c) Foreign exchange operations of the credit institution or FBB that commits the violation prescribed in Point c Clause 8 of this Article shall be suspended for a fixed period of 03 – 06 months.
11. Remedial measures:
Proposed revocation of certificate of registration of foreign exchange agent or certificate of registration of agent for exchange of bordering countries’ currencies or license to open and use foreign currency account abroad, if the violation prescribed in Point i Clause 5 or Point b Clause 6 of this Article is committed.
Article 28. Violations against regulations on gold trading
1. A warning shall be issued for committing one of the following violations:
a) Trading gold bullion with a credit institution or enterprise that does not hold a valid license for gold bullion trading;
b) Using gold as a payment instrument.
2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:
a) Trading gold bullion with a credit institution or enterprise that does not hold a valid license for gold bullion trading, in case of recidivism or repeated violation;
b) Using gold as a payment instrument, in case of recidivism or repeated violation;
c) Failing to make payments for gold trading transactions via checking accounts as prescribed by law.
3. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Failing to openly post the buying and selling prices of gold bullion, gold jewelry and fine art articles as prescribed by law;
b) Failing to discharge responsibilities of the credit institution or enterprise engaging in gold bullion trading in case of changes in its branches or business locations as prescribed by law;
c) Producing gold jewelry and fine art articles without declaring applicable standards or labeling goods as prescribed by law;
d) Producing gold bullion without declaring applicable standards, weight or gold content of the products, or without labeling goods as prescribed by law.
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) Trading in gold bullion in contravention of regulations of law, except the case prescribed in Point a Clause 8 of this Article;
b) Carrying gold when exiting or entering Vietnam in contravention of regulations of law, except administrative violations in customs sector.
5. A fine ranging from VND 140.000.000 to VND 180.000.000 shall be imposed for committing one of the following violations:
a) Trading gold bullion through authorized agents;
b) Failing to comply with regulations of law on gold positions;
c) Importing or exporting gold jewelry and fine art articles; gold materials in the form of powder, solution, solder or salt, and semi-finished gold jewelry products which are different from registered business lines as prescribed by law;
d) Carrying out production or trading of gold jewelry and fine art articles without fulfilling eligibility requirements for license to produce and trade gold jewelry and fine art articles as prescribed by law;
dd) Carrying out processing of gold jewelry and fine art articles without such processing duly registered and included in certificate of household business registration, certificate of business registration, or enterprise registration certificate as prescribed by law.
6. A fine ranging from VND 200.000.000 to VND 250.000.000 shall be imposed for committing one of the following violations:
a) Using imported gold materials against the license to import gold materials;
b) Trading in gold bullion through authorized agents, in case of recidivism.
7. A fine ranging from VND 250.000.000 to VND 300.000.000 shall be imposed for producing gold bullion in contravention of regulations of law.
8. A fine ranging from VND 300.000.000 to VND 400.000.000 shall be imposed for committing one of the following violations:
a) Producing or trading gold bullion without obtaining a license for gold bullion production or trading as prescribed;
b) Importing or exporting gold materials or gold bullion without obtaining a license from a competent authority as prescribed by law;
c) Performing other gold business operations without obtaining a license from a competent authority as prescribed by law.
9. Additional penalties:
a) Gold shall be confiscated, if any of the violations prescribed in Clause 8 of this Article is committed;
b) Gold bullion trading shall be suspended for a fixed period of 06 – 09 months, if the violation prescribed in Point a Clause 5 of this Article is committed;
c) Import of gold materials shall be suspended for a fixed period of 09 – 12 months, if the violation prescribed in Point a Clause 6 of this Article is committed.
10. Remedial measures:
Proposed revocation of the license for gold bullion trading, if the violation prescribed in Point b Clause 6 of this Article is committed.
Section 8. VIOLATIONS AGAINST REGULATIONS ON PAYMENT, CASH AND VAULT MANAGEMENT, AND PROVISION OF TREASURY SERVICES
Article 29. Violations against regulations on interbank payment
1. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:
a) Failing to comply with regulations on organization of clearing houses, clearing payment, and interbank payment;
b) Failing to return incorrect payment documents within the working day;
c) Transferring money to beneficiaries’ accounts after prescribed time-limits;
d) Failing to provide deposit-related documents within the prescribed time limit.
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) Failing to immediately return the Credit order when it is legally rejected; rejecting a Debit order with lawful authorization;
b) Assigning an unauthorized person to create and send transaction orders through a clearing house or interbank payment system.
3. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Obstructing the operation of a clearing house or interbank payment system;
b) Deliberately or accidentally revealing any confidential information relating to the interbank payment system.
Article 30. Violations against regulations on payment
1. A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for making erasures or alterations on payment instruments or payment documents against regulations of law; falsifying or forging customer information on payment documents, if not liable to criminal prosecution.
2. A fine ranging from VND 15.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:
a) Failing to comply with regulations of law when receiving and processing inquiries and complaints from customers or payment accepting entities, or failing to adopt solutions enabling customers to look up information online as prescribed by law;
b) Providing inaccurate information concerning use of payment services;
c) Failing to monitor the validity periods of personal identification papers of customers; notifying customers of validity of their personal identification papers in contravention of regulations of law.
3. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Failing to comply with regulations of law on time limits for making payments or money remittance, except payments made between credit institutions and SBV;
b) Committing any violations against regulations on announcement and posting of payment service charge schedules;
c) Failing to provide customers with warnings and instructions about fraudulent schemes or activities in opening and using checking accounts; failing to provide instructions on data and information security and safe usage of checking accounts;
d) Failing to comply with regulations of law on duration of payment service interruptions and reporting on such interruptions.
4. A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:
b) Providing inaccurate information concerning provision of payment services;
b) Signing payment orders ultra vires or using electronic signatures of others;
c) Opening, using or granting authorization to use checking accounts in contravention of regulations of law during use of payment services;
d) Failing to adopt measures to ensure solvency, or failing to maintain the balances of their checking accounts at banks and an amount of cash larger than the amount payable to customers at the time of payment, in respect of payment services without customers’ checking accounts rendered by public postal service providers.
5. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Buying, selling, renting, leasing, borrowing or lending checking accounts, or buying or selling checking account information, involving from 01 to fewer than 10 checking accounts, if not liable to criminal prosecution;
b) Forging payment documents when rendering or using payment services, if not liable to criminal prosecution;
c) Failing to promulgate risk management mechanism for each form of provision of payment services as prescribed by law;
d) Providing payment services before entering into written contracts or agreements as prescribed by law.
6. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for committing one of the following violations:
a) Opening checking accounts for customers or allowing them to use checking accounts against regulations of law while providing payment services;
b) Buying, selling, renting, leasing, borrowing or lending checking accounts, or buying or selling checking account information, involving 10 checking accounts or more, if not liable to criminal prosecution;
c) Forging payment instruments or keeping, distributing, transferring or using forged payment instruments, if not liable to criminal prosecution;
d) Issuing, providing or using illegal payment instruments, if not liable to criminal prosecution;
dd) Operating against SBV’s approval for provision of payment services without customers’ checking accounts;
e) Erasing, altering, buying, selling, transferring, leasing, renting or forging written approval for provision of payment services without customers’ checking accounts; entrusting or appointing other organizations or individuals as agents to perform activities permitted under the written approval for provision of payment services without customers’ checking accounts, if not liable to criminal prosecution;
g) Committing any violation against regulations on retention and updating of information and documents included in applications for opening of checking accounts, and records of account-based payment transactions during provision of payment services;
h) Allowing customers to use their expired personal identification papers for opening and using checking accounts;
i) Using forged personal identification papers for opening and using checking accounts, if not liable to criminal prosecution;
k) Failing to re-verify customer identification information and adopt appropriate measures as prescribed by law on anti-money laundering when opening and using checking accounts.
7. A fine ranging from VND 200.000.000 to VND 250.000.000 shall be imposed for committing one of the following violations:
a) Infiltrating or attempting to infiltrate or steal data, destroying or making illegal changes to software programs or database used in payment; taking advantage of computer network errors for profiteering purposes, if not liable to criminal prosecution;
b) Opening or maintaining anonymous or impersonating checking accounts;
c) Performing, organizing or facilitating the commission of the following acts: using or abusing checking accounts, payment instruments or payment services for gambling, organizing gambling, fraud, deception, illegal business activities, fictitious payment transactions, or other illegal acts;
d) Stealing or colluding to steal information on checking accounts, if not liable to criminal prosecution;
dd) Failing to discharge or partially discharging responsibilities of a payment accepting entity.
8. A fine ranging from VND 250.000.000 to VND 300.000.000 shall be imposed for committing one of the following violations:
a) Committing any violation against regulations on cash payment;
b) Act of providing payment services by an entity which is not a licensed payment service provider.
9. Additional penalty:
The exhibits and instrumentalities used for committing any of the violations prescribed in clause 1, point b clause 5 and points c, d, i clause 6 of this Article shall be confiscated.
10. Remedial measures:
a) Enforced transfer of profits illegally obtained from any of the violations prescribed in clause 1, points a, b clause 4, points a, b clause 5, points b, c, d, dd, e clause 6, points a, b, c, d clause 7 and point b clause 8 of this Article to state budget;
b) Prohibition of expansion of operating network and areas until remedial measures against the violation are fully implemented, if any of the violations prescribed in points a, c, d clause 6, point c clause 7 and point a clause 8 of this Article is committed;
c) Proposed revocation of approval for provision of payment services without customers’ checking accounts, if the violation in Point dd Clause 6 of this Article is committed.
Article 31. Violations against regulations on payment intermediary services
1. A fine ranging from VND 15.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:
b) Providing inaccurate information concerning the provision or use of payment intermediary services;
b) Failing to comply with regulations of law when receiving and processing inquiries and complaints from customers; failing to adopt solutions enabling customers to look up information online as prescribed by law;
c) Committing any violation against regulations on tools serving SBV’s oversight of provision of e-wallet services.
2. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Committing any violation against regulations on use of e-wallet services;
b) Committing any violation against regulations on assurance of safety in provision of payment intermediary services;
c) Failing to adopt supervision measures to ensure the legality of payment transactions for foreign goods or services conducted via payment intermediary services as prescribed by law;
d) Committing any violation against regulations on e-wallet opening dossiers, agreements on opening and use of e-wallets, and information on customers opening e-wallets; opening of e-wallets by electronic means;
dd) Committing any violation against regulations on procedures for identification and verification of payment accepting entities;
e) Failing to comply with regulations of law on duration of interruptions in provision of payment intermediary services and reporting on such interruptions.
3. A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:
a) Providing or revealing information on customers’ e-wallet balances or their payment transactions at payment intermediary service providers against regulations of law;
b) Opening or maintaining anonymous or impersonating e-wallets; buying, selling, leasing, renting, borrowing or lending e-wallets; stealing or colluding to steal, buy or sell e-wallet information, if the violation involves from 01 to fewer than 10 e-wallets.
4. A fine ranging from VND 100.000.000 to VND 120.000.000 shall be imposed for committing one of the following violations:
a) Falsifying or forging documentary evidences of eligibility included in the application for license to provide payment intermediary services, if not liable to criminal prosecution;
b) Erasing or altering contents of; buying, selling, transferring, leasing, lending or forging license to provide payment intermediary services;
c) Entrusting or appointing other organizations or individuals as agents to perform activities specified in the license to provide payment intermediary services;
d) Operating against the license to provide payment intermediary services;
dd) Opening or maintaining anonymous or impersonating e-wallets; buying, selling, leasing, renting, borrowing or lending e-wallets; stealing or colluding to steal, buy or sell e-wallet information, if the violation involves 10 e-wallets or more;
e) Forging payment documents when providing payment intermediary services, if not liable to criminal prosecution;
g) Performing, organizing or facilitating the commission of the following acts: using or abusing payment intermediary services for gambling, organizing gambling, fraud, deception, illegal business activities, or other illegal acts;
h) Committing any violation against regulations on limits on transactions conducted via e-wallets;
i) Submitting inaccurate reports on balances on and quantity of e-wallets as prescribed by law;
k) Cooperating or providing payment intermediary services before entering into contracts or agreements, or under contracts or agreements which do not have adequate contents as prescribed by law on provision of payment intermediary services;
l) Committing any violation against regulations on connection of customers’ e-wallets with their checking accounts in VND or debt cards;
m) Committing any violation against regulations on currency used in payment transactions;
n) Failing to enter into agreements or contracts with commercial banks or FBBs on payment and settlement of payment transactions for foreign goods or services as prescribed by law;
o) Committing any violation against regulations on mechanisms for ensuring payment capacity for payment-on-behalf and collection-on-behalf services;
p) Committing any violation against regulations on use of payment security accounts for e-wallet services;
q) Failing to maintain the fulfillment of eligibility requirements for provision of payment intermediary services as prescribed by law.
5. A fine ranging from VND 120.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Submitting inaccurate reports on balances on and quantity of e-wallets as prescribed by law, in case of recidivism;
b) Committing any violation against regulations on cooperation with foreign organizations in providing payment intermediary services for customers that are non-residents and foreigners residing in Vietnam in order to conduct payment transactions for their goods and services in Vietnam.
6. A fine ranging from VND 150.000.000 to VND 250.000.000 shall be imposed for providing payment intermediary services without possessing a valid license.
7. Additional penalty:
The exhibits and instrumentalities used for committing the violation prescribed in Point e Clause 4 of this Article shall be confiscated.
8. Remedial measures:
a) Enforced transfer of profits illegally obtained from any of the violations in point b clause 3, points a, b, c, d, dd, e, g, i clause 4, clause 6 of this Article to state budget;
b) Proposed revocation of the license to provide payment intermediary services, if the violation prescribed in Point a, b, c, d or g Clause 4, or point a Clause 5 of this Article is committed;
c) Enforced return of erased or altered licenses to licensing authorities or persons, if the violation in point b clause 4 of this Article is committed.
Article 32. Violations against regulations on automated teller machines (ATMs) and bank card operations
1. A warning shall be issued for committing one of the following violations:
a) Failing to carry out inspection and maintenance of automated teller machines (ATMs);
b) Failing to update information on the installation, relocation, retiming or shutdown of ATMs on the ATM management system and official website of the payment service provider.
2. A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for committing one of the following violations:
a) Failing to give notification of the installation, relocation, retiming or shutdown of ATMs as prescribed by law;
b) Failing to ensure that the ATM system operates during customer service hours as prescribed by law;
c) Failing to maintain the continuous 24/7 operation of the customer service department to ensure that customers can make contact at any time;
d) Failing to monitor cash funds in ATMs or failing to ensure that ATMs will hold enough cash to serve customers’ cash withdrawals as prescribed; failing to comply with regulations on the cash limit per withdrawal at ATMs;
dd) Failing to meet technical requirements for safety and security of the ATM software and transmission lines as prescribed by law;
e) Committing any violations against regulations on announcement and posting of card service charge schedules.
3. A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed for failing to meet requirements regarding ATMs’ transaction logs as prescribed by law.
4. A fine ranging from VND 50.000.000 to VND 60.000.000 shall be imposed for failing to adopt measures to ensure safety and security of ATM operations.
5. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed for committing one of the following violations:
a) Committing any violation against regulations on currency of payment used for cards;
b) Collecting fees other than those in the announced Fee Schedule when cardholders make payments using their cards;
c) Hiring, leasing, buying, selling, or opening bank cards on behalf of others (except anonymous prepaid cards), if the violation involves from 01 to fewer than 10 cards;
d) Entering into contracts for issuance and use of cards against regulations of law.
6. A fine ranging from VND 100.000.000 to VND 200.000.000 shall be imposed for committing one of the following violations:
a) Hiring, leasing, buying, selling, or opening bank cards on behalf of others (except anonymous prepaid cards), if the violation involves 10 cards or more but is not subject to criminal prosecution;
b) Issuing cards or processing card payment in contravention of regulations of law;
c) Failing to reject, or to take measures to reject, card payment transactions in cases where such card payment transactions must be rejected as prescribed by law;
d) Committing any violation against regulations on ensuring security, safety and confidentiality in use of cards.
7. A fine ranging from VND 200.000.000 to VND 300.000.000 shall be imposed for committing one of the following violations:
a) Using, organizing or facilitating the use of anonymous prepaid cards to conduct card transactions by electronic means or withdraw cash;
b) Switching or conducting clearing and settlement for card transactions in contravention of regulations of law on bank card operations;
c) Performing, organizing or facilitating the commission of the following acts: using or abusing bank cards for gambling, organizing gambling, fraud, deception, illegal business activities, or other illegal acts; conducting fictitious payment transactions at merchants (no occurrence of any sale and purchase of goods or service provision);
d) Stealing or colluding to steal, buy or sell bank card information, if not liable to criminal prosecution.
8. Additional penalty:
The exhibits and instrumentalities used for committing the violation prescribed in Point c Clause 5, Point a Clause 6, Point a or c Clause 7 of this Article shall be confiscated.
9. Remedial measures:
a) Enforced transfer of profits illegally obtained from any of the violations in point c clause 5, point a clause 6 and clause 7 of this Article to state budget;
b) Enforced return of improperly collected fees to payers, or in case of unknown payers, enforced transfer of such fees to state budget, if the violation in Point b Clause 5 of this Article is committed.
Article 33. Violations against regulations on payment agents
1. A fine ranging from VND 15.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:
a) Providing inaccurate information concerning the provision or use of payment agent services;
b) Receiving and processing customers’ inquiries and complaints in contravention of regulations of law;
c) Collecting fees other than those specified in the fee schedule established and announced by the principal;
d) Failing to open and maintain a checking account at the principal to perform the appointed professional operations within the balance agreed upon by the principal and the agent; failing to separately manage the checking account dedicated to professional operations of the payment agent as prescribed by law;
dd) Failing to publish the list of payment agents that have entered into payment agency agreements on the principal’s website and applications.
2. A fine ranging from VND 120.000.000 to VND 150.000.000 shall be imposed for performing professional operations beyond the scope of the payment agency agreement signed by and between the principal and the payment agent.
3. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for committing one of the following violations:
a) Appointing payment agents or acting as a payment agent against the License for establishment and operation, or Establishment license or Decision prescribing organization and operation issued by a competent authority and any amendments to such license or decision (if any), involving the principal and the payment agent that are credit institutions or FBBs;
b) A principal’s commission of any violation against regulations on the number of payment agent’s points and transaction limits of the payment agents that are not credit institutions or FBBs;
c) An agent’s subcontracting of any third party to act as a payment agent;
d) Performing payment agent operations without entering into a payment agency agreement or with a payment agency agreement which does not have adequate contents as prescribed by law.
4. Remedial measures:
a) Enforced transfer of profits illegally obtained from any of the violations prescribed in Clause 2, points a, b, c Clause 3 of this Article to state budget;
b) Enforced termination of payment agent operations performed by the entities committing the violation in Clause 2 or Clause 3 of this Article;
c) Enforced use of separate checking accounts for payment agent operations, if the violation in Point d Clause 1 of this Article is committed;
d) Enforced return of improperly collected fees to payers, or in case of unknown payers, enforced transfer of such fees to state budget, if the violation in Point c Clause 1 of this Article is committed.
Article 34. Violations against regulations on negotiable instruments
1. A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed for signing any negotiable instruments ultra vires.
2. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:
a) Failing to comply with the acceptor’s obligations as prescribed in the Law on Negotiable Instruments;
b) Making collection through collecting agents in contravention of regulations of the Law on Negotiable Instruments.
3. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Transferring a negotiable instrument which is known to be overdue for payment, has been refused acceptance, has been dishonored for payment, or has been notified as lost, as prescribed in the Law on Negotiable Instruments;
b) Drawing cheques in case of insolvency.
4. A fine ranging from VND 60.000.000 to VND 120.000.000 shall be imposed for committing one of the following violations:
a) Forging signatures affixed to negotiable instruments;
b) Failing to comply with regulations on printing, delivery and management of blank cheques in the Law on Negotiable Instruments.
5. Additional penalty:
The exhibits and instrumentalities used for committing the violation prescribed in Clause 4 of this Article shall be confiscated.
6. Remedial measures:
Enforced transfer of profits illegally obtained from the violation prescribed in Point b Clause 3 or Clause 4 of this Article to state budget.
Article 35. Violations against regulations on cash and vault management, and provision of treasury services
1. A warning shall be issued for committing one of the following violations:
a) Failing to publicly post typical examples and SBV’s regulations on receipt and exchange of cash unfit for circulation at transaction locations;
b) Making loss of provided specimen cash; failing to provide specimen cash to eligible entities; failing to collect specimen cash upon notification of suspension of circulation thereof or at the request of a competent authority;
c) Failing to open or to fully and accurately keep records and books related to vault safety operations in accordance with regulations of law.
2. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for committing one of the following violations:
a) Packing and sealing precious metals and precious stones in contravention of regulations of law;
b) Failing to comply with procedures for collection, payment, delivery and receipt of cash, precious assets or valuable papers as prescribed by law;
c) Failing to comply with regulations of law on authorization of members involved in the management of cash, precious assets, valuable papers and vault;
d) Failing to comply with regulations of law on periodic inventory-taking and inventory methods;
dd) Failing to hand over cash, precious assets and valuable papers upon the replacement of any of the three individuals responsible for holding the vault door key as prescribed by law;
e) Carrying out the selection of cash unfit for circulation in contravention of regulations of law.
3. A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for committing one of the following violations:
a) Failing to promulgate or post internal regulations for entry to and exit from the cash vault and cash transaction counters; failing to promulgate procedures for internal cash transactions and cash transactions with customers;
b) Failing to have a plan for guarding and protecting the cash vault as prescribed by law;
c) Failing to carry out the selection and classification of cash unfit for circulation;
d) Rejecting customers’ requests for exchange of cash unfit for circulation against regulations of law;
dd) Carrying out custody of cash, precious assets and valuable papers at transaction counters and in the cash vault in contravention of regulations of law;
e) Failing establish, or failing to comply with regulations of law on establishment of, an Inventory Council or Council for tally and classification of cash.
4. A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:
a) Failing to install the vault safety equipment system as prescribed by law;
b) Entering or leaving the cash vault in contravention of regulations of law;
c) Providing treasury services without entering into contracts as prescribed by law.
5. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed for committing one of the following violations:
a) Using and taking custody of keys of the vault door, its compartments, safes, or cash containers installed on armored vehicles in contravention of regulations of law;
d) Transporting cash, precious assets, and valuable papers without using armored vehicles in the absence of written procedures for transportation, protection, and measures for ensuring safety of assets issued by competent authorities;
c) Failing to establish written regulations on conditions and procedures for receipt and return of customers’ assets, responsibilities of relevant departments in ensuring asset safety when rendering asset management and custody services, safe deposit box leasing, and other treasury services.
6. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Using a vault that does not comply with the structural design and technical standards as prescribed by law;
b) Using a vault with its door failing to comply with technical standards as prescribed by law;
c) Providing treasury services without complying with the principles therefor.
Article 36. Violations against regulations on protection of Vietnamese currency
1. A warning shall be issued for committing one of the following violations:
a) Failing to promptly notify a competent authority upon detecting a new type of counterfeit money;
b) Failing to promptly notify a competent authority upon detecting signs of possession, circulation, or transportation of counterfeit money;
c) Arranging persons who have not undergone training in skills for distinguishing genuine money from counterfeit money, or who have not received professional training in money examination as prescribed by law, to carry out the seizure of counterfeit money or the temporary seizure of suspected counterfeit money;
d) Failing to surrender counterfeit money in accordance with regulations of law.
2. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for committing one of the following violations:
a) Failing to seize counterfeit money upon detecting it;
b) Failing to temporarily seize suspected counterfeit money upon detecting it;
c) Failing to prepare records or to seize, seal and punch counterfeit money according to SBV’s regulations on handling of counterfeit money and suspected counterfeit money when seizing counterfeit money or temporarily seizing suspected counterfeit money.
3. A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for unlawful destruction of Vietnamese currency.
4. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed for reproducing images of Vietnamese currency in contravention of regulations of law.
5. Additional penalty:
All exhibits and instrumentalities used for committing any of the violations prescribed in Clauses 2, 3 and 4 of this Article shall be confiscated and handed over to competent authorities for handling in accordance with regulations of law.
6. Remedial measures:
a) Enforced sealing and punching of counterfeit money according to SBV’s regulations on handling of counterfeit money and suspected counterfeit money, if the violation prescribed in Point c Clause 2 of this Article is committed;
b) Enforced transfer of profits illegally obtained from the violation prescribed in Clause 4 of this Article to state budget.
Section 9. VIOLATIONS AGAINST REGULATIONS ON PURCHASE OF AND INVESTMENT IN FIXED ASSETS, REAL ESTATE BUSINESS AND CONSULTING SERVICES OF CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES (FBBs)
Article 37. Violations against regulations on purchase of and investment in fixed assets
1. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing any violation against regulations on the ratio of remaining value of fixed assets to charter capital and additional reserve fund of charter capital as recorded in the accounting book of a commercial bank, cooperative bank, non-bank credit institution, microfinance institution, or people’s credit fund; or the ratio of remaining value of fixed assets to allocated capital and additional reserve fund of allocated capital as recorded in the accounting book of a FBB.
2. Remedial measures:
a) Enforced compliance with regulations on the ratio of the remaining value of fixed assets directly used to serve operations to the charter capital or allocated capital and additional reserve fund of charter capital or additional reserve fund of allocated capital as prescribed in the Law on Credit Institutions within a maximum period of 06 months from the effective date of the penalty imposition decision, if the violation prescribed in Clause 1 of this Article is committed;
b) Enforced transfer of profits illegally obtained from the violation prescribed in Clause 1 of this Article to state budget.
Article 38. Violations against regulations on real estate business
1. A fine ranging from VND 200.000.000 to VND 250.000.000 shall be imposed for a credit institution’s engagement in real estate business, except the cases prescribed in Clauses 1, 2 and 3 Article 139 of the Law on Credit Institutions.
2. Remedial measure:
Enforced transfer of profits illegally obtained from the violation prescribed in Clause 1 of this Article to state budget.
Article 39. Violations against regulations on consulting services
1. A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed for providing consulting services without entering into a consulting service contract or with a consulting service contract that does not contain adequate information as required by law.
2. A fine ranging from VND 50.000.000 to VND 70.000.000 shall be imposed for providing consulting services falling beyond the permitted scope of consulting services.
Section 10. VIOLATIONS AGAINST REGULATIONS ON GUARANTEE OF SAFE OPERATION OF CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES
Article 40. Violations against regulations on reserve requirements and compulsory purchase of SBV bills
1. A warning shall be issued for committing one of the following violations:
a) Failing to maintain the required reserve as prescribed by law;
b) Failing to comply with regulations on compulsory purchase of SBV bills.
2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for failing to maintain the required reserve as prescribed by law, in case of recidivism or repeated violation.
3. Remedial measures:
Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if the violation prescribed in clause 2 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 41. Violations against regulations on prudential ratios
1. A fine ranging from VND 200.000.000 to VND 220.000.000 shall be imposed for committing violations against regulations of law on one of the following prudential ratios:
a) Maximum ratio of short-term capital used for provision of medium-term and long-term loans;
b) Loan-to-deposit ratio;
c) Ratio of purchase or holding of, or investment in, Government bonds and government-guaranteed bonds.
d) Ratio of total deposits received to equity.
2. A fine ranging from VND 250.000.000 to VND 300.000.000 shall be imposed for committing violations against regulations of law on solvency ratio.
3. A fine ranging from VND 300.000.000 to VND 350.000.000 shall be imposed for committing violations against regulations of law on capital adequacy ratio.
4. Remedial measures:
a) Enforced compliance with the prudential ratios as prescribed within a maximum period of 06 months from the effective date of the penalty imposition decision, if any of the violations prescribed in Clauses 1, 2 and 3 of this Article is committed;
b) Prohibition of expansion of operating network and areas until the remedial measures against the violation are fully implemented, if any of the violations prescribed in clauses 1, 2 and 3 of this Article is committed;
c) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if any of the violations prescribed in Clause 2, 3 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 42. Violations against regulations on classification of assets, off-balance-sheet (OBS) items, creation and use of risk provisions
1. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for committing one of the following violations:
a) Classifying assets and OSB items in contravention of regulations of law;
b) Setting aside risk provisions in contravention of regulations of law, unless the creation of risk provisions in contravention of regulations of law is a result of the commission of the violation prescribed in Point a Clause 1 of this Article;
c) Using risk provisions in contravention of regulations of law;
d) Failing to adopt measures to fully and thoroughly recover debts which have been settled using risk provisions, except cases where such debts, after risk management, are sold by credit institutions or FBBs that have fully collected the proceeds therefrom under the debt sale and purchase contracts.
2. Remedial measures:
a) Enforced classification of assets and creation of risk provisions; enforced reversal of improperly used amount of risk provisions, and recording of debts settled using risk provisions on the balance sheet as prescribed within a maximum duration of 01 month from the effective date of the penalty imposition decision, if any of the violations prescribed in Clause 1 of this Article is committed;
b) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if any of the violations prescribed in clause 1 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 43. Violations against regulations on setting aside and use of funds
1. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed for setting aside or using funds against regulations of law.
2. Remedial measure:
Enforced setting aside of funds as prescribed by law within 15 days from the effective date of the penalty imposition decision, if the violation prescribed in Clause 1 of this Article is committed.
Section 11. VIOLATIONS AGAINST REGULATIONS ON DEPOSIT INSURANCE AND FUND FOR MAINTENANCE OF PRUDENCE OF THE SYSTEM OF PEOPLE’S CREDIT FUNDS
Article 44. Violations against regulations on deposit insurance
1. A warning shall be issued for committing one of the following violations:
a) Failing to publicly post a copy of the certificate of deposit insurance at all transaction locations where deposits are accepted;
b) Making insufficient or late payment of deposit insurance premiums;
c) Failing to comply with the time limit for application for issuance of certificate of deposit insurance as prescribed in the Law on Deposit Insurance.
2. A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed for failing to pay deposit insurance premiums as prescribed by law.
3. A fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed for failing to make deposit insurance payouts to insured depositors within the time limit prescribed in the Law on Deposit Insurance.
4. A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed for committing one of the following violations:
a) Offering deposit insurance for deposits which are not eligible for insurance as prescribed in the Law on Deposit Insurance;
b) Falsifying or forging documents concerning deposit insurance, if not liable to criminal prosecution.
5. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Failing to make or making insufficient insurance payouts;
b) Obstructing, hindering or damaging legitimate rights and benefits of deposit insurers, deposit insurance policyholders, insured depositors and other authorities and organizations involved in the deposit insurance;
c) Abusing positions and powers to act against regulations of the Law on Deposit Insurance.
6. Remedial measures:
a) Enforced posting of the copy of certificate of deposit insurance, if the violation prescribed in Point a Clause 1 of this Article is committed;
b) Enforced reimbursement of collected deposit insurance premiums or recovery of delivered deposit insurance payouts, if any of the violations prescribed in Clause 4 of this Article is committed;
c) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if any of the violations prescribed in Point b Clause 4 and Points a, c Clause 5 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 45. Violations against regulations on fund for maintenance of prudence of the system of people’s credit funds
1. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:
a) Failing to participate in the fund for maintenance of prudence of the system of people’s credit funds;
b) Failing to make contributions to the fund for maintenance of prudence of the system of people’s credit funds or making such contributions in contravention of regulations of law.
2. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for failing to properly use loans received from the fund for maintenance of prudence of the system of people’s credit funds for the approved purposes.
Section 12. VIOLATIONS AGAINST REGULATIONS ON ANTI-MONEY LAUNDERING; ANTI-TERRORISM FINANCING; COUNTER TO FINANCING OF PROLIFERATION OF WEAPONS OF MASS DESTRUCTION
Article 46. Violations against regulations on customer identification
1. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Failing to carry out customer identification; failing to update or verify customer identification information; or carrying out customer identification, updating or verifying customer identification information in contravention of regulations of law on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction, except the case prescribed in point k clause 6 Article 30 of this Decree;
b) Failing to update the blacklist.
2. Remedial measures:
a) Enforced implementation of regulations on customer identification, updating and verification of customer identification information as prescribed in law on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction, if the violation in Point a Clause 1 of this Article is committed;
b) Enforced updating of the blacklist, if the violation in Point b Clause 1 of this Article is committed;
c) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if any of the violations prescribed in clause 1 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 47. Violations against regulations on application of internal regulations on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction
1. A fine ranging from VND 100.000.000 to VND 200.000.000 shall be imposed for committing one of the following violations:
a) Failing to apply, or improperly applying, internal regulations to internal control and audit as prescribed by laws on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction;
b) Failing to apply internal regulations on assignment or failing to register the assignment of individuals/officials/departments in charge of anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction as prescribed by laws on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction;
c) Failing to apply, or improperly applying, internal regulations on training, refresher training and recruitment as prescribed by laws on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction.
2. A fine ranging from VND 200.000.000 to VND 300.000.000 shall be imposed for failing to promulgate internal regulations or promulgating such internal regulations against laws on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction.
3. Remedial measures:
a) Enforced compliance with regulations of law and internal regulations on internal control and audit, assignment and registration of in-charge individuals/officials/departments, training, refresher training and recruitment as prescribed by laws on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction, if any of the violations in clause 1 of this Article is committed.
b) Enforced promulgation of internal regulations as prescribed by law, if the violation in Clause 2 of this Article is committed.
Article 48. Violations against regulations on risk-based customer classification
1. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for failing to develop risk management procedures, failing to carry out risk-based customer classification, or developing the risk management procedures or carrying out risk-based customer classification against regulations of law on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction.
2. Remedial measures
Enforced development and promulgation of the risk management procedures, or enforced classification of customers by risk levels as prescribed by laws on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction.
Article 49. Violations against regulations on foreign customers that are politically exposed persons (PEPs)
1. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for failing to comply with regulations regarding foreign customers that are PEPs laid down in the Law on Anti-Money Laundering.
2. Remedial measure:
Enforced compliance with regulations regarding foreign customers that are PEPs laid down in the Law on Anti-Money Laundering.
Article 50. Violations against regulations on correspondent banking relationship, new products and services, existing products and services applying innovative technologies, and special transaction monitoring
1. A fine ranging from VND 150.000.000 to VND 200.000.000 shall be imposed for committing one of the following violations:
a) Failing to implement, or insufficiently implementing, regulations relating to correspondent banking relationship when establishing relationships with partner banks for the purposes of providing banking, payment, and other services to respondent bank, as prescribed by the Law on Anti-Money Laundering;
b) Failing to implement, or insufficiently implementing, regulations relating to responsibilities of reporting entities when providing new products and services, or existing products and services which apply innovative technologies, as prescribed by the Law on Anti-Money Laundering.
2. A fine ranging from VND 200.000.000 to VND 300.000.000 shall be imposed for failing to carry out special transaction monitoring as prescribed by the Law on Anti-Money Laundering.
3. Remedial measures:
a) Enforced implementation of regulations relating to correspondent banking relationship as prescribed by the Law on Anti-Money Laundering, if the violation in Point a Clause 1 of this Article is committed;
b) Enforced implementation of regulations relating to responsibilities of reporting entities when providing new products and services, or existing products and services which apply innovative technologies, as prescribed by the Law on Anti-Money Laundering, if the violation in Point b Clause 1 of this Article is committed;
c) Enforced compliance with regulations on special transaction monitoring as prescribed by the Law on Anti-Money Laundering, if the violation in Clause 2 of this Article is committed.
Article 51. Violations against regulations on reporting on large-value transactions, suspicious transactions, electronic funds transfers, and suspicious activities related to terrorism financing, and financing of proliferation of weapons of mass destruction
1. A fine ranging from VND 80.000.000 to VND 120.000.000 shall be imposed for committing one of the following violations:
a) Committing a third or subsequent violation within a fiscal year of regulations on time limits for submission or requirements regarding the completeness and accuracy of information in reports on large-value transactions or electronic funds transfers, as prescribed in laws on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction;
b) Submitting reports with incomplete information, as required by law, on suspicious transactions involving money laundering, terrorism financing, or financing of proliferation of weapons of mass destruction.
2. A fine ranging from VND 150.000.000 to VND 250.000.000 shall be imposed for committing one of the following violations:
a) Failing to submit reports on large-value transactions which must be reported as prescribed by law;
b) Failing to submit reports on suspicious transactions involving money laundering, terrorism financing, or financing of proliferation of weapons of mass destruction;
c) Failing to submit reports on electronic funds transfers;
d) Failing to submit reports where there is a suspicion that a customer or a customer’s transaction is related to terrorism financing or financing of proliferation of weapons of mass destruction, or where a customer is included in a Blacklist or a Sanctions List, as prescribed by laws on counter-terrorism and counter to financing of proliferation of weapons of mass destruction.
3. Remedial measures:
a) Enforced submission of complete and accurate reports, if any of the violations in this Article is committed;
b) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if any of the violations prescribed in clause 2 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 52. Violations against regulations on retention, provision, and confidentiality of information, records, documents and reports
1. A fine ranging from VND 150.000.000 to VND 250.000.000 shall be imposed for committing one of the following violations:
a) Failing to provide information, records, documents and reports in a timely manner as prescribed by laws on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction, if not liable to criminal prosecution;
b) Failing to retain, or inadequately retaining, information, records, documents and reports; failing to comply with the prescribed periods of retention of information, records, documents and reports, as prescribed by laws on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction, if not liable to criminal prosecution;
c) Failing to comply with regulations on protection of confidentiality of customer identification information with respect to those information, documents, records or reports related to should-be-reported transactions laid down in laws on anti-money laundering, anti-terrorism financing, and counter to financing of proliferation of weapons of mass destruction, if not liable to criminal prosecution.
2. Remedial measures:
a) Enforced provision and retention of adequate information, documents, records or reports for the prescribed periods, and enforced protection of confidentiality thereof as prescribed, if any of the violations in this Article is committed;
b) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if any of the violations prescribed in this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 53. Violations against regulations on postponement of transactions, freezing of accounts; sealing or impoundment of assets
1. A fine ranging from VND 150.000.000 to VND 250.000.000 shall be imposed for committing one of the following violations:
a) Failing to submit reports on postponement of transactions as prescribed by laws on anti-money laundering and anti-terrorism financing;
b) Failing to immediately submit reports on the suspension of circulation or freezing of money and/or assets related to terrorism financing or financing of proliferation of weapons of mass destruction as prescribed by law.
2. A fine ranging from VND 250.000.000 to VND 350.000.000 shall be imposed for committing one of the following violations:
a) Failing to take transaction postponement measure as prescribed by laws on anti-money laundering and anti-terrorism financing;
b) Failing to freeze accounts, or failing to seal, seize or impound assets according to decisions issued by competent authorities as prescribed by the Law on Anti-Money Laundering;
c) Failing to suspend the circulation of, or freeze, money and assets related to terrorism, terrorism financing or financing of proliferation of weapons of mass destruction as prescribed by law.
3. Remedial measures:
a) Enforced submission of complete and adequate reports, if any of the violations in clause 1 of this Article is committed;
b) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if any of the violations prescribed in clause 1 and clause 2 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 54. Violations against regulations on risk assessment
1. A fine ranging from VND 100.000.000 to VND 150.000.000 shall be imposed for committing one of the following violations:
a) Failing to carry out assessment of risks of money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction or failing to update results thereof in accordance with regulations of law;
b) Failing to submit reports on or to disseminate results of assessment and updating of risks of money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction in accordance with regulations of law.
2. Remedial measures:
a) Enforced compliance with regulations of law on assessment of risks of money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction, if the violation prescribed in clause 1 of this Article is committed;
b) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if the violation prescribed in clause 1 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Article 55. Violations against regulations on prohibited acts in anti-money laundering and anti-terrorism financing
1. A fine ranging from VND 150.000.000 to VND 250.000.000 shall be imposed for obstructing the provision of information serving the performance of anti-money laundering and anti-terrorism financing tasks.
2. A fine ranging from VND 300.000.000 to VND 400.000.000 shall be imposed for committing one of the following violations:
a) Creating or maintaining anonymous accounts or accounts with fake names;
b) Illegally providing services of receipt of cash, cheques, other monetary instruments or stores of value and making payments to beneficiaries.
3. A fine ranging from VND 400.000.000 to VND 500.000.000 shall be imposed for committing one of the following violations:
a) Organizing, participating in or facilitating, assisting performance of money laundering activities, if not liable to criminal prosecution;
b) Establishing and maintaining business relationship with shell banks, if not liable to criminal prosecution;
c) Failing to denounce terrorism financing activities, if not liable to criminal prosecution;
d) Taking advantage of the suspension of circulation, freezing, sealing, impoundment or handling of money and assets related to terrorism financing for harming the State interests or legitimate rights and benefits of regulatory authorities, organizations and/or individuals, if not liable to criminal prosecution;
dd) Directly or indirectly providing money, assets, financial resources, economic resources, financial services, or other services to entities related to terrorism or terrorism financing, if not liable to criminal prosecution.
4. Remedial measures:
Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if any of the violations prescribed in clause 2 and clause 3 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Section 13. VIOLATIONS AGAINST REGULATIONS ON PROVISION OF INFORMATION AND REPORTING
Article 56. Violations against regulations on reporting, and information management and provision
1. A warning shall be issued for committing one of the following violations:
a) Committing a third or subsequent violation within a month of regulations on time limits for submission or requirements regarding the completeness and accuracy of information and data in daily statistical reports;
b) Committing a second or subsequent violation within a month for failure to submit complete daily statistical reporting forms.
2. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for committing one of the following violations:
a) Committing a fifth or subsequent violation within a month of regulations on time limits for submission or requirements regarding the completeness and accuracy of information and data in daily statistical reports, except the cases prescribed in clause 1 of this Article;
b) Committing a third or subsequent violation within a year of regulations on time limits for submission or requirements regarding the completeness and accuracy of information and data in periodic statistical reports with a reporting period of less than 01 month, except the cases prescribed in clause 1, point a clause 2, point b clause 6 of this Article;
c) Failing to retain and manage records and documents for periods required by law, except the cases prescribed in point a clause 1 Article 17 of this Decree;
d) Committing a fourth or subsequent violation within a month for failure to submit complete daily statistical reporting forms, or failing to submit complete forms of periodic statistical reports with a reporting period of less than 01 month within a year, except the cases prescribed in clause 1 of this Article;
dd) Committing a violation of regulations on time limits for submission or requirements regarding the completeness of information in other reports, except the cases prescribed in clause 1, points a, b, d of this clause, point c clause 4 of this Article, Article 51; clause 1 Article 53 of this Decree.
3. A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for submitting other reports with incomplete reporting forms, or inaccurate information and data, except the cases prescribed in clause 1, clause 2, points c, d clause 4 of this Article, Article 51; clause 1 Article 53 of this Decree.
4. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:
a) Failing to publish the changes prescribed in Points a, b, c and d Clause 1 Article 37 of the Law on Credit Institutions or publishing such changes in contravention of provisions of Article 37 of the Law on Credit Institutions;
b) Failing to publish information on commencement of operations or publishing such in contravention of regulations of the Law on Credit Institutions;
c) Committing a second or subsequent violation within a year of requirements regarding the completeness and accuracy of information and data in periodic statistical reports with a reporting period of 01 month or longer, except the cases prescribed in point b clause 6, point d clause 7 of this Article;
d) Committing a second or subsequent violation within a year of regulations on time limits for submission of periodic statistical reports with a reporting period of 01 month or longer, except the cases prescribed in point b clause 6, point d clause 7 of this Article;
dd) Failing to submit complete forms of periodic statistical reports with a reporting period of 01 month or longer within a year;
e) Failing to publicly post information on transaction halts or publicly posting such information in contravention of the Law on Credit Institutions;
g) Failing to submit reports on provision of online services to SBV as prescribed by law.
5. A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed for committing one of the following violations:
a) Submitting untruthful reports, except the cases in point i clause 4, point a clause 5 Article 31 hereof;
b) Providing information about operations of SBV, credit institutions or FBBs, or information about their customers in contravention of regulations of law;
c) Failing to provide information, records and documents, or providing such information, records and documents which are not complete and accurate as prescribed by law, except the cases prescribed in clauses 2, 3 of this Article;
d) Disclosing or using information about customers of a credit institution or FBB for purposes other than the ones prescribed by law.
6. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Failing to send reports on credit information to SBV within the prescribed time limit;
b) Sending credit information reports which contain inaccurate or incomplete information or do not meet technical requirements to SBV;
c) Failing to submit reports on credit information to SBV in accordance with SBV’s regulations on credit information-related activities;
d) Failing to submit reports on information security incidents as prescribed by law on information system security in banking operations.
7. A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:
a) Failing to immediately submit reports on insolvency risk to competent authorities;
b) Failing to publicly post, retain, provide and disclose information or publicly posting, retaining, providing and disclosing information in contravention of Article 49 of the Law on Credit Institutions and other regulations of law;
c) Submitting statistical reporting forms containing inaccurate data on debt classification, establishment of credit risk provisions, and capital adequacy ratios.
8. Remedial measures:
a) Enforced submission of complete and accurate reports, if the violation of requirements regarding completeness and accuracy of reports prescribed in clause 2, 3, 4 or 6 of this Article is committed;
b) Prohibition of expansion of operating network and areas until remedial measures against the violation are fully implemented, if any of the violations prescribed in clause 2, clause 3, points c, d, dd clause 4 and clause 6 of this Article is committed;
c) Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if the violation prescribed in point a Clause 7 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Section 14. VIOLATIONS AGAINST REGULATIONS ON OBSTRUCTION OF INSPECTION AND EXAMINATION, AND FAILURE TO COMPLY WITH REQUESTS OF COMPETENT OFFICIALS
Article 57. Violations against regulations on obstruction of inspection and examination, and failure to comply with requests of competent officials
1. A fine ranging from VND 2.000.000 to VND 3.000.000 shall be imposed for obstructing or hindering competent officials from carrying out inspections or examinations.
2. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for evading inspections or examinations conducted by competent officials.
3. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for failing to provide adequate documents, records and data at the request of inspection or examination teams.
4. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:
a) Refusing to provide information and documents or failing to submit reports or provide explanations at the request of inspection or examination teams or competent officials, except the case prescribed in clause 1 Article 58 of this Decree;
b) Intentionally removing or moving or performing other acts to change the existing status of the seals on vaults, safes, accounting books/vouchers, credit extension dossiers or other exhibits which are sealed and impounded;
c) Failing to freeze accounts or remove freezing of accounts at the request of inspection teams or competent officials, except the case prescribed in point c clause 6 of this Article.
5. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) Providing untruthful information and/or documents;
b) Making unlawful intervention in actions taken by competent authorities and inspection activities;
c) Hiding or altering documents/records or changing exhibits during the inspection or examination.
6. A fine ranging from VND 50.000.000 to VND 100.000.000 shall be imposed for committing one of the following violations:
a) Transferring funds or assets abroad after they are frozen;
b) Failing to deposit funds or assets to SBV or a credit institution at the request of SBV after they are frozen;
c) Failing to freeze, or release freezing of, funds and assets of a FBB at the request of SBV;
d) Failing to withdraw and transfer funds from accounts at the request of competent officials in conformity with regulations of law, except the violations prescribed in the Decree prescribing penalties for administrative violations in taxation sector.
7. Remedial measures:
a) Enforced provision of adequate and complete information and documents to inspection or examination teams or competent officials, if any of the violations in clause 3, point a clause 4 of this Article is committed;
b) Enforced freezing of accounts or removal of account freeze at the request of competent officials, if the violations in point c clause 4 of this Article is committed.
Article 58. Violations against regulations on obligations of entities subject to inspection, examination and supervision
1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for committing one of the following violations:
a) Failing to provide timely, adequate and accurate information and/or documents in a timely manner at the request of SBV, except the cases prescribed in clause 3, point a clause 4 Article 57 of this Decree;
b) Failing to comply with the SBV’s risk warnings and recommendations for safe operations;
c) Failing to provide reports or explanations about the SBV’s risk warnings and recommendations for safe operations.
2. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed for failing to comply with conclusions, recommendations or decisions on inspection or examination.
3. Remedial measures:
Proposed suspension by competent authorities of violating persons and/or persons responsible for the violation from holding the administration, management or control positions for 01 – 03 months, or proposed dismissal or prohibition of them from holding the administration, management or control positions at credit institutions or FBBs, if the violation prescribed in clause 2 of this Article is committed.
The relevant credit institution or FBB is requested to remove from office and implement other appropriate measures against violating persons within their competence.
Section 15. VIOLATIONS AGAINST REGULATIONS ON DEBT TRADING AND SETTLEMENT
Article 59. Violations against regulations on debt trading by credit institutions
1. A fine ranging from VND 50.000.000 to VND 80.000.000 shall be imposed for committing one of the following violations:
a) Failing to establish a debt trading council when buying and selling debts;
b) Employing debt trading methods against 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) Selling debts which are not eligible for sale or are not permitted to be traded as prescribed by law;
b) Seller’s repurchase of the debts previously sold, unless otherwise permitted by law;
c) Taking possession of collateral in contravention of the Law on Credit Institutions.
3. Additional penalty:
Debt trading operations shall be suspended for 03 – 06 months, if any of the violations prescribed in Clause 1, points a, b clause 2 of this Article is committed.
4. Remedial measures:
a) The seller is compelled to repurchase the debts which are still owned by the buyer, if the violation in point a clause 2 of this Article is committed;
b) Enforced re-sale of the repurchased debt which remains outstanding, if the violation in point b clause 2 of this Article is committed.
Article 60. Violations against regulations on sale, purchase and settlement of bad debts by Vietnam Asset Management Company (VAMC)
1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for committing one of the following violations:
a) Managing purchased bad debts and examining or supervising collateral for such bad debts in contravention of regulations of law;
b) Authorizing credit institutions and examining or supervising their performance of authorized contents in contravention of regulations of law;
c) Implementing measures for debt restructuring and giving financial support to borrowers in contravention of regulations of law;
d) Making capital contributions or purchasing shares in contravention of regulations of law;
dd) Setting aside and using provisions for risks to the bad debts purchased at the market value in contravention of regulations of law.
2. A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for committing one of the following violations:
a) Buying and selling bad debts in contravention of regulations of law;
b) Settling collateral for purchased bad debts in contravention of regulations of law.
3. A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed for performing acts authorized by VAMC after selling debts in contravention of regulations of law.
Section 16. VIOLATIONS AGAINST REGULATIONS ON INFORMATION TECHNOLOGY SECURITY FOR BANKING OPERATIONS
Article 61. Violations against regulations on information technology security for banking operations
1. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:
a) Failing to carry out assessment of information technology (IT) risks and operational risks before using IT services rendered by a third party as prescribed by law;
b) Failing to carry out information security testing and assessment, or carrying out such testing and assessment in contravention of regulations of law, for information systems providing online services for customers before they are put into official operation;
c) Failing to carry out annual information security testing and assessment for information systems classified as level 3 or higher as prescribed by law.
2. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:
a) Failing to disseminate or update regulations on information security to all staff members at least once every year;
b) Failing to comply with regulations on data backup, backup testing and restoration to ensure data security for information systems classified as level 3 or higher, as prescribed by law;
c) Failing to implement cybersecurity solutions to control network connections and detect and prevent network intrusion attacks against information systems providing online services for customers;
d) Failing to apply methods for electronic transaction authentication when providing online services, as prescribed by law;
dd) Failing to provide guidance to customers on measures for ensuring the security and confidentiality of information when using online banking services;
e) Failing to comply with regulations on retention of transaction logs, transaction authentication logs, logs of information system and user activities, as well as records of errors and information security incidents, as prescribed by law;
g) Failing to establish a cybersecurity operations center to monitor and handle information security incidents, as prescribed by law;
h) Failing to develop measures or plans to address risks from security vulnerabilities assessed as high or critical for information systems classified as level 3 or higher, as prescribed by law;
i) Failing to establish a disaster recovery system, or establishing a disaster recovery system which does not meet the requirements prescribed by law;
k) Failing to conduct drills of information security incident response plans as prescribed by law;
l) Failing to perform periodic failover from the primary system to the backup system for information systems classified as level 3 or higher as prescribed by law.
3. A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed for committing any violation against regulations on security classification of information systems providing online banking services.
4. Additional penalty:
Use of IT services provided by a third party shall be suspended for a fixed period of 01 – 03 months, if the violation prescribed in point a clause 1 of this Article is committed.
5. Remedial measure:
Enforced compliance with regulations of law on information technology security for banking operations, if any of the violations prescribed in this Article is committed.
POWER TO IMPOSE PENALTIES AND RECORD ADMINISTRATIVE VIOLATIONS
Article 62. Power to impose administrative penalties of banking inspection forces
1. On-duty banking inspectors shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 100.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 200.000.000.
2. Heads of inspection teams established under decisions issued by the Chief Inspectors of SBV’s Regional Branches shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 500.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
3. Chief Inspectors of SBV’s Regional Branches shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 800.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
4. SBV’s Chief Inspector; Heads of inspection teams established under decisions issued by SBV’s Chief Inspector shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 1.000.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
Article 63. Power to impose administrative penalties of Chairpersons of People’s Committees at all levels
1. Chairpersons of commune-level People’s Committees shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 500.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
2. Chairpersons of provincial-level People’s Committees shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 1.000.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
Article 64. Power to impose administrative penalties of People’s Public Security Forces
1. Soldiers on duty of People’s Public Security Forces shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 100.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 200.000.000.
2. Heads of company-level Mobile Police units shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 200.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 400.000.000.
3. Heads of Police Posts, Commanders of Mobile Police Battalions, Heads of Squadrons, Station Heads or Team Leaders shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 300.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 600.000.000;
d) Impose additional penalties specified in points a, b clause 2 Article 5 hereof.
4. Commune-level Police Chiefs shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 500.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
5. Heads of Police Offices at International Airports; Heads of professional divisions of the following authorities, including Internal Security Department, Internal Political Security Department, Economic Security Department, Counter Narcotics Police Department, Police Department for Administrative Management of Social Order, Traffic Police Department, Fire and Rescue Police Department, Department of Cybersecurity, Hi-tech Crime Prevention and Control, Immigration Department, National Data Center; Commanders of Mobile Police Regiments; Heads of divisions affiliated to Provincial-level Police Departments shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 800.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
6. Directors of Provincial-level Police Departments; Director General (Director) of Internal Political Security Department, Director General (Director) of Economic Security Department, Office Chief of the Investigation Police Authority affiliated to Ministry of Public Security, Directors General (Directors) of Police Department for Administrative Management of Social Order, Investigation Police Department for Social Order Crimes, Police Department for Investigation into Corruption, Economy and Smuggling-related Crimes, Counter Narcotics Police Department, Traffic Police Department, Fire and Rescue Police Department, Environment Crime Prevention and Fighting Police Department, Department of Cybersecurity and Hi-tech Crime Prevention and Control, Internal Security Department, Police Department for Management of Retention and Execution of Criminal Judgements at Community, Commander of the Mobile Police, Director of National Data Center, and Director General (Director) of Immigration Department shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 1.000.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
Article 65. Power to impose administrative penalties of Border Guard Forces
1. On-duty soldiers of the Border Guard Forces shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 50.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 100.000.000.
2. Station Heads or Team Leaders in charge of supervising the soldiers mentioned in clause 1 of this Article shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 100.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 200.000.000.
3. Leaders of Task Force Teams for Drug and Crime Prevention and Control which are put under the control of Task Force Commissions for Drug and Crime Prevention and Control shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 150.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 300.000.000.
4. Heads of Border Guard Posts, Captains of Naval Border Guard Flotillas, and Commanding Officers of Border Guard Commands at port border checkpoints shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 300.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 600.000.000;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
5. Heads of Task Force Commissions for Drug and Crime Prevention and Control which are put under control of the Drug and Crime Prevention and Control Department affiliated to the Border Guard High Command shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 500.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
6. Commanding Officers of Border Guard Commands; Captains of Naval Border Guard Squadrons, and Director General of the Drug and Crime Prevention and Control Department affiliated to the Border Guard High Command shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 1.000.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
Article 66. Power to impose administrative penalties of Coast Guard Forces
1. Police Officers on duty of the Coast Guard Forces shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 50.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 100.000.000.
2. Coast Guard Team Leaders shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 100.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 200.000.000.
3. Heads of Coast Guard Units or Coast Guard Stations shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 200.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 400.000.000.
4. Captains of Coast Guard Platoons shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 300.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 600.000.000.
5. Captains of Coast Guard Squadrons, Heads of Reconnaissance Commissions, Heads of Task Force Commissions for Drug Crime Prevention and Control under the control of Vietnam Coast Guard shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 500.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof.
6. Regional Coast Guard Commanders, Director General of the Department of Operations and Legislation under the control of Vietnam Coast Guard shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 800.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
7. Vietnam Coast Guard Commander shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 1.000.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
Article 67. Power to impose administrative penalties of Market Surveillance Forces
1. Market controllers on duty shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 100.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 200.000.000.
2. Leaders of Market Surveillance Teams under the control of Market Surveillance Sub-departments affiliated to Provincial-level Departments of Industry and Trade shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 300.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 600.000.000;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
3. Directors of Market Surveillance Sub-departments, and heads of Market Surveillance Operations Departments affiliated to the Agency for Domestic Market Surveillance and Development shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 500.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
4. Director General of the Agency for Domestic Market Surveillance and Development shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 1.000.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
Article 68. Power to impose administrative penalties of Customs Authorities
1. Heads of Border Checkpoint/Out-Of-Checkpoint Customs Offices, Customs Procedure Inspection and Post-Clearance Inspection Teams, Customs Clearance Teams, and Customs Control Teams under the control of Regional Customs Sub-departments, Heads of Anti-smuggling Control Teams under the control of the Anti-smuggling Investigation Sub-department, and Heads of Regional Post-Clearance Inspection Teams under the control of Post-Clearance Inspection Sub-department, shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 300.000.000;
c) Confiscate the exhibits and instrumentalities used for committing administrative violations worth no more than VND 600.000.000;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
2. Directors of the Anti-smuggling Investigation Sub-department, the Post-Clearance Inspection Sub-department, and Regional Customs Sub-departments shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 500.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
3. Director General of Department of Customs of Vietnam shall have the power to:
a) Issue warning;
b) Impose a fine up to VND 1.000.000.000;
c) Impose additional penalties specified in clause 2 Article 5 hereof;
d) Impose the remedial measures specified in Clause 4 Article 5 hereof.
Article 69. Power to impose administrative penalties of Directors of provincial-level Departments
Directors of Provincial-level Departments of Culture, Sports and Tourism; Directors of Provincial-level Departments of Tourism shall have the power to:
1. Issue warning.
2. Impose a fine up to VND 800.000.000.
3. Impose additional penalties specified in clause 2 Article 5 hereof.
4. Impose the remedial measures specified in Clause 4 Article 5 hereof.
Article 70. Distinction of power to impose penalties for administrative violations in monetary and banking sector
1. Power to impose administrative penalties of Chairpersons of People’s Committees at all levels
Chairpersons of People’s Committees at all levels shall have the power to impose penalties for the administrative violations prescribed in Chapter II hereof within their jurisdiction and the ambit of their assigned functions, tasks and powers.
2. Power to impose administrative penalties of Market Surveillance Forces
Persons having the power to impose penalties of Market Surveillance Forces shall have the power to impose penalties for the administrative violations prescribed in clause 1, clause 2, points a, b, h, i, k, l clause 3, point n clause 4, points e, g, h clause 5, point c clause 8 Article 27; clause 1, clause 2, points a, c clause 3, point a clause 4, points d, dd clause 5, point a clause 6, clause 7, points a, c clause 8 Article 28 hereof.
3. Power to impose administrative penalties of Border Guard Forces
Persons having the power to impose penalties of Border Guard Forces shall have the power to impose penalties for the administrative violations prescribed in clause 1, clause 2, points h, i, k clause 3, point h clause 4, points e, g, h clause 5 Article 27; clause 1, clause 2, clause 4, points a, b clause 8 Article 28; points a, b, d clause 1 Article 36; clause 1 Article 55; point c clause 5 Article 56; clause 3, point a clause 4, points a, b clause 5 Article 57; Article 58 hereof.
4. Power to impose administrative penalties of Coast Guard Forces
Persons having the power to impose penalties of Coast Guard Forces shall have the power to impose penalties for the administrative violations prescribed in clause 1, clause 2, points h, i, k clause 3, point h clause 4, points e, g, h clause 5, point b clause 8 Article 27; clause 1, clause 2, points a, b clause 4, point c clause 5, point a clause 6, points a, b clause 8 Article 28; points a, b, d clause 1 Article 36; clause 1 Article 55; Article 58 hereof.
5. Power to impose administrative penalties of People’s Public Security Forces
Persons having the power to impose penalties of People’s Public Security Forces shall have the power to impose penalties for the administrative violations prescribed in clause 4, 5 and 6 Article 7; clause 1, clause 2, points a, b, c, h, i, k, l clause 3, points h, n clause 4, points c, e, g, h clause 5, point c clause 8 Article 27; Article 28; point b clause 2, clause 5, clause 6, clause 7 Article 30; point a clause 1, clause 3, points a, b, c, d, D, e, g clause 4, clause 6 Article 31; points c, d clause 5, clause 6, clause 7 Article 32; point a clause 1 Article 33; point a clause 4 Article 35; Article 36; Section 12; point c clause 5 Article 56; Article 57; Article 58; point b clause 1, point c clause 2 Article 61 hereof.
6. Power to impose administrative penalties of Customs Authorities
Persons having the power to impose penalties of Customs Authorities shall have the power to impose penalties for the administrative violations prescribed in point b clause 8 Article 27, point c clause 5, point b clause 8 Article 28 hereof.
7. Power to impose administrative penalties of Directors of provincial-level Departments
Directors of Provincial-level Departments of Culture, Sports and Tourism; Directors of Provincial-level Departments of Tourism shall have the power to impose penalties for the administrative violations prescribed in clause 1, clause 2, points h, i, k clause 3, point h clause 4, points e, g, h clause 5, point b clause 8 Article 27; clauses 1, 2, 3 Article 28 hereof.
8. Power to impose administrative penalties of banking inspection forces
Persons having the power to impose penalties of Banking Inspection Forces shall have the power to impose administrative penalties and remedial measures against administrative violations prescribed in Chapter II hereof within their jurisdiction and the ambit of their assigned functions, tasks and powers.
Article 71. Power to make records of administrative violations
The following persons shall have the power to make records of administrative violations:
1. The title holders specified in Articles 62, 63, 64, 65, 66, 67, 68 and 69 of this Decree who have the power to make records of the administrative penalties for which they have the power to impose penalties as assigned in Article 70 hereof.
2. Persons of People’s Armed Forces or People’s Public Security Forces, and civil servants and public employees working at the agencies specified in this Decree who are performing their duties according to legislative documents or administrative documents promulgated by competent authorities or officers; pilots in command, ship captains, train masters and persons who are assigned by these title holders to make records of violations.
3. Officials in banking sector who are performing their duties according to legislative documents or administrative documents promulgated by competent authorities or officers.
1. This Decree comes into force from February 09, 2026.
2. This Decree supersedes the following documents:
a) The Government’s Decree No. 88/2019/ND-CP dated November 14, 2019;
b) The Government’s Decree No. 143/2021/ND-CP dated December 31, 2021.
3. Article 2 and Article 3 of the Government’s Decree No. 23/2023/ND-CP dated May 12, 2023 are abrogated.
If the violating entity files a complaint against the decision to impose penalties for an administrative violation in monetary and banking sector which has been issued or fully executed before the effective date of this Decree, such a complaint shall be considered and settled in accordance with regulations on penalties for administrative violations in monetary and banking sector in effect at the time of issuance of such decision.
Article 74. Responsibility for implementation
Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces or central-affiliated cities and relevant agencies shall, within the ambit of their assigned functions and duties, be responsible for the implementation of this Decree.
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ON BEHALF OF THE GOVERNMENT Ho Duc Phoc |
