Tiếng Việt

Legal update relating to Finance and Credit (Monthly Legal Update – 10/2018)

by | Sep 28, 2018 | Banking, EN, Legal Update | 0 comments

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/10/2018

Decree No. 116/2018/NĐ-CP amending and supplementing a number of articles of the government’s Decree No. 55/2015/NĐ-CP dated on June 9th, 2015 on the credit policy for agricultural and rural development

  • Name of legal document: Decree No. 116/2018/NĐ-CP issued on 07/9/2018 by Government amending and supplementing a number of articles of the Government’s Decree No. 55/2015/NĐ-CP dated on June 9th, 2015 on the credit policy for agricultural and rural development (hereinafter referred to as the “Decree No. 116/2018/NĐ-CP”).

  • Effective date: 01/11/2018.

The content should be noted: Amending and supplementing the regulation on scope of application of the Government’s Decree No. 55/2015/NĐ-CP dated on June 9th, 2015 on the credit policy for agricultural and rural development.

Specifically, Clause 1 Article 1 of Decree No. 116/2018/NĐ-CP stipulates: “Article 1. amending and supplementing a number of articles of the Government’s Decree No. 55/2015/NĐ-CP dated on June 9th, 2015 on the credit policy for agricultural and rural development, including:

1. Amending Clause 2 of Article 2 and to add Clause 3 to Article 2 as follows:

“2. Customers borrowing capital at credit institutions are individuals and juridical persons, including:

a) Individuals which reside within rural localities, or are carrying out agricultural production or business operations, farm owners;

b) Juridical persons include:

(i) Co-operatives, unions of cooperatives which are in rural areas or engage in production and business activities in agriculture;

(ii) Enterprises engaging in production and business activities in rural areas, except: real estate business enterprises, mining enterprises, electricity production units and enterprises not defined in Point b (ii), Clause 2 of this Article located in industrial parks and export processing zones;

(iii) Enterprises providing agricultural inputs for agricultural production and enterprises producing, purchasing, processing and marketing agricultural products and by-products.

3. Family households, artels and other non-juridical persons organizations, when participating in the loan relations, members of other family households, cooperative groups or non-juridical persons organizations are subjects of participating in establishing, executing loan transactions or authorize the representatives to participate in the establishment and implementation of loan transactions. Authorization must be made in writing, unless otherwise agreed. when there is a change of representative, it must inform the party participating in the loan relationship. In case a member of a household, a cooperative group or other non-juridical persons organizations participate in the loan relationship is not authorized by another member to act as a representative, the member is the subject of the loan relationship he/she has established and implemented.

Family households, cooperative groups and other non-juridical persons organizations specified in this Clause include:

a) Family households which reside within rural localities, or are carrying out agricultural production or business operations;

b) Family households operating within rural localities;

c) Artels which are located within rural localities, or carrying out agricultural production or business operations;

d) Enterprises carrying out their business operations in rural localities, except for the following entities: real estate enterprises, mining enterprises, hydropower and thermopower generation facilities, and enterprises that are not governed by Point d Clause 3 of this Article and are located at industrial parks or processing and exporting zones;

e) Enterprises supplying agricultural raw materials and inputs to the agricultural production and those manufacturing, purchasing, processing and consuming agricultural produce and byproducts.””

2. LEGAL DOCUMENTS ISSUED IN 08/2018 AND 09/2018

2.1.  Circular No. 18/2018/TT-NHNN on information system security in banking operations

  • Name of legal document: Circular No. 18/2018/TT-NHNN issued on 21/8/2018 by the State Bank of Vietnamon information system security in banking operations (hereinafter referred to as the “Circular No. 18/2018/TT-NHNN”).

  • Effective date: 01/01/2019.

Some contents should be noted:

  • Firstly, stipulating on management of information technology assets.

Specifically, Article 6 of Circular No. 18/2018/TT-NHNN stipulates: “Management of information technology assets

1. Information technology assets include:

a) Information assets such as digital data and information which are processed and stored through the information system;

b) Physical assets such as information technology equipment, means of media, information-bearing objects and equipment that support operation of the information system;

c) Software assets such as software systems, utility software, middleware, database, application programs, source codes and development tools.

2. The institution shall make a list of all information technology assets attached to each information system as prescribed in Clause 3 Article 4[1] herein. Annual review and update of such list is required.

3. According to the importance of information systems, the institution shall adopt management and protection methods suitable for each type of information technology asset.

4. According to classification of information technology assets prescribed in Clause 1 this Article, the institution shall set up and adopt regulations on asset management and use as prescribed in Article 7, 8, 9, 10 and 11 herein.”

  • Secondly, stipulating work which institution[2] shall do When an employee in an institution terminates or change employment.

Specifically, Article 15 of Circular No. 18/2018/TT-NHNN stipulates: “Employment termination or change

When an employee in an institution terminates or change employment, such institution shall:

  1. determine responsibilities of such employee at the date of employment termination or change

  2. request such employee to hand over the information technology assets

  3. revoke the right to access to the information system of the employee resigning from his/her job

  4. timely change the access right to information system of the employee who changes his/her employment in order to conform to the principle that such right is given adequately for him/her to perform the assigned duty.

  5. at least every six months, carry out review, inspection and comparison between personnel management department and department in charge of management of granting and revocation of rights to access to information systems for the purpose of complying with regulations specified in Clause 3 and 4 this Article

  6. inform the State Bank of Vietnam (Information Technology Authority) of cases in which individuals working in information technology sector of the institution have been disciplined in forms of dismissal, discharge or legal proceedings on account of violations against information security regulations.”

  • Thirdly, stipulating on criteria for selecting a third party providing the cloud computing service.

Specifically, Article 33 of Circular No. 18/2018/TT-NHNN stipulates: “Criteria for selecting a third party providing the cloud computing service

Any third party shall be selected if it:

1. is an enterprise;

2. owns information technology infrastructure corresponding to the service requested by the institution which:

a) complies with provisions of Vietnamese laws;

b) is granted an unexpired international certificate of information security.”

2.2. Circular No. 19/2018/TT-NHNN guiding for foreign exchange management for Viet Nam – China border trade

  • Name of legal document: Circular No. 19/2018/TT-NHNN issued on 28/8/2018 by the State Bank of Vietnam guiding for foreign exchange management for Viet Nam – China border trade (hereinafter referred to as the “Circular No. 19/2018/TT-NHNN”).

  • Effective date: 12/10/2018.

Some contents should be noted:

  • Firstly, stipulating on subjects of application of Circular No. 19/2018/TT-NHNN.

Specifically, Article 2 Circular No. 19/2018/TT-NHNN  stipulates: “Subjects of application

  1. Vietnamese and Chinese traders conducting Viet Nam – China border trade activities.

  2. Vietnamese border residents, Chinese border residents conducting Viet Nam – China border trade activities.

  3. Commercial banks and branches of foreign banks are allowed to conduct foreign exchange transactions in Viet Nam (hereinafter referred to as licensed banks).

  4. Branches of licensed banks located in border regions and border-gate economic zones of Viet Nam – China (hereinafter referred to as border – bank branches).

  5. Organizations trading in duty-free goods and services providing in isolated areas at international border gates and bonded warehouses at border areas and border-gate economic zones of Viet Nam and China.

  6. Other organizations and individuals involved in payment activities in Viet Nam – China border trade.”

  • Secondly, stipulating on export and import of CNY in cash and VND in cash.

Specifically, Article 15 Circular No. 19/2018/TT-NHNN  stipulates: “Export and import of CNY in cash and VND in cash

1. Banks allowed have border-bank branches may export and import CNY in cash and VND in cash in order to regulate the amount of cash to serve business activities of border-bank branches.

2. Export and import CNY in cash and VND in cash are performed through international border gates and principal border gates in the border areas and border-gate economic zones of Viet Nam and China.

3. Banks allowed have border-bank branches when exporting or importing CNY cash and VND cash, have the following responsibilities:

a) Making border-gate customs declaration according to the provisions of law;

b) Taking measures to manage, supervise and ensure safety in the delivery, preserve and transport CNY in cash and in VND;

c) Bearing risks related to the export and import of cash.”

  • Thirdly, stipulating on responsibilities of licensed banks in guiding for foreign exchange management for Viet Nam – China border trade.

Specifically, Article 19 of Circular No. 19/2018/TT-NHNN stipulates: “Responsibilities of licensed banks

1. Licensed banks shall have the responsibilities:

a) To fully execute and guide customers to strictly observe the provisions of this Circular;

b) To examine and keep documents in compatibility with actual transactions so as to ensure the provision of foreign exchange services is performed in compliance with right purposes and the provisions of law.

2. Banks allowed have border – bank branches apart from the responsibilities stipulated in Clause 1 of this Article shall also be responsible for:

a) Posting up and announcing the buying and selling exchange rates of CNY/VND at the border – bank branches according to the regulations of the State Bank of Vietnam;

b) Issuing internal documents on entrusted payment activities in CNY and payment activities in CNY in the licensed banking system in accordance with the provisions of this Circular and relevant laws;

c) Observing the provisions of Vietnamese law and treaties to which Vietnam is a contracting party upon the payment cooperation agreement with a Chinese bank.”

2.3. Circular No. 20/2018/TT-NHNN regulating on monitoring of payment systems

  • Name of legal document: Circular No. 20/2018/TT-NHNN issued on 30/8/2018 by the State Bank of Vietnam regulating on monitoring of payment systems (hereinafter referred to as the “Circular No. 20/2018/TT-NHNN”).

  • Effective date: 01/01/2019.

Some contents should be noted:

  • Firstly, explaining the terms “Payment system”, “Important payment system”.

Specifically, Clause 1, Clause 2 Article 3 of Circular No. 20/2018/TT-NHNN stipulates:

“1. Payment system means a system consisting of payment facilities, regulations, procedures, technical infrastructure, operation organizations and participating members for handling, clearing, settling payment transactions arising between participating members.

2. Important payment system is the payment system that plays a key role in servicing the demand of payment in the economy, potentially results in systemic risk, meets at least one in the following criteria:

a) It is the only payment system or accounts for a large proportion of the total payment value compared to the same type payment systems; or

b) It is a system processing high-value payment transactions; or

c) The system is used to settle accounts for other payment systems or for financial market transactions.

Important payment systems defined in this Circular include: the National Interbank Electronic Payment System; Foreign currency payment system (operated by the Joint Stock Commercial Bank for Foreign Trade of Vietnam); payment system for securities trading; system for compensation, financial transaction switching.”

  • Secondly, stipulating on supervision contents of the National Interbank Electronic Payment System.

Specifically, Article 8 of Circular No. 20/2018/TT-NHNN stipulates: “The National Interbank Electronic Payment System

  1. The general operation of the National Interbank Electronic Payment System, including information on the duration of operation, status of participants, payment status of each service provided (high-value payment services, low-value payment services, foreign currency payment services, net settlement services for other payment systems).

  2. Risk situation arising and risk management for operational risk, credit risk, liquidity risk and settlement risk of the National Interbank Electronic Payment System.

  3. The observance of legal provisions relating to the management and operation of the National Interbank Electronic Payment System.

  4. Changes in the operation of the National Interbank Electronic Payment System, including changes in system features, procedures and internal procedures.”

  • Thirdly, issuing annexes for implementing Circular No. 20/2018/TT-NHNN.

Specifically,

  • Appendix I issued together with Circular No. 20/2018/TT-NHNN on the operation data of the National Interbank Electronic Payment System.

  • Appendix II issued together with Circular No. 20/2018/TT-NHNN on the operation data of Foreign currency payment system; payment system for securities trading; system for compensation, financial transaction switching.

  • Appendix III issued together with Circular No. 20/2018/TT-NHNN on the report on operation of the important payment system.

  • Appendix IV issued together with Circular No. 20/2018/TT-NHNN on incident notification.

  • Appendix V issued together with Circular No. 20/2018/TT-NHNN on the report on evaluation of the payment system.

2.4. Decision No. 1403/QĐ-TCT on promulgation of data exchange standards between the General Department of Taxation and Commercial Banks and The unit meeting the electronic tax payment in the form of submission via Internet Banking

  • Name of legal document: Decision No. 1403/QĐ-TCT issued on 30/8/2018 by The General Director of Taxation on promulgation of data exchange standards between the General Department of Taxation and Commercial Banks and The intermediate payment unit meeting the electronic tax payment in the form of submission via Internet Banking (hereinafter referred to as the “Decision No. 1403/QĐ-TCT”).

  • Effective date: 30/8/2018.

The content should be noted: Issuing the “Data exchange standards between the General Department of Taxation and Commercial Banks and The unit meeting the electronic tax payment in the form of submission via Internet Banking” attached to the Decision No. 1403/QĐ-TCT (hereinafter referred to as “Data Exchange Standard”). Data Exchange Standard includes some following contents: Exchange data between the General Department of Taxation and Commercial Banks, The intermediate payment unit (Section II of Data Exchange Standard), Data format (Section III of Data Exchange Standard), Category Types (Section IV Data Exchange Standard).

2.5. Circular No. 21/2018/TT-NHNN amending and supplementing a number of articles of Circular No. 37/2016/TT-NHNN dated December 30th, 2016 of the Governor of the State Bank of Vietnam management, operation and use of the national interbank electronic payment system

  • Name of legal document: Circular No. 21/2018/TT-NHNN issued on 31/8/2018 by the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 37/2016/TT-NHNN dated December 30th, 2016 of the Governor of the State Bank of Vietnam management, operation and use of the national interbank electronic payment system.

(Circular No. 21/2018/TT-NHNN issued on 31/8/2018 by the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 37/2016/TT-NHNN dated December 30th, 2016 of the Governor of the State Bank of Vietnam management, operation and use of the national interbank electronic payment system hereinafter referred to as the “Circular No. 21/2018/TT-NHNN”.

Circular No. 37/2016/TT-NHNN dated December 30th, 2016 of the Governor of the State Bank of Vietnam management, operation and use of the national interbank electronic payment system hereinafter referred to as the “Circular No. 37/2016/TT-NHNN”.)

  • Effective date: 31/8/2018.

Some contents should be noted:

  • Firstly, amending and supplementing the effect of Circular No. 37/2016/TT-NHNN.

Specifically, Article 1 of Circular No. 21/2018/TT-NHNN stipulates: “Effect

  1. This Circular takes effect on November 1st, 2019.

  2. From the effective date of this Circular, the following documents shall expire:

  3. a) The State Bank Governor’s Circular No. 23/2010/TT-NHNN dated November 9th, 2010 providing for the management, operation and use of the inter-bank electronic payment system;

  4. b) The State Bank Governor’s Circular No. 13/2013/TT-NHNN dated June 11th, 2013 amending and supplementing a number of articles of Circular No. 23/2010/TT-NHNN dated November 11th, 2010 of the Governor of the State Bank providing for the management, operation and use of the inter-bank electronic payment system;

  5. c) Article 6 of Circular No. 23/2011 / TT-NHNN issued on August 31st, 2011 by the Governor of the State Bank on the implementation of the simplification of administrative procedures for payment activities and fields according to the Government Resolution on simplification of administrative procedures within the scope of management functions of the State Bank.”

  • Secondly, Circular No. 23/2017/TT-NHNN issued on December 29th, 2017 by the Governor of the State Bank amending and supplementing a number of articles of Circular No. 37/2016/TT-NHNN expires on August 31st, 2018.

Specifically, Article 3 of Circular No. 21/2018/TT-NHNN stipulates: “This Circular (Circular No. 21/2018/TT-NHNN) takes effect on August 31st, 2018 and replaces Circular No. 23/2017/TT-NHNN dated December 29th,  2017  of The Governor of the State Bank of Vietnam amending and supplementing a number of articles of Circular No. 37/2016/TT-NHNN dated December 30th, 2016 of the Governor of the State Bank of Vietnam management, operation and use of the national interbank electronic payment system.”

2.6. Circular No. 22/2018/TT-NHNN guiding on procedures and documents for approving the list of tentative personnel of commercial banks, non-bank credit institutions and foreign bank branches

  • Name of legal document: Circular No. 22/2018/TT-NHNN issued on 05/9/2018 by the State Bank of Vietnam guiding on procedures and documents for approving the list of tentative personnel of commercial banks, non-bank credit institutions and foreign bank branches (hereinafter referred to as the “Circular No. 22/2018/TT-NHNN”).

  • Effective date: 01/11/2018.

Some contents should be noted:

  • Firstly, proving for necessary documents in the dossier of request for approving the list of tentative personnel of credit institutions.

Specifically, Article 6 of Circular No. 22/2018/TT-NHNN stipulates that dossier of request for approving the list of tentative personnel of credit institutions includes:

  1. “Documents of the credit institution shall be proposed to the State Bank for approval of the list of tentative personnel” (Clause 1 of Article 6 of Circular No. 22/1018/TT-NHNN);

  2. “The written approval of tentative personnel list of credit institutions (for the Board of Directors, the Board of members and the Control Board must clearly state the term)” (Clause 2 of Article 6 of Circular No. 22/1018/TT-NHNN);

  3. “The personal background of the personnel proposed to be elected or appointed according to the form in Appendix 01 attached to this Circular” (Clause 3 of Article 6 of Circular No. 22/1018/TT-NHNN);

  4. “The judicial record of the personnel proposed to be elected or appointed” (Clause 4 of Article 6 of Circular No. 22/1018/TT-NHNN);

  5. “The list of related persons of the personnel proposed to be elected or appointed according to the form in Appendix 02 attached to this Circular” (Clause 5 of Article 6 of Circular No. 22/1018/TT-NHNN);

  6. “Copies of diplomas and certificates proving the professional qualifications of personnel proposed for election or appointment, of which the diploma of Vietnamese nationality personnel issued by a foreign educational establishment must be approved by the Ministry of Education and Training recognize in accordance with relevant laws” (Clause 6 of Article 6 of Circular No. 22/1018/TT-NHNN);

  7. “Documents evidencing the satisfaction of criteria and conditions for personnel who intend to hold the post of member of the Board of Directors, the Board of members of the credit institution as stipulated in Point d[3] Clause 1 of Article 50 of the Law on credit institutions” (Clause 7 of Article 6 of Circular No. 22/1018/TT-NHNN);

  8. “Documents evidencing the satisfaction of criteria and conditions for personnel expected to hold the post of General Director (Director) of the credit institution as stipulated in Point d[4] Clause 4 of Article 50 of the Law on credit institutions” (Clause 8 of Article 6 of Circular No. 22/1018/TT-NHNN);

  9. “Documents proving the satisfaction of standards and conditions “having at least 03 years working directly in banking, finance, accounting or auditing fields” with regard to personnel expected to hold the post of member of the Control Board Control of credit institutions as stipulated in Point c[5] Clause 3 of Article 50 of the Law on credit institutions: Documents of the authorized representative of the unit where the personnel has been or is working confirming the direct working personnel in banking, finance, accounting or auditing fields and the working time in the field, or copies of documents proving the field of working, working time of personnel in the fields” (Clause 9 of Article 6 of Circular No. 22/1018/TT-NHNN);

  10. “For personnel who are expected to be elected or appointed under the cases specified at Points e[6] and [7]f, Clause 2, Article 33 of the Law on credit institutions: Documents of competent agencies appointing personnel who are expected to act as management representatives contributed capital of the State at credit institutions” (Clause 10 of Article 6 of Circular No. 22/1018/TT-NHNN).

  • Secondly, issuing written forms of documents in the dossier of request for approving the list of tentative personnel of credit institutions.

Specifically, form of personal background, form of table of related person list, form of Notification of List of people elected, appointment to be members of Board of Directors, the Board of members, the Control Board, General Director (Director), etc. are stipulated in Appendixes 01, 02, 03, etc. respectively issued together with Circular No. 22/2018/TT-NHNN.

2.7. Decree No. 117/2018/NĐ-CP on keeping confidential and providing customer information of credit institutions and foreign bank branches

  • Name of legal document: Decree No. 117/2018/NĐ-CP issued on 11/9/2018 by Goverment on keeping confidential and providing customer information of credit institutions and foreign bank branches (hereinafter referred to as the “Decree No. 117/2018/NĐ-CP”).

  • Effective date: 01/11/2018.

Some contents should be noted:

  • Firstly, providing for the principles of confidentiality and supply of customer information by credit institutions and foreign bank branches.

Specifically, Article 4 of Decree No. 17/2018/NĐ-CP stipulates: “Principles of confidentiality and supply of customer information

  1. Customer information of credit institutions and foreign bank branches must be kept secret and only be provided in accordance with the provisions of the Law on credit institutions 2010, amended and supplemented in 2017, this Decree and related laws.

  2. Credit institutions and branches of foreign banks are not allowed to provide identification customer information when accessing banking services, including secret codes, biometrics data, and access passwords of customers and other identification customer information for any agency, organization or individual, unless agreed by the customer in writing or in another form as agreed with the customer.

  3. State agencies, other organizations and individuals may request credit institutions and foreign bank branches to supply customer information according to the right purposes, contents, scope and competence as prescribed of the law or the acceptance of the customer and are liable for the request for the provision of customer information.

  4. State agencies, other organizations and individuals must keep customer information confidential, use customer information for the right purpose when requesting information and not provide to third parties without approval of customers, except for cases provided under the provisions of law.

  5. Agencies, organizations and individuals must archive and preserve according to the law provisions on archive and preservation of dossiers and documents on customer information, dossiers of request for supply of customer information, the delivery of customer information.”

  • Secondly, stipulating cases of providing customer information for organizations and individuals.

Specifically, Article 11 of Decree No. 117/2018/NĐ-CP stipulates: “Cases of providing customer information

1. Credit institutions and foreign bank branches may only provide customer information to other organizations and individuals in one of the following cases:

a) Other organizations and individuals may request credit institutions or foreign bank branches to supply customer information specified in laws and resolutions of the National Assembly.

b) Approved by the customers in writing or in another form as agreed with the customers.

2. Credit institutions and foreign banks branches shall be responsible for providing customer information to their customers or their lawful representatives.”

  • Thirdly, regulating the rights and responsibilities of credit institutions and foreign bank branches in keeping confidential and providing customer information.

Specifically, Article 14 of Decree No. 117/2018/NĐ-CP stipulates: “Rights and responsibilities of credit institutions and foreign bank branches

1. Credit institutions and foreign bank branches have the following rights:

a) Requesting state agencies, other organizations or individuals to supplement information and documents requesting the supply of customer information in accordance with the provisions of this Decree;

b) Refusing to supply customer information to other State bodies, organizations or individuals for requests for supply of customer information not being in accordance with the provisions of laws or this Decree or requests for supply customer information being duplicated, not being within the scope of customer information that the credit institution or foreign bank branches are maintaining in accordance with the law.

2. Credit institutions and foreign bank branches have the following responsibilities:

a) Providing right scope of customer information provided honestly, fully, timely for the right subjects;

b) Ensuring safety and confidentiality of customer information in the process of supplying, managing, using and storing customer information;

c) Settling complaints of customers in the supply of customer information according to law provisions;

d) Organizing the supervision, inspection and handling of violations of internal regulations on keeping secret, archiving and supplying customer information;

e) Taking responsibility according to the provisions of law, for cases of violating the provisions of this Decree and relevant laws.”

2.8. Circular No. 23/2018/TT-NHNN providing for the reorganization and revocation of licenses and liquidation of assets of people’s credit funds

  • Name of legal document: Circular No. 23/2018/TT-NHNN issued on 14/9/2018 by the State Bank of Vietnam providing for the reorganization and revocation of licenses and liquidation of assets of people’s credit funds (hereinafter referred to as the “Circular No. 23/2018/TT-NHNN”).

  • Effective date: 01/11/2018.

Some contents should be noted:

  • Firstly, providing for the principles of reorganizing people’s credit funds.

Specifically, Article 6 of Circular No. 23/2018/TT-NHNN stipulates: “Principles of reorganizing people’s credit funds

  1. Complying with the provisions of this Circular and relevant law provisions.

  2. The reorganization of people’s credit funds shall be effected on the basis of the reorganization plans approved by the State Bank in accordance with the provisions of law.

  3. Ensuring the safe and continuous operation of people’s credit funds; ensuring the legitimate rights and interests of members of the people’s credit funds and customers in the course of reorganization.

  4. The transfer or sale of assets in the process of reorganizing the people’s credit funds must be public and transparent, comply with law provisions and the agreement of parties, ensure the property safety and does not affect the interests of people’s credit funds to reorganize, organizations and individuals involved in the reorganization.

  5. People’s credit funds after the reorganization inherit of the rights and obligations of the people’s credit funds reorganized in accordance with the provisions of law and agreements between the parties.

  6. The licenses of the divided people’s credit funds or the people’s credit funds participating in the consolidation shall cease to be effective when new people’s credit funds are inaugurated. The license of the merged people’s Credit Fund shall cease to be effective when the people’s credit fund for merger completes the procedures for changing the registration of the cooperative.”

  • Secondly, providing for cases of revocation of licenses of people’s credit funds.

Specifically, Article 16 of Circular No. 23/2018/TT-NHNN stipulates: “Cases of revocation of licenses

  1. People’s credit funds voluntarily apply for dissolution when they are able to repay all debts and fulfill other property obligations.

  2. A dossier of application for a people’s credit fund has fraudulent information so as to be eligible for a license.

  3. People’s credit funds operate in contravention of the contents prescribed in their permits.

  4. People’s credit funds seriously violate the law provisions on limits and prudential ratios in operation.

  5. People’s Credit Funds fail to implement or implement inadequately handling decisions of the State Bank’s branches to ensure safety in banking operations.

  6. People’s credit funds are divided, merged, consolidated or bankrupt.

7. People’s Credit Funds are expired but did not apply for extension or apply for extension but have not been approved in writing by the State Bank’s branches.”

[1] “Article 4. Classification of information and information system

  1. Institutions shall classify their information system by importance prescribed in Clause 2 this Article. The list of information system categorized by importance must be approved by the legal representative of such institution.”

[2] Institution includes credit institutions (except for people’s credit funds and microcredit institutions), branches of foreign banks and intermediary payment service providers (Clause 2, Article 1 Circular No. 18/2018/TT-NHNN).

[3] “Has at least 03 years’ experience of working as a manager or executive of a credit institution, at least 05 year’s experience of working as an executive of a finance, banking, accounting or audit enterprise or an enterprise whose equity is not smaller than the legal capital of a credit institution, or at least 05 years’ experience of working in a finance, banking accounting or audit department.”

[4] “Has at least 03 years’ experience of working as a manager or executive of a credit institution, at least 05 year’s experience of working as an executive of a finance, banking, accounting or audit enterprise or an enterprise whose equity is not smaller than the legal capital of a credit institution, or at least 05 years’ experience of working in a finance, banking accounting or audit department.”

[5] “Holding a tertiary or higher degree in economics, business administration, law, accounting or audit: having at least 3 years working directly in banking, finance, accounting or audit”

[6] “Cadres and civil servants and managers of division or higher level of enterprises in which the State holds 50% or more of the charter capital, except those appointed to represent the State’s capital share in the credit institution”

[7] “Officers, non-commissioned officers, professional army men and defense workers of agencies and units under the Vietnam People’s Army: officers, professional non-commissioned officers of agencies and units under the Vietnam People’s Police, except those appointed to represent the State’s capital share in the credit institution”