Tiếng Việt

Legal update relating to Finance and Credit (Monthly Legal Update – 03/2020)

by | Mar 6, 2020 | Banking, EN, Legal Update | 0 comments

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/03/2020

1.1. Circular No. 26/2019/TT-NHNN amending, supplementing some articles of regulation on issuance, use and management of bank identification numbers promulgated together with the Decision No. 38/2007/QĐ-NHNN dated October 30, 2007 of the Governor of the State Bank of Viet Nam

  • Name of legal document: Circular No. 26/2019/TT-NHNN issued on 23/12/2019 by the State Bank of Viet Nam amending, supplementing some articles of regulation on issuance, use and management of bank identification numbers promulgated together with the Decision No. 38/2007/QĐ-NHNN dated October 30, 2007 of the Governor of the State Bank of Viet Nam (referred to as the “Circular No. 26/12/2019/TT-NHNN”).

  • Effective date: 01/03/2020.

Some contents should be noted:

  • Firstly, amending and supplementing the regulation on subjects to be granted BIN[1].

Specifically, Clause 1 Article 1 of Circular No. 26/2019/TT-NHNN stipulates: “Amendments to some Articles of Regulation on issuance, use and management of bank identification numbers promulgated together with the Decision No. 38/2007/QD-NHNN dated October 30, 2007 of the Governor of the State Bank of Viet Nam

1. Article 4 is amended as follows:

“Article 4. Entities to be issued with BINs

Entities to be issued with BIN are organizations allowed to issue cards in accordance with regulations on bank card operations.”” 

  • Secondly, amending and supplementing the regulation on procedures for grant of PIN code.

Specifically, Clause 2 Article 1 of Circular No. 26/2019/TT-NHNN stipulates: “Amendments to some Articles of Regulation on issuance, use and management of bank identification numbers promulgated together with the Decision No. 38/2007/QD-NHNN dated October 30, 2007 of the Governor of the State Bank of Viet Nam

…

“2. Article 6 is amended as follows:

“Article 6. Procedures for issuing BINs

  1. Any card issuer that wishes to issue a BIN shall submit an application made using the Form No. 01 hereof to the Payment Department affiliated to the State Bank of Vietnam (hereinafter referred to as “SBV”), whether in person or by post or through SBV’s online public service portal.

  2. Within 05 working days from the receipt of the satisfactory application form for issuance of BIN, SBV shall decide to issue BIN to the card issuer and notify the card issuer in writing or through SBV’s online public service portal.

  3. SBV shall issue only 01 BIN to each card issuer entitled to be issued with BIN.””

1.2. Circular No. 30/2019/TT-NHNN providing on performing the reserve requirement of credit institutions and foreign bank branches

  • Name of legal document: Circular No. 30/2019/TT-NHNN issued on 27/12/2019 by the State Bank of Viet Nam providing on performing the reserve requirement of credit institutions and foreign bank branches (referred to as the “Circular No. 30/2019/TT-NHNN”).

  • Effective date: 01/03/2020.

Some contents should be noted:

  • Firstly, providing on credit institutions which do not perform the reserve requirement.

Specifically, Article 3 of Circular No. 30/2019/TT-NHNN stipulates: “Article 3. Credit institutions do not perform the reserve requirement

  1. Credit institutions subject to special control: The time for failing to perform the reserve requirement shall be from the month following the month when credit institutions are decided by the State Bank of Vietnam (hereinafter called the State Bank) under the state of special control, by the end of the month, the credit institution shall be decided by the State Bank to terminate the special control.

  2. Credit institutions have not yet opened their operations: The time for not performing the reserve requirement till the end of the month when the credit institutions commence their operation; Credit institutions shall notify in writing to the State Bank (Operation Center) of the operation opening date within 3 working days after the operation opening.

  3. The credit institution is approved to dissolve or has a decision to open bankruptcy procedures or has a decision to revoke its license of a competent agency: The time for failing to perform the reserve requirement from the month following the month of the credit institution is approved to dissolve or the decided to open bankruptcy procedures, revoke the valid License; credit institutions that have decision on opening bankruptcy procedures shall send them to the State Bank (Operation Center) for deciding to open bankruptcy procedures within 3 working days after receiving this decision.”

  • Secondly, providing on reserve requirement ratios, interest rates on reserve requirement deposits and deposits in excess of reserve requirement

Specifically, Article 6 of Circular No. 30/2019/TT-NHNN stipulates: “Article 6. Reserve requirement ratios, interest rates on reserve requirement and deposits in excess of reserve requirement

  1. Reserve requirement ratios for credit institutions

  2. a) The Governor of the State Bank shall decide the reserve requirement ratio applicable to each type of credit institution and each type of deposit in accordance with the national monetary policy objectives in each period, except for reserve requirement ratio for Vietnam dong deposit to credit institutions prescribed at Point b of this Clause;

  3. b) For credit institutions lending for agricultural and rural development supported by reserve requirement tool, the reserve requirement ratio for Vietnam dong deposits shall comply with the State Bank’s regulations. The State Bank guides the implementation of measures to manage monetary policy instruments to support credit institutions lending for agricultural and rural development.

  4. Interest rates of reserve requirement deposits and deposits exceeding the reserve requirement of each type of credit institution and each type of deposit shall be decided by the Governor of the State Bank in accordance with the objectives of national monetary policy in each period.”

1.3. Circular No. 37/2019/TT-NHNN on insurance agents in credit institutions and foreign bank branches

  • Name of legal document: Circular No. 37/2019/TT-NHNN issued on 31/12/2019 by the State Bank of Viet Nam on insurance agents in credit institutions and foreign bank branches (referred to as the “Circular No. 37/2019/TT-NHNN”).

  • Effective date: 02/03/2020.

Some contents should be noted:

  • Firstly, providing on operation of insurance agents in credit institutions.

Specifically, Article 4 of Circular No. 37/2019/TT-NHNN stipulates: “Article 4. Operation of insurance agents in credit institutions

A credit institution with insurance agents may conduct the following activities:

1. Client referral:

The credit institution may refer a client who would like to purchase insurance to the insurance enterprise.

2. Insurance offer:

The credit institution may offer insurance and explain terms and conditions of insurance products to clients who would like to purchase insurance; or offer insurance via electronic or online methods or other methods in compliance with the law.

3. Arranging conclusion of insurance policies:

The credit institution may assist its clients with drawing up insurance policies, receive proposal forms and arrange conclusion of insurance policies as per the insurance agent agreement and regulations of laws on insurance business.

4. Premium collection:

The credit institution may collect premiums from clients on behalf of the insurance enterprise as agreed upon in the insurance agent agreement.

5. Claim settlement upon occurrence:

The credit institution may assist its clients with claim procedures, receive claim forms, transfer premiums received from clients to the insurance enterprise for appraisal, issuance of the compensation decision and claim payment. If authorized by the insurance enterprise, the credit institution may pay out claims directly.

6. Other activities to execute the insurance agent agreement in compliance with regulations of laws on insurance business and as authorized by the insurance enterprise.”

  • Secondly, providing on rights and obligations concerning operation of insurance agents in credit institutions.

Specifically, Article 6 of Circular No. 37/2019/TT-NHNN stipulates: “Article 6. Rights and obligations concerning operation of insurance agents in credit institutions

1. Credit institutions hold the rights granted to insurance agents per regulations of laws on insurance business.

2. Credit institutions shall fulfill the obligations imposed on insurance agents per regulations of laws on insurance business and the following obligations:

a) Explain to clients that insurance products distributed via credit institutions are not products of credit institutions;

b) Manage and retain list of their insurance agents as agreed upon in the insurance agent agreement;

c) Provide adequate and accurate information on premiums received, claim payouts and other payments for insurance enterprises as agreed upon in the insurance agent agreement;

d) Return all premiums received to insurance enterprises exclusive of agent’s commissions, claim payments and other payments as per the insurance agent agreement;

dd) Accurately and adequately provide and crosscheck information received from clients with insurance enterprises as prescribed by Article 7 of this Circular (Circular No. 37/2019/TT-NHNN).”

2. LEGAL DOCUMENTS ARE ISSUED IN 02/2020

Decision No. 206/QĐ-NHNN regarding the announcement of new administrative procedures for issuing, amending and supplementing fields of payment activities and other fields of activities permitted in the one-door department of the management function of the State Bank of Viet Nam

  • Name of legal document: Decision No. 206/QĐ -NHNN issued on 10/02/2020 by the State Bank of Viet Nam regarding the announcement of new administrative procedures for issuing, amending and supplementing fields of payment activities and other fields of activities permitted in the one-door department of the management function of the State Bank of Viet Nam (referred to as the “Circular No. 206/QĐ-NHNN”).

  • Effective date: 10/02/2020.

The contents should be noted: providing on procedures of requesting to be granted identification numbers.

Specifically, sub-section 1 Section 1 Part II promulgated together with Decision No. 206/QĐ-NHNN stipulates:

“PART II. DETAILED CONTENTS OF NEWLY ISSUED AND AMENDED AND SUPPLEMENTED ADMINISTRATIVE PROCEDURES UNDER THE SCOPE OF MANAGEMENT FUNCTIONS OF THE STATE BANK

Section 1. Administrative procedures are implemented at the State Bank of Vietnam

1. Procedures for issuing identification numbers:

– The order of execution:

– Step 1: When wishing to be granted a BIN, the card issuer shall send to the State Bank of Viet Nam (Payment Department) an application for a BIN according to Form No. 01;

– Step 2: Within 05 working days from the date of receiving a completed and valid BIN application, the State Bank of Vietnam shall issue a decision to issue BIN to the card issuer and notify in writing or via the Online Public Service Portal of the State Bank of Viet Nam for the card issuer.

– How to perform:

+ Headquarters of administrative agencies (directly at the One-door Department)

+ By mail (postal service)

+ Through the online public service portal of the State Bank of Viet Nam.

– Components of dossiers: An application for being granted an identification number.

– Number of dossier: 01 set.

– Processing time: 05 working days from the date of receipt of complete and valid dossier.

– Subjects implementing administrative procedures: Card issuer

– Implementing agency: State Bank of Viet Nam (Payment Department)

– Results of the implementation of administrative procedures: Written consent.

– Fee: VND 0

– Name of the application form, declaration form: Form No. 01.

– Requirements, conditions: No.

– Legal grounds of administrative procedures:

– Decision No. 38/2007/QĐ-NHNN dated 30/10/2007 of the Governor of the State Bank of Viet nam promulgating the regulation on issuance, use and management of the bank identification numbers.

– Circular No. 26/2019 / TT-NHNN dated 23 December 2019, amending and supplementing a number of articles of the Regulation on issuance, use and management of bank identification numbers issued together with Decision No. 38/2007/QD-NHNN dated 30/10/2007 of the Governor of the State Bank of Viet Nam.

 Form No. 01

“CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM
Độc lập – Tự do – Hạnh phúc
—————

……, ngày …. tháng …. năm …..

ĐƠN ĐỀ NGHỊ CẤP MÃ TỔ CHỨC PHÁT HÀNH THẺ

Kính gửi: Ngân hàng Nhà nước Việt Nam (Vụ Thanh toán)

– Căn cứ Giấy phép thành lập và hoạt động tổ chức tín dụng/ Giấy phép hoạt động ngân hàng số ……… ngày …… tháng …… năm ……;

– Căn cứ Quyết định số 38/2007/QĐ-NHNN ngày 30 tháng 10 năm 2007 của Thống đốc Ngân hàng Nhà nước Việt Nam ban hành Quy chế cấp, sử dụng và quản lý mã tổ chức thẻ ngân hàng (được sửa đổi, bổ sung bởi Thông tư ……… ngày … tháng … năm … của Ngân hàng Nhà nước Việt Nam).

Đề nghị Ngân hàng Nhà nước Việt Nam xét cấp mã tổ chức phát hành thẻ (mã BIN) cho tổ chức phát hành thẻ:

  1. Tên tổ chức phát hành thẻ:

  2. Địa điểm đặt Trụ sở chính:

  3. Thời gian dự kiến đưa mã BIN vào sử dụng:

  4. Tóm tắt mục đích sử dụng mã BIN gắn với sản phẩm thẻ cụ thể:

Sau khi được cấp mã BIN, chúng tôi cam kết đưa mã BIN vào sử dụng trong thời hạn quy định, đúng mục đích sử dụng và chấp hành nghiêm chỉnh Quy chế về cấp, sử dụng và quản lý mã tổ chức phát hành thẻ ngân hàng và xin chịu trách nhiệm về tính chính xác của hồ sơ gửi kèm đơn này.

 

 

Người đại diện hợp pháp của Tổ chức phát hành thẻ
(ký ghi rõ họ tên, chức vụ và đóng dấu)””

[1] Bank identification number