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Legal update relating to Finance and Credit (Monthly Legal Update – 01/2019)

by QNT | Jan 7, 2019 | Banking, EN, Legal Update

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/12/2018

1.1. Circular No. 13/2018/TT-NHNN on internal control systems of commercial banks and foreign banks’ branches

Name of legal document: Circular No. 13/2018/TT-NHNN issued on 18/05/2018 by the State Bank of Viet Namon internal control systems of commercial banks and foreign banks’ branches (hereinafter referred to as the “Circular No. 13/2018/TT-NHNN”).
Effective date: 01/01/2019.

Some contents should be noted:

Firstly, regulating on submission of internal control reports to the State Bank.

Specifically, Article 7 of Circular No. 13/2018/TT-NHNN stipulates: “Submission of internal control reports to the State Bank

1. The commercial bank/foreign bank branches must produce internal control reports and submit them to the State Bank (the Bank Inspection and Oversight Authority) as specified in Clauses 2, 3 and 4 of this Article.

2. The internal control report includes:

a) Annual self-inspection and self-assessment results, as specified in Appendix 1 issued together with this Circular;

b) Annual risk management report, as specified in Appendix 2 issued together with this Circular;

c) Annual internal capital adequacy assessment report, as specified in Appendix 4 issued together with this Circular;

d) Annual internal audit report, as specified in Appendix 5 issued together with this Circular, alongside unscheduled internal audit report.

3. Report submission period:

a) In the case of reports mentioned in Points a, b and c, Clause 2 of this Article: The commercial bank/foreign bank’s branch shall submit the fiscal year’s report within 45 days after the end of that fiscal year.

b) In the case of reports mentioned in Points d, Clause 2 of this Article:

(i) The commercial bank shall submit the fiscal year’s internal audit report within 60 days after the end of that fiscal year.

(ii) The foreign bank branches shall submit the fiscal year’s internal audit report within 60 days after the internal audit’s date of completion. No submission is required if there is no internal audit in that fiscal year;

(ii) The commercial bank/foreign bank branches shall submit the unscheduled internal audit report within 07 working days after the unscheduled internal audit’s date of completion.

4. The internal control report mentioned in Clause 2 of this Article must update the problems, limitations and risks that recently arose in the internal control system of the whole commercial bank, including the departments of the headquarters, branches and other affiliates specified in the State Bank’s regulations on commercial banks’ operational networks (hereinafter referred to as other affiliates) and foreign bank’s branch.”

Secondly, regulating on Requirements for internal control.

Specifically, Article 14 of Circular No. 13/2018/TT-NHNN stipulates: “Requirements for internal control

1. Internal control applies to all activities, business processes and departments of the commercial bank (including the headquarters, branches and other affiliates) or foreign bank’s branch and must fulfill the following requirements:

a) The commercial bank’s/foreign bank’s branch’s activities must comply with regulations of law;

b) Control conflict of interest; detect and take action against violations in a timely manner;

c) Increase awareness of the roles and responsibilities of individuals and departments in internal control in order to build and maintain the commercial bank’s/foreign bank’s branch’s control culture.

2. Internal control is conducted through control activities, the information exchange mechanism and the management information system.”

Thirdly, regulating on risk limits in risk management.

Specifically, Article 25 of Circular No. 13/2018/TT-NHNN stipulates: “Risk limits

1. The commercial bank’s risk limit is issued and amended (including risk limit adjustment) by the Director General (Director). The competence to promulgate and amend the foreign bank’s branch’s risk limit shall comply with the parent bank’s regulations.

2. The risk limit must:

a) Comply with regulations on restrictions specified in the Law on Credit Institutions and the State Bank’s regulations in to ensure safety of the credit institution’s/foreign bank’s branch’s operations;

b) Have limits on material risks;

c) Comply with the risk appetite, risk management strategies and the total risk assets allocated to that risk;

d) Be sufficient and specific in order to control risks coming from business activities and departments participating in risk-bearing transactions;

dd) Be reviewed and reassessed (adjusted if necessary) at least once per year or when a major change affects the risk position, as specified in the commercial bank/foreign bank’s branch’s internal regulations. In case of raising the commercial bank’s risk limit, the Director General (Director) must notify the Board of Directors/Members’ Council of that adjustment;

e) Be disseminated to the related individuals and departments.

If an activity, transaction or product has different limits for different risks, the commercial bank/foreign bank’s branch must apply the more conservative risk limit.”

1.2. 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 Viet Namon 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:

determine responsibilities of such employee at the date of employment termination or change
request such employee to hand over the information technology assets
revoke the right to access to the information system of the employee resigning from his/her job
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.
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
inform the State Bank of Viet Nam (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 Viet Namese laws;

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

1.3. 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 Viet Nam 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 Viet Nam); 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

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).
Risk situation arising and risk management for operational risk, credit risk, liquidity risk and settlement risk of the National Interbank Electronic Payment System.
The observance of legal provisions relating to the management and operation of the National Interbank Electronic Payment System.
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.

1.4. Circular No. 42/2018/TT-NHNN amending and supplementing a number of articles of the Circular No. 24/2015/TT-NHNN dated December 08th, 2015 of the Governor of the State bank of Viet Nam on foreign currency loans granted to residents by credit institutions and branches of foreign banks

Name of legal document: Circular No. 42/2018/TT-NHNN issued on 28/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of the Circular No. 24/2015/TT-NHNN dated December 08th,2015 of the Governor of the State bank of Viet Nam on foreign currency loans granted to residents by credit institutions and branches of foreign banks.

(Circular No. 24/2015/TT-NHNN dated December 08th,2015 of the Governor of the State bank of Viet Nam on foreign currency loans granted to residents by credit institutions and branches of foreign banks hereinafter referred to as the “Circular No. 24/2015/TT-NHNN”

Circular No. 42/2018/TT-NHNN issued on 28/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of the Circular No. 24/2015/TT-NHNN dated December 08th,2015 of the Governor of the State bank of Viet Nam on foreign currency loans granted to residents by credit institutions and branches of foreign banks hereinafter referred to as the “Circular No. 42/2018/TT-NHNN”).

Effective date: 01/01/2019.

Some contents should be noted:

Firstly, amending and supplementing regulations on currency used for loan repayment.

Specifically, Clause 2 Article 1 of Circular No. 42/2018/TT-NHNN stipulates: ”2. Article 5[3] is amended and supplemented as follows:

“Article 5. Currency used for loan repayment

1. With regard to foreign currency loans, at the time before the signing of credit contracts or loan agreements, the credit institutions and foreign bank branches shall appraise borrowers with sufficient revenues in foreign currencies to repay the loan:

a) Borrowers are in foreign currency which must pay principal and interest on borrowed capital in such foreign currency; cases of debt repayment in other foreign currencies shall be made according to agreements between credit institutions, foreign bank branches and customers in accordance with relevant provisions of law;

b) In case, when the loan is due, borrowers can prove that due to objective causes leading to the source of foreign currency from production and business activities of the borrower being delayed payment, borrowers not having or not having enough foreign currency to repay the loan, borrowers are allowed to buy foreign currency at credit institutions, foreign bank branches or other credit institutions, foreign bank branches to repay the loan.

In cases borrowers have a demand to buy foreign currencies at credit institutions, foreign bank branches, credit institutions, foreign bank branches, they must sell foreign currencies to customers. In case customers borrow money to buy foreign currency at credit institutions, other foreign bank branches, credit institutions, foreign bank branches selling foreign currency must transfer such foreign currency to credit institutions, foreign bank branches lending.

Borrowers who have to sell foreign currency to credit institutions, foreign bank branches have sold foreign currency in case of receiving foreign currency from production and business activities.

2. With regard to foreign currencies, at the time before the signing of credit contracts or loan agreements, the credit institutions and foreign bank branches shall appraise borrowers without or insufficient revenue. foreign currency for loan repayment: Borrowers may purchase foreign currencies at credit institutions, foreign bank branches or other credit institutions and foreign bank branches to repay loans.

In cases where borrowers have a demand to buy foreign currencies at credit institutions, foreign bank branches, credit institutions, foreign bank branches, they must sell foreign currencies to customers. In case customers borrow money to buy foreign currency at credit institutions, other foreign bank branches, credit institutions, foreign bank branches selling foreign currency must transfer such foreign currency to credit institutions, branches foreign banks lending. ””.

Secondly, regulating the transitional provisions for credit contracts apply the lending method according to the credit limit or loan agreement to apply the lending method according to the limit signed before Circular No. 42/2018/TT-NHNN takes effect.

Specifically, Article 3 of Circular No. 42/2018/TT-NHNN provides the following: “Article 3. Transitional provisions

For credit contracts apply the lending method according to the credit limit or loan agreement to apply the lending method according to the limit signed before Circular No. 42/2018/TT-NHNN takes effect, which loan agreements are signed each time since the effective date of this Circular, credit institutions, foreign bank branches and borrowers shall comply with the provisions of this Circular.
In addition to the cases stipulated in clause 1 of this Article, credit contracts or loan agreements signed before the effective date of this Circular, credit institutions, foreign bank branches and customers continue to comply with the signed contents in accordance with the provisions of law at the time of signing. In case there is an agreement to amend or supplement the credit contract or loan agreement, the amended and supplemented contents must be consistent with the provisions of this Circular.”

1.5. Circular No. 27/2018/TT-NHNN regulating cases of blockade, termination of blockade of capital and assets of foreign bank branches

Name of legal document: Circular No. 27/2018/TT-NHNN issued on 22/11/2018 by the State Bank of Viet Nam regulating cases of blockade, termination of blockade of capital and assets of foreign bank branches (hereinafter referred to as the “Circular No. 27/2018/TT-NHNN”).
Effective date: 10/01/2019.

Some contents should be noted:

Firstly, providing for the blockade of capital and assets.

Specifically, Article 5 of Circular 27/2018/TT-NHNN provides: “Cases of blockade of capital and property

The State Bank shall consider and decide on the blockade of capital and assets of the foreign bank branch in the following cases:

The net value of the granted capital of the foreign bank branch shall be lower than the legal capital level for a continuous period of 06 months.
Violations of prudential ratios in banking activities stipulated in Article 130 of the Law on Credit Institutions and the State Bank have made a written request for remedy but have not taken remedial measures or failed to remedy them within the time limit as requested by the State Bank.
The accumulated loss amount of a foreign bank branch is more than 50% of the value of the issued capital and reserves stated in the latest audited financial statement.
The State Bank has requested that the parent bank fail to properly perform its obligations to its branch operating in Viet Nam.
When there is information that the parent bank shows signs of insolvency or insolvency or is required by the competent authorities of the country of origin to be in a state of special control liquidation, bankruptcy, or withdrawal of licenses for establishment and operation.”

Secondly, regulating on the cases of termination of blockade of capital and assets.

Specifically, Article 6 of Circular 27/2018 / TT-NHNN states: “Cases of cases of termination of blockade of capital and assets

The State Bank shall consider and decide to terminate the blockade of capital and assets of the foreign bank branch in the following cases:

Foreign banks’ branches have overcome the violations as provided for in Clauses 1, 2 and 3, Article 5 of this Circular.
The parent bank has fulfilled the obligations already committed to the foreign bank branch at the request of the State Bank stipulated in Clause 4, Article 5 of this Circular.
The State Bank shall receive information from competent authorities of the country of origin that the parent bank has overcome the shortcomings specified in Clause 5, Article 5 of this Circular.”

Thirdly, deregulating on blockage of capital and assets stipulated in Circular No. 03/2007/TT-NHNN guiding the implementation of a number of articles of Decree No. 22/2006/NĐ-CP on organization and operation of Branches of foreign banks, joint venture banks, banks with 100% foreign capital, representative offices of foreign credit institutions in Viet Nam.

Specifically, Clause 2, Article 10 of Circular No. 27/2018/TT-NHNN stipulates: “2. Annulling Section VI, Part II of Circular No. 03/2007/TT-NHNN issued on June 5th, 2007 by State bank governor guiding the implementation of a number of articles of Decree No. 22/2006 of the Government on organization and operation of foreign bank branches, joint venture banks, banks with 100% foreign capital and representative offices of foreign credit institutions in Viet Nam.”

1.6. Circular No. 28/2018/TT-NHNN amending and supplementing a number of articles of the Circular No. 40/2011/TT-NHNN issued on December 15th, 2011 issued by the Government of the State bank of Viet Nam providing for the issuance of license and the organization, operation of commercial banks, foreign bank’s branches, representative offices of foreign credit institutions, other foreign organizations having banking activities in Viet Nam

Name of legal document: Circular No. 28/2018/TT-NHNN issued on 30/11/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of the Circular No. 40/2011/TT-NHNN issued on December 15th, 2011 issued by the Government of the State bank of Viet Nam providing for the issuance of license and the organization, operation of commercial banks, foreign bank’s branches, representative offices of foreign credit institutions, other foreign organizations having banking activities in Viet Nam.

(Circular No. 40/2011/TT-NHNN issued on December 15th, 2011 issued by the Government of the State bank of Viet Nam providing for the issuance of license and the organization, operation of commercial banks, foreign bank’s branches, representative offices of foreign credit institutions, other foreign organizations having banking activities in Viet Nam hereinafter referred to as the “Circular No. 40/2011/TT-NHNN”

Circular No. 28/2018/TT-NHNN issued on 30/11/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of the Circular No. 40/2011/TT-NHNN issued on December 15th, 2011 issued by the Government of the State bank of Viet Nam providing for the issuance of license and the organization, operation of commercial banks, foreign bank’s branches, representative offices of foreign credit institutions, other foreign organizations having banking activities in Viet Nam hereinafter referred to as the “Circular No. 28/2018/TT-NHNN”).

Effective date: 15/01/2019.

Some contents should be noted:

Firstly, amending and supplementing regulations on payment fees for License[4].

Specifically, Clause 2 Article 1 of Circular No. 28/2018/TT-NHNN stipulates: “2. Clause 2 of Article 6[5] is amended and supplemented as follows:

“2. The fee level for issuance of a license shall comply with the law on charges and fees.””

Secondly, amending and supplementing regulations on documents that must be included in the dossiers of shareholders being individuals contributing capital to establish for dossiers of application for establishment and operation of commercial joint stock banks.

Specifically, Clause 8 Article 1 of Circular No. 28/2018/TT-NHNN stipulates: “Point a (iii) clause 3 Article 15[6] is amended and supplemented as follows:

(iii) Besides the above components, founding shareholders are required to submit following documents:

– A Curriculum of vitae in accordance with the form as provided for in Appendix 03 of this

Circular; criminal record issued by the agency managing the criminal record database, which must have sufficient information on criminal status (including deleted criminal record and unexplained criminal record) and information on prohibiting of holding of posts, establishment, management of enterprises and cooperatives;

Criminal record must be issued by competent agencies before the time of submitting dossiers of application for permits for no more than 6 (six) months;;

– Financial statements of 03 consecutive years prior to the year of applying for the license of the enterprise managed by the founding shareholders or the copy of university qualification or higher in economics or law profession;

– A list of assets which have the value of 100 million VND or above, debts and related documentations of individuals in accordance with the form as provided for in Appendix 07 of this Circular;”

Thirdly, amending the regulations on procedures for renewing the License, granting additional operational contents to the License.

Specifically, Clause 1 Article 2 of Circular No. 28/2018/TT-NHNN stipulates: “Article 2.

Remove “and shall apply for registration of such amendments to its Charter with the State Bank according to the provisions of Clause 3 Article 27 of this Circular” at Point c, Clause 3, Article 18b[7] of Circular No. 40/2011/TT-NHNN (supplemented by Clause 3 Article 1 Circular No. 17/2017/TT-NHNN dated November 20th, 2017 of the Governor of the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 40/2011/TT-NHNN)”

2. LEGAL DOCUMENTS ISSUED IN 12/2018

2.1. Consolidated document No. 20/VBHN-NHNN providing for the issuance of license and the organization, operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions, other foreign organizations having banking activities in Viet Nam

Name of legal document: Consolidated document No. 20/VBHN-NHNN issued on 12/12/2018 by the State Bank of Viet Nam providing for the issuance of license and the organization, operation of commercial banks, foreign bank branches, representative offices of foreign credit institutions, other foreign organizations having banking activities in Viet Nam.
Effective date: 12/12/2018.

The content should be noted: Consolidating the provisions stipulated at Circular No. 40/2011/TT-NHNN; Circular No. 17/2017/TT-NHNN dated November 20th, 2017 of the Governor of the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 40/2011/TT-NHNN; Circular No. 17/2018/TT-NHNN dated August 14th, 2018 of the Governor of the State Bank of Viet Nam amending and supplementing a number of articles of the Circulars providing for the issuance of licenses, operation networks and foreign exchange activities of credit institutions, foreign bank branches; Circular No. 28/2018/TT-NHNN.

2.2. Circular No. 36/2018/TT-NHNN regulations on lending activities for offshore investment of credit institutions and foreign bank branches to customers

Name of legal document: Circular No. 36/2018/TT-NHNN issued on 25/12/2018 by the State Bank of Viet Nam regulations on lending activities for offshore investment of credit institutions and foreign bank branches to customers (hereinafter referred to as the “Circular No. 36/2018/TT-NHNN”)
Effective date: 15/02/2019.

Some contents should be noted:

Firstly, regulating loan demand.

Specifically, Article 4 of Circular No. 36/2018/TT-NHNN stipulates as follows: “Article 4. Demand for offshore investment loans

Credit institutions consider lending to customers with the following needs:

Contributing charter capital to establish an economic organization in accordance with the law of the investment recipient country.
Contributing capital to implement business cooperation contracts (BCC contracts) in foreign countries.
Acquisition of part or all of the charter capital of an overseas economic organization to participate in managing and implementing business investment activities in foreign countries.
The demand for capital for making offshore investment in the form prescribed at Point đ, Clause 1, Article 52[8] of the Law on Investment and its guiding documents.”

Secondly, regulating loan conditions.

Specifically, Article 5 of Circular No. 36/2018/TT-NHNN stipulates: “Article 5. Conditions for borrowing capital

Credit institutions shall consider and decide to provide loans for offshore investment when customers meet the following conditions:

Customers are legal entities with civil legal capacity as prescribed by law. Individual customers (including individuals who are members or authorized representatives of households, cooperative groups and other organizations without legal status) from full 18 years or older with administrative capacity full civilian according to the law.
Having been granted an offshore investment registration certificate and investment activities approved or licensed by the competent authority of the investment recipient country. In case, the law of the investment-receiving country does not provide for investment licensing or investment approval, investors must have documents evidencing their right to invest in the investment-receiving country.
Having offshore investment projects and plans evaluated as feasible by credit institutions and customers capable of repaying credit institutions.
There are 2 consecutive years without bad debt incurred until the time of loan request.”

2.3. Circular No. 35/2018/TT-NHNN amending and supplementing a number of articles of Circular No. 35/2016/TT-NHNN dated December 29th, 2016 of the Governor of the State Bank of Viet Nam providing regulations on safety and confidentiality over provision of banking services on the internet

Name of legal document: Circular No. 35/2018/TT-NHNN issued on 24/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 35/2016/TT-NHNN dated December 29th, 2016 of the Governor of the State Bank of Viet Nam providing regulations on safety and confidentiality over provision of banking services on the internet.

(amending and supplementing a number of articles of Circular No. 35/2016/TT-NHNN dated December 29th, 2016 of the Governor of the State Bank of Viet Nam providing regulations on safety and confidentiality over provision of banking services on the internet hereinafter referred to as the “Circular No. 35/2016/TT-NHNN”

Circular No. 35/2018/TT-NHNN issued on 24/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 35/2016/TT-NHNN dated December 29th, 2016 of the Governor of the State Bank of Viet Nam providing regulations on safety and confidentiality over provision of banking services on the internet hereinafter referred to as the “Circular No. 36/2018/TT-NHNN”).

Effective date: 01/07/2019.

Some contents should be noted:

Firstly, amending and supplementing regulations on Database management system.

Specifically, Clause 4 Article 1 of Circular No. 35/2018/TT-NHNN stipulates: “4. Clause 2 Article 6[9] (Circular No. 35/2016 / TT-NHNN) is amended and supplemented as follows:

“2. The Internet Banking system must have a disaster backup database capable of replacing the main database and ensuring no loss of customers’ online transaction data.””.

Secondly, amending and supplementing regulations on compulsory functions of the application.

Specifically, Clause 5 Article 1 of Circular No. 35/2018/TT-NHNN stipulates: “5. Points c and đ, Clause 6, Article 7[10] (Circular No. 35/2016/TT-NHNN) are amended and supplemented as follows:

“c) Session control: the system has a mechanism that shall automatically disconnect the session when the user does not manipulate for a period of time specified by the unit or applies other protection measures”;

“đ) For institutional customers, application software is designed to ensure the transaction execution includes at least two steps: creating, approving transactions and being executed by different people. In case the customer is an organization permitted by law to apply a simple accounting regime, the execution of the transaction is similar to that of individual customers”.”

2.4. Circular No. 40/2018/TT-NHNN amending and supplementing a number of articles of the Circular No. 13/2018/TT-NHNN dated May 18th, 2018 of the Governor of the State Bank of Viet Nam on internal control systems of commercial banks and foreign banks’ branches

Name of legal document: Circular No. 40/2018/TT-NHNN issued on 28/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 13/2018/TT-NHNN dated May 18th, 2018 of the Governor of the State Bank of Viet Nam on internal control systems of commercial banks and foreign banks’ branches.

(Circular No. 13/2018/TT-NHNN dated May 18th, 2018 of the Governor of the State Bank of Viet Nam on internal control systems of commercial banks and foreign banks’ branches hereinafter referred to as the “Circular No. 13/2018/TT-NHNN”

Circular No. 40/2018/TT-NHNN issued on 28/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 13/2018/TT-NHNN dated May 18th, 2018 of the Governor of the State Bank of Viet Nam on internal control systems of commercial banks and foreign banks’ branches hereinafter referred to as the “Circular No. 40/2018/TT-NHNN”).

Effective date: 12/02/2019.

Some contents should be noted:

Firstly, adding provisions on credit risk.

Specifically, Clause 1 Article 1 of Circular No. 40/2018/TT-NHNN stipulates: “1. Adding Clauses 23, 24, 25, 26, 27, 28, 29, 30, 31 and 32 to Article 3 (Circular No. 13/2018 / TT-NHNN) as follows:

“23. Credit risks include:

a) Credit risk is a risk that customers do not perform or are unable to perform part or all of their debt repayment obligations under contracts or agreements with commercial banks, foreign bank’s branches, except for the cases specified at Point b of this Clause. In particular, customers (including credit institutions, foreign bank’s branches) have relations with commercial banks, foreign bank’s branches in receiving credit (including receiving credit through trust), receiving deposits, issuing corporate bonds.

b) Partner credit risk is the risk that the counterparty does not perform or is unable to perform part or all of its payment obligations before or when it is due to self-trading transactions; repo transaction and reverse repo transaction; trading derivative products to prevent risks; transactions of buying and selling foreign currencies, financial assets to serve the needs of customers and partners. In which, partners (including credit institutions, foreign bank branches) have transactions with commercial banks, foreign bank branches in self-trading transactions; repo transaction and reverse repo transaction; trading derivative products to prevent risks; transactions of buying and selling foreign currencies, financial assets to serve the needs of customers and partners.””

Secondly, amending and supplementing regulations on principles of independence in internal audit principles.

Specifically, Clause 6, Article 1 of Circular No. 40/2018/TT-NHNN stipulates: “6. Point a (iv) clause 1 Article 64[11] (Circular No. 13/2018/TT-NHNN) is amended and supplemented as follows:

“(iv) Criteria for building salaries and other benefits for the positions of the internal audit department must be separate from the business results and operation results of units and sections of the first and second protection line;””

2.5. Circular No. 41/2018/TT-NHNN amending and supplementing a number of articles of the Circular No. 19/2016/TT-NHNN dated June 30th, 2016 of the Governor of the State Bank of Viet Nam on bank card operations

Name of legal document: Circular No. 41/2018/TT-NHNN issued on 28/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 19/2016/TT-NHNN dated June 30th, 2016 of the Governor of the State Bank of Viet Nam on bank card

(Circular No. 19/2016/TT-NHNN dated June 30th, 2016 of the Governor of the State Bank of Viet Nam on bank card operations hereinafter referred to as the “Circular No. 19/2016/TT-NHNN”

Circular No. 41/2018/TT-NHNN issued on 28/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 19/2016/TT-NHNN dated June 30th, 2016 of the Governor of the State Bank of Viet Nam on bank card operations hereinafter referred to as the “Circular No. 41/2018/TT-NHNN”).

Effective date: 18/02/2019.

The content should be noted: adding provisions on card conversion process.

Specifically, Clause 5, Article 2 of Circular No. 41/2018/TT-NHNN stipulates: “5. Supplement Chapter IVa after Chapter IV (Circular No. 19/2016/TT-NHNN) as follows:

“Chapter IVa

CONVERSION PROCESS

Article 27a. For card payment organizations

To date December 31st, 2019, at least 35% of ATMs, 50% of cards acceptance devices at the point of sale operating in Viet Nam of acquirer comply with the Basic Standard for domestic chip cards.
To date December 31st, 2020, 100%of ATMs and cards acceptance equipment operating in Viet Nam of acquirer comply with the Standard on domestic chip cards.

Article 27b. For card issuers

To date December 31st, 2019, at least 30% of the cards with BIN issued by card issuer of the State Bank comply with the Basic Standard on domestic chip cards.
To date December 31st, 2020, at least 60% of the cards with BIN issued by card issuer the State Bank comply with the Basic Standard on domestic chip cards.
To date December 31st, 2021, 100% of the cards with BIN issued by card issuer the State Bank comply with the basic standards for domestic chip cards.

Article 27c. Responsibilities of card issuers and card payment organizations

During the transition period, card issuer and acquirer must ensure card activities take place continuously, stably, safely and ensure the legitimate interests of cardholders. “”

2.6. Circular No. 43/2018/TT-NHNN amending and supplementing a number of articles of Circular No. 16/2010/TT-NHNN dated June 25th, 2010 of the Governor of the State Bank of Viet Nam guiding the implementation of the Decree No. 10/2010/NĐ-CP dated February 12th, 2010 of the Government on credit information-related activities

Name of legal document: Circular No. 43/2018/TT-NHNN issued on 28/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 16/2010/TT-NHNN dated June 25th, 2010 of the Governor of the State Bank of Viet Nam guiding the implementation of the Decree No. 10/2010/NĐ-CP dated February 12th, 2010 of the Government on credit information-related activities (hereinafter referred to as the “Circular No. 43/2018/TT-NHNN”).
Effective date: 18/02/2019.

The content should be noted: amending and supplementing documents used to prove conditions in the application for Certificate of eligibility for credit information-related activities.

Specifically, Clause 1 Article 1 of Circular No. 43/2018/TT-NHNN stipulates:

“1. Point c(viii) clause 1 Article 5[12] Circular No. 16/2010/TT-NHNN (amended and supplemented in Clause 4 Article 1 of Circular No. 23/2016/TT-NHNN dated June 30th, 2016 of the Governor The State Bank of Viet Nam on amending and supplementing a number of articles of Circular No. 16/2010/ TT-NHNN is amended and supplemented as follows:

“Viii) Documents of credit institutions and foreign bank branches committed to providing credit information to enterprises according to form No. 04/TTTD enclosed with this Circular;””

2.7. Circular No. 44/2018/TT-NHNN amending and supplementing a number of articles of the Circular No. 36/2012/TT-NHNN dated December 28th, 2012 of the Governor of the State Bank of Viet Nam on the installation, management, operation, and security of automated teller machines

Name of legal document: Circular No. 44/2018/TT-NHNN issued on 28/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 36/2012/TT-NHNN dated December 28th, 2012 of the Governor of the State Bank of Viet Nam on the installation, management, operation, and security of automated teller machines.

(Circular No. 36/2012/TT-NHNN dated December 28th, 2012 of the Governor of the State Bank of Viet Nam on the installation, management, operation, and security of automated teller machines hereinafter referred to as the “Circular No. 36/2012/TT-NHNN”

Circular No. 44/2018/TT-NHNN issued on 28/12/2018 by the State Bank of Viet Nam amending and supplementing a number of articles of Circular No. 36/2012/TT-NHNN dated December 28th, 2012 of the Governor of the State Bank of Viet Nam on the installation, management, operation, and security of automated teller machines hereinafter referred to as the “Circular No. 44/2018/TT-NHNN”).

Effective date: 18/02/2019.

Some contents should be noted:

Firstly, amending and supplementing regulations on installation, change of location and termination of ATM operations.

Specifically, Clause 1, Article 1 of Circular No. 44/2018/TT-NHNN stipulates as follows: “1. Clause 2 Article 4 (Circular No. 36/2012/TT-NHNN) is amended and supplemented as follows:

“2. Within 10 working days before the date of deployment, installation, change of location, change of time, termination of ATM operation, payment service suppliers must notify the State Bank’s branch in the province centrally-run cities (hereinafter referred to as the State Bank’s branch) in the locality where ATMs are deployed or installed under Form No. 1 (for ATM) or Form No. 2 (for mobile ATM) issued together with this Circular.

Within 10 working days before the date of deployment, installation, change of location, change of time or termination of ATM operation in different provinces or cities where the head office or branch of the service provider is located. Payment service directly managing ATMs, payment service providers must notify the State Bank’s branch in the area where ATM is deployed, installed and the State Bank branch in the locality where the head office is located or branch that directly manages ATM according to Form 1 (for ATM) or Form 2 (for mobile ATMs) issued together with this Circular. ””

Secondly, amending and supplementing regulations on information and reports.

Specifically, Clause 4 Article 1 of Circular No. 44/2018/TT-NHNN stipulates: “4. Clause 1 of Article 10 is amended and supplemented as follows:

“1. The payment service supplier, the State Bank’s branch in the area where ATM is deployed and installed shall be responsible for reporting to the State Bank of Viet Nam (via the Department of Payment ) as follows:

a) Report according to the regulations of the State Bank of Viet Nam on the statistical reporting mode applicable to credit institutions and foreign bank branches and when required by competent agencies as prescribed under the law;

b) Periodic report on ATM operations for the first 6 months (reporting period is from January 1st to June 30th) and annually (reporting period is from January 1st to December 31st) before the 15th of the consecutive month following the reporting period according to the contents guided in Form 4 (for payment service suppliers) and Form 5 (for the State Bank branch) issued together with the Information this Circular””

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

3. 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] “Article 5. Currency used for loan repayment

1. With regard to foreign currency loans, prescribed in Point a, Point c, Point d Clause 1 and Clause 2 Article 3 hereof, which borrowers have sufficient foreign currency revenues to repay: borrowers shall pay the loan principal and interest by the currency that they borrow; in case borrowers repay debts by another foreign currency, they shall be bound to the agreement between the credit institutions and borrowers in conformity with relevant laws.

On the due date of the foreign currency loan, if borrower’s late repayment in foreign currency is caused by unexpected events such as borrower’s deferred collection of foreign-currency operating revenues, borrower’s inadequacy of foreign currency earned from production and business activities or other legal revenues to repay loans after being inspected and confirmed in writing by the lending credit institution, the lending credit institution shall sell foreign currency to the borrower for the borrower to repay the loan, and the borrower shall make a commitment to resell such foreign currency back to the lending credit institution when earning enough foreign currency from their business operation.

2. With regard to foreign currency loans, prescribed in Point b Clause 1 and Clause 2 Article 3 hereof, which borrowers lack legal foreign currency revenues to repay, the lending credit institution shall sell foreign currency to the borrower in order for the borrower to repay principal and interest.”

[4] “License shall include establishment and operation License of a commercial bank, establishment License of a foreign bank’s branch, establishment License of a representative office issued by the State Bank. Documents issued by the State Bank on the amendment, supplement of the License is an integral part of the License.” (Clause 1 Article 2 Circular No. 40/2011/TT-NHNN)

[5] “Article 6. Payment of fee for issuance of License

…

2. The fee level for issuance of a license shall be in accordance with provisions of the Ministry of Finance on licensing fee.”

[6] “Article 15. Application file for the establishment and operation license of a joint-stock commercial bank

…

3. Profile of shareholders who contribute capital for establishment:

a) For individuals:

…

(iii) Besides the above components, founding shareholders are required to submit following documents:

– A Curriculum of vitae in accordance with the form as provided for in Appendix 03 of this

Circular, a criminal record (or similar document) in compliance with provisions of applicable laws;

– A written commitment of each shareholder on providing financial support to the bank to solve difficulty in case where the bank faces difficulties concerning capital or liquidity;

[7] “Article 1. Amendments to the Circular No. 40/2011/TT-NHNN dated December 15, 2011 providing for issuance of license and organization and operation of commercial banks, branches of foreign banks, representative offices of foreign credit institutions and other foreign organizations performing banking activities in Viet Nam (hereinafter referred to as the Circular No. 40/2011/TT-NHNN)

…

3. Addition of Section 4 into Chapter II:

Section 4: REGULATIONS ON REPLACEMENT OF LICENSE AND ADDITION OF ACTIVITIES TO THE LICENSE

…

Article 18b. Procedures for application for replacement of license and addition of activities to the license

…

3. When the replacement of License or the addition of activities to the license is granted approval by the State Bank, the commercial bank or the branch of foreign bank shall:

…

c) The commercial bank shall make amendments to its Charter in conformity with the contents of the new License or the license containing activities added, and shall apply for registration of such amendments to its Charter with the State Bank according to the provisions of Clause 3 Article 27 of this Circular.”

[8] “Article 52. Forms of outward investment

…

1. Outward investments in the following forms:

…

đ) Other forms of investments prescribed by law of the host country.”

[9] “Article 6. Database management system

…

2. The Internet Banking system must have backup database at the Disaster Recovery Center. The backup database must be updated within at least one hour compared to official database. The database shall be copied daily. Copies shall be managed and stored safely.”

[10] “Article 7. Internet Banking application

…

6. Compulsory functions of the application:

…

c) Have a mechanism to control transaction sessions and assess time of websites and applications. In a case where a user fails to manipulate within a certain time prescribed by the service provider but not exceeding five minutes, the system shall automatically disconnect the session or apply other protective measures;

…

đ) With regard to a client being an organization, the application is designed in a manner to ensure that the transaction will be conducted in two steps as follows: creating and approving transaction and conducted by at least two different persons.”

[11] “Article 64. Principles of internal audit

1. The principles of internal audit are:

a) Independence:

…

(iv) The criteria for creating pay levels of the Chief Internal Auditor and internal auditors must be separated from the business and operational results of the units and departments belonging to the first and second lines of defense;”

[12] “Article 1. Amending and supplementing a number of Articles of Circular 16/2010/TT-NHNN

…

4. Article 5 is amended and supplemented as follows:

“Article 5. Application for Certificate

1. Dossiers of application for certificates include:

…

c) Documents proving the Conditions stipulated in Article 7 of Decree 10/2010/NĐ-CP and the Government’s regulations amending, supplementing and replacing these Conditions (if any), including:

…

viii) Documents of commercial banks committed to providing credit information to businesses in accordance with Form 04/TTTD issued with this Circular;”

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

by QNT | Sep 28, 2018 | Banking, EN, Legal Update

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.

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

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:

determine responsibilities of such employee at the date of employment termination or change
request such employee to hand over the information technology assets
revoke the right to access to the information system of the employee resigning from his/her job
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.
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
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

Vietnamese and Chinese traders conducting Viet Nam – China border trade activities.
Vietnamese border residents, Chinese border residents conducting Viet Nam – China border trade activities.
Commercial banks and branches of foreign banks are allowed to conduct foreign exchange transactions in Viet Nam (hereinafter referred to as licensed banks).
Branches of licensed banks located in border regions and border-gate economic zones of Viet Nam – China (hereinafter referred to as border – bank branches).
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.
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:

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

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).
Risk situation arising and risk management for operational risk, credit risk, liquidity risk and settlement risk of the National Interbank Electronic Payment System.
The observance of legal provisions relating to the management and operation of the National Interbank Electronic Payment System.
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

This Circular takes effect on November 1st, 2019.
From the effective date of this Circular, the following documents shall expire:
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;
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;
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:

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

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.
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.
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.
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.
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

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

People’s credit funds voluntarily apply for dissolution when they are able to repay all debts and fulfill other property obligations.
A dossier of application for a people’s credit fund has fraudulent information so as to be eligible for a license.
People’s credit funds operate in contravention of the contents prescribed in their permits.
People’s credit funds seriously violate the law provisions on limits and prudential ratios in operation.
People’s Credit Funds fail to implement or implement inadequately handling decisions of the State Bank’s branches to ensure safety in banking operations.
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

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”

Legal update relating to Finance and Credit (Monthly Legal Update – 07/2018)

by QNT | Jul 1, 2018 | Banking, EN, Legal Update

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/07/2018

1.1. Circular No. 04/2018/TT-NHNN amending and supplementing certain articles of the Circular No. 08/2017/TT-NHNN dated 01/08/2017 of the Governor of the State Bank of Vietnam on banking supervisory processes and procedures

Name of legal document: Circular No. 04/2018/TT-NHNN issued on 12/03/2018 by the Governor of the State Bank of Vietnam amending and supplementing certain articles of the Circular No. 08/2017/TT-NHNN dated 01/08/2017 of the Governor of the State Bank of Vietnam on banking supervisory processes and procedures.
Effective date: 01/07/2018.

Some contents should be noted:

Firstly, adding the “Early intervention action” measure to remedial measures for banking supervision.

Specifically, Clause 1, Article 1 of Circular No. 04/2018/TT-NHNN amended and supplemented Article 17 of Circular No. 08/2017/TT-NHNN as follows: “Remedial measures for banking supervision include:

Recommendations and warnings.
Administrative penalties prescribed by laws.
Early intervention action.
Other banking supervisory actions that are suggested to competent authorities in accordance with laws.”

Secondly, stipulating the cases of “Early intervention action”.

Specifically, Clause 2, Article 1 of Circular No. 04/2018/TT-NHNN added Article 18a to Article 18 of Circular 08/2017/TT-NHNN as follows: “…on imposition of early intervention action on entities subject to banking supervision that fall into one of the situations referred to in Clause 1 Article 130a of the (amended and supplemented) Law on Credit Institutions…” (Clause 1, Article 130a of the Law on Credit Institutions: 1. In any of the following cases, the State bank will consider making early intervention in a credit institution that has not been placed under special control according to Article 145 of this Law:

a) The credit institution fails to maintain the solvency ratio specified in Point a Clause 1 Article 130 of this Law for 03 consecutive months;

b) The credit institution fails to maintain the capital adequacy ratio specified in Point b Clause 1 Article 130 of this Law for 06 consecutive months;

c) The credit institution is ranked below average according to the State bank.”)

1.2. Circular No. 14/2018/TT-NHNN guiding the implementation of measures for maganing monetary policy instruments to support credit institutions lending for agriculture and rural development

Name of legal document: Circular No. 14/2018/TT-NHNN issued on 29/05/2018 by the Governor of the State Bank of Vietnam guiding the implementation of measures for maganing monetary policy instruments to support credit institutions lending for agriculture and rural development.
Effective date: 13/07/2018.

The content should be noted: To stipulate cases in which credit institutions shall apply the reserve requirements ratio for supporting deposits in Vietnam Dong lower than normal reserve requirements prescribed by the State Bank of Vietnam.

Specifically, Point a, Clause 2, Article 3 of Circular No. 14/2018/TT-NHNN stipulates: “The reserve requirements applied to the deposit in Vietnam Dong shall be lower than normal reserve requirements prescribed by the State Bank of Vietnam (hereinafter referred to as the State Bank) which vary according on each type of credit institutions and over time meeting the following criteria:

i) For the credit institution whose ratio of loan outstanding for agricultural, rural development over the average total loan outstanding (hereinafter referred to as the average credit ratio for agriculture and rural development) is 70% and higher: The reserve requirement is requested by such credit institution but not lower than 1/20 (one twentieth) of the reserve requirements applied to each deposit at such credit institution prescribed by the State Bank;

ii) For the credit institution whose the average credit ratio for agriculture and rural development is from 40% to less than 70%: The reserve requirement is requested by such credit institution but not lower than 1/5 (one fifth) of the reserve requirement applied to each deposit at such credit institution prescribed by the State Bank;”.

2. Legal documents issued in June 2018

Circular No. 15/2018/TT-NHNN amendments to the Circular No. 22/2016/TT-NHNN dated 30/06/2016 by the Governor of the State Bank of Vietnam on purchase of corporate bonds by credit institutions and branches of foreign banks

Name of legal document: Circular No. 15/2018/TT-NHNN issued on 18/06/2018 by the Governor of the State Bank of Vietnam amendments to the Circular No. 22/2016/TT-NHNN dated 30/06/2016 by the Governor of the State Bank of Vietnam on purchase of corporate bonds by credit institutions and branches of foreign banks.
Effective date: 02/08/2018.

Some contents should be noted:

Firstly, (i) amending and supplementing the internal control over the corporate bond purchase of internal regulations on corporate bond purchase and (ii) adding content related to the regulation of potential risk areas and credit policies, investment in the contents of internal regulations on corporate bond purchase.

Specifically, Clause 1, Article 1 of Circular No. 15/2018/TT-NHNN amended and supplemented Clause 2, Article 3 of Circular No. 22/2016/TT-NHNN as follows: “Amendments to Point d and addition of Point đ to Clause 2 Article 3:

d) Regulations on internal control of purchase of corporate bonds, especially bonds issued for implementation of programs/ projects in sectors posing potential risks according to the evaluation by credit institutions/ branches of foreign banks so as to discover risks or violations and ensure the recovery of corporate bond principals and interests (Point d, Clause 2, Article 3 of Circular No. 22/2016/TT-NHNN stipulates: “…2. The eligible credit institution must have a system of internal credit rating, including the credit rating of corporate bond issuers and issue an internal regulations on purchase of corporate bonds in accordance with this Circular and relevant law provisions, at least including:

…d) Internal control of purchase of corporate bonds.”)

đ) Specific regulations on sectors posing potential risks and credit/ investment policies in these sectors.”

Secondly, stipulating additionally the principle of buying corporate bonds of credit institutions and branches of foreign banks.

Specifically, Clause 2, Article 1 of Circular No. 15/2018/TT-NHNN stipulates: “Addition of Clause 6 to Article 3 (Circular No. 22/2016/TT-NHNN):

Credit institutions and branches of foreign banks are not allowed to purchase corporate bonds issued for the purpose of restructuring debts of the issuer.”

Thirdly, abolishing regulations on corporate bonds purchased.

Specifically, Article 2 of Circular 15/2018/TT-NHNN stipulates: “Article 4 of Circular No. 22/2016/TT-NHNN is abrogated” (Article 4 of Circular No. 22/2016 /TT-NHNN stipulates: “Types of corporate bonds permitted to be bought:

1. Bonds that are issued in accordance with provisions of laws on the issuance of corporate bonds.

2. Bonds that are issued in accordance with provisions of laws on public securities offering, except for the case prescribed in Clause 3 Article 6 of this Circular”).

Legal update relating to Finance and Credit (Monthly Legal Update – 08/2018)

by QNT | Jun 1, 2018 | Banking, EN, Legal Update

1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 07/2018 AND 08/2018

1.1. Circular No. 27/2017/TT-NHNN amending and supplementing certain articles of the Circular No. 03/2013/TT-NHNN providing on credit information activity of the State Bank of Vietnam

Name of legal document: Circular No. 27/2017/TT-NHNN issued on 31/12/2018 by the Governor of the State Bank of Vietnam amending and supplementing certain articles of the Circular No. 03/2013/TT-NHNN dated 28/01/2013 of the Governor of the State Bank of Vietnam on credit information activity of the State Bank of Vietnam.
Effective date: 01/07/2018.

Some contents should be noted:

Firstly, amending and supplementing of words that defined in Article 3 of Circular No. 03/2013/TT-NHNN.

Specifically, Clause 1, Article 1 of Circular No. 27/2017/TT-NHNN stipulates: “Article 3 (Circular No. 03/2013/TT-NHNN) is amended and supplemented as follows:

1. Clause 4, Article 3[1] is amended and supplemented as follows:

“4. Borrowers include legal entities or individuals that have credit relations with credit institutions or foreign bank branches.”

1. Point a, Clause 8, Article 3[2] is amended and supplemented as follows:

“a. The companies with function of debt trading, companies of debt management and asset exploitation, companies of credit information, enterprises providing insurance services, enterprises of securities.”

1. To add Clause 12 to Article 3 as follows:

“12. Foreign credit information organizations are organizations established and operating under foreign laws on credit information.””

Secondly, amending and supplementing the provisions on the operation of credit information stipulated in Article 5 of Circular No. 03/2013/TT-NHNN.

Specifically, Clause 2, Article 1 of Circular No. 27/2017/TT-NHNN stipulates: “Clause 1 Article 5[3] (Circular No. 03/2013/TT-NHNN) is amended and supplemented as follows:

“1. Abiding by provisions of Law on protection of State secrets, personal secrets and other relevant law provisions when providing and exploiting credit information.””

Thirdly, amending and supplementing the regulations on norm groups that credit institutions, foreign banks’ branches supply for the CIC[4].

Specifically, Clause 3, Article 1 of Circular No. 27/2017/TT-NHNN stipulates: “Clause 1, Article 7[5] (Circular No. 03/2013/TT-NHNN) is amended and supplemented as follows:

“1. Credit institutions, foreign banks’ branches supply for the CIC all the credit information norm system specified in Appendix enclosed with this Circular and classified into norm groups as follows:

a) Identification information;

b) Information of credit contracts;

c) Information of credit relationship;

d) Information of account status of credit cards;

e) Information of loan security;

g) Annual financial information of the borrower being an enterprise, including the balance sheet, the report on business results and the cash flow report as prescribed by the Finance Ministry;

h) Information of bond investment in borrowers being enterprises.””

Fourthly, supplementing the provisions on subjects of credit information use (Clause 4, Article 1 of Circular No. 27/2017/TT-NHNN); amending and supplementing provisions on rights and obligations of the Credit Information Center (Clause 5, Article 1 of Circular No. 27/2017/TT-NHNN); amending and supplementing the provisions on rights and obligations of Credit institutions, foreign banks’ branches (Clause 6, Article 1 of Circular No. 27/2017/TT-NHNN); amending and supplementing provisions on rights and obligations of voluntary organizations joining the credit information system (Clause 7, Article 1 of Circular No. 27/2017/TT-NHNN); amending and supplementing provisions on rights and obligations of borrowers (Clause 8, Article 1 of Circular No. 27/2017/TT-NHNN).
Fifthly, replacing the Credit Information System Appendix issued in conjunction with Circular No. 03/2013/TT-NHNN with Appendix 1 issued in conjunction with Circular No. 27/2017/TT-NHNN.

Specifically, Clause 1, Article 2 of Circular No. 27/2017/TT-NHNN stipulates: “Replacing the Credit Information System Appendix issued in conjunction with Circular No. 03/2013/TT-NHNN with Appendix 1 issued in conjunction with this Circular.”

Sixthly, changing the phrase “Credit Information Center”, “The director of Credit Information Center”, “Department of Monetary statistics and Forecast” and “Credit Department”.

Specifically, Clause 3, Clause 4, Article 2 of Circular No. 27/2017/TT-NHNN stipulate:

“2. Changing the phrase “Credit Information Center” into “National Credit Information Center of Viet Nam”; “The director of the Credit Information Center” to “The director of National Credit Information Center of Vietnam” in Article 1, Article 12, Clause 1, Article 21 of Circular No. 03/2013/TT-NHNN.”

3. Changing the phrase “Department of Monetary statistics and Forecast” into “Department for Forecast and Statistics”; “Credit Department” to “Credit Department of Economic Branches” at Point b, d, Clause 2, Article 13 of Circular No. 03/2013/TT-NHNN.”

1.2. Decree No. 42/2018/NĐ-CP abolishing a number of Government Decrees in the banking

Name of legal document: Decree No. 42/2018/NĐ-CP issued on 12/03/2018 by Government abolishing a number of Government Decrees in the banking.
Effective date: 01/07/2018.

Content should be noted: Decree No. 42/2018/NĐ-CP abolished a number of Government Decrees in the banking.

Specifically, Article 1 of Decree No. 42/2018/NĐ-CP stipulates: “Abolishing a number of Government Decrees in the banking, include:

Decree No. 14/CP issued on 02/03/1993 by Government promulgating the provisions on policies for production households to borrow capital for development of agriculture, forestry, fishery and rural economy.
Decree No. 48/2001/NĐ-CP issued on 13/8/2001 of Government on organization and operation of People’s Credit Funds.
Decree No. 69/2005/NĐ-CP issued on 26/05/2005 by Government amending and supplementing a number of articles of the Decree No. 48/2001/NĐ-CP issued on 13/8/2001 by Government on organization and operation of People’s Credit Funds.
Decree No. 22/2006/NĐ-CP issued on 28/02/2006 by Government on organization and operation of foreign bank branches, joint-venture banks, banks with 100% foreign capital, and representative offices of foreign credit institutions in Viet Nam.
Decree No. 59/2009/NĐ-CP issued on 16/7/2009 by Government on organization and operation of commercial banks.
Decree No. 05/2010/NĐ-CP issued on 18/01/2010 by Government stipulating the application of the Bankruptcy law to credit institutions.”

1.3. Decision No. 1417/QĐ-NHNN approving simplification of business conditions under the management function of the State Bank of Vietnam

Name of legal document: Decision No. 1417/QĐ-NHNN issued on 09/07/2018 by the Governor of the State Bank of Vietnam approving simplification of business conditions under the management function of the State Bank of Vietnam.
Effective date: 09/07/2018.

Some contents should be noted:

Firstly, 257 business conditions under the management function of the State Bank of Vietnam are reduced, simplified. In particular, Decision No. 1417/QĐ-NHNN reduces, simplifies 84 conditions for business activities of commercial banks; 52 conditions for business activities of non-bank credit institutions; 59 conditions for business activities of cooperative banks, people’s credit funds and microfinance institutions; 8 conditions for providing intermediary payment services; 13 conditions for providing credit information services; 19 conditions of foreign exchange activities of organizations other than credit institutions; 12 conditions for gold trading; 6 conditions for printing and minting; 4 conditions for debt trading business[6].
Secondly, stipulating conditions for founding members and owners of foreign credit institutions of joint venture banks and banks with 100% foreign capital issued establishment and operation Licenses in Viet Nam.

Specifically, Section I.3 of the Scheme on reduction and simplification of business conditions under the management function of the State Bank (Promulgated together with Decision No. 1417/QĐ-NHNN issued on 09/07/2018) stipulates: “Conditions applicable to a founding member, owner as a foreign credit institutions (35 – 41):

Not to seriously violate provisions on banking activities and other provisions of applicable laws of its native country within 05 latest consecutive years prior to the year applying for the license till the issuance of the license;
To have experience in international operation, is ranked from average and stable upwards by international credit rating organizations, can prove the ability to perform financial commitments and operate normally even when economic situation, condition faces adverse changes;
To be profitable in the 05 consecutive years preceding the year of applying for the License and as of the time of obtaining the License;
The total assets must be approximately USD 10 billion at the end of the year preceding the year of applying for the license;
To be assessed by a competent agency of the native country in respect of the capital adequacy ratio, other prudential ratios, to fully comply with regulations on risk management and making provision as provide for by the native country in the year before the year of applying for the license till the issuance of license;
Not to be the owner, founding member, strategic shareholder of another Vietnamese credit institution;
Within a period of 05 years since the issuance of the License, founding members shall be required altogether to hold 100% of the charter capital of a joint-venture bank, 100% foreign owned bank.”

1.4. Circular No. 08/2018/TT-BTP guiding the registration, provision of information on security measures, contracts and exchange of information on registration of security measures at the Registration Center for transactions and assets of Ministry of Justice National Registration Agency for Secured Transactions

Name of legal document: Circular No. 08/2018/TT-BTP issued on 20/06/2018 by the Ministry of Justice guiding the registration, provision of information on security measures, contracts and exchange of information on registration of measures at the Registration Center for transactions and assets of Ministry of Justice National Registration Agency for Secured Transactions.
Effective date: 04/08/2018.

Some contents should be noted:

Firstly, providing for cases are registered the security measures upon request at the Registration Center for transactions and assets (hereinafter referred to as the Registration Center); contracts are registered upon request.

Specifically, Article 5 of Circular No. 08/2018/TT-BTP stipulates: “Cases of registration security measures, contracts:

1. Registration of security measures upon request at the Registration Center includes the following cases:

a) Mortgaging of movable property, except for aircraft or seagoing vessels, including future mortgage of movable property;

b) Reserving ownership in the case of sale and purchase of movable property, except for aircraft or vessels with reservation of ownership;

c) Modifying, correcting or deleting registration of registered security measures mentioned at Points a and b, Clause 1 of this Article;

d) Written notice of the disposal of the security property for the registered security measure.

2. Contracts (except for contracts for the purchase of civil aircraft in accordance with the law on aviation, financial leasing contracts for aircraft in accordance with the law on finance leasing, hire purchase contracts in accordance with the law on maritime shipping, finance leasing contracts with respect to seagoing vessels, which do not fall into the cases specified in Clause 3, Article 39 of the Circular No. 30/2015/TT-NHNN issued on 25/12/2015 by The State Bank of Vietnam providing regulations on licensing, organization and operation of non-bank credit institutions and contracts relating to land use rights and assets attached to land in accordance with the law on land, housing) registered upon request include:

a) Property lease contracts with the term of one year or more or contracts with the lease term of less than one year, but the parties agree on the extension and the total leasing term (including the term extended) for one year or more;

b) Financial leasing contracts in accordance with the law on financial leasing;

c) Contracts on the transfer of the right to reclaim debts, including the right to reclaim existing debts or the right to reclaim debts, to be formed in the future;

d) Modifying, correcting errors or deleting registration of registered contracts mentioned at Points a, b and c, Clause 2 of this Article.”

Secondly, stipulating security properties registered at the Registration Center upon request.

Specifically, Article 6 of Circular 08/2018/TT-BTP stipulates: “Assets subject to the registration of security measures, contracts

Security properties registered at the Registration Center upon request, including:

1. Automobiles, motorcycles and other motorized traffic means; railway transport means.

2. Fishing vessel; inland waterway transport means.

3. Machinery, equipment, production lines, raw materials, fuel, materials, consumer goods, other goods, precious metals, precious stones.

4. Vietnamese currency, foreign currency.

5. The capital contribution in the enterprise in accordance with the law of the enterprise.

6. Shares, bonds, promissory notes, certificates of deposits, fund certificates, checks and other valuable papers as prescribed by law, valued in money and allowed to be traded; the lawful receivables of individuals and legal persons.

7. Property rights according to the provisions of Article 115 of the Civil Code, except for land use rights, include:

a) Property rights arising from copyright, industrial property rights and plant variety rights; debt claims; rights to exploit natural resources; the right to compensation for damage arising from the contract;

b) Property rights arising from contracts of ship building; the right to compensation for damage arising from the contract for purchase and sale of aircraft or ships; the insurance beneficiary under insurance contracts for aircraft or seagoing ships;

c) Property rights include the right to claim debts, the right to demand payment, the right to compensation for damage, the right to enjoy insurance arising from dwelling house purchase/sale contracts, contracts on capital contribution to the construction of dwelling houses or contracts investment cooperation, housing business cooperation, lease contract, house purchase contract (including social housing) between organizations and individuals or between organizations, individuals and real estate business enterprises in housing construction projects in accordance with the law on housing; the property rights are the right to claim debts, the right to demand payment, the right to compensation for damages, the right to enjoy insurance arising from purchase/sale contracts, capital contribution contracts, investment cooperation contracts lease, contract for hire purchase of construction works between organizations and individuals or between organizations and individuals and real estate business enterprises in construction projects according to the provisions of law on real estate business;

d) Other property rights as prescribed by law.

8. Income, rights to receive insurance sums for security assets or other interests earned from security assets mentioned in this Article; the income earned from the operation of aircraft or ships; the income from the business, exploiting the value of land use rights or assets attached to land; accounts receivable and fees collected by the investor in the process of investment, business and development of projects on construction of dwelling houses or projects on construction of works.

9. Other movable property as provided for in Clause 2, Article 107[7] of the Civil Code.

10. Houses and other construction works which are temporarily constructed without being subject to ownership certification prescribed in Clause 2, Article 35[8] of Decree No. 43/2014/NĐ-CP issued on 15/5/2014 by Government detailing a number of articles of the Law on land, such as temporarily constructed properties during construction of construction works or construction of bamboo or foliage materials; the auxiliary works are outside the scope of the main works and serve for the management, use and operation of the main works; or other assets attached to land without provisions on ownership certification such as: pre-engineered steel buildings, workshop frames, net houses, membrane houses; wells; pool; the yard; fence; power poles; power station; pump station, transmission system, power transmission; drainage system or water supply system; internal roads and other auxiliary works.

Thirdly, other contents relating to registration, provision of information on security measures, contracts and exchange of information on registration of security measures at Registration Centers: database use codes on security measures, asset declaration, registration forms…

[1] “Article 3. Interpretation of terms

In this Circular, the following terms are construed as follows:

…4. Borrowers include organizations, individuals or other subject as prescribed by law, having credit relationship with credit institutions, foreign banks’ branches.”

[2] “Article 3. Interpretation of terms

In this Circular, the following terms are construed as follows:

…8. Organizations voluntarily joining the credit information system (hereinafter referred to as voluntary organizations) include:

a) The Vietnam Development Bank, companies with function of debt trading, companies of debt management and asset exploitation, companies of credit information, enterprises providing insurance services, enterprises of securities;”

[3] “Article 5. Principles of credit information activity

1. Strictly abide by provisions of law.”

[4] Credit Information Center (CIC)

[5] “Article 7. Supply of credit information

1. Credit institutions, foreign banks’ branches supply for the CIC all the credit information normsystem specified in Annex enclosed with this Circular and classified into normgroups as follows:

a) Information to identify the borrowers who are individuals, business households; information to identify the borrowers being enterprises, other organizations; information to identify the owners of credit card;

b) Information of credit contracts;

c) The borrowers’ information of credit relationship;

d) Information of account status of credit cards;

e) Information ofloan security;

g) Financial information of borrowers being enterprises;

h) Information of bond investment in borrowers being enterprises.”

[6] State Bank of Viet Nam, “The SBV has approved the simplification of 257 business conditions under SBV’s management function”, [https://www.sbv.gov.vn/webcenter/portal/vi/menu/trangchu/ttsk/ttsk_chitiet?centerWidth=80%25&dDocName=SBV344983&leftWidth=20%25&rightWidth=0%25&showFooter=false&showHeader=false&_adf.ctrl-state=14ojjbc42_4&_afrLoop=397120084870000#%40%3F_afrLoop%3D397120084870000%26centerWidth%3D80%2525%26dDocName%3DSBV344983%26leftWidth%3D20%2525%26rightWidth%3D0%2525%26showFooter%3Dfalse%26showHeader%3Dfalse%26_adf.ctrl-state%3Ddqomvf35t_4] (accessed on 23/7/2018)

[7] Clause 2 of Article 107 of the Civil Code stipulates: “2. Moveable property is property which is not immovable property.”

[8] Clause 2 of Article 35 of Decree No. 43/2014/NĐ-CP stipulates: “Land – attached assets ineligible for ownership certification upon grant of certificates of land use rights and ownership houses and other land – attached assets

Land – attached assets are ineligible for ownership certification in one of the following cases:

…2. Houses or other construction facilities which are temporarily built during the construction of main facilities or which are built with bamboo, leaf or earth; and auxiliary facilities which are outside the premises of main facilities and serve the management, use and operation of main facilities;”

New substances of Circular No.39/2016/TT-NHNN

by QNT | Jan 25, 2017 | Banking, EN, Legal Guidance

NEW SUBSTANCES OF CIRCULAR NO.39/2016/TT-NHNN

On 30 December 2016, the Circular No. 39/2016/TT-NHNN (“Circular 39”) was promulgated by the State Bank of Vietnam and replaced Decision No. 1627/2001/QD-NHNN (hereinafter referred to as “Replaced Documents”) is effective from 15 March 2017 on the Regulation on lending activities of credit institutions and foreign bank branches to customers.

According to our understanding, the Circular 39 has some new important points about the legal status of borrowers, purposes of borrowing, loan interest rate, loan term, sample credit contract, publication of conditions, overdue debt transfer and debt collection order.

Specifically, the Circular 39 has some important changes to be considered as follows:

1. Legal status of Borrowers

The Circular 39 stipulated that “Customer performing a borrowing transaction with a credit institution (hereinafter referred to as borrowing customer) refers to any legal entity or individual, including: a) Legal entities established and operated within the territory of Vietnam and/or those established abroad and legally operated within the territory of Vietnam; b) Vietnamese and/or foreign nationals.”[1]

We realize that the difference in this new substance is the customer performing a borrowing transaction with a credit institution only includes legal entities and individuals. It means that organizations being non-legal entity (e.g. households, cooperative groups, private enterprises, other non-legal entities) are not entitled to borrow capital from credit institutions. This is also consistent with the provisions in the Civil Code 2015[2].

Previously, the Replaced Documents stipulated that customers borrowing from credit institutions shall be Vietnamese and foreign organizations, individuals that are capable of repayment and have demand for funds borrowing…, means that the replaced law allows the borrowers to include households, cooperative groups, private businesses or partnerships company.

2. Purposes of Borrowing

In Circular 39, there are two (2) groups of loan purposes, including: Consumer loan and Business loan, namely:

Consumer loan means “a credit institution’s granting a loan to an individual customer’s demands for borrowed funds to pay consumption or living expenses for his/her personal or family purposes”[3]; and
Business loan means “a credit institution’s granting a loan to a legal entity or individual to meet the demands for borrowed funds other than those referred to in Clause 4 of this Article (Consumer loan), including the demands for borrowed funds by that legal entity or individual, and the demands for borrowed funds by a business household or private company of which that individual is the legal owner”[4].

We realize that the difference in this new substance is the fact that the Circular 39 does not limit the purposes of borrowing as the Substitute Documents, which divides the demand for loans into the two groups mentioned above. Previously, the Replaced Documents have limited the loan purposes of customers in the implementation of investment projects, plan of production, business and service activity or investment projects, plan of domestic and overseas living standard improvement.

It should be noted that, according to the Circular 39, although the organizations being non-legal entity will be not entitled to borrow capital from credit institutions, but the Circular 39 allows the credit institutions grant a loan to individual customer who is the head of household business or owner of private enterprise to meet the capital needs of business households and private enterprises.

3. Loan Re-Structuring

For the loan re-structuring, the Circular 39 stipulated that Credit institutions shall not be allowed to approve the following loan demands:

“Loans used for repaying loan debts owed to lending credit institutions, except for those used for paying loan interest arising during the construction process of which cost is accounted for in the construction cost estimate approved by a regulatory authority in accordance with laws.
Loans used for repaying loan debts owed to other credit institutions and foreign loan debts, except for loans used for repaying debts prior to the payment due date that fully meet the following requirements:

a) Be a loan used for business activities;

b) Have the loan term that does not exceed the residual loan term of an older loan;

c) Be a loan under which the debt rescheduling has not been carried out”[5].

We realize that Circular 39 has a change in the loan re-structuring regulations compared with the Replaced Documents with a view to tighten controlling over lending to repayment.

4. Loan interest rate

The Circular 39 stipulated that,

Maximum interest rate: “A credit institution and its customer shall agree on the interest rate depending on capital demands and supplies on the market, loan demands and creditworthiness of customers”[6], unless otherwise the interest rate on short-term loan denominated in Vietnamese dong “shall not allow it to exceed the maximum interest rate decided by the State Bank’s Governor over periods of time in order to meet certain demands for borrowed fund”[7];
Late payment interest: If a customer fails to make due payment of interest, “the customer must pay late payment interest charged at the interest rate agreed upon between the credit institution and customer which is not allowed to exceed 10%/year interest rate on the outstanding balance of late payment interest in proportion to the period of late payment”[8];
Interest on the overdue principal: Where a debt has become delinquent, “the customer owing a delinquent debt must pay interest on the outstanding amount of principal which is overdue in proportion to the period of late payment for which the interest rate charged is not allowed to exceed 150% of the interest rate charged on due repayment that is determined upon the date of such debt becoming delinquent”[9]
Variable interest rate: Where the variable interest rate is applied, “a credit institution and customer must enter into an agreement on principles and factors for determination of the variable interest rate, and on the date of adjustment to the loan interest rate. In cases where referring to factors for determination of the variable interest rate results in different loan interest rates, the credit institution shall apply the lowest loan interest rate”[10].

We realize that the importance in this new substance is the fact that the regulation of maximum interest rate applies only to case of the short-term loan denominated in Vietnamese dong in the priority areas stipulated in Circular 39. Furthermore, in addition to the interest on the principal, there was a clear regulation of the maximum and the calculation of the late payment interest, the interest on the overdue principal and the variable interest rate in order to avoid conflict in the understanding of the parties.

5. Loan term

The Circular 39 stipulated that,

Loan term refers to “a period of time starting on the day following the day when a credit institution begins to disburse the borrowed fund to a customer and ending on the day when that customer has to repay principal and interest amounts in full as agreed upon between the credit institution and customer”[11];
Credit institutions will grant a decision into the following categories:
“Short-term loan, defined as loans having the maximum loan term of 01 (one) year.
Medium-term loan, defined as loans having the loan term between above 01 (one) year and 05 (five) years at the maximum.
Long-term loan, defined as loans having the loan term of more than 05 (five) years”[12].

We realize that the difference in this new substance is (i) the loan term is not calculated from the received time of the loan by clients; and (ii) the loan term is determined by year rather than month.

6. Some other substances

Currency of repaying debts: Besides the regulations on currency of lending in the same previously, the Circular 39 has a substance specifically on currency of repaying debts – “Currency unit used for debt repayment is the one used in a loan”[13].
Fee paid for a commitment to borrowed fund: The Circular 39 has a substance on Fee paid for a commitment to borrowed fund, specifically the credit institution and customers can agree on the payment of “Fee paid for a commitment to borrowed fund withdrawal during the period from the date of entry into force of the loan agreement to the date of initial disbursement of borrowed fund”[14].
Penalty and compensation: Circular 39 stipulated that credit institutions and customers have the right to agree on penalties and compensation in case of defaulting on a loan, unless otherwise the loan principal and/or interest. Also, we note that, if there is not an agreement on both of penalty and compensation, the defaulting party shall only be subject to the penalty for violation (without compensation)[15].
Delinquent debt: The Circular 39 stipulated that “The credit institution shall perform delinquency procedures for the principal amount of which repayment is not made by the agreed due date and rescheduling is not accepted by the credit institution”[16]. The difference in this new substance is a replacement of “the whole outstanding amount of debt” with “the outstanding amount of principal of customers cannot repay on time” – This is a rule to avoid conflict in the understanding of the parties in past.
Post the contract templates, general conditions of lending: The Circular 39 stipulated that the credit institution shall be obliged to
“Make a public notice of such contract templates and general contractual terms and conditions regarding lending activities at its office, and make posts on its website;
Provide a full amount of information about these contract templates and general terms and conditions of which a customer should be informed prior to conclusion of a loan agreement, and obtain customer’s confirmation that the credit institution has already provided all necessary information”[17].
Notify early debt recovery: Upon delinquency, debt termination and debt recovery prior to the agreed due date, the credit institution shall notify the customer of such delinquency, loan termination and early debt recovery[18].

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[1] Clause 3 Article 2 of Circular No. 39/2016/TT-NHNN

[2] Civil Code No. 91/2015/QH13 dated 24 month 11 year 2015 by the National Assembly XIII of Viet Nam

[3] Clause 4 Article 2 of Circular No. 39/2016/TT-NHNN

[4] Clause 5 Article 2 of Circular No. 39/2016/TT-NHNN

[5] Clause 5 and 6 Article 8 of Circular No. 39/2016/TT-NHNN

[6] Clause 1 Article 13 of Circular No. 39/2016/TT-NHNN

[7] Clause 2 Article 13 of Circular No. 39/2016/TT-NHNN

[8] Clause 4(b) Article 13 of Circular No. 39/2016/TT-NHNN

[9] Clause 4(b) Article 13 of Circular No. 39/2016/TT-NHNN

[10] Clause 5 Article 13 of Circular No. 39/2016/TT-NHNN

[11] Clause 8 Article 2 of Circular No. 39/2016/TT-NHNN

[12] Article 10 of Circular No. 39/2016/TT-NHNN

[13] Clause 2 Article 11 of Circular No. 39/2016/TT-NHNN

[14] Clause 4 Article 14 of Circular No. 39/2016/TT-NHNN

[15] Article 25 of Circular No. 39/2016/TT-NHNN

[16] Article 20 of Circular No. 39/2016/TT-NHNN

[17] Clause 4 Article 23 of Circular No. 39/2016/TT-NHNN

[18] Article 20 and Clause 1 Article 21 of Circular No. 39/2016/TT-NHNN

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