Tiếng Việt

LEGAL UPDATE RELATING TO FINANCE AND CREDIT (MONTHLY LEGAL UPDATE – 01/2025)

by | Jan 2, 2025 | Banking, EN, Legal Update

1.       LEGAL DOCUMENTS ARE EFFECTIVE IN 01/2025

1.1.  Circular No. 15/2023/TT-NHNN regulating credit information activities of the State Bank of Vietnam

  • Name of legal document: Circular No. 15/2023/TT-NHNN issued on 05/12/2023 by the State Bank of Vietnam regulating credit information activities of the State Bank of Vietnam (referred to as the “Circular No. 15/2023/TT-NHNN”).
  • Effective date: 01/01/2025.

The content should be noted: Stipulating on rights and obligations of credit institutions.

Specifically, Article 16 of Circular No. 15/2023/TT-NHNN stipulates: “Article 16. Rights and obligations of credit institutions

  1. Establish an information infrastructure to meet the requirements of data creation and control of data provided to CIC; promulgate internal regulations and manage the credit information criteria system throughout the system.
  2. Pay in full and on time the fees for exploiting and using credit information services according to the contract signed with CIC.
  3. Send officials and employees to participate in credit information training courses organized or coordinated by CIC.
  4. Implement other rights and obligations as agreed with CIC and relevant provisions of law.”

1.2. Circular No. 50/2024/TT-NHNN regulations on safety and security for providing online services in the banking industry

  • Name of legal document: Circular No. 50/2024/TT-NHNN issued on 31/10/2024 by the State Bank of Vietnam regulations on safety and security for providing online services in the banking industry (referred to as the “Circular No. 50/2024/TT-NHNN”).
  • Effective date: 01/01/2025.

The content should be noted: Amending forms of deposits eligible for premature withdrawal.

Specifically, Clause 6 Article 7 of Circular No. 50/2024/TT-NHNN stipulates: “6. Mandatory functions of Online Banking application software:

a) All data transmitted over the network environment or data exchanged between Online Banking application software and related equipment must apply the end-to-end encryption mechanism;

b) Ensure the integrity of transaction data, any unauthorized modifications must be detected, warned, prevented or have appropriate handling measures to ensure the accuracy of transaction data during the transaction process, data storage;

c) Control transaction sessions: the system has a mechanism to automatically disconnect the transaction session when the user does not operate for a period of time specified by the unit or apply other protection measures;

d) Has a concealment function for displaying secret keys, PIN codes used to log into the system;

dd) Has an anti-automatic login function;

e) In case the electronic transaction account specified in Clause 1, Article 9 of this Circular uses a PIN code or secret key as a form of confirmation, the Online Banking application software must have functions to control the PIN code and secret key:

(i) Require customers to change the PIN code or secret key in case the customer is issued a default PIN code or secret key for the first time;

(ii) Notify customers when the PIN code or secret key is about to expire;

(iii) Cancel the validity of the PIN code or secret key when it expires; request customers to change the expired PIN code or secret key when the customer uses the PIN code or secret key to log in;

(iv) Cancel the validity of the PIN code or secret key in case the PIN code or secret key is entered incorrectly more than the number of times specified by the unit (but not more than 10 times) and notify the customer;

(v) The unit shall only reissue the PIN code or secret key when requested by the customer and must check and identify the customer before reissuing it, ensuring against fraud and forgery.

g) For customers who are organizations, the application software is designed to ensure that the implementation of online payment transactions includes at least two steps: transaction creation and approval. In the case where the customer is a business household or a micro-enterprise applying a simple accounting regime, the implementation of the transaction does not require separating the two steps of transaction creation and approval;

h) There is a function to notify the first login to the Online Banking application software or the login to the Online Banking application software on a device other than the device that last logged in to the Online Banking application software via SMS or other channels registered by the customer (phone, email, etc.), except in the case where the customer is an organization: logging in on devices that have registered to use the service; or log in using at least one of the confirmation forms specified in Clause 3, Clause 4, Clause 5, Clause 7, Clause 8, Clause 9, Article 11 of this Circular.”

1.3. Decision No. 2690/QD-NHNN prescribing interest rates imposed by commercial banks in 2025 on outstanding debts of concessional housing loans granted under Circular No. 11/2013/TT-NHNN dated May 15, 2013, Circular No. 32/2014/TT-NHNN dated November 18, 2014 and Circular No. 25/2016/TT-NHNN dated July 29, 2016

  • Name of legal document: Decision No. 2690/QD-NHNN issued on 18/11/2024 by the State Bank of Vietnam prescribing interest rates imposed by commercial banks in 2025 on outstanding debts of concessional housing loans granted under Circular No. 11/2013/TT-NHNN dated May 15, 2013, Circular No. 32/2014/TT-NHNN dated November 18, 2014 and Circular No. 25/2016/TT-NHNN dated July 29, 2016 (referred to as the “Decision No. 2690/QD-NHNN”).
  • Effective date: 01/01/2025.

The content should be noted: The interest rate imposed by commercial banks in 2025 on outstanding debts of concessional housing loans granted under the Circular No. 11/2013/TT-NHNN, the Circular No. 32/2014/TT-NHNN and the Circular No. 25/2016/TT-NHNN.

Specifically, Article 1 of Circular Circular No. 25/2016/TT-NHNN stipulates: “Article 1. The interest rate imposed by commercial banks in 2025 on outstanding debts of concessional housing loans granted under the Circular No. 11/2013/TT-NHNN dated May 15, 2013, the Circular No. 32/2014/TT-NHNN dated November 18, 2014 and the Circular No. 25/2016/TT-NHNN dated July 29, 2016 is 4,7%/year.”

1.4. Circular No. 51/2024/TT-NHNN regulations on safety and security for providing online services in the banking industry

  • Name of legal document: Circular No. 51/2024/TT-NHNN issued on 29/11/2024 by the State Bank of Vietnam prescribing independent audit of commercial banks, non-bank credit institutions, microfinance institutions, and foreign bank branches (referred to as the “Circular No. 51/2024/TT-NHNN”).
  • Effective date: 15/01/2025.

The content should be noted: Responsibilities of credit institutions and FBBs.

Specifically, Article 15 of Circular No. 51/2024/TT-NHNN stipulates: “Article 15. Responsibilities of credit institutions and FBBs

  1. Select independent audit organizations in accordance with provisions of this Circular.
  2. Within 30 days from their decision on selection of independent audit organization, send written notice of the selected independent audit organization to SBV according to the following provisions:a) Credit institutions and FBBs shall send their notices to SBV (via the SBV Banking Supervision Agency), except the case in point b of this clause;b) An FBB that is subject to microprudential supervision of a SBV’s branch in province or central-affiliated city where it is located (hereinafter referred to as “SBV’s provincial branch”) shall send its notice to that SBV’s provincial branch.
  3. Fulfill the obligations specified in Article 39 of the Law on Independent Audit and other regulations of law on independent audit.
  4. Within 90 days from the end of a fiscal year, send independent audit outcomes to SBV according to points a and b clause 2 of this Article.
  5. Send written notification to SBV of any dispute about independent audit outcomes, in which description, explanation and proposed solutions for settling the dispute must be included in accordance with relevant laws.
  6. Carry out public disclosure of financial information in accordance with regulations of law in force.”

1.5. Circular No. 52/2024/TT-NHNN prescribing formulation and implementation of roadmap for compliance with provisions of Law on credit institutions No. 32/2024/QH15 by commercial banks whose shareholders, shareholders and their related persons owning shares in excess of limits prescribed in Article 55 of the Law on credit institutions No. 47/2010/QH12, as amended by Law No. 17/2017/QH14

  • Name of legal document: Circular No. 52/2024/TT-NHNN issued on 29/11/2024 by the State Bank of Vietnam prescribing formulation and implementation of roadmap for compliance with provisions of Law on credit institutions No. 32/2024/QH15 by commercial banks whose shareholders, shareholders and their related persons owning shares in excess of limits prescribed in Article 55 of the Law on credit institutions No. 47/2010/QH12, as amended by Law No. 17/2017/QH14 (referred to as the “Circular No. 52/2024/TT-NHNN”).
  • Effective date: 15/01/2025.

The content should be noted: Responsibilities of commercial banks.

Specifically, Article 05 of Circular No. 52/2024/TT-NHNN stipulates: “Article 5. Responsibilities of commercial banks

  1. Commercial banks shall act as focal points in formulating and implementing compliance roadmaps; monitor and expedite shareholders, shareholders and their related persons owning shares beyond prescribed limit to cooperate in formulating and implementing compliance roadmaps as prescribed in this Circular.
  2. Prepare physical quarterly reports on implementation of compliance roadmaps using the form in the Appendix enclosed herewith, and submit them directly or by post to SBV (via the SBV Banking Supervision Agency). Such a quarterly report includes data collected from the 15thday of the month preceding the reporting quarter to the 14thday of the last month of the reporting quarter. A quarterly report must be submitted by the 25th day of the last month of the reporting quarter (report of Quarter III, 2025 shall be the first reporting quarter).
  3. Assume legal responsibility for the accuracy and adequacy of their information provided for SBV, and relevant organizations and individuals.”