Vietnam: Contributing capital, buying bank shares illegally will be fined up to VND 250 million

The Vietnam Government has just added a series of regulations on administrative sanctions for violations in the monetary and banking sectors.

Contributing capital, buying, receiving transfer of bank shares improperly will be fined 200-250 million VND

The Government promulgates Decree 143/2021/ND-CP amending and supplementing a number of articles of Decree No. 88/2019/ND-CP dated November 14, 2019 on sanctioning of administrative violations in the field of currency and banking.

The Decree stipulates that a fine of from 200 to 250 million dong will be imposed for the following acts: Buying and holding shares of other credit institutions in contravention of conditions and exceeding the limit prescribed by the State Bank; The second is to contribute capital, purchase, receive and transfer shares of a credit institution in contravention of the provisions of the Law on Credit Institutions.

Thus, compared with Decree 88, the new Decree adds regulations on penalties for violations in the activities of capital contribution, purchase and transfer of shares.

In addition, the Decree also adds many violations in the field of consumer lending. Specifically, a fine ranging from VND 10,000,000 to VND 15,000,000 shall be imposed for one of the following violations:

• the behavior of receiving and handling customer complaints is not in accordance with the law on consumer lending by financial companies.
• the act of failing to organize professional training and training for employees in accordance with the law on consumer loans of financial companies.
• violate the regulations on the maximum amount of consumer loans according to the provisions of the law on consumer loans of financial companies.
• do not promulgate the interest rate bracket for consumer loans from time to time or issue insufficiently the contents in accordance with this law.

In addition to the above contents, Decree 143/2021/ND-CP also adds many regulations on penalties for acts in the field of payment.

Specifically, a fine of between VND 100-150 million for one of the following acts: Performing, organizing the implementation or facilitating the use of anonymous prepaid cards on the internet environment, application programs on mobile device or withdraw cash; card switching, clearing of card transactions, settlement of card transactions not in accordance with the law on banking card activities; transfer the device accepting the card, QR Code to another party to use; accept card payments without a card payment contract; unauthorized use of devices accepting cards, QR Codes; perform, organize the performance or create conditions for others to perform fraudulent or forged card transactions; short payment transactions at card-accepting units (no purchase and sale of goods and provision of services); stealing, colluding to steal card information without reaching the level of criminal prosecution.

The Decree also amends and supplements Clause 6, Article 28. Specifically, a fine of between VND 50-100 million shall be imposed for one of the following acts: renting, leasing, buying and selling cards or card information, opening cards for except for anonymous prepaid cards) with the number of 10 cards or more but not yet to the extent of criminal prosecution; issuing cards, making card payments in contravention of the law; not refuse to pay card in case the card is used to perform card transactions that are prohibited by law, the card has been reported by the cardholder to be lost, the card is expired, the card is locked, used card is not within the scope agreed in the contract or written agreement on card issuance and use.

Additional Decree Article 28a violates regulations on payment agent activities after Article 28. Specifically, a fine of between VND 5-10 million will be imposed for one of the following violations: Providing untruthful information in connection with the supply or use of payment agency activities; receiving, processing, tracing, complaints of customers not in accordance with the provisions of law; collect fees other than the fee schedule specified and announced by the principal;

A fine of between VND 40-50 million shall be imposed for taking advantage of being a payment agent to perform, organize or create conditions for other organizations and individuals to perform fraudulent transactions, impersonation, appropriation of client funds, transactions for the purposes of money laundering, terrorist financing, financing the proliferation of weapons of mass destruction and other violations of the law.

A fine of between VND 50-100 million shall be imposed for one of the following violations: Performing the act of assigning agents or acting as payment agents that are inconsistent with the contents stated in the establishment and operation license or the establishment license or decide on the organization and operation of the authority competent to make the decision and the document amending and supplementing the License (if any); payment agent party is an organization that is not a credit institution or foreign bank branch acting as an agent for a third party; forge or impersonate a payment agent.

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