Circular No. 03/2013/TT-NHNN dated January 28, 2013 of the State Bank of Vietnam providing on credit information activity of the State Bank of Vietnam

THE STATE BANK OF VIETNAM

Circular No. 03/2013/TT-NHNN dated January 28, 2013 of the State Bank of Vietnam providing on credit information activity of the State Bank of Vietnam

Pursuant to the Law on the State bank of Vietnam No. 46/2010/QH12, of June 16, 2010;

Pursuant to the Law on credit institutions No. 47/2010/QH12, of June 16, 2010;

Pursuant to the Decree No. 96/2008/ND-CP dated August 26, 2008 of the Government defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of Director of Credit Information Center;

The Governor of the State bank of Vietnam promulgated this Circular providing on credit information activity of the State bank of Vietnam,

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides on credit information activity of the State bank of Vietnam with the Credit information Centre as focal agency (hereinafter referred to as CIC) including:

1. Providing credit information for the state bank of Vietnam;

2. Handling, storing of and keeping in safety for credit information data;

3. Using credit information products and services;

4. Rights and obligations of relevant organizations, individuals.

Article 2. Subjects of application

1. Departments and units of the State Bank of Vietnam, the State bank’s branches in central-affiliated cities and provinces (hereinafter referred to as units of the State bank of Vietnam)

2. Credit institutions, foreign banks’ branches.

3. Borrowers.

4. Relevant organizations, individuals.

Article 3. Interpretation of terms

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

1. Credit information activity of the State bank of Vietnam means supply, handling, storing of, and keeping in safety for credit information date and use of credit information products and services (hereinafter referred to as credit information activity).

2. Credit information means information on borrowers and information related to borrowers at credit institutions, foreign banks’ branches.

3. Identification information means information aiming to identify clearly a borrower and distinguish with other borrower.

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

5. Credit information products mean information report, publications made and supplied by the CIC to organizations, individuals on the basis of credit information gathered.

6. Credit information services mean provision of credit information products and other utilities of CIC for credit institutions, foreign banks’ branches, other organizations and individuals who have need.

7. Database of national credit information means a collection of credit information data and products of all kinds which are managed, saved and used on the information technology system of the CIC.

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;

b) Foreign and domestic organizations joining credit financing in Vietnam or having demand to extend credit for Vietnamese organizations or individuals in foreign countries;

c) Other organizations which have demand to joining the credit information system and are accepted by the CIC.

9. Negative information on borrowers means information about: Bad debts; the offences of payment obligation; acts breaking law; being sued, being accused and other disadvantage information which impact to result of assessment on borrowers’ solvency.

10. Use units mean organizations which have registered or signed contract of credit information service use with the CIC.

11. Users mean individuals who are persons of organizations specified in clause 10 this Article and borrowers being individuals to whom the CIC issued accounts to access in the information technology system of the CIC for supply of information, use of credit information services.

Article 4. Purpose of credit information activity

Credit information activity aims to create a database of national credit information in order to support:

1. The State bank of Vietnam (hereinafter referred to as the State bank) in implementation of function on management and supervision of banking activity, contributing in assurance for safe Vietnam bank system.

2. Credit institutions in risk prevention and limitation in business activity.

3. Borrowers in accessing credit capital source of organizations of Credit extension, contributing in promotion for socio-economic development.

Article 5. Principles of credit information activity

1. Strictly abide by provisions of law.

2. Ensure honesty and objectiveness in credit information activity.

3. Ensure rights and benefits of organizations and individuals in provision of credit information, use of credit information products.

Article 6. Banned acts in credit information activity

1. Illegally collect, supply, use information in the State s secret scope or list.

2. Intentionally falsify content of credit information, impacting to lawful rights and interests of relevant organizations, individuals.

3. Illegally supply credit information for unrelated organizations, individuals.

4. Misuse credit information activity for individual interest, infringe benefits of the state, lawful rights and interests of organizations, individuals.

5. Obstruct organizations, individuals in lawful activity of credit information collection and use.

6. Supply credit information products for subjects not be specified in Article 10 of this Circular.

Chapter 2.

CREDIT INFORMATION ACTIVITY

Article 7. Supply of credit information

1. Credit institutions, foreign banks’ branches supply for the CIC all the credit information norm system specified in Annex enclosed with this Circular and classified into norm groups 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 of loan security;

g) Financial information of borrowers being enterprises;

h) Information of bond investment in borrowers being enterprises;

2. Voluntary organizations supply for the CIC wholly or part of credit information norm system specified in Annex enclosed with this Circular on the basis of agreement with the CIC, ensuring principle on safety, secret keeping and other provisions of law.

3. Supply of credit information specified in clause 1 and clause 2 this Article is performed under electronic data file form according to groups of credit information norms and guides of the CIC. In special cases, credit institutions, foreign banks’ branches, voluntary organizations may supply in writing for a few of groups or whole groups of credit information norms but must be accepted by the CIC.

Article 8. Time of credit information provision

1. Provision of data shall arise within 03 working days after data is arisen applicable to the following groups of information norms:

a) Groups of information norms specified in points a, b and g clause 1 Article 7 of this Circular when having new borrowers;

b) Groups of information norms specified in points a, b clause 1 Article 7 of this Circular when having at least a norm in group changing content.

2. Groups of information norms specified in points c, d, e and h clause 1 Article 7 of this Circular must be supplied within 05 working days as from the final day of the preceding month.

3. Groups of information norms specified in points g clause 1 Article 7 of this Circular must be supplied before April 30 of the following year.

4. Social policy Banks, People’s credit funds, microfinance organizations must supply data arising in month within 05 working days form the final day of preceding month.

Article 9. Handling, storing of and keeping in safety for credit information

1. On the basis of received information, the CIC use technological and professional solutions in order to handle credit information data including stages of receipt, standardization, cleaning, combination and updating into the database of national credit information.

2. Credit information data shall be kept in the CIC, credit institutions, foreign banks’ branches, voluntary organizations within 05 year, since arising data.

3. Handling, keeping credit information data must ensure intactness, sufficiency, without erroneousness of information during handling, keeping and taking out as required.

4. Credit information data must be kept in secret, and be ensured not to be interfered contrarily to provisions in this Circular and other provisions of law.

Article 10. Subjects of credit information use

1. State management agencies use credit information products in direct service for professional operation on inspection, supervision, investigation, prosecution, trial, execution of judgments; social investigation and statistic and other purposes as prescribed by law.

2. Units of the State bank use credit information products in service for requirement on state management of the State bank

3. Credit institutions, foreign banks’ branches use credit information services for searching customers, assessment on customers solvency, credit risk control and other professional banking activities.

4. Voluntary organizations use credit information services for customer assessment and other purposes as prescribed by law.

5. Borrowers use credit information services for checking individual information and other purposes as prescribed by law.

6. Apart from subjects specified in above clauses, if an organization or individual use credit information services of a borrower, it is required to have consensus in writing of such borrower.

Article 11. Limitation of credit information use

1. Negative information of borrower is only used in order to make credit information product within 05 years, since such negative information ended, unless otherwise prescribed by law.

2. Information of debts which are dealt by risk provisions is permitted to supply for only the State bank and other state management as prescribed by law.

3. Voluntary organizations, borrowers use credit information services under agreement and commitments with the CIC on the basis of principle on voluntary and assurance for abiding by provisions of law.

4. Organizations, individuals violate provisions in this Circular and other provisions of law, depend on nature and seriousness of violation, shall be restrained part, suspended for a period or stop permanently the right of credit information service use.

Chapter 3.

RIGHTS AND OBLIGATIONS OF RELEVANT ORGANIZATIONS, INDIVIDUALS

Article 12. Rights and obligations of the Credit Information Center

1. To formulate and guide system of code number, information norm, form of report data files, method of information transmission, and to issue right to access into system for users.

2. To gather, handle, save and keep in secret credit information of borrowers from credit institutions, foreign banks’ branches, voluntary organizations and individuals.

3. To urge, examine, supervise implementation of supply of credit information of credit institutions, foreign banks’ branches as prescribed in Article 7, 8 of this Circular.

4. To coordinate with units of the State bank in setting up and timely supply of credit information products in order to meet requirements on state management.

5. To publicize information on principles, scope of credit information service use, process of credit information service use, levels of charge for credit information service use to users.

6. To support training officers in credit information activity for credit institutions, foreign banks’ branches, and voluntary organizations as required.

7. To sign contracts and collect charges of credit information service use applicable with units and users as prescribed by the State bank and the CIC.

8. To decide collection levels of services in principle of assurance of covering sufficiently for operation cost.

9. To restrain or refuse supply of credit information products, services for organizations, individuals who fail to abide by provisions in this Circular and other commitments with the CIC.

10. To issue norms and organize implementation of assessment of credit information supply quality, to apply measures to encourage organizations, individuals in good implementation of credit information activity; to propose handling of violations in credit information activity.

11. To consult units, users on credit information service quality at least one year once.

Article 13. Rights and obligations of relevant units of the State bank

1. Relevant units of the State bank shall, within their functions and duties, be entitled to use credit information products in service for state management activity as prescribed in this Circular.

2. Duty to coordinate with the CIC

a) The Banking inspection and supervision agency

- To supply for the CIC the following information: List of credit institutions, branches, affiliated units of credit institutions, foreign banks’ branches which are established, dissolved, go in bankrupt, purchased, merged; shareholders or founder members, major shareholders of credit institutions; own capital of credit institutions and information related to credit activity of credit institutions, chi nhánh ngân hàng nước ngoài;

- To assume the prime responsibility for, and coordinate with the CIC in inspection, examination of credit information activity in credit institutions, foreign banks’ branches.

b) Department of Monetary statistics and Forecast shall supply statistical data on credit activity of sector for the CIC;

c) Department of Foreign Exchange Control shall, under its competence, supply data of foreign loans and repayment of organizations, individuals domestic for the CIC;

d) Credit Department shall supply cases of loans falling beyond regulation of the State bank for the CIC;

e) The State bank’s branches in central-affiliated cities and provinces shall supply data of foreign loans and repayment of organizations, individuals domestic for the CIC; coordinate with the CIC in implementation of local credit information activity.

Article 14. Rights and obligations of Credit institutions, foreign banks’ branches

1. To supply and take responsibility for exactness, sufficiency, timeliness of credit information as prescribed in Article 7, 8 of this Circular and guides of the CIC.

2. To supply and set up a information technology system which meet requirement on setting up data, controlling data to supply for the CIC; to issue internal regulations and manage system of credit information norms in whole system.

3. To use credit information services as prescribed in Article 11 of this Circular and guides of the CIC;

4. To examine, verify, adjust mistaken data at the request of the CIC, borrowers or upon detecting mistakes.

5. To pay full and timely charges of credit information service use as agreement in contract.

6. To appoint officers joining courses of training credit information which are organized or coordinated to organize by the CIC.

Article 15. Rights and obligations of voluntary organizations joining the credit information system

1. To supply and take responsibility for exactness, sufficiency, timeliness of credit information as prescribed by law and commitments with the CIC.

2. To examine, verify, adjust mistaken data at the request of the CIC, borrowers or upon detecting mistakes.

3. To use credit information services as prescribed in Articles 10, 11 of this Circular and commitments with the CIC;

4. To pay full and timely charges of credit information service use as agreement in contract.

5. To appoint officers joining courses of training credit information which are organized or coordinated to organize by the CIC.

Article 16. Rights and obligations of borrowers

1. To use on free their credit information once in year, including credit information norms specified in points a, c, d and e clause 1 Article 7 this Circular.

2. To use other credit information products of themselves under guides of the CIC;

3. To request the CIC, credit institutions, other relevant organizations for consideration and adjustment of their credit information if detecting mistakes.

4. To complaint when detecting mistakes in their credit information as prescribed in Article 18 of this Circular.

5. Borrowers have obligation to supply fully and honestly credit information to the CIC or credit institutions or other relevant organizations during handling of their complaint.

6. To pay full and timely charges of credit information service use as prescribed by the CIC.

Chapter 4.

ADJUSTMENT OF MISTAKES IN DATA, SETTLEMENT OF COMPLAINTS AND HANDLING OF VIOLATIONS

Article 17. Adjustment of mistakes in data

1. When detecting mistakes in data, credit institutions, foreign banks’ branches, voluntary organizations must re-send credit information data and have a document of competent persons clearly stating reason thereof and suggesting the CIC for adjustment of such mistaken data.

2. If the CIC detects or doubts that data is mistake, the CIC shall coordinate with credit institutions, foreign banks’ branches, voluntary organizations in data consideration and adjustment according to the following order:

a) If data is not right with standard such as wrong file form, lack of compulsory information norm, coincident information or other technical defects,  the CIC shall return all data or part of mistaken data. Within 01 working day, credit institutions, foreign banks’ branches, voluntary organizations must fix and re-send report data.

b) If data is doubted to be error, the CIC shall return all data or part of data which is doubted. Within 01 working day, credit institutions, foreign banks’ branches, voluntary organizations must check data and notify result to the CIC, if there are mistakes, they must adjust data as prescribed in clause 1 this Article.

Article 18. Settlement of complaints

1. In case where a borrower detects that his/her/its credit information is mistake, the borrower is entitled to complaint with the CIC, credit institutions, foreign banks’ branches or voluntary organizations (hereinafter referred to as organizations receiving complaints) in order to request for examination, adjustment of information, but not misuse to complaint untruthfully.

The complaints may implement via electronic system or send in writing, in which clearly state reason thereof and enclose with documents, grounds proving mistakes of data.

2. Within 05 working days, after receiving complaints, organizations receiving complaints must notify to borrower.  In case of having to supplement information in order to have grounds for verification and settlement, organizations receiving complaints must notify to borrower for supply of relevant information, documents.

3. Within 10 working days, after receiving valid complaints, organizations receiving complaints must consider, adjust mistakes of data and notify to borrower.  In case of having to check, verify content of complaints at relevant agencies or organizations, organizations receiving complaints may prolong time of complaint settlement based on actual situation, but borrower must be notified on reason of extension of time.

4. If the mistaken credit information cause disadvantages for borrower, the CIC must send a correction notice to the using units. When receiving the correction notice, the using units must review decision on credit extension.

5. Within 02 working days, after having result of complaint settlement, organizations receiving complaints must notify to customer about such result.

Article 19. Handling of violation

Organizations, individuals violating provisions in this Circular, depend on nature and seriousness of violation, shall be handled in accordance with law.

Chapter 5.

IMPLEMENTATION PROVISIONS

Article 20. Effect

This Circular takes affect from July 01, 2013 and replaces the Decision No. 51/2007/QD-NHNN, of December 31, 2007 of the Governor of the State bank on promulgation of Regulation on credit information activity.

Article 21. Organization of implementation

1. The director of Credit Information Center shall guide and organize implementation of this Circular.

2. Heads of units of the State bank, chairperson of Board of Directors, chairperson of Members Council and General Directors (Directors) of credit institutions, foreign banks’ branches, relevant organizations and individuals shall implement this Circular.

For the Governor of the State Bank of Vietnam

Deputy Governor

Dang Thanh Binh

ANNEX

SYSTEM OF CREDIT INFORMATION NORMS

(Issued together with the Circular No. 03/2013/TT-NHNN, of January 28, 2013)