Circular No. 08/2019/TT-NHNN dated July 04, 2010 of the State Bank of Vietnam on amending and supplementing a number of Articles of the Circular No. 03/2015/TT-NHNN dated March 20, 2015 of the Governor of the State Bank of Vietnam guiding a number of Decree No. 26/2014/ND-CP dated April 07, 2014 of the Government on organization and activities of Banking Inspection and Supervisory

CIRCULAR

On amending and supplementing a number of Articles of the Circular No. 03/2015/TT-NHNN dated March 20, 2015 of the Governor of the State Bank of Vietnam guiding a number of Decree No. 26/2014/ND-CP dated April 07, 2014 of the Government on organization and activities of Banking Inspection and Supervisory

Pursuant to the Law on State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Investigation dated November 15, 2010;

Pursuant to the Decree No. 16/2017/ND-CP dated February 17, 2017 of the Government prescribing functions, tasks, rights and organizational structure of the State Bank of Vietnam;

Pursuant to the Decree No. 26/2014/ND-CP dated April 07, 2014 of the Government on organization and activities of Inspection and Supervision in banking and the Decree No. 43/2019/ND-CP dated May 17, 2019 of the Government on amending and supplementing a number of Articles of the Decree No. 26/2014/ND-CP dated April 07, 2014 of the Government on organization and activities of Banking Inspection and Supervisory;

At the request of theBanking Inspection and Supervision Chief,

The Governor of the State Bank of Vietnam issues the Circular  on amending and supplementing a number of Articles of the Circular No. 03/2015/TT-NHNN dated March 20, 2015 of the Governor of the State Bank of Vietnam guiding a number of Decree No. 26/2014/ND-CP dated April 07, 2014 of the Government on organization and activities of Banking Inspection and Supervisory (hereafter called Circular No. 03/2015/TT-NHNN).

Article 1. To amend, supplement a number of Articles of the Circular No. 03/2015/TT-NHNN

1. To amend and supplement Article 4 as follows:

“Article 4. To allocate the investigation responsibilities for subjects of banking investigation

1. The Banking Investigation and Supervisory agencies shall be responsible for the investigation of banking subjects in accordance with legal regulations as follows:

a) Agencies, organization and individuals under the management of the State Bank of Vietnam, except for subjects managed by the State Bank of Vietnam under the appointment of the SBV’s Governor;

b)  Commercial banks 100% charter capital hold by the State

c) Policy Banks;

dd) Co-Op Bank

d) Joint Venture Banks;

e) Full foreign-owned Banks;

g) Branches of foreign banks under the allocation of the Governor of the State Bank;

h) Joint Stock Commercial Banks;

i) Non-banking credit organizations;

k) Micro-financial organization;

l) Micro-financial programs and projects in accordance with the allocation of the Governor of State Bank;

m) Organization and activities of credit information;

n) Vietnam Asset Management Company;

o) Deposit Insurance of Vietnam

p) National Banknote Printing Plant

q) National Payment Corporation of Vietnam

r) Affiliated companies of credit institutions prescribed at Point b, d, dd, e, h, I of this Clause that these affiliated companies are not credit institutions but under the investigation of the State Bank of Vietnam, exempt for the subjects under the investigation responsibilities of Banking Inspection and Supervisory Branches.

s) Subject of investigation under Banking Inspection and Supervisory Branches in the case of re-investigation or if necessary under the direction of the Governor of State Bank;

t) Other subjects appointed by the Governor of State Bank.

2. Banking Inspection and Supervisory Branches shall have investigation responsibilities in accordance with legal regulations for the subjects as follows:

a) Agencies, organizations and individual under the management of branches of the State Bank;

b) Foreign bank’s branches having headquarters in provinces and central-run cities where branches of the State Bank are located (hereafter referred as provinces, cities), except for subjects prescribed at Point d, Clause 1 of this Articles;

c) Subjects under investigation subjects of the Banking Inspection and Supervisory prescribed at Clause 1 of this Article (except for subjects prescribed at Point p, q, Clause 1 of this Article), of Banking Inspection and Supervisory branches provided that their attached units have headquarters located in provinces and cities;

d) People’s Credit Funds having headquarters in provinces and cities;

dd) Micro-finance programs and projects in provinces and cities except for the subject prescribed at Point 1, Clause 1 of this Article;

e) Representative offices of foreign credit organizations and other foreign organization in banking activities having headquarters in provinces and cities;

g) Organization having foreign exchange and gold business activities; organizations supply payment intermediary service providers (not banking) having headquarters located in provinces and cities, except for regulations prescribed at Point q, Clause 1 of this Article;

h) Other agencies, organizations and individuals in provinces or cities having obligations to follow all legal regulations in industries under state management of the State Bank;

i) Subject of report under the responsibility of state management of the State Bank in provinces and cities according to the legal regulations on money laundering prevention beside the subjects prescribed at Points b, c, d, dd, e, g, h of this Clause;

k) Other subjects assigned by the Governor of the State Bank.

3. Inspection and supervision of the State Bank shall have inspection for the inspection subjects under the inspection responsibility of Banking Inspection and Supervisory of branches in accordance with direction of the Governor of State Bank”.

2. To amend and supplement Article 5 as follows:

“Article 5. Allocation of supervision responsibility for subjects of banking supervision

1. Banking Inspection and Supervisory shall be responsible for micro-safety supervision in accordance with legal regulations for the subjects as follows:

a) Commercial banks 100% charter capital hold by the State;

b) Co-Op Bank;

c) Joint Venture Banks;

d) 100% foreign capital banks;

dd) Branches of foreign banks prescribed at Point g, Clause 1, Article 4 of this Circular;

e) Joint Stock Commercial Bank;

g) Non-banking credit organizations;

h) Micro-finance organizations;

i) Other subjects appointed by the Governor of State Bank

2. Banking Inspection and Supervisory of branches shall be responsible for supervising micro-safety in accordance with legal regulations for the subjects of supervision as follows:

a) Branches of foreign banks having headquarters in provinces and cities except for the subjects prescribed at Point dd, Clause 1 of this Article;

b) The attached-units of the supervision objects are under the supervision responsibility of Banking Inspection and Supervisory prescribed Clause 1 of this Article, of the Banking Inspection and Supervision of Branches whose attached units having headquarters in provinces and cities;

c) People’s Credit Fund having headquarters in provinces and cities;

d) Other subjects appointed by the Governor of the State Bank.

3. Banking Inspection and Supervisory agencies shall supervise the macro-safety for the systems of credit organization and branches of foreign banks.

4. Banking Inspection and Supervisory agencies shall supervise legal regulations for the subjects as follows:

a) Co-Op Bank;

b) Vietnam Asset Management Company

c) Deposit Insurance of Vietnam;

d) Credit information organization;

dd) Subsidies of credit organizations prescribed at Point a, b, c, d, e, g Clause 1 of this Article that subsidies are not the credit organization but under the supervision responsibility of the State Bank, except for the subjects under the supervision responsibility of Banking Inspection and Supervisory of branches;

e) Other subjects appointed by the Governor of the State Bank.

5. Banking Inspection and Supervisory of branches shall have the supervision in accordance with legal regulations for the objectives as follows:

a) The attached-units of the Banking Inspection and Supervisory of branches prescribed at Clause 4 of this Articles and attached-units have headquarters located in provinces and cities;

b) Other objectives appointed by the Governor of State Bank."

3. To amend and supplement the Point a, b, Clause 1 of Article 6:

“a) Banking Inspection and Supervisory shall requires the independent audit for banking investigation subjects, subjects of banking supervision prescribed at Clause 1, Article 4, Clause 1 and Clause 4, Article 5 of this Circular;

b) Chief Officer of Banking Inspection and Supervisory of branches shall require the independent audit for banking investigation subjects and subject of banking supervision prescribed at Clause 2, Clause 3 of Article 4, Clause 2 and Clause 5 of this Article 5 of this Circular.”

4. To amend and supplement Point c, Clause 1 of Article 9 as follows:

c) Experience: To attend at least 02 investigations or at least 01 investigation (if the Head of investigation delegation) and evaluated to complete all responsibilities and tasks by the head of investigation delegation (this standard is applicable to the main inspectors and inspectors).”

5. To amend and supplement the Article 10:

“Article 10. Regime of information and report

1. Banking Inspection and Supervisory agencies shall act as head to collect and report to the Governor of the State Bank, General Inspectorate of Government, agencies, organizations and authorized people in inspection, supervision, complaints resolution, denounce, citizen reception, anti-corruption and crime, anti-money laundering, prevention and combat of terrorism of the State Bank in accordance with legal regulations and requirements from authorized agencies; collect and report to the Governor of State Bank on the implementation of function and tasks and other works of Banking Inspection and Supervisory agencies.

2. General branches of Banking Inspection and Supervisory shall report to the branch’s Director of the State Bank to report to Chief Officer of Banking Inspection and Supervisory on the works of Banking Inspection and Supervisory of branches.

3. Representative offices of foreign credit organization; other foreign organization having banking activities; organizations having foreign exchange activities, gold trading activities; the payment intermediary service provider is not the bank based in provinces or city. It is responsible for providing timely, sufficient and accurate information, documents and reports periodically and necessarily for Banking Inspection and Supervisory of branches in accordance with regulations of the State Bank or requirements of Banking Inspection and Supervisory.

6. To amend and supplement Article 11 as follows:

“Article 11. Relationship between Banking Inspection and Supervisory with the branches of State Bank

1. Relationship between Banking Inspection and Supervisory with the branches of State Bank (included Banking Inspection and Supervisory of branches):

a) Banking Inspection and Supervisory agencies shall take prime responsibilities to construct and implement annual investigation of Banking Inspection and Supervisory; guide, monitor, urge and inspect the implementation of inspection plans at the State Bank branches;

b) Banking Inspection and Supervisory agencies shall lead, direct, and supervise the inspection, supervision, licensing management, anti-corruption combat and prevention; complaints settlement and handling, denunciation, citizen meeting within the state management of the State Bank; to assume the prime responsibility in handling the overlap in scope, subjects, contents and time of inspection within state management of the State Bank; to suggest the branch’s Director of the State Bank to appoint the banking inspector and other civil servants to join in the inspection team;

c) When detecting the signs of law violations or any risks threatening to the safety of the activities of credit organizations and branches of foreign banks, Banking Inspection and Supervisory shall require the branch’s Director of the State Bank to have investigation for the subjects of banking investigation under the responsibilities of the Banking Inspection and Supervisory branches. In the case that the Director of State Bank does not allow, the Chief Officer of Banking Inspection and Supervisory shall decide t o make investigation, report and have responsibility before the Governor of State Bank on their decision;

d) When detecting signs of law violation or signs of threatening danger to the safe operation of credit institutions, branches of the foreign bank, the State Bank shall request the Bank Inspectorate and Supervising Agency to conduct an inspection for the banking inspection subject under the responsibility of the Banking Inspection and Supervision Agency;

dd) Branches of the State Bank shall suggest the Bank Inspectorate and Supervising Agency to provide instruction for professional issues under the functions and tasks of such Agency;

e) The Bank Inspectorate and Supervising Agency shall directs, guides the inspection and supervision of the State Bank branches on implementation, inspection, supervise, license, settlement of complaints and denunciations, reception of citizens; prevention of corruption, money laundering and terrorism;

g) The Inspectorate and Supervising Agency of the State Bank branch shall provide information and documents required by the Bank Inspectorate and Supervising Agency sufficiently, promptly and trustful;

h) The Bank Inspectorate and Supervising Agency shall provide the Inspectorate and Supervising Agency of the State Bank branch result of the investigation and supervision related to inspection subject under the responsibility of the Inspection and Supervision Agency of the State Bank;

2. On the basis of the State Bank branch’s suggestion, the Bank Inspectorate and Supervising Agency shall provide and exchange information and documents with the State Bank branch on management, investigation and supervision activities related to local subjects of management, investigation and supervision so that the State Bank branch can implement the focal task of local State Bank on reporting and relations task with the Party Committee, local authorities, National Assembly Delegates; reporting, answering questions at the request of the Party Committee, local authorities and National Assembly Delegates, handling localities petitions on currencies and banks.

3. The Bank Inspectorate and Supervising Agency and the State Bank branch shall cooperate in accordance with the State Bank’s operate regulations.

7. To amend and supplement Article 15 as follow:

“Article 15.  Application of other provision in banking inspectorate

Banking inspectorate activities of the Bank Inspectorate and Supervising Agency shall be implemented as regulated in the Decree No. 24/2014/ND-CP (amended and supplemented by the Decree No. 43/2019/ND-CP) and this Circular. In case Decree No. 26/2014/ND-CP (amended and supplemented by Decree No. 43/2019/ND-CP) and this Circular does not stipulate, the provisions of laws on inspection and related regulations issued by the Governor of the State Bank shall be applied.”

Article 2.To repeal Article 12 of the Circular 03/2015/TT-NHNN.

Article 3. Handling of inspections that have not yet issued inspection conclusions which have inspection decision, inspection crew set up decision signed by the Head of the Bank Inspectorate and Supervising Department of Hanoi and Ho Chi Minh City affiliated to the Bank Inspectorate and Supervising Agency

1. For inspections that have not yet issued inspection conclusions which have inspection decision, inspection crew set up decision signed by the Head of the Bank Inspectorate and Supervising Department of Hanoi before July 04, 2019, the Governor of the State Bank in Hanoi shall take the responsibility and power of inspection decision issuers, including signing of inspection conclusions.

2. For inspections that have not yet issued inspection conclusions which have inspection decision, inspection crew set up decision signed by the Head of the Bank Inspectorate and Supervising Department of Ho Chi Minh City before July 04, 2019, the Governor of the State Bank in Ho Chi Minh City shall take the responsibility and power of inspection decision issuers, including signing of inspection conclusions.

Article 4. Organization and implementation responsibilities

Chief Officer, Chief Inspectorate of Banking Inspection and Supervisory, Heads of units directly under the State Bank; Director of the State Bank of provinces and central-run cities; the President of the Management Board; the President of Member Council; General Director (Director) of credit organization and branches of foreign banks shall implement this Circular.

Article 5. Implementation effect

1. This Circular takes effect on August 19, 2019, except for the regulations prescribed at Clause 2, Clause 3 of this Article.

2. The Article 3 of this Circular takes effect on July 05, 2019.

3. Clause 4, Article 1 of this Circular takes effect on November 15, 2019.

 For the Governor

The Deputy Governor

Doan Thai Son