Circular 29/2018/TT-NHNN on certification, management of deposits paid by multi-level marketing enterprises

CIRCULAR

Guiding the certification and management of deposits paid by multi-level marketing enterprises[1]

Pursuant to the 2015 Civil Code;

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

Pursuant to the June 16, 2010 Law on Credit Institutions and the November 20, 2017 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;

Pursuant to the Government’s Decree No. 40/2018/ND-CP of March 12, 2018, on the management of multi-level marketing activities;

Pursuant to the Government’s Decree No. 16/2017/ND-CP of February 17, 2017, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Payment Department;

The Governor of the State Bank of Vietnam promulgates the Circular guiding the certification and management of deposits paid by multi-level marketing enterprises.

Article 1.Scope of regulation

This Circular guides the certification and management of deposits paid by multi-level marketing enterprises.

Article 2.Subjects of application

1. Commercial banks and foreign bank branches lawfully established and operating in Vietnam.

2. Multi-level marketing enterprises (below referred to as enterprises).

3. Agencies, organizations and individuals involved in deposit payment by multi-level marketing enterprises.

Article 3.Payment of deposits and certification of deposits paid by enterprises

1. When wishing to pay a deposit at a commercial bank or foreign bank branch (below referred to as deposit-receiving bank), an enterprise and the deposit-receiving bank shall sign a deposit contract.

The deposit contract must have the following principal contents: name, address and lawful representative of the enterprise; name, address and lawful representative of the deposit-receiving bank (or its branch); deposit amount; purpose of deposit payment; interest on deposit; form of interest payment; use of deposit; withdrawal of deposit; finalization of the deposit account; responsibilities of related parties; and other contents as prescribed by law.

2. The enterprise shall finalize dossiers and procedures for opening the deposit account as instructed by the deposit-receiving bank and pay the deposit (in cash or by bank transfer) to the deposit account under Clause 2, Article 50 of the Government’s Decree No. 40/2018/ND-CP of March 12, 2018, on the management of multi-level marketing activities (below referred to as Decree No. 40/2018/ND-CP).

3. After fully receiving the deposit prescribed in Clause 2, Article 50 of Decree No. 40/2018/ND-CP, the deposit-receiving bank shall account it into the Vietnam-dong deposit account, and issue a deposit certificate to the enterprise, made according to Form No. 17 in the Appendix to Decree No. 40/2018/ND-CP.

4. When there is a change in the information about the enterprise in the deposit certificate, such as name, address, business registration certificate or investment certificate, at-law representative, or deposit amount, the enterprise shall send to the deposit-receiving bank a request for modification of information, made according to the form in the Appendix to this Circular and enclosed with papers related to the to-be-modified information (certified copies, duplicates, or copies enclosed with the originals for comparison). The enterprise shall take responsibility for the accuracy of information provided to the deposit-receiving bank.

If the to-be-modified information in the enterprise’s request is consistent with that in the relevant papers, the deposit-receiving bank shall issue a new deposit certificate to the enterprise, made according to Form No. 17 in the Appendix to Decree No. 40/2018/ND-CP in replacement of the old certificate.

5. In case the enterprise changes its charter capital and wishes to change the deposit amount, the deposit-receiving bank and enterprise shall modify the deposit contract or sign a new deposit contract and comply with the provisions of Clause 3 of this Article.

Article 4.Management of deposits paid by enterprises

Deposit-receiving banks shall manage deposits paid by enterprises under Clauses 5 and 6, Article 50 of Decree No. 40/2018/ND-CP.

Article 5.Interest on deposits

Interest on a deposit shall be agreed upon in the deposit contract between an enterprise and a deposit-receiving bank in accordance with the State Bank of Vietnam’s regulations on interests on Vietnam-dong deposits in each period.

Article 6.Withdrawal of deposits

1. When wishing to withdraw a deposit under Clause 1, Article 51 of Decree No. 40/2018/ND-CP, an enterprise shall provide the Ministry of Industry and Trade’s (original) notice of return of dossier in case the Ministry refuses to grant a multi-level marketing registration certificate, or the Ministry’s (original) written approval of the enterprise’s deposit withdrawal because the enterprise terminates its multi-level marketing activities or has paid a deposit at another bank or bank branch.

2. The deposit-receiving bank shall allow the enterprise to withdraw a deposit under Clause 5, Article 50, and Clause 4, Article 51, of Decree No. 40/2018/ND-CP.

Article 7.Handling of paid deposit amounts

1. When receiving the Ministry of Industry and Trade’s request for deduction from an enterprise-paid deposit for handling the cases prescribed in Clause 1, Article 53 of Decree No. 40/2018/ND-CP, the deposit-receiving bank shall make deduction from the deposit for the person engaged in multi-level marketing or under the competent agency’s sanctioning decision.

2. In case the balance of the enterprise’s deposit account is insufficient for payment as stated in the Ministry of Industry and Trade’s request, the deposit-receiving bank shall notify such in writing to the Ministry of Industry and Trade (the Vietnam Competition and Consumer Authority) for handling based on the Ministry’s reply.

Article 8.Responsibilities of deposit-receiving banks

1. To implement and guide enterprises to implement the regulations on opening of deposit accounts, pay interests on deposits, and manage deposit accounts of enterprises in accordance with this Circular and relevant regulations.

2. To issue deposit certificates to enterprises that have paid deposits under Clause 3, Article 50 of Decree No. 40/2018/ND-CP or when such enterprises change information in deposit certificates under Clause 4, Article 3 of this Circular.

3. To issue written certifications and notify them to the Ministry of Industry and Trade under Decree No. 40/2018/ND-CP and this Circular.

4. To report on the payment of deposits by enterprises at the request of the State Bank of Vietnam and competent agencies.

Article 9.Responsibilities of related units of the State Bank of Vietnam

1. The Payment Department shall act as the focal point in monitoring and summarizing the payment of deposits by enterprises at deposit-receiving banks; and provide instructions and address problems arising in the course of implementation of this Circular.

2. The Banking Supervision Agency and the State Bank’s provincial-level branches shall inspect and examine the management of deposits paid by enterprises at deposit-receiving banks in accordance with this Circular and relevant laws.

Article 10.Effect

1. This Circular takes effect on January 18, 2019.

2. The management, withdrawal and use of deposits paid by multi-level marketing enterprises at deposit-receiving banks under the Government’s Decree No. 110/2005/ND-CP of August 24, 2005, on the management of multi-level marketing activities, and the Government’s Decree No. 42/2014/ND-CP of May 14, 2014, on the management of multi-level marketing activities, must comply with Decree No. 40/2018/ND-CP and this Circular.

Article 11.Organization of implementation

The Chief of the Office, the Chief of the Banking Supervision Agency, the Director of the Payment Department, and heads of the units of the State Bank of Vietnam, directors of the State Bank’s provincial-level branches, chairpersons of Boards of Directors or Members’ Councils, and directors general (directors) of commercial banks or foreign bank branches, and chairpersons of the Boards of Directors or Members’ Councils and directors general (directors) of enterprises shall implement this Circular.-

For the State Bank Governor
Deputy Governor
NGUYEN KIM ANH