Circular No. 38/2019/TT-NHNN dated December 31, 2019 of the State Bank of Vietnam on provision of payment services not via payment accounts of clients by public-utility postal service providers

CIRCULAR

On provision of payment services not via payment accounts of clients by public-utility postal service providers^[1]

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

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

Pursuant to the June 17, 2010 Law on Post;

Pursuant to the Government’s Decree No. 101/2012/ND-CP of November 22, 2012, on cashless payment; the Government’s Decree No. 80/2016/ND-CP of July 1, 2016, amending and supplementing a number of articles of Decree No. 101/2012/ND-CP;

Pursuant to the Government’s Decree No. 16/2017/ND-CP of February 17, 2017, defining 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 on provision of payment services not via payment accounts of clients by public-utility postal service providers.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular prescribes the provision by public-utility postal service providers of cashless payment services not via payment accounts of clients, including services of transfer, collection and payment on clients’ behalf of money in Vietnam dong.

Article 2.Subjects of application

1. Enterprises providing public-utility postal services (below referred to as service providers).

2. Organizations and individuals using payment services not via clients’ payment accounts at public-utility postal service providers (below referred to as service users).

Article 3.Payment documents

1. Service providers shall prescribe presentation specifications, forms, printing and distribution of payment documents as suitable for the payment process of each service and in accordance with relevant laws.

2. The creation, signing, control, transfer, management, use and preservation of payment documents must comply with regulations on accounting documents.

3. Electronic documents must have their information and data fully controlled, ensuring lawfulness, validity and integrity of information. Besides, documents shall be controlled and kept confidential to prevent abusive use, illegal hacking and copying of information.

Chapter II

PROVISION OF PAYMENT SERVICES NOT VIA PAYMENT ACCOUNTS
OF CLIENTS

Article 4.Money transfer

1. Service providers shall provide money transfer service in a prompt, strict, exact, safe, confidential and lawful manner; and formulate and promulgate an internal process with specific provisions on p:

a/ The stages of processing, including formulation, comparison, control and archive of money transfer documents; processing of money transfer orders; detection and correction of errors; tracing and filing of complaints; cost-accounting according to the current accounting regime, and monitoring of accounting books.

b/ Limits of money transfer and money receipt at their service-providing points as suitable to conditions of physical facilities, technical infrastructure and operating apparatus so as to ensure safety and law compliance in the course of implementation;

c/ Specific responsibilities of each division and individual in charge of management, operation and performance of money transfer, covering at least the requirements to properly follow the payment process and accurately conduct payment transactions, comply with regulations on safety and confidentiality, coordinate with one another in tracing and settling complaints, and pay compensations for damage caused to clients;

d/ Other relevant regulations.

2. Processing of a money transfer order

a/ Upon receiving a request for money transfer, an employee of a service provider shall check information in the money transfer form. If the client’s payment document is lawful and valid and the cash amount deposited by the client is the same as the amount stated in the money transfer order, the employee shall sign the document and carry out money transfer procedures for the client. Within 1 working day after receiving a lawful and valid document, the service provider shall process and complete money transfer for the client.

b/ Upon receiving a money transfer order, the service provider serving the beneficiary shall check the document to ensure its lawfulness and validity, and immediately transfer the money amount into the appropriate account, then notify such to the beneficiary for receiving it or deliver it to the address as required by the transferor;

c/ In case the service provider serving the beneficiary has notified the money transfer to the beneficiary, but the latter fails to come to receive the money or the service provider cannot contact the beneficiary to send a notice of money transfer, within 30 days after receiving the money transfer order, the service provider shall carry out procedures for refunding the money amount to the transferor.

3. Errors and detection and correction of errors, tracing and filing of complaints in money transfer

a/ When detecting any error or data discrepancy in the process of money transfer (below collectively referred to as error), related parties shall take corrective measures under regulations, ensuring accuracy and consistency of data, preventing impacts on money transfer services or causing damage to clients. The correction of errors in money transfer must adhere to the following principles:

(i) Strictly following regulations on and methods of correction of errors in accounting and money transfer: errors at a certain stage shall be corrected at that stage, and unauthorized correction of errors and data is strictly prohibited;

(ii) Individuals and organizations that make errors or violate regulations on or methods of correction of errors shall, depending on nature and severity of their violations, be handled and pay compensations for damage caused by themselves to related parties under regulations;

b/ Service providers shall prescribe the time limit for service users to require tracing or file complaints which is at least 60 days after the transaction requested to be traced is conducted;

c/ Service providers shall handling service users’ requests for tracing or complaints in compliance with at least the following provisions:

(i) To receive information for tracing or about complaints by at least two modes, including call centers (with sound recording) and reporting at points of transaction, ensuring verification of basic information provided by service users to service providers;

(ii) To set a form of written request for tracing or complaint so that service users can use when requesting tracing or filing complaints. In case of receiving information via call centers, ervice providers shall require clients to complete a written request for tracing or complaint according to the set form within the prescribed time limit as a ground for carrying out tracing or settle the complaints. In case of authorizing others to request tracing or file complaints, clients shall comply with regulations on authorization;

(iii) To answer or promptly respond to service users’ questions or complaints within the agreed time limit which must not exceed 30 days from the date of receiving a request or complaint specified at Point c (i) of this Clause;

d/ To process the result of tracing or complaint settlement:

(i) Within 5 working days after notifying a service user of results of tracing or complaint settlement, a service provider shall refund the money amount to such client and pay compensation (not exceeding the transferred money amount) for damage caused by its errors and/or by errors not falling inforce majeurecircumstances as agreed with service users;

(ii) In case a service user (the money transferor) is at fault, the service provider shall coordinate with the transferor in processing the money transfer order while the money amount has not yet been transferred to the beneficiary, and refund the money amount to the transferor if the latter so requests;

(ii) In case the time limit for completion of tracing or complaint settlement prescribed at Point c of this Clause expires but no cause or fault is identified, within 15 working days, a service provider shall negotiate with service users on a settlement plan. If such a settlement plan is not made, any dispute shall be settled under regulations.

Article 5.Services of collection and payment on clients’ behalf

1. Service providers shall formulate and promulgate their internal processes of providing services of collection and payment on clients’ behalf, which must clearly specify processing steps and stages and examination and control contents, and responsibilities of units and individuals that implement these processes, ensuring promptness, accuracy, safety and lawfulness.

2. Contracts/written agreements on services of collection and payment on clients’ behalf

In order to perform the service of collection or payment on clients’ behalf, the collection-authorizing or paying party must provide the service provider with necessary documents relating to the receivable or payable money amount as a condition for the latter to carry out the collection and payment on clients’ behalf. The service provider shall carry out the collection and payment on clients’ behalf in accordance with the contract/written agreement with the collection-authorizing or paying party and relevant regulations.

Based on each type of service of collection and payment on clients’ behalf, a service provider shall enter into a contract/written agreement with a service user which must have the following principal contents:

a/ Contract/written agreement number;

b/ Time (day, month, year) of making the contract/written agreement;

c/ Names and addresses of parties to the contract/written agreement;

d/ Agreement on time limit for processing payment and finalization transactions;

dd/ Scope of service provision;

e/ Clients;

g/ Location of transaction;

h/ Implementation of safety and confidentiality assurance measures;

i/ Contents related to rights and obligations of parties;

k/ Responsibility for coordination in tracing, settlement of complaints, disputes and risks in the course of implementation, and specific responsibility of parties to receive information from clients, processing time limit, responsibility and plan for paying compensations for damage caused;

l/ Charge for collection and payment on clients’ behalf;

m/ Other contents agreed upon by parties to the contract/written agreement in accordance with this Circular and relevant regulations.

Article 6.Rights and responsibilities of service users

1. To request and receive notices, guidance and warnings from service providers to identify and prevent risks when using payment services not via their payment accounts.

2. To file complaints and request service providers to compensate for damage when service providers conduct payment transactions later than agreed, fail to conduct payment transactions or transfer money  to wrong recipient addresses or with recipient information or transaction contents inconsistent with information provided by clients, transfer money amounts smaller than those remitted by clients for transfer, collect charges for payment services not via clients’ payment accounts which are not prescribed or in excess of charge rates announced by service providers, or otherwise breach agreements with clients.

3. To take responsibility before law for accuracy and truthfulness of payment information and documents they provide; keep confidential their own transaction information in order to ensure safety and confidentiality of payment transactions; and promptly notify service providers of errors or mistakes in payment transactions upon detecting them or when believing that transaction information is abused.

4. To refrain from using payment services for the purposes of money laundering, terrorism financing, fraud, deception or other law violations.

5. To exercise other rights and perform other responsibilities in accordance with this Circular and relevant regulations.

Article 7.Rights and responsibilities of service providers

1. To refuse or stop providing payment services to clients when clients fail to fully comply with provisions of law or breach contracts or written agreements between parties, or violate the law on anti-money laundering and counter-terrorism financing.

2. To equip physical and technical facilities and information technology systems at service-providing points to ensure smooth, confidential and safe payment service provision.

3. To take measures to ensure solvency at their systems, and at the same time maintain a total balance of payment accounts at banks and cash amounts at their units always higher than amounts payable to clients at the time of conducting payment transactions.

4. To formulate risk management mechanisms for identifying risks, categorizing risks facing each type of service provided, ensuring confidentiality, integrity and accuracy of information and data on transactions, taking measures to prevent, assess and control risks and ensure compliance with law.

5. To issue processes and procedures for settling requests for tracing, settlement of complaints and disputes; to formulate mechanisms for payment of compensations for damage in case risks and incidents occur in the course of service provision.

6. To issue regulations on delivery, receipt, preservation and equipping of safes at transaction points of their systems, and on collection and transport of cash  to be remitted at day-end into payment accounts opened at banks, and work out fire prevention and fighting plans as required by law; to ensure security and safety for cash circulation and determine day-end cash balance limits for different transaction points in accordance with their management capacity and liquidity for service users.

7. To publicly post at their transaction points and on their websites at least the following contents: process of performing each type of service between them and their clients; process and procedures of settling requests for tracing or settlement of complaints and disputes; mechanisms for payment of compensations for damage and charges (for charged services).

8. To specify contents to ensure compliance with the law on anti-money laundering and counter-terrorism financing.

9. To provide information about payment transactions, personal information of clients and other relevant information at the request of clients or competent state agencies or as required by law.

10. To exercise other rights and perform other responsibilities in accordance with this Circular and relevant regulations.

Article 8.Reporting regime

1. Service providers shall report to the State Bank of Vietnam (the Payment Department) on service provision on a quarterly basis (before the 5^thof the month following the reporting quarter) and annually (before January 15 of the year following the reporting year) in accordance with the Appendix to this Circular.

2. Service providers shall promptly report relevant information to the State Bank of Vietnam in the following cases:

a/ When so requested by the State Bank of Vietnam to serve the state management;

b/ There is an abnormal development or disruption of service provision that might affect operations of payment service providers or other related organizations and individuals.

Chapter III

IMPLEMENTATION PROVISIONS

Article 9.Effect

This Circular takes effect on February 19, 2020.

Article 10.Organization of implementation

1. The Payment Department shall monitor, guide, examine, supervise and coordinate with related units in addressing problems arising in the course of implementation of this Circular.

2. The Banking Supervision Agency and provincial-level State Bank branches shall inspect and supervise the provision of payment services not via payment accounts of clients by service providers in accordance with law, report to the Governor of the State Bank of Vietnam on, and promptly handle, violations according to their competence and notify results to the Payment Department for monitoring.

3. The Information Technology Department shall coordinate with the Payment Department in examining service providers’ compliance with regulations on safety, confidentiality and risk management in e-transactions.

4. Within 3 months from the effective date of this Circular, service providers shall review their internal processes to ensure compliance with this Circular and provide to the State Bank of Vietnam (the Payment Department) newly issued or revised processes immediately after issuing or revising them.

5. The Director of the Office, Director of the Payment Department, Chief Inspector of the Banking Supervision Agency and heads of related units of the State Bank; directors of provincial-level State Bank branches; chairpersons of Boards of Directors and Directors General of enterprises providing public-utility postal services shall implement this Circular.-

For the State Bank Governor
Deputy Governor
NGUYEN KIM ANH