Decision No. 316/QD-TTg 2021 telecommunication accounts for payment low value services

DECISION

On approval of the pilot application of using telecommunications accounts to pay for small-value goods and services

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THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Anti-Money Laundering dated June 18, 2012;

Pursuant to the Government's Decree No. 138/2016/ND-CP dated October 01, 2016, promulgating the Working Regulation of the Government regarding affair-handling methods of the Prime Minister;

Pursuant to the Political Bureau's Resolution No. 52-NQ/TW dated September 27, 2019, on a number of guidelines and policies to actively participate in the Fourth Industrial Revolution;

Pursuant to the Prime Minister’s Decision No. 149/QD-TTg dated January 22, 2020, approving the National Financial Inclusion Strategy through 2025, with orientations toward 2030;

Pursuant to the Government’s Resolution No. 02/NQ-CP dated January 01, 2020, on further performance of tasks and implementation of major solutions to improve the business environment and national competitiveness in 2020;

Pursuant to the Prime Minister’s Directive No. 11/CT-TTg dated March 04, 2020, on urgent tasks and solutions to remove difficulties for production and business, ensure social security in response to the Covid-19 epidemic;

At the proposal of the Governor of the State Bank of Vietnam in the Document No. 07/TTr-NHNN dated February 19, 2021,

DECIDES:

Article 1. To approve the pilot application of using telecommunications accounts to pay for small-value goods and services (Mobile Money) with main contents as follows:

I. OBJECTIVES

1. Contributing to develop the non-cash payment, promoting the approach and use of financial services, especially in rural, mountainous, remote, border areas and islands of Vietnam.

2. Taking advantages of infrastructure, data and telecommunications network, reducing social costs for development and expansion of the non-cash payment via mobile devices, providing convenience to users.

3. Results of the pilot application of Mobile Money shall serve as a practical basis for the competent management agency to consider, formulate and promulgate officially legal regulations for the provision of Mobile Money service in Vietnam.

II. Scope of piloting

1. Subjects of piloting:

Enterprises possessing licenses for providing e-wallet services and licenses for establishment of public terrestrial mobile telecommunications network using radio frequency bands or subsidiary companies permitted to use the parent companies’ infrastructure, network and telecommunications data by the parent companies that are licensed for establishing public terrestrial mobile telecommunications network using radio frequency bands (hereinafter referred to as the piloting enterprises).

2. Customers:

Individual customers registering and using the Mobile Money service must provide their identification cards (Id)/citizen identification cards (CID)/passports that match the information used to register their mobile subscriber numbers, and are identified and authenticated by pilot enterprises according to the Government's regulations on mobile subscriber registration; and such mobile subscriber numbers must have the period of activating and using continuously for at least 03 consecutive months up to the time of registering to open and use the Mobile Money service. Each customer is allowed to open 01 Mobile Money account at each piloting enterprise.

3. Geographical scope:

Such pilot application shall be carried out nationwide, in which the piloting enterprises must give priority to the pilot application of Mobile Money service in rural, mountainous, remote, border areas and islands of Vietnam.

4. Scope of goods and services:

The piloting enterprises may only provide Mobile Money service to transfer money or make payment for legal goods and services in Vietnam in accordance with current law, serving the people's need. The pilot application of Mobile Money service shall only apply to legally domestic transaction in Vietnam dong in accordance with Vietnamese laws and is not allowed to make payment/transfer for goods and services provided across borders.

5. Piloting period:

The piloting period is 02 years from the time on which the first piloting enterprise is approved to deploy the Mobile Money service.

III. PILOTING CONTENTS

1. With regard to the use of Mobile Money service:

The piloting enterprises shall provide Mobile Money for the following operations:

a) Depositing money into the Mobile Money account at sale points (in which sale points are selected according to the criteria specified at Point a, Clause 1, Section V of this Decision); depositing money into the Mobile Money account from the customer's checking account (Mobile Money account holder) at the bank or from the customer's e-wallet (Mobile Money account holder) at the enterprise piloting the Mobile Money service;

b) Withdrawing money from the Mobile Money account at sale points; withdrawing money from the Mobile Money account to the customer's checking account (Mobile Money account holder) at the bank or to the customer's e-wallet (Mobile Money account holder) at the enterprise piloting the Mobile Money service;

c) Making payment for the goods or service purchase for the units accepting Mobile Money payments;

d) Transferring money between customers’ Mobile Money accounts within the same system of the piloting enterprises, between the customers’ Mobile Money accounts and the checking accounts at the banks, and transferring money between the Mobile Money accounts and e-wallets provided by the piloting enterprises.

2. Limitation for the use of Mobile Money service:

The maximum transaction limit is VND 10 million per month per Mobile Money account for the total transactions of withdrawals, transfers, and payments.

IV. PROHIBITED ACTS

1. Providing or using other channels or forms (other than channels or forms of deposit, withdrawal specified in Section III of this Decision) to deposit money into/withdraw money from Mobile Money accounts.

2. Providing or using Mobile Money accounts for operations other than deposits, withdrawals, payments and money transfers as prescribed in Section III of this Decision.

3. The piloting enterprises provide credit for Mobile Money service users or pay interests on Mobile Money account balance or any action that may increase monetary value on Mobile Money accounts compared with the amount of money the customers have deposited into their Mobile Money accounts.

4. The piloting enterprises conduct banking operations (lending or capital mobilizing).

5. Providing or using Mobile Money accounts to make transactions relating to money laundering, terrorist financing, fraud, and other violations of law.

6. Renting, borrowing, lending, exchanging, donating, giving the Mobile Money accounts or trading the Mobile Money accounts and Mobile Money account information.

7. The piloting enterprises using money sources from customers’ Mobile Money accounts for other purposes of the piloting enterprises.

V. ORGANIZATION OF IMPLEMENTATION

1. Piloting enterprises:

a) The piloting enterprise shall make a dossier of request for piloting the Mobile Money service and submit it to the State Bank of Vietnam (the focal point) for consideration and appraisal. Such a dossier includes:

- A scheme on piloting the Mobile Money service (original), clearly stating the following contents:

+ Operation process: The piloting enterprise must develop a process (outline and explanation of implementing steps, cash flow from the time on which the transaction is conducted until the time of settling obligations between the involved parties) for operations specified in Section III of this Decision.

+ The piloting enterprise must establish a separate unit/department to operate and deploy the provision of Mobile Money service and have a specific plan to separately manage Mobile Money accounts from accounts of SIM users (which are accounts used for the provision and use of mobile information and telecommunications services).

+ Provisions on mechanisms to ensure the solvency:

(i) The piloting enterprise must open guarantee payment accounts at commercial banks and the balance on such accounts must be not less than the total balance of all customers’ Mobile Money accounts at the same time. The piloting enterprise must also develop a risk mechanism on liquidation to ensure legitimate interests and rights for customers. The guarantee payment account for Mobile Money service must be separate from other piloting enterprise's checking accounts that are opened at commercial banks (guarantee payment accounts for e-wallet, collection and payment on-behalf-of support services, accounts for receiving wages and accounts in service of other purposes of the piloting enterprise). Commercial banks shall be responsible for monitoring and managing to ensure that the piloting enterprises only use guarantee payment accounts to conduct operations of the Mobile Money service, not for other purposes, and such accounts must be separate from other piloting enterprises’ checking accounts opened at commercial banks;

(iii) The piloting enterprise must develop tools for the State Bank of Vietnam, the Ministry of Information and Communications and the Ministry of Public Security to access the system to exploit information, data and monitor according to the in real-time the total balance of Mobile Money accounts and the amount of money on the piloting enterprise’s guarantee payment accounts for the Mobile Money service that are opened at commercial banks. Such tools must have functions for the management agency to supervise the compliance of the piloting enterprise regarding the prohibited acts specified in Section IV of this Decision. The piloting enterprise must ensure to report sufficient information on customers’ Mobile Money accounts on such tools and shall bear all responsibilities before the law for the accuracy of information provided on such tools.

+ Provisions on know your customer (KYC):

(i) The piloting enterprise shall be responsible for accurately identifying customers using Mobile Money service: Developing tools to manage risks and KYC process to ensure that only customers fully meeting requirements specified in Clause 2, Section II of this Decision are entitled to register and use Mobile Money service; deciding the direct meeting or indirect meeting with customers when they register for opening and using Mobile Money service for the first time. In case of indirect meeting with customers, the piloting enterprise must formulate and promulgate the process and procedures for registration of opening and using Mobile Money service by electric methods in compliance with the law on anti-money laundering, develop and take measures, methods and technologies to identify customers. The piloting enterprise shall bear all responsibilities for the accuracy of customers’ information; develop the identification process for each transaction of a Mobile Money account. It shall develop the management plans in case one individual uses many Mobile Money accounts to transfer money or make payment between units or individuals accepting payment in the territory of Vietnam. The piloting enterprise shall take measures to limit and eliminate the situation of SIM with inaccurate and incomplete information on the market;

(ii) The piloting enterprise shall develop the process, tools and provide guidance, training for its employees or employees of sale points to carry out KYC procedures; identify and update customers’ information and take responsibilities for the accuracy of the sale points’ customer identification.

+ General principles and internal regulations on anti-money laundering and terrorist financing:

The piloting enterprise must develop general principles and internal regulations on anti-money laundering and terrorist financing in accordance with current law provisions; establish a mechanism of coordination and provision of information for competent State agencies (the Ministry of Public Security, the State Bank of Vietnam and the Ministry of Information and Communications) about Mobile Money accounts with signs relating to criminal activities, violations of law regulations or Mobile Money accounts with abnormal or suspicious transactions (provided information includes all archived information on Mobile Money accounts); develop a mechanism to temporarily blocking/freezing such Mobile Money accounts upon detecting signs of violation.

+ Provisions on selection and management of sale points:

(i) The piloting enterprise must develop specific criteria to assess capacity (finance, facilities or human resources) of sale points (in which, sale points mean points of providing telecommunications service with specific location established by the piloting telecommunications enterprises or other points of providing telecommunications service that are legal entities authorized by the piloting telecommunications enterprises under the authorization contract). Such criteria shall serve as a basis for the determination of the maximum transaction limit in a day or month of each sale point. In case of authorizing other sale points that are legal entities, an authorization contract is required. The piloting enterprise must have a controlling mechanism and shall bear all responsibilities for every operation and risk arising at its sale points;

(ii) The piloting enterprise must equip and apply the technology of artificial intelligence (AI), Big Data at sale points to accurately identify and authenticate customers (identify the face, iris, etc.) when registering and using Mobile Money service. The piloting enterprise must ensure that its sale points shall not transfer the mobile communication service payment card value into Mobile Money account, avoiding the situation of widely opening Mobile Money accounts, variables and taking advantage of Mobile Money service to commit acts of violations;

(iii) The piloting enterprise must develop the mechanism to control cash transactions (depositing into and withdrawing money from Mobile Money accounts) arising at sale points, ensuring to identify and control exactly amount of money received from customers; compare with the total balance of customers’ Mobile Money accounts; ensuring that the amount of money received by the sale points from the customers must be deposited with the ratio of 1:1 into the customers’ Mobile Money accounts. The piloting enterprise shall take responsibilities for any loss of money in the customer’s Mobile Money account (except for errors arising from the customer's side) or the money amount credited to the Mobile Money account does not correspond to a 1:1 ratio with the amount deposited by the customer;

(iv) The piloting enterprise must publicize the List of sale points on its website and sale points where customers can easily access and conduct transactions;

(v) The piloting enterprise must develop a mechanism of internal controlling and auditing, requirements on improving and training for employees at sale points. Sale points are required to send periodic reports and promptly report abnormal or suspicious transactions to the piloting enterprise;

(vi) The piloting enterprise must develop a mechanism of ensuring payment safety for sale points; formulate a process of handling transactions between the piloting enterprise and sale points for each operation; process of comparison, settlement and finalization; process of handling and reviewing of customers’ complaints and disputes with transactions arising at sale points.

+ Provisions on management of units accepting payment:

(i) The piloting enterprise shall be responsible for: (i) Choosing and signing contracts with units accepting payments, ensuring that such units (stores or goods and service providers accepting payment via Mobile Money accounts) conduct business in legal business lines, goods and services according to Vietnamese laws; (ii) supervising and inspecting units accepting payments during the performance of contracts; (iii) providing internal regulations on procedures for identifying and authenticating units accepting payments and classifying such units according to risk levels; (iv) providing regulations on receipt of payment from the provision of goods or services between the piloting enterprise and units accepting payment;

(ii) The piloting enterprise must have a contract in accordance with law provisions with the unit accepting payment on acting as a unit accepting payment via Mobile Money accounts.

+ Provisions on information technology system:

(i) The piloting enterprise must have a system meeting requirements to ensure safety for the level-3 information system in accordance with current law provisions. The information technology infrastructure and solutions serving the provision of Mobile Money service must be activated continuously and safely during the pilot application of Mobile Money service;

(ii) The piloting enterprise must have appropriate tools and solutions that can exactly determine Internet protocol (IP) addresses and subscribers in order to trace customers who actually use Mobile Money accounts;

(iii) The piloting enterprise must have a system to archive Mobile Money transaction histories (such as deposit/withdrawal, transfer and payment for goods and services); a system to archive customer identification information, device information identification, IP address (except for USSD transaction), media access control (MAC) address (except for USSD transaction), International mobile equipment identity (IMEI), transaction duration, transaction contents; transfer account, account of receipt, balance, trading location, etc. from the time on which the account is opened by the customer until the time of account closing; including information used to trace service users (closed Mobile Money accounts are required to archive information for at least 02 (two) years). Concurrently, the piloting enterprise must have a copy of archived information in service of the inspection and supervision, and provide information upon requests of the competent State agency. Information on IP addresses and login time must be archived for at least 02 (two) years. The piloting enterprise must keep accounting documents in accordance with the Accounting Law.

+ Regulations on its rights and responsibilities for customers:

(i) The piloting enterprise must comply with law regulations on consumer protection upon the pilot application of the Mobile Money service;

(ii) The piloting enterprise must develop regulations and mechanisms for handling and settling customers’ inquiries, complaints and disputes according to current regulations;

(iii) The piloting enterprise must develop a handling plan for the case where a customer's Mobile Money account still has money but his/her mobile subscriber has been withdrawn and granted by the piloting enterprise to another person for use or where a mobile subscriber has switched to use of the mobile communication service of another telecommunications enterprise according to the procedure for switching to another network and keeping the subscriber number;

(iv) The piloting enterprise must notify customers in a complete, accurate, clear and public manner of the services to be deployed; charges; terms and conditions; rights and interests of customers, its responsibilities to ensure the legitimate rights and interests of customers using the service;

(v) The piloting enterprise must develop regulations on encryption and control of the access to customer information and transaction information to ensure information security, protect customer data that is collected by the piloting enterprise and stored on the system of information relating to the customers’ accounts, Mobile Money account balance, ensuring the legitimate rights and interests of customers;

(vi) The piloting enterprise must clearly state and disclose the rights and responsibilities of customers when customers register to use the Mobile Money service.

+ The piloting enterprise must develop internal inspection and control processes; risk assessment and specific risk management and treatment measures.

+ The piloting enterprise must develop a monitoring and control system to accurately reflect the revenue arising from the provision of Mobile Money service for determining obligations of value-added tax, enterprise income tax, personal income tax and other revenues according to the law on taxes and guiding documents.

- License to provide payment intermediary services (certified copy).

- License for establishment of public terrestrial mobile telecommunications network using radio frequency bands (certified copy).

- Profile of personnel: Curriculum vitae (curriculum vitae made by individuals must have the signature certified in accordance with law), copies (the copies must be copies issued from the original record, certified true copies from the original or copies attached to the original for comparison according to law regulations) of diplomas evidencing the capacities and professional qualifications of the at-law representatives, Director General (Director), Deputy Director General (Deputy Director) and key officials implementing the scheme on pilot application of Mobile Money service; judicial record cards or equivalent documents of at-law representatives, Director General (Director) according to law regulations (that are dated within no more than 06 months before the time of submitting dossiers of request for the pilot application of Mobile Money service); document of the authorized representative of the unit where the at-law representatives, Director General (Director) did work or are working confirming their position and duration of holding the position or a copy of document proving their position and duration of holding the position at their unit.

b) After being approved to participate in the pilot, the piloting enterprise must comply fully with this Decision and relevant law regulations; regularly review, detect suspicious signs of using Mobile Money service related to law violations and promptly report them to competent agencies (the Ministry of Information and Communications, the State Bank of Vietnam, the Ministry of Public Security) for investigating and handling.

c) The piloting enterprise shall be responsible for all activities during the process of pilot operation and implementation of Mobile Money service. The piloting enterprise that violates this Decision or allows any mutation or abuse of the Mobile Money service for law violations shall be suspended from its participation in the pilot and handle the consequences arising from such violations in accordance with the current law.

d) Making ad hoc reports at the request of state management agencies or quarterly/annual reports on the pilot application of Mobile Money service and its results to the State Bank of Vietnam, Ministry of Information and Communications and Ministry of Public Security. The quarterly reporting period shall be from the first day of the first month of a quarter to the end of the last day of the last month of such quarter (the piloting enterprise shall make reports for Quarters I, II and III); the deadline for submitting the report is the 5^th of the first month of the following quarter. The annual reporting period shall be from January 01 to December 31; the deadline for submitting the report is on the 15^th of the first month of the year following the reporting period.

2. The State Bank of Vietnam:

a) Based on proposal of piloting enterprises, the State Bank of Vietnam shall assume the prime responsibility for, and coordinate with the Ministry of Information and Communications, the Ministry of Public Security and relevant ministries, branches, agencies in, guiding, appraising piloting enterprises’ dossiers of request for the pilot application of Mobile Money service, evaluating the compliance of this Decision for approval of their participation in the pilot for each case; monitoring the implementation, guiding and solving problems in the process of pilot application of using Mobile Money for payment.

b) Taking responsibilities for monitoring, supervising piloting enterprises’ account balance at the commercial bank that is used for guaranteeing the payment for the provision of Mobile Money service to ensure that the maintained account balance shall be no less than the total account balance of all Mobile Money accounts of customers at the same time.

c) Coordinating with the Ministry of Information and Communications, Ministry of Public Security in examining and inspecting enterprises and sale points piloting the Mobile Money service.

d) On a biannual basis, summarizing the implementation and reporting on it to the Prime Minister and giving suggestion, proposal on arising problems (if any); assuming the prime responsibility for summarizing and evaluating 02 years after the pilot, reporting on the implementation results to the Prime Minister and suggesting, proposing the appropriate management policy.

3. The Ministry of Information and Communications:

a) Coordinating with the State Bank of Vietnam in guiding, appraising and evaluating the satisfaction of conditions for the pilot (related to state management functions of the Ministry of Information and Communications) specified in this Decision and other relevant regulations for the piloting enterprises’ dossiers of request for the pilot application of Mobile Money service.

b) Managing, supervising activities of piloting enterprises and sale points during the pilot application to ensure the compliance of this Decision and relevant regulations; monitoring piloting enterprises’ compliance related to prohibited acts, detecting and handling their acts of violation; managing piloting enterprises’ collection of Mobile Money service charge; guiding, answering questions or solving problems arising during the pilot application that are related to the use of telecommunications accounts, telecommunications and Internet applications in the Mobile Money service.

c) Assuming the prime responsibility for, taking responsibilities for, examining, inspecting (at least 01 time/year) enterprises and sale points piloting the Mobile Money service during their pilot application of Mobile Money service; coordinating with the State Bank of Vietnam in summarizing and evaluating 02 years after the pilot application of the Mobile Money service and suggesting, proposing the appropriate management policy.

4. The Ministry of Public Security:

a) Coordinating with the State Bank of Vietnam in guiding, appraising and evaluating the satisfaction of conditions for pilot (related to state management function of the Ministry of Public Security) as specified in this Decision and other relevant regulations for the piloting enterprises’ dossiers of request for the pilot application of Mobile Money service.

b) Implementing the state management of security for the piloting enterprises; coordinating with the Ministry of Information and Communications, the State Bank of Vietnam in detecting and handling the acts of violation, prohibited acts; coordinating with the Ministry of Information and Communications in managing, examining, monitoring and inspecting the provision of Mobile Money service of enterprises and sale points piloting the Mobile Money service.

c) Proactively detecting, investigating and promptly handling the abuse of Mobile Money service for acts of law violation; coordinating with the State Bank of Vietnam, the Ministry of Information and Communications in summarizing and evaluating 02 years after the pilot application of the Mobile Money service and suggesting, proposing the appropriate management policy.

5. The Ministry of Finance:

The Ministry of Finance shall inspect and examine the piloting enterprising according to the law on inspection and other law regulations.

6. In the course of implementation, if necessary, the Ministries shall promulgate guiding documents under their competence.

Article 2. This Decision takes effect on the signing date.

Article 3. The Governor of the State Bank of Vietnam, the Minister of Information and Communications, the Minister of Public Security, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of People’s Committees of provinces, central-affiliated cities shall implement this Decision./.