Decree No. 117/2018/ND-CP dated September 11, 2018 of the Government on confidentiality and provision of client information of credit institutions and foreign bank branches

DECREE

On confidentiality and provision of client information of credit institutions and foreign bank branches^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 16, 2010 Law on Credit Institutions;

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

Pursuant to the June 18, 2012 Law on Deposit Insurance;

At the proposal of the Governor of the State Bank of Vietnam;

The Government promulgates the Decree on confidentiality and provision of client information of credit institutions and foreign bank branches.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

1. This Decree provides for confidentiality and provision of client information of credit institutions and foreign bank branches, except the cases prescribed in Clauses 2, 3 and 4 of this Article.

2. The confidentiality and provision of client information, which is classified as state secrets, of credit institutions and foreign bank branches must comply with the law on protection of state secrets.

3. The confidentiality and provision of client information of credit institutions and foreign bank branches to the State Bank of Vietnam must comply with the 2010 Laws on the State Bank of Vietnam and Credit Institutions which are amended and supplemented in 2017, and guiding documents.

4. The confidentiality and provision of client information of credit institutions and foreign bank branches to agencies, organizations and individuals serving the prevention and combat of money laundering and terrorism must comply with the laws on money laundering and terrorism prevention and combat.

Article 2.Subjects of application

This Decree applies to:

1. Credit institutions and foreign bank branches.

2. Clients of credit institutions and foreign bank branches.

3. State agencies, other organizations, and individuals provided with client information by credit institutions and foreign bank branches.

4. Agencies, organizations and individuals involved in the provision of client information of credit institutions and foreign bank branches.

Article 3.Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Client information of credit institutions and foreign bank branches (below referred to as client information) means information provided by clients or arising when clients request for, or are provided with banking operations, products and services by credit institutions and foreign bank branches in licensed activities including client identification information, information on accounts, deposits, deposited assets, transactions, and organizations and individuals being securing parties at credit institutions and foreign bank branches, and other relevant information.

2. Client identification information covers the following information:

a/ For an individual client: full name, specimen signature, e-signature, date of birth, citizenship, occupation, permanent residence address, current residence address, or overseas residence address for a foreign client, telephone number, email address, and serial number and date and place of grant of people’s identity card, citizen identity card or passport (or visa for a foreign client) of the client or his/her at-law or authorized  representative (below collectively referred to as lawful representative), and other relevant information;

b/ For an institutional client: full transaction name, abbreviated name, establishment license or decision, enterprise registration certificate or another document of equivalent validity; head office address, telephone number, fax number, email address, and information specified at Point a of this Clause, of its lawful representative, and other relevant information.

3. Information on client accounts means client identification information, information on account name, serial number and balance, information related to clients’ money depositing, withdrawal, transfer and receipt, and other relevant information.

4. Information on clients’ deposits means client identification information, information related to clients’ money depositing transactions and balance of different types of clients’ deposits as prescribed by law at credit institutions and foreign bank branches, and relevant information.

5. Information on clients’ deposited assets means information on clients’ assets (objects, cash, valuable papers and property rights) deposited at credit institutions and foreign bank branches, information on clients’ assets which is managed and preserved by credit institutions and foreign bank branches under law, including client identification information, information on asset name and value, papers proving clients’ ownership, use rights or lawful interests over assets, and other relevant information.

6. Information on client transactions means information arising from clients’ transactions with credit institutions and foreign bank branches, including client identification information, information on transaction documents, time, quantity, value and balance, and other relevant information.

7. Competent state agencies entitled to request provision of client information (below referred to as state agencies) mean agencies, units and organizations belonging to the organizational structure of the State of the Socialist Republic of Vietnam that are entitled to request credit institutions and foreign bank branches to provide client information to perform their assigned functions and tasks under law.

8. Other organizations mean organizations other than the state agencies defined in Clause 7 of this Article.

Article 4.Principles on confidentiality and provision of client information

1. Client information of credit institutions and foreign bank branches shall be kept confidential and may only be provided in accordance with the 2010 Law on Credit Institutions which is amended and supplemented in 2017, this Decree and other relevant laws.

2. Credit institutions and foreign bank branches may not provide any agencies, organizations or individuals with client authentication information for accessing banking services including clients’ security codes, biometric data, access passcodes and other information unless such provision is approved in writing by or in other forms as agreed upon with such clients.

3. State agencies, other organizations and individuals may only request credit institutions and foreign bank branches to provide client information for proper purposes, with contents, and within the scope and competence as prescribed by law or as agreed upon by the clients and shall take responsibility for such request.

4. State agencies, other organizations and individuals that request provision of client information shall keep confidentiality of such information and use it for proper purposes, and may not provide the information to any third party without the clients’ consent, unless the information is provided under law.

5. Agencies, organizations and individuals shall store and preserve client information, dossiers of request for provision of client information, and dossiers of sending and receipt of client information under the law on archive and preservation of dossiers and documents.

Article 5.Internal regulations on confidentiality, storage and provision of client information

1. Credit institutions and foreign bank branches shall, pursuant to law and this Decree, issue internal regulations on confidentiality, storage and provision of client information and uniformly organize the implementation of such regulations.

2. Internal regulations on confidentiality, storage and provision of client information must have at least the following contents:

a/ Procedures for receiving, processing and providing client information; and procedures for storage and confidentiality of client information;

b/ Supervision and examination of the implementation, and handling of violations, of the internal regulations;

c/ Decentralization of the competence and powers, and assignment of obligations to units and individuals in confidentiality, storage and provision of client information.

Chapter II

SPECIFIC PROVISIONS

Section 1

CONFIDENTIALITY AND PROVISION OF CLIENT INFORMATION TO STATE AGENCIES

Article 6.Forms of request for and provision of client information

1. Forms of request for and provision of client information:

a/ Indirect form: The request for and provision of client information shall be conducted via postal service providers, electronic means, telecommunications systems or computer networks.

The request for and provision of client information via electronic means, telecommunications systems or computer networks must comply with the law on e-transactions and instructions of credit institutions and foreign bank branches and suit technical conditions of involved parties;

b/ Direct form: The request for and provision of client information shall be conducted at head offices of credit institutions and foreign bank branches and via representatives of involved parties.

2. Sending and receipt of client information:

a/ For the indirect form of request for and provision of client information via postal service providers: The sending and receipt of postal parcels containing client information shall be registered, recorded in books for monitoring the sending and receipt of postal parcels containing client information between credit institutions or foreign bank branches and postal service providers;

b/ For the indirect form of request for and provision of client information via electronic means, telecommunications systems or computer networks: The transmission, receipt, provision and storage of client information must ensure information safety and comply with the order and procedures prescribed in the laws on e-transactions and cyber information security and instruction of credit institutions and foreign bank branches;

c/ For the direct form of request for and provision of client information: The sending and receipt of client information shall be written in records bearing the seals and signatures of competent persons decentralized by credit institutions or foreign bank branches and signatures of the representatives receiving the information.

Article 7.Time limit for provision of client information

1. In case the time limit for provision of client information to state agencies is prescribed by law, such time limit shall apply from the date of receipt of a complete dossier of request for provision of client information prescribed in Article 9 of this Decree.

2. In case the time limit for provision of client information to state agencies is not prescribed by law, such time limit shall be agreed upon between credit institutions or foreign bank branches and state agencies or must comply with the internal regulations of credit institutions or foreign bank branches but must not exceed:

a/ Ten working days after receiving a complete dossier of request for provision of client information as prescribed in this Decree, in case the client information is simple and available;

b/ Twenty-five days after receiving a complete dossier of request for provision of client information as prescribed in this Decree, in case the client information is complicated and unavailable.

Article 8.Order and procedures for provision of client information

1. State agencies shall, when having a demand for client information, send a dossier of request for provision of client information to credit institutions or foreign bank branches under this Decree.

2. After receiving the request for provision of client information, credit institutions or foreign bank branches shall:

a/ Collect and provide client information to state agencies within the time limit prescribed in Article 7 of this Decree, in case the dossier of request for provision of client information is complete as required by this Decree.

In case of directly providing client information to the representatives of state agencies, credit institutions or foreign bank branches shall request such representatives to produce people’ identity cards, citizen identity cards or passports for comparison with information stated in written requests for provision of client information before providing the information;

b/ Request state agencies or their representatives to add necessary information and documents under this Decree within 3 working days after receiving the dossier of request for provision of client information which is not complete as required by this Decree.

3. In case of refusing to provide client information under Point b, Clause 1, Article 14 of this Decree, or delaying provision of client information due toforce majeurecircumstances, credit institutions or foreign bank branches shall, within 5 working days after receiving the dossier of request for provision of client information, send a written notice to state agencies, clearly stating the reason for the refusal or delay.

Article 9.Dossier of request for provision of client information

1. A written request for provision of client information signed by a competent person defined in Article 10 of this Decree and having the following contents:

a/ Specific legal grounds for defining the competence to request provision of client information;

b/ Reasons for and purposes of the request, specifying the relation of the concerned client with the purpose of the request;

c/ Contents and scope of client information, time limit for provision;

d/ Form of the request for and provision of client information; form of the provided information (copy, printed document, soft copy or other forms as prescribed by law);

dd/ Full name; serial number of people’s identity card or citizen identity card or passport; and address and telephone number of the representative receiving client information, in case the information is provided in the form prescribed at Point b, Clause 1, Article 6 of this Decree;

e/ Other requirements (if any).

2. A document issued by the competent authority in compliance with the relevant law to prove the reason for and purpose of a request for provision of client information (inspection decision, examination decision, audit decision, decision to commence criminal proceedings, judgment, decision on judgment execution, prosecution decision, coercion  decision, decision on sanctioning of violations, or another document of equivalent validity).

3. The document prescribed in Clause 2 of this Article is not used in case state agencies request provision of client information for the purpose of collecting information, documents or evidence serving the settlement of denunciations and reports on crimes, and proposals for commencing criminal proceedings; protecting national security; or preventing and combating violations within the ambit of their functions or tasks prescribed by law.

Article 10.Competence to sign written requests for provision of client information

A written request for provision of client information shall be signed by:

1. The Government Inspector General  or Government Deputy Inspector General; chief inspector or deputy chief inspector of a ministry’s inspectorate; chief inspector or deputy chief inspector of a provincial-level inspectorate; chief inspector or deputy chief inspector of a provincial-level department’s inspectorate; chief inspector or deputy chief inspector ofa district-level inspectorate;head or deputy head of an agency assigned to perform the specialized inspection, or inspection team head or member as prescribed by the law on inspection.

2. The State Auditor General, Deputy State Auditor General, chief auditor of a specialized state audit office, chief auditor of a regional state audit office, head of audit team, head of audit group, or audit team member being a state auditor as prescribed by the law on the state audit.

3. The chief procurator, deputy chief procurator or procurator of a people’s procuracy or military procuracy as prescribed by the law on people’s procuracies.

4. The Chief Justice, Deputy Chief Justice, judge, or verifier of the Supreme People’s Court, chief justice, deputy chief justice, judge, or verifier of a superior people’s court, provincial-level people’s court, district-level people’s court and the equivalent, the Central Military Court, military court of a military zone and the equivalent, or regional military court as prescribed by the law on courts.

5. Head, deputy head, or investigator of an investigation agency in the system of investigation agencies; head or deputy head of an agency assigned to conduct a number of investigation activities under the law on criminal investigation agencies.

6. Head or deputy head of a professional unit in the People’s Public Security force or People’s Army within the competence prescribed by the law on people’s public security force or people’s army.

7. Head or deputy head of a law enforcement agency, or executor who is organizing judgment execution under the law on execution of judgments.

8. The Director General or Deputy Director General of the General Department of Customs; Director or Deputy Director of the Department of Investigation and Anti-Smuggling; Director or Deputy Director of the Department of Post-Customs Clearance Inspection; director or deputy director of an inter-provincial or a provincial-level Customs Department; head or deputy head of a Customs Branch; head or deputy head of a Post-Customs Clearance Inspection Branch as prescribed by the customs law.

9. The General Director or Deputy General Director of Taxation; Director or Deputy Director of the Inspection Department under the General Department of Taxation; director or deputy director of a provincial-level Tax Department; or head or deputy head of a Tax Branch as prescribed by the law on tax administration.

10. Another individual working in a state agency who has the competence under a relevant law to sign state agencies’ documents requesting credit institutions and foreign bank branches to provide client information.

Section 2

CONFIDENTIALITY AND PROVISION OF CLIENT INFORMATION TO OTHER ORGANIZATIONS AND INDIVIDUALS

Article 11.Cases of provisions of client information

1. Credit institutions and foreign bank branches may only provide client information to other organizations and individuals:

a/ That have the right to request credit institutions and foreign bank branches to provide client information as prescribed in the National Assembly’s codes, laws and resolutions; or,

b/ When the provision of information is approved in writing by or in other forms as agreed upon with clients.

2. Credit institutions and foreign bank branches shall provide client information to the clients or their lawful representatives.

Article 12.Confidentiality and provision of client information

1. Forms of request for and provision of client information; time limit for provision of client information; and order and procedures for provision of client information of credit institutions and foreign bank branches to other organizations and individuals as prescribed at Point a, Clause 1, Article 11 of this Decree must comply with the National Assembly’s codes, laws and resolutions, and guiding documents.

2. In case the National Assembly’s codes, laws and resolutions, and guiding documents do not prescribe forms of request for and provision of client information; time limit for provision of client information; and order and procedures for provision of client information of credit institutions and foreign bank branches to other organizations and individuals defined at Point a, Clause 1, Article 11 of this Decree:

a/ Forms of request for and provision of client information; time limit for provision of client information; and order and procedures for provision of client information must comply with Article 6, Clause 2 of Article 7, and Article 8, of this Decree;

b/ Dossiers of request for provision of client information must comply with internal regulations of credit institutions or foreign bank branches;

c/ Forms of request for and provision of client information; time limit for provision of client information; and order, procedures and dossiers of request for provision of information on clients’ insured deposits to deposit insurers must comply with the Law on Deposit Insurance, this Decree, and instructions of deposit insurers.

3. Forms of request for and provision of client information; time limit for provision of client information; and order, procedures and dossiers of request for provision of client information of credit institutions and foreign bank branches to organizations and individuals defined at Point b, Clause 1, and Clause 2, Article 11 of this Decree shall be agreed upon with clients and in compliance with internal regulations of credit institutions and foreign bank branches.

Section 3

RIGHTS, OBLIGATIONS AND RESPONSIBILITIES OF CLIENTS, AGENCIES, ORGANIZATIONS AND INDIVIDUALS FOR CONFIDENTIALITY AND PROVISION OF CLIENT INFORMATION

Article 13.Rights and obligations of clients

1. Clients have the following rights:

a/ To request credit institutions and foreign bank branches to provide information of the clients themselves as agreed upon by involved parties and prescribed by law;

b/ To lodge complaints, initiate lawsuits or request compensation for damage under law in case state agencies, other organizations, individuals, credit institutions or foreign bank branches provide or use client information in contravention of law.

2. Clients are obliged to observe this Decree and instructions on provision of client information issued by credit institutions and foreign bank branches.

Article 14.Rights andresponsibilitiesof credit institutions and foreign bank branches

1. Credit institutions and foreign bank branches have the following rights:

a/ To request state agencies, other organizations and individuals to supplement information and documents requesting provision of client information in compliance with this Decree;

b/ To refuse to provide client information to state agencies, other organizations and individuals that request provision of client information in contravention of law or this Decree or that request provision of client information they have already provided or do not store under law.

2. Credit institutions and foreign bank branches have the following responsibilities:

a/ To promptly provide truthful and sufficient client information to the proper subjects as requested;

b/ To ensure safety and confidentiality of client information in the course of providing, managing, using and storing the information;

c/ To settle clients’ complaints about provision of client information under law;

d/ To organize supervision and examination of the implementation, and handling of violations, of internal regulations on confidentiality, storage and provision of client information;

dd/ To take responsibility under law for violations of this Decree and relevant laws.

Article 15.Rights andresponsibilitiesofstate agencies, other organizations and individuals

1. State agencies, other organizations and individuals have the right to request provision of client information of credit institutions and foreign bank branches under this Decree and relevant laws.

2. State agencies, other organizations and individuals shall take responsibility under law for disclosing client information or using client information for improper purposes under law and this Decree.

Chapter III

IMPLEMENTATION PROVISIONS

Article 16.Transitional provision

For requests for provision of client information made prior to the effective date of this Decree, credit institutions and foreign bank branches shall provide client information under the law effective at the time of request.

Article 17.Effect

1. This Decree takes effect on November 1, 2018.

2. This Decree replaces the Government’s Decree No. 70/2000/ND-CP of November 21, 2000, on confidentiality, storage and provision of information related to the clients’ deposits and deposited assets.

Article 18.Organization of implementation

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, credit institutions, foreign bank branches and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC