Decree No. 27/2007/ND-CP dated February 23, 2007 of the Government on e-transactions in financial activities

DECREE

ON E-TRANSACTIONS IN FINANCIAL ACTIVITIES

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 29, 2005 Law on E-Transactions;

At the proposal of the Minister of Finance,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Governing scope

This Decree provides for e-transactions in financial activities.

Article 2.- Subjects of application

This Decree applies to agencies, organizations and individuals opting for e-transactions in financial activities.

Article 3.- Interpretation of terms

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

1. "E-voucher" means information created, transmitted, received and stored by electronic means in financial activities. E-vouchers constitute a form of data message, including electronic accounting vouchers; e-vouchers on budget revenues and expenditures; information on electronic declaration and clearance of customs procedures; information on electronic declaration and clearance of tax procedures; e-vouchers on securities transactions; electronic financial statements; electronic settlement reports and other kinds of e-vouchers in conformity with each type of transactions prescribed by law.

2. "Financial agency" means an agency performing the state management of finance.

3. Cancellation of e-vouchers means making these vouchers unusable.

4. Deletion of e-vouchers means making these e-vouchers inaccessible and unusable for reference.

5. Organizations providing added value services related to e-transactions in financial activities are enterprises which provide, under certain business conditions, services to increase the utility of e-vouchers of users by either perfecting their formats or information or providing the capacity of storing or retrieving such information.

Article 4.- Principles of e-transactions in financial activities

1. Parties entering into e-transactions in financial activities shall strictly observe the principles defined in Article 5 of the Law on E-Transactions and relevant provisions of law on financial management. For e-transactions in professional operations within financial agencies and between organizations or individuals and financial agencies, involved parties shall abide by Article 40 of the Law on E-Transactions.

2. Organizations and individuals, when entering into e-transactions in financial activities falling under the state management of the Finance Ministry, shall abide by professional technical regulations promulgated by the Finance Ministry.

Chapter II

E-VOUCHERS

Article 5.- Legal validity of e-vouchers

1. The display format, sending, receipt, storage and legal validity of e-vouchers shall comply with the Law on E-Transactions.

2. E-vouchers in financial activities must satisfy all state management requirements and be conformable with the provisions of law on various financial domains.

3. An e-voucher must bear e-signatures of all persons responsible for signing it.

4. Where an e-voucher bears only the signature of a competent person, the information system must be capable of recognizing and certifying that this e-voucher has been processed by responsible persons in the course of forwarding it to the signer.

Article 6.- Encoding of e-vouchers

Organizations and individuals may select forms and means for encoding e-vouchers. The encoding of e-vouchers is carried out in accordance with law.

Article 7.- Conversion of e-vouchers into paper vouchers and vice versa

1. When necessary, an e-voucher may be converted into a paper voucher if all the following conditions are met:

a/ The paper voucher reflects all contents of the e-voucher;

b/ There is a specific sign certifying that the conversion of the e-voucher into a paper voucher has been made;

c/ There are the signature and full name of the person effecting the conversion of the e-voucher into a paper voucher.

2. When necessary, a paper voucher may be converted into an e-voucher if all the following conditions are met:

a/ The e-voucher reflects all contents of the paper voucher;

b/ There is a specific sign certifying that the conversion of the paper voucher to an e-voucher has been made;

c/ There are the signature and full name of the person effecting the conversion of the paper voucher to an e-voucher.

3. The Minister of Finance shall provide for the legal validity of e-vouchers converted into paper vouchers and vice versa for each type of financial activity defined in Article 11 of this Decree.

Article 8.- Cancellation and deletion of e-vouchers

1. An e-voucher may be canceled only if it is so agreed and certified by the parties to the transaction, unless otherwise provided for by specialized laws; the cancellation of an e-voucher takes effect at the time agreed upon by the parties. Cancelled e-vouchers shall be stored for reference by competent state agencies.

2. Upon the expiration of the prescribed storage duration, unless otherwise decided by a competent state agency, e-vouchers may be deleted. The deletion of an e-voucher must not affect the integrity of other e-vouchers which have not yet been deleted and the normal operation of the information system.

Article 9.- Sealing, seizure and confiscation of e-vouchers

1. The sealing, seizure and confiscation of e-vouchers shall be carried out in strict accordance with law.

2. The sealing, seizure and confiscation of e-vouchers must:

a/ Ensure the integrity of information in the process of sealing, seizure or confiscation;

b/ Not affect the normal operation of the information system and production and business activities of organizations or individuals;

c/ Ensure the restoration of the sealed, seized or confiscated e-vouchers in the system of the organization or individual after the sealing, seizure or confiscation duration;

d/ Make possible the identification of the access to or modification of contents of the sealed, seized or confiscated e-vouchers.

3. After a competent state agency issues a decision and seals, seizes or confiscates an e-voucher, the organization or individual may not exploit, use or modify that e-voucher in its/his/her information system for transactions or use it for other purposes.

4. All forms of accessing, exploiting, copying, modifying or using sealed, seized or confiscated e-vouchers are strictly prohibited.

Article 10.- Use of automatic information systems

1. E-vouchers may be sent, received and processed between individuals and the automatic information system or among automatic information systems without having their legal validity negated.

2. Organizations and individuals shall bear all responsibility for the use of automatic information systems in their financial activities.

Chapter III

E-TRANSACTIONS IN FINANCIAL ACTIVITIES

Article 11.- E-transactions in financial activities

1. E-transactions in professional operations related to state budget, tax, customs, treasury, securities, accounting and auditing.

2. E-transactions in other financial activities in accordance with the law on financial management.

Article 12.- Responsibilities and powers of organizations and individuals

1. To abide by the provisions of Points a, b, c and d, Clause 1, Article 48 of the Law on E-Transactions.

2. To select modes and means for carrying out e-transactions in financial activities according to the Law on E-Transactions, this Decree and relevant provisions of law.

3. To declare all relevant data to competent state agencies and ensure the conditions prescribed in Clause 2, Article 9 of this Decree, for organizations and individuals having their e-vouchers sealed, seized or confiscated.

4. To be subject to competent state agencies' management, inspection and examination.

5. To make regular and irregular reports on e-transactions in financial activities in accordance with law.

Article 13.- Responsibilities and powers of organizations providing added value services

1. To provide transmission services and improve the display formats of e-vouchers in service of information exchange between parties to transactions.

2. To send, receive and supply e-vouchers promptly and integrally as agreed upon with parties to transactions.

3. To store the results of each time of transmission and receipt and e-vouchers pending the completion of transactions.

4. To ensure infrastructure for connection; work out control measures to ensure security, safety, confidentiality, information integrity and provide other utilities to parties participating in the exchange of e-vouchers.

5. To fully supply information and data to competent agencies when so requested in accordance with law.

6. To abide by current provisions of law on telecommunications, Internet and technical and professional regulations promulgated by the Finance Ministry.

7. To collect charges for maintenance of their operation.

8. To refuse to provide added value services regarding e-transactions in financial activities to financial agencies, organizations or individuals that are ineligible for entering into transactions or breach contracts.

Article 14.- Use of digital signatures

1. Financial agencies, organizations and individuals that enter into e-transactions in financial activities with financial agencies shall use digital signatures.

2. E-transactions in financial activities between organizations or individuals and financial agencies require digital signatures and digital certificates supplied by public certification authorities.

3. The Minister of Finance shall issue a list of e-transactions in financial activities in which the use of digital signatures is compulsory.

Article 15.- Contents of state management

1. Formulating and promulgating strategies, planning, plans and policies on development of e-transactions in financial activities.

2. Guiding the enforcement of law on e-transactions in financial activities.

3. Issuing technical regulations on e-transactions in financial activities, which must be consistent and conformable with national technical regulations on e-transactions.

4. Organizing and managing international cooperation activities in e-transactions in financial activities.

5. Supervising and inspecting the observance of law on e-transactions in financial activities; settling complaints and denunciations and handling according to competence administrative violations in e-transactions in financial activities.

Article 16.- Responsibilities of ministries, branches and localities

1. The Ministry of Finance has the following responsibilities and powers:

a/ To perform the state management of e-transactions in financial activities under its management;

b/ To base itself on practical conditions to set an appropriate roadmap for the use of e-transactions in financial activities of financial agencies, organizations and individuals;

c/ To organize training, guide and support the application of e-transactions in financial activities;

d/ To study, formulate and promulgate technical and professional regulations on e-transactions in financial activities;

e/ To apply necessary confidentiality and contingency measures for electronic information and data systems under its management;

f/ To provide services in support of the performance of e-transactions in financial activities for financial agencies, organizations and individuals entering into e-transactions with financial agencies;

g/ To decide on the accreditation of organizations providing added value services on e-transactions in financial activities which participate in the provision of added value services to organizations and individuals entering into transactions with financial agencies;

h/ To provide for the establishment, organization, operation and management of specialized certification authorities in service of e-transactions in financial activities in compliance with the provisions of law on digital signatures and certification of digital signatures;

2. Ministries, ministerial-level agencies, government-attached agencies and provincial/municipal People's Committees shall perform the state management of e-transactions in financial activities in accordance with law.

Chapter IV

SETTLEMENT OF DISPUTES, COMPLAINTS AND DENUNCIATIONS, EXAMINATION, INSPECTION AND HANDLING OF VIOLATIONS IN E-TRANSACTIONS IN FINANCIAL ACTIVITIES

Article 17.- Settlement of disputes

1. The State encourages parties to e-transactions in financial activities to settle their disputes through reconciliation.

2. When the parties fail to make reconciliation, the competence and order of and procedures for settling disputes over e-transactions in financial activities shall comply with relevant provisions of law.

Article 18.- Complaints and denunciations

Complaints about administrative decisions or administrative acts regarding e-transactions in financial activities and denunciations about violations related to e-transactions in financial activities to competent state agencies shall be made in accordance with law.

Article 19.- Supervision and inspection

1. Competent state agencies shall supervise and inspect in order to promptly detect and handle violations in e-transactions in financial activities.

2. Organizations and individuals entering into e-transactions in financial activities are subject to competent state agencies' supervision and inspection under the provisions of Clause 1 of this Article.

3. The supervision of organizations and individuals entering into e-transactions in financial activities shall be conducted in accordance with law.

Article 20.- Handling of violations

1. Organizations breaking law when entering into e-transactions in financial activities shall, depending on the nature and seriousness of their violations, be administratively sanctioned in accordance with the law on sanctioning of administrative violations or suspended from entering into e-transactions in financial activities in accordance with law.

2. Individuals breaking law when entering into e-transactions in financial activities shall, depending on the nature and seriousness of their violations, be disciplined, administratively sanctioned or examined for penal liability in accordance with law.

3. Organizations and individuals causing damage to other organizations or individuals when entering into e-transactions in financial activities shall pay compensations in accordance with law.

Chapter V

IMPLEMENTATION PROVISIONS

Article 21.- Implementation effect

This Decree takes effect 15 days after its publication in "CONG BAO."

Article 22.- Organization of implementation

1. The Minister of Finance shall coordinate with concerned ministries and branches in guiding the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies and government-attached agencies, and presidents of provincial/municipal People's Committees shall implement this Decree.