Decree No. 80/2019/ND-CP amending the Decree No. 73/2016/ND-CP

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 73/2016/ND-CP of July 1, 2016, detailing the Law on Insurance Business and the Law Amending and Supplementing a Number of Articles of the Law on Insurance Business; and the Government’s Decree No. 98/2013/ND-CP of August 28, 2013, on sanctioning of administrative violations in insurance business and lottery business, which had a number of articles amended and supplemented under the Government’s Decree No. 48/2018/ND-CP of March 21, 2018^[1]

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

Pursuant to the December 9, 2000 Law on Insurance Business;

Pursuant to the November 24, 2010 Law Amending and Supplementing a Number of Articles of the Law on Insurance Business;

Pursuant to the June 14, 2019 Law Amending and Supplementing a Number of Articles of the Law on Insurance Business and the Law on Intellectual Property;

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

Pursuant to the June 12, 2013 Counter-Terrorism Law;

Pursuant to the June 20, 2012 Law on Handling of Administrative Violations;

At the proposal of the Minister of Finance;

The Government promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 73/2016/ND-CP of July 1, 2016, detailing the Law on Insurance Business and the Law Amending and Supplementing a Number of Articles of the Law on Insurance Business; and the Government’s Decree No. 98/2013/ND-CP of August 28, 2013, on sanctioning of administrative violations in insurance business and lottery business, which had a number of articles amended and supplemented under the Government’s Decree No. 48/2018/ND-CP of March 21, 2018.

Article 1.To amend and supplement a number of articles of the Government’s Decree No. 73/2016/ND-CP of July 1, 2016, detailing the Law on Insurance Business and the Law Amending and Supplementing a Number of Articles of the Law on Insurance Business

1. To amend and supplement Article 1 as follows:

“1. This Decree details and guides a number of articles of the Law on Insurance Business, Law Amending and Supplementing a Number of Articles of the Law on Insurance Business, and Law Amending and Supplementing a Number of Articles of the Law on Insurance Business and Law on Intellectual Property, regarding:

a/ The establishment and operation of life insurance businesses, non-life insurance businesses, health insurance businesses and reinsurance businesses (below collectively referred to as insurance businesses), branches of foreign non-life insurance businesses (below referred to as foreign branches), insurance brokerage businesses, insurance agents, cross-border insurance service providers, representative offices of foreign insurance businesses or insurance brokerage businesses, and funds for the protection of the insured;

b/ The financial management regime applicable to insurance businesses, foreign branches and insurance brokerage businesses;

c/ Conditions on individuals directly engaged in insurance auxiliary activities in insurance auxiliary service providers; criteria in the field of insurance auxiliary services; professional liability insurance for provision of insurance auxiliary services; provision of cross-border insurance auxiliary services; and supervision of provision of insurance auxiliary services.

2. This Decree applies to:

a/ Insurance businesses;

b/ Foreign branches;

c/ Insurance brokerage businesses and insurance agents;

d/ Individuals and organizations that provide insurance auxiliary services;

dd/ Other related organizations and individuals.”

2. To add Clause 3a below Clause 3, Article 21 as follows:

“3a. A dossier of request for change of insurance auxiliary services must comprise the documents specified at Points a, b and dd, Clause 3 of this Article.”

3. To amend and supplement Point b, Clause 2, Article 32 as follows:

“b/ Hiring actuarial service providers satisfying the conditions prescribed in Clause 2, Article 93b, which was supplemented in Clause 4, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Insurance Business and Law on Intellectual Property, and Clause 3, Article 89a of this Decree to fulfill tasks of valuation and solvency actuarial experts under regulations of the Minister of Finance.

In case of hiring actuarial service providers, non-life insurance businesses, reinsurance businesses and foreign branches shall notify the Ministry of Finance of actuarial service providers and individuals directly engaged in insurance actuary and terms of contracts on provision of insurance actuarial services.”

4. To add Clause 1a below Clause 1, Article 68 as follows:

“1a. Revenues from provision of insurance auxiliary services: Revenues collected from provision of insurance auxiliary services prescribed at Point b, Clause 2, Article 93a, which was supplemented under Clause 4, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Insurance Business and the Law on Intellectual Property.”

5. To amend and supplement Point a, Clause 1, and add Clause 1a below Clause 1, Article 69 as follows:

a/ To amend and supplement Point a, Clause 1, Article 69 as follows:

“1. Insurance business expenses, which are money amounts that must be spent or set aside in a period after subtracting receivables to reduce expenses in the period.

a/ Money amounts that must be spent or set aside in a period include:

- Payment of primary non-life insurance claims; payment of life insurance sums;

- Payment of inward reinsurance claims;

- Setting aside of professional provisions;

- Payment of insurance commissions;

- Payments to insurance brokerage businesses, including insurance brokerage commissions and other payments as prescribed;

- Loss assessment expenses;

- Expense for request for third party’s reimbursement;

- Expense for handling of wholly compensated goods;

- Leading fees for leading insurance companies in case of co-insurance (if this fee is agreed upon in writing by the parties);

- Expenses for insurance agent management, including expenses for initial training and exams for grant of agent certificates, and expenses for advanced training for agents, agent recruitment, and agent reward and support;

- Expenses for risk and loss prevention and mitigation;

- Expense for assessment of risks of subject matters insured;

- Expense for use of insurance auxiliary services, including expenses for insurance consultancy, insurance risk assessment, insurance actuary, insurance loss assessment and support for insurance claim settlement;

- Other amounts spent or set aside as specified by law.”

b/ To add Clause 1a below Clause 1, Article 69 as follows:

“1a. Expense for provision of insurance auxiliary services.”

6. To amend and supplement Clause 1, and add Clause 1a below Clause 1, Article 71 as follows:

a/ To amend and supplement Clause 1, Article 71 as follows:

“1. Revenues from insurance brokerage activities:

Insurance brokerage commissions from insurance premiums collected from the activities prescribed in Article 90 of the Law on Insurance Business.”

b/ To add Clause 1a below Clause 1, Article 71 as follows:

“1a. Revenues from provision of insurance auxiliary services collected from provision of insurance auxiliary services prescribed at Point b, Clause 2, Article 93a, which was supplemented in Clause 4, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Insurance Business and Law on Intellectual Property.”

7. To amend and supplement Clause 1, and add Clause 1a below Clause 1, Article 72 as follows:

a/ To amend and supplement Clause 1, Article 72 as follows:

“1. Insurance brokerage expenses:

a/ Expense for insurance brokerage activities;

b/ Expense for purchase of professional liability insurance;

c/ Expense for use of insurance auxiliary services, including insurance consultancy, insurance risk assessment, insurance actuary, insurance loss assessment, and support for insurance claim settlement;

d/ Other amounts spent or set aside amounts as specified by law.”

b/ To add Clause 1a below Clause 1, Article 72 as follows:

“1a. Expense for provision of insurance auxiliary services.”

8. To amend and supplement Clause 1, Article 80 as follows:

1. Insurance businesses, foreign branches and insurance brokerage businesses shall make and send their financial statements, statistical reports and operations reports and reports on use of insurance auxiliary services, and insurance auxiliary service providers shall make and send reports on provision of insurance auxiliary services and reports on lists of individuals directly engaged in different types of insurance auxiliary activities, on a periodical or an extraordinary basis in accordance with current regulations and guidance of the Ministry of Finance.”

9. To add Chapter Va below Chapter V as follows:

“Chapter Va

INSURANCE AUXILIARY SERVICES

Article 89a.Conditions on academic degrees, certificates and criteria of individuals directly providing insurance auxiliary services in insurance auxiliary service-providing organizations

1. Individuals directly providing insurance consultancy service must satisfy one of the following conditions on academic degrees and certificates:

a/ Possessing a university or higher degree in insurance business.

b/ Possessing a university or higher degree in another discipline and an insurance consultancy certificate.

2. Individuals directly providing insurance risk assessment services must satisfy one of the following conditions on academic degrees and certificates:

a/ Possessing a university or higher degree in insurance business.

b/ Possessing a university or higher degree in another discipline and an insurance risk assessment certificate.

3. Conditions and criteria for individuals directly providing insurance actuary services:

a/ Individuals directly providing the insurance actuary service for life insurance businesses and health insurance businesses must satisfy the conditions and criteria prescribed in Clauses 2 and 3, Article 31 of this Decree.

b/ Individuals directly providing insurance actuary services for non-life insurance businesses, reinsurance businesses and foreign branches must satisfy the conditions and criteria prescribed at Points b and d, Clause 1, Article 32 of this Decree.

4. Individuals directly providing insurance risk assessment services must satisfy the following conditions on academic degrees, certificates and qualifications:

a/ Possessing a collegial or higher degree in assessment;

b/ Possessing an insurance loss assessment certificate;

c/ Having at least three years working in the field of assessment.

5. Individuals directly providing insurance claim settlement support services must satisfy the conditions on academic degrees and certificates as follows:

a/ Possessing a collegial or higher degree;

b/ Possessing an insurance claim settlement support certificate.

Article 89b.Professional liability insurance for provision of insurance auxiliary services

Insurance auxiliary service providers are required to buy professional liability insurance for the provision of insurance auxiliary services. The level of professional insurance liability shall be agreed upon in the contract on provision of insurance auxiliary services compatible to each type of insurance auxiliary services provided.

Article 89c.Criteria in insurance auxiliary services

1. Insurance auxiliary service-providing organizations shall formulate, implement, and supervise the satisfaction of, criteria for provision of insurance auxiliary services.

2. Insurance businesses, foreign branches and insurance brokerage businesses that use insurance auxiliary services shall formulate, implement, and supervise the satisfaction of, criteria for selection and use of insurance auxiliary services.

In case an insurance business, foreign branch or insurance brokerage business uses cross-border insurance auxiliary services in Vietnam provided by a foreign organization, such foreign organization must satisfy the following criteria:

a/ Being licensed to provide cross-border insurance auxiliary services in accordance with law of the country or territory where it is headquartered;

b/ Having lawfully operated for at least 10 years by the time of provision of cross-border insurance auxiliary services in Vietnam;

c/ Committing no violation of regulations on provision of insurance auxiliary services in the place where it is headquartered within 3 consecutive years prior to the year of provision of cross-border insurance auxiliary services in Vietnam;

d/ Having conducted profitable business for 3 consecutive fiscal years preceding the year of provision of cross-border insurance auxiliary services in Vietnam.”

10. To amend and supplement the title of Chapter VI as follows:

“PROVISION AND USE OF CROSS-BORDER INSURANCE, INSURANCE BROKERAGE AND INSURANCE AUXILIARY SERVICES”

11. To amend and supplement Clauses 1 and 3, Article 90 as follows:

a/ To amend and supplement Clause 1, Article 90 as follows:

“1. Providers of cross-border insurance and insurance brokerage services (below referred to as cross-border insurance service providers) are foreign insurance businesses and insurance brokerage businesses headquartered in countries with which Vietnam has concluded trade treaties containing agreements on provision of cross-border insurance services in Vietnam.

Cross-border insurance auxiliary service providers are foreign individuals who provide cross-border insurance consultancy services and foreign organizations that provide cross-border insurance auxiliary services (insurance businesses, insurance brokerage businesses and other organizations with the legal person status) under treaties to which the Socialist Republic of Vietnam is a contracting party and which contain agreements on provision of cross-border insurance auxiliary services.”

b/ To amend and supplement Clause 3, Article 90 as follows:

“3. Reinsurance, international maritime insurance, international aviation insurance and international reinsurance brokerage services shall be provided in accordance with current regulations and best practices.”

12. To add Article 91a below Article 91 as follows:

“Article 91a.Conditions for provision of cross-border insurance auxiliary services

1. Foreign individuals who wish to provide cross-border insurance consultancy services in Vietnam must satisfy the conditions prescribed in Clause 1, Article 93b, which is supplemented under Clause 4, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Insurance Business and Law on Intellectual Property.

2. Foreign organizations that provide cross-border insurance auxiliary services in Vietnam must satisfy the conditions prescribed in Clause 2, Article 93b, which is supplemented under Clause 4, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Insurance Business and Law on Intellectual Property.”

13. To amend and supplement Article 92 as follows:

“Article 92. Method of provision of cross-border insurance and insurance auxiliary services in Vietnam

1. Foreign insurance businesses shall provide cross-border insurance services in Vietnam through licensed insurance brokerage businesses operating in Vietnam.

2. Foreign insurance brokerage businesses that provide cross-border insurance services in Vietnam shall act as brokers for licensed foreign non-life insurance businesses or their branches operating in Vietnam.

3. Foreign individuals and organizations may provide cross-border insurance auxiliary services to insurance businesses, foreign branches and insurance brokerage businesses in Vietnam.

Foreign individuals and organizations that provide cross-border insurance auxiliary services to individuals and organizations other than insurance businesses, foreign branches or insurance brokerage businesses in Vietnam shall cooperate with insurance auxiliary service providers lawfully established and operating in Vietnam.”

14. To amend and supplement Article 93 as follows:

“Article 93. Responsibilities of cross-border insurance service providers and insurance auxiliary service providers

1. To provide licensed insurance businesses, foreign branches and insurance brokerage businesses in Vietnam that participate in the provision of cross-border insurance services under Article 92 of this Decree with documents proving the satisfaction of the conditions for provision of cross-border insurance services prescribed in Article 91 of this Decree.

To provide licensed insurance businesses, foreign branches and insurance brokerage businesses in Vietnam that use cross-border insurance auxiliary services, and domestic organizations that participate in the provision of cross-border insurance auxiliary services with documents proving that foreign individuals or organization satisfy the conditions prescribed in Article 91a of this Decree.

2. Foreign organizations and individuals that provide cross-border insurance auxiliary services in Vietnam shall comply with the provisions on insurance auxiliary service provision of Article 93a, which is supplemented under Clause 4, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Insurance Business and Law on Intellectual Property.

3. Within 120 days after the end of a fiscal year, foreign insurance businesses and insurance brokerage businesses that provide cross-border insurance services shall send to the Ministry of Finance their financial statements of the preceding year certified by independent auditing firms and written remarks on their law observance, given by state management agencies in charge of insurance of the foreign countries where they are headquartered.

4. Foreign insurance businesses and insurance brokerage businesses that provide cross-border insurance services; and foreign individuals and organizations that provide cross-border insurance auxiliary services shall pay taxes and fulfill other financial obligations related to the provision of cross-border insurance services and insurance auxiliary services in Vietnam in accordance with the tax laws.”

15. To amend and supplement Article 49 as follows:

“Article 94. Responsibilities of entities involved in the provision of cross-border insurance services and insurance auxiliary services

Licensed insurance businesses, foreign branches and insurance brokerage businesses in Vietnam, and insurance auxiliary service providers that participate in the provision of cross-border insurance services prescribed in Article 92 of this Decree shall:

1. Keep documents proving that their co-providers of cross-border insurance services in Vietnam satisfy the conditions prescribed in Article 91 of this Decree and documents proving that foreign cross-border insurance service providers in Vietnam satisfy the conditions prescribed in Article 91a of this Decree and provide them to competent agencies when so requested.

2. Report on a quarterly basis to the Ministry of Finance on their participation in the provision of cross-border insurance services and the use and participation in the provision of cross-border insurance services in Vietnam in the quarter within 30 days after the end of the quarter. The report form is set by the Minister of Finance.

3. Use or participate in the provision of cross-border insurance auxiliary services provided by or with foreign individuals and organizations satisfying the conditions prescribed in Article 91a of this Decree.”

16. To amend and supplement Clause 1 of, and add Clause 14 to, Article 110 as follows:

a/ To amend and supplement Clause 1, Article 110 as follows:

“1. To guide the implementation of legal documents on insurance business and insurance auxiliary services; to formulate policies and regulations on insurance business, and strategies, master plans, plans and policies on development of Vietnam’s insurance market.”

b/ To add the following Clause 14 to Article 110:

“14. Management and supervision of insurance auxiliary activities:

a/ To manage and supervise the provision and use of insurance auxiliary services by insurance businesses, foreign branches and insurance brokerage businesses.

b/ To supervise the provision of insurance auxiliary services by individuals and organizations through their observance of the regulations on standards, technical regulations, responsibilities and conditions for providing insurance auxiliary services.

c/ To supervise the provision of cross-border insurance auxiliary services by foreign individuals and organizations that provide insurance auxiliary services in Vietnam through insurance auxiliary service providers lawfully established and operating in Vietnam.”

Article 2.To amend and supplement a number of articles of the Government’s Decree No. 98/2013/ND-CP of August 28, 2013, prescribing the sanctioning of administrative violations in the field of insurance business and lottery business, which had a number of articles  amended and supplemented under the Government’s Decree No. 48/2018/ND-CP of March 21, 2018

1. To amend and supplement Clause 1, Article 2 as follows:

“1. Vietnamese and foreign individuals and organizations that commit administrative violations in the field of insurance business or lottery business specified in this Decree.

Organizations subject to administrative sanctions in the field of insurance business or lottery business under this Decree include: life insurance businesses, non-life insurance businesses, health insurance businesses, reinsurance businesses, insurance brokerage businesses, branches of foreign non-life insurance businesses, representative offices of foreign insurance businesses, representative offices of foreign reinsurance businesses, representative offices of foreign insurance brokerage businesses, institutional insurance agents, institutional insurance auxiliary service providers (insurance businesses, insurance brokerage businesses and other organizations with the legal person status), lottery businesses, institutional lottery agents and other related organizations specified in this Decree.”

2. To amend and supplement Point b, and add Point c to, Clause 1, and amend and supplement Point a, Clause 2, Article 3 as follows:

a/ To amend and supplement Point b, Clause 1, Article 3 as follows:

“b/ Fines;

Fines for the administrative violations specified in this Decree are sanctioning levels for individuals, except the cases specified in Article 13, Clause 4 of Article 18, Article 21, Point b, Clause 1 of Article 21a, Article 22, Clauses 3 and 4 of Article 24, Points b and c, Clause 1 and Point c, Clause 2 of Article 25a, Article 32a, Article 34, Clauses 1, 2 and 3 of Article 36, Clause 2 of Article 40, Clause 2 of Article 41, Articles 42 thru 45, Clause 3 of Article 46, Articles 48 thru 50, and Clause 2, Article 51, of this Decree in which fines may only be imposed on organizations.

A fine to be imposed on an organization shall be twice as much as a fine to be imposed on an individual for the same violation.

The maximum fine to be imposed on an individual or organization that commits an administrative violation in the field of insurance business or lottery business is VND 100,000,000 or VND 200,000,000, respectively.”

b/ To add following Point c to Clause 1, Article 3:

“c/ To suspend the provision of insurance auxiliary services for a definite term.”

c/ To amend and supplement Point a, Clause 2, Article 3 as follows:

“a/ For insurance business:

Deprivation of the right to use insurance agent certificates for a definite term; deprivation of the right to use insurance auxiliary service provision certificates for a definite term;

Suspension of part of operation for a definite term regarding the contents and scope directly related to the violation of the establishment and operation license of an insurance business, reinsurance business, insurance brokerage business, or branch of a foreign non-life insurance business;

Suspension of operation of insurance agents for a definite term;

Suspension of provision of insurance auxiliary services for a definite term;

Confiscation of material exhibits and means used for committing administrative violations.”

3. To add Article 21a below Article 21 as follows:

“Article 21a. Sanctioning of violations of the regulations on provision of cross-border insurance auxiliary services committed by foreign individuals or organizations

1. Fines shall be imposed on foreign individuals or organizations committing one of the following violations:

a/ A fine of between VND 90,000,000 and VND 100,000,000 shall be imposed on a foreign individual who provides cross-border insurance consultancy services in Vietnam but is not a citizen of the country or territory with which Vietnam has made a commitment on opening its market for cross-border insurance consultancy services.

b/ A fine of between VND 180,000,000 and VND 200,000,000 shall be imposed on a foreign organization that provides cross-border insurance auxiliary services in Vietnam without having its headquarters located in the country or territory with which Vietnam has made a commitment on opening its market for cross-border insurance auxiliary services.

2. To suspend foreign individuals or organizations from providing insurance auxiliary services for between 3 months and 6 months for one of the following violations:

a/ Providing cross-border insurance auxiliary services in Vietnam without satisfying the conditions prescribed in Clauses 1 and 2 of Article 93b, which is supplemented under Clause 4, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Insurance Business and Law on Intellectual Property.

b/ Providing insurance auxiliary services other than those which they are licensed to provide in accordance with law.

3. During the period of suspension of the provision of insurance auxiliary services under decisions on sanctioning of administrative violations prescribed in Clause 2 of this Article, foreign individuals or organizations shall be suspended from providing cross-border insurance consultancy services in Vietnam for between 6 months and 12 months if relapsing into the violations specified in Clause 2 of this Article.”

4. To amend and supplement the title of Section 4, Chapter II as follows:

“Section 4

ADMINISTRATIVE VIOLATIONS, SANCTIONS AND REMEDIAL MEASURES FOR INSURANCE BROKERAGE ACTIVITIES, INSURANCE AGENTS, INSURANCE AUXILIARY SERVICES AND REPRESENTATIVE OFFICES”

5. To add Article 25a below Article 25 as follows:

“Article 25a. Sanctioning of violations in the provision of insurance auxiliary services committed by insurance auxiliary service providers

1. A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for one of the following violations in the provision of insurance auxiliary services:

a/ Failing to keep client information confidential or using client information for improper purposes or providing information to third parties without obtaining clients’ consent, except cases of information provision in accordance with law;

b/ An institutional provider of insurance auxiliary services providing insurance loss assessment services and supporting the payment of insurance indemnities for insurance contracts while being concurrently an insurance buyer or the insured or insurance beneficiary;

c/ An insurance brokerage business providing insurance loss assessment services for insurance contracts while arranging the conclusion of such contracts;

d/ Failing to strictly comply with technical regulations in the field of insurance auxiliary services;

dd/ Failing to make a contract for provision of insurance auxiliary services in writing.

2. A fine of between VND 60,000,000 and VND 70,000,000 shall be imposed for one of the following violations in the provision of insurance auxiliary services:

a/ Providing insurance auxiliary services other than those which the provider is licensed to provide;

b/ Providing insurance auxiliary services while failing to satisfy the conditions for provision of insurance auxiliary services prescribed by law;

c/ An organization without the legal person status providing one of the following insurance auxiliary services: insurance risk assessment, insurance actuary, insurance loss assessment or insurance indemnity payment support.

3. Additional sanctions:

a/ Deprivation of the right to use insurance consultancy certificates for between 1 month and 3 months, for individuals who commit the violations specified at Point a, Clause 2 of this Article;

b/ Suspension of the provision of insurance auxiliary services for between 1 month and 3 months, for individuals who commit the violations specified at Point b, Clause 2 of this Article;

Suspension of the provision of insurance auxiliary services for between 1 month and 3 months, for organizations providing insurance auxiliary services who commit the violations specified at Points a and b, Clause 2 of this Article.”

6. To add Section 7a below Section 7 as follows:

“Section 7a

VIOLATIONS OF THE REGULATIONS ON ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING IN THE FIELD OF LIFE INSURANCE BUSINESS”

Article 32a. Sanctioning of violations of the regulations on anti-money laundering and counter-terrorism financing in the field of life insurance business

1. Life insurance businesses that violate the regulations on identification and updating of client information shall be sanctioned as follows:

a/ A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for failing to update client identification information under Articles 8 and 10 of the Anti-Money Laundering Law;

b/ A fine of between VND 50,000,000 and VND 100,000,000 shall be imposed for failing to promulgate risk management procedures for transactions related to new technologies under Article 15 of the Anti-Money Laundering Law;

c/ A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed for failing to apply client identification measures and measures of intensive assessment specified in Clauses 2, 3 and 4, Article 12 of the Anti-Money Laundering Law;

d/ A fine of between VND 50,000,000 and VND 100,000,000 shall be imposed for failing to formulate regulations on client classification or failing to classify clients based on money laundering risks as prescribed by law;

dd/ A fine of between VND 40,000,000 and 80,000,000 shall be imposed for failing to promulgate and comply with internal regulations on anti-money laundering or failing to conduct internal audit for anti-money laundering;

e/ A fine of between VND 90,000,000 and VND 100,000,000 shall be imposed for failing to establish a risk management system to identify whether foreign clients are political influencers under Clauses 2 and 3, Article 13 of the Anti-Money Laundering Law.

2. Life insurance businesses that violate the regulations on prohibited acts in the money laundering prevention and combat shall be sanctioned as follows:

a/ A fine of between VND 30,000,000 and 60,000,000 shall be imposed for obstructing the provision of information to serve the money laundering prevention and combat while a fine of between VND 50,000,000 and VND 100,000,000 shall be imposed for failing to provide information to serve the money laundering prevention and combat at the request of competent state agencies under Clause 1, Article 28 of the Anti-Money Laundering Law;

b/ A fine of between VND 90,000,000 and VND 100,000,000 shall be imposed for organizing or facilitating money laundering which is not serious enough for penal liability examination.

3. Life insurance businesses that violate the regulations on counter-terrorism financing shall be sanctioned as follows:

a/ A fine of between VND 20,000,000 and VND 30,000,000 shall be imposed for failing to apply client identification measures and update client identification information under Article 34 of the Counter-Terrorism Law;

b/ A fine of between VND 90,000,000 and VND 100,000,000 shall be imposed for failing to denounce terrorism financing.”

Article 3.Implementation provisions

1. This Decree takes effect on November 1, 2019.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC