Decree No. 82/2012/ND-CP dated October 9, 2012 of the Government on organization and operation of financial inspectorates

THE GOVERNMENT

Decree No. 82/2012/ND-CP of October 9, 2012, on organization and operation of financial inspectorates

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

Pursuant to the November 15, 2010 Inspection Law;

Pursuant to the December 16, 2002 Law on the State Budget;

Pursuant to the November 29, 2006 Law on Tax Administration;

Pursuant to the June 29, 2006 Securities Law and the November 24, 2010 Law Amending and Supplementing a Number of Articles of the Securities Law;

Pursuant to the June 29, 2001 Customs Law and the June 14, 2005 Law Amending and Supplementing a Number of Articles of the Customs Law;

Pursuant to the December 9, 2000 Law on Insurance Business and the November 24, 2010 Law Amending and Supplementing a Number of Articles of the Law on Insurance Business;

Pursuant to the April 29, 2004 Ordinance on National Reserves;

At the proposal of the Minister of Finance,

The Government promulgates the Decree on organization and operation of financial inspectorates.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides the organization and operation of agencies assigned to conduct financial inspection; inspectors, persons assigned to conduct specialized inspection, and financial inspection collaborators; and responsibilities of agencies, organizations and individuals in financial inspection.

Article 2. Subjects of inspection

1. Agencies, organizations and individuals managed by the Ministry of Finance or provincial-level Finance Departments.

2. Vietnamese and foreign agencies, organizations and individuals obliged to observe regulations in the fields under the state management of the Ministry of Finance or provincial-level Finance Departments.

Article 3. Application of treaties

In case treaties to which the Socialist Republic of Vietnam has concluded or acceded otherwise provide for the organization and operation of financial inspectorates, the provisions of such treaties shall apply.

Chapter II

TASKS AND POWERS OF AGENCIES ASSIGNED TO CONDUCT FINANCIAL INSPECTION

Article 4. Agencies assigned to conduct financial inspection

1. State inspection agencies:

a/ The Inspectorate of the Ministry of Finance.

b/ Inspectorates of provincial-level Finance Departments.

2. Agencies assigned to conduct specialized inspection:

a/ The General Department of Taxation; the General Department of Customs; the General Department of State Reserves; the State Treasury; and the State Securities Commission (below collectively referred to as General Departments).

b/ The Insurance Management and Supervision Department.

c/ Provincial-level Tax Departments; provincial-level Customs Departments; regional State Reserves Departments; provincial-level State Treasuries under the State Treasury (below collectively referred to as Departments under General Departments).

d/ District-level Tax Departments.

Article 5. Tasks and powers of the Inspectorate of the Ministry of Finance

The Inspectorate of the Ministry of Finance has the tasks and powers defined in Article 18 of the Inspection Law and the following tasks and powers:

1. To elaborate and submit to the Minister of Finance for issuance the Guidelines on financial inspection plans.

2. To examine and urge agencies assigned to conduct specialized financial inspection in formulating and implementing inspection programs and plans.

3. To provide specialized inspection training for inspectors and civil servants assigned to conduct specialized financial inspection.

4. To disseminate, guide, examine and urge General Departments and the Department for Insurance Management and Supervision to implement the inspection law.

5. To review and draw experience from financial inspection.

6. Other tasks and powers provided for by law.

Article 6. Tasks and powers of the Chief of the Inspectorate of the Ministry of Finance

The Chief of the Inspectorate of the Ministry of Finance has the tasks and powers defined in Article 19 of the Inspection Law and the following tasks and powers:

1. To report within the ambit of his/her responsibilities on inspection work to the Minister of Finance and the Inspector General of the Government.

2. To inspect responsibilities of heads of agencies and units managed by the Ministry of Finance in implementing the inspection law.

3. To appoint civil servants and public employees of concerned agencies and units to participate in inspection activities.

4. Other tasks and powers provided for by law.

Article 7. Tasks and powers of Inspectorates of provincial-level Finance Departments

Inspectorates of provincial-level Finance Departments have the tasks and powers defined in Article 24 of the Inspection Law and the following tasks and powers:

1. To provide specialized inspection training for inspectors and civil servants performing inspection work under provincial-level Finance Departments.

2. To disseminate, guide, examine and urge agencies and units managed by provincial-level Finance Departments to implement the inspection law.

3. To review and draw experience from inspection work under the state management of provincial-level Finance Departments.

4. Other tasks and powers provided for by law.

Article 8. Tasks and powers of chiefs of Inspectorates of provincial-level Finance Departments

Chiefs of Inspectorates of provincial-level Finance Departments have the tasks and powers defined in Article 25 of the Inspection Law and the following tasks and powers:

1. To report within the ambit of their responsibilities on inspection work to directors of provincial-level Finance Departments, chiefs of provincial-level Inspectorates and the Chief of the Inspectorate of the Ministry of Finance.

2. To inspect responsibilities of heads of agencies and units managed by provincial-level Finance Departments in implementing the inspection law.

3. To appoint civil servants and public employees of related agencies and units to participate in inspection activities.

4. Other tasks and powers provided for by law.

Article 9. Tasks and powers of General Departments and the Insurance Management and Supervision Department

1. To formulate inspection plans and send them to the Finance Ministry’s Inspectorate for summarization and submission to the Minister of Finance for approval, and organize the implementation of such plans.

General Departments shall guide the formulation of inspection plans of their attached Departments and approve such plans.

2. To inspect within their management scope the observance of specialized laws, professional-technical regulations and sector management rules.

3. To conduct inspection under plans; to inspect cases showing signs of violation within the competence of General Departments or the Insurance Management and Supervision Department, or at the request of the Chief of the Finance Ministry’s Inspectorate.

4. To inspect other cases as assigned by the Minister of Finance.

5. To monitor, urge and examine the implementation of their inspection conclusions, recommendations and handling decisions; to monitor and examine the implementation of inspection conclusions, recommendations and handling decisions of their attached Departments (if any).

6. To settle complaints and denunciations and prevent and combat corruption under law.

7. To summarize and report to the Finance Ministry’s Inspectorate on results of specialized inspection, settlement of complaints and denunciations and corruption prevention and combat within the management scope of General Departments or the Insurance Management and Supervision Department.

8. Other tasks and powers provided for by law.

Article 10. Tasks and powers of Departments under General Departments and district-level Tax Departments

1. To formulate inspection plans and submit them to heads of immediate superior agencies assigned to conduct specialized inspection for approval, and organize the implementation of such plans.

Provincial-level Tax Departments shall guide the formulation of inspection plans of their attached district-level Tax Departments.

2. To inspect within their management scope the observance of specialized laws, professional-technical regulations and sector management rules.

3. To conduct inspection under plans; to inspect cases showing signs of violation within their competence or at the request of heads of immediate superior agencies assigned to conduct specialized inspection.

4. To monitor, urge and examine the implementation of their inspection conclusions, recommendations and handling decisions.

Provincial-level Tax Departments shall monitor and examine the implementation of inspection conclusions, recommendations and handling decisions of their attached district-level Tax Departments.

5. To settle complaints and denunciations and prevent and combat corruption under law.

6. To summarize and report within their management scope to heads of immediate superior agencies assigned to conduct specialized inspection on results of specialized inspection, settlement of complaints and denunciations and corruption prevention and combat.

7. Other tasks and powers provided for by law.

Article 11. Tasks and powers of heads of agencies assigned to conduct specialized inspection

1. To direct within their management scope the implementation and examination of inspection work.

2. To decide to conduct inspection when detecting signs of violation or at the request of heads of immediate superior agencies assigned to conduct specialized inspection; to assign civil servants to conduct specialized inspection within their management scope.

3. To report to heads of immediate superior agencies assigned to conduct specialized inspection on the overlap in the scope, subjects, contents and time of inspection within the management scope of their agencies.

4. To propose competent state agencies to amend, supplement or issue regulations to meet management requirements; to propose suspension of implementation or annulment of unlawful regulations detected through inspection.

5. Other tasks and powers provided for by law.

Article 12. Specialized inspection advisory sections at General Departments, the Insurance Management and Supervision Department, Departments under General Departments, and district-level Tax Departments

1. Specialized inspection advisory sections at General Departments (except the specialized inspection organization under the State Securities Commission defined in Article 27 of this Decree) shall be organized into Departments; into Divisions at the Insurance Management and Supervision Department and Departments under General Departments; or into teams at district-level Tax Departments.

2. Advisory sections shall assist heads of agencies assigned to conduct specialized inspection and have the following tasks:

a/ To assume the prime responsibility for, and coordinate with related units and sections under their agencies in, formulating inspection programs and plans, and submit them to heads of their management agencies.

b/ To conduct inspection under plans, and regular inspection or extraordinary inspection as assigned by heads of their agencies.

c/ When assigned, to settle complaints and denunciations and prevent and combat corruption under law.

d/ To summarize, assess and report on results of specialized inspection, complaint and denunciation settlement, and corruption prevention and combat.

e/ To monitor, urge and examine the implementation of their inspection conclusions, recommendations and handling decisions of heads of their agencies and heads of immediate subordinate agencies assigned to conduct specialized inspection.

f/ To handle according to their competence or propose competent state agencies to handle violations detected through inspection.

g/ To perform other tasks assigned by heads of their agencies under law.

3. The Minister of Finance shall define tasks and powers of specialized inspection advisory sections under General Departments, the Insurance Management and Supervision Department, Departments under General Departments, and district-level Tax Departments, except the State Securities Commission.

Chapter III

FINANCIAL INSPECTION ACTIVITIES

Article 13. Inspection contents

1. Administrative inspection:

The Inspectorate of the Ministry of Finance and Inspectorates of provincial-level Finance Departments shall inspect the observance of policies and laws and performance of assigned tasks by agencies, organizations and individuals defined in Clause 1, Article 2 of this Decree.

2. Specialized inspection:

a/ The Inspectorate of the Ministry of Finance shall inspect the observance of laws in the sectors under the Ministry’s state management.

b/ Inspectorates of provincial-level Finance Departments shall inspect the observance of laws in the sectors within the management scope of provincial-level Finance Departments.

c/ General Departments, the Insurance Management and Supervision Department, Departments under General Departments, and district-level Tax Departments shall conduct specialized inspection in the sectors within their management scope as assigned by competent authorities:

The General Department of Taxation, provincial-level Tax Departments and district-level Tax Departments shall inspect the observance of regulations on taxes, charges and fees and other state budget revenues.

The General Department of Customs and provincial-level Customs Departments shall inspect the observance of regulations on customs and tax and other payments for imports and exports.

The General Department of State Reserves and regional State Reserve Departments shall inspect the observance of regulations on national reserves.

The State Treasury and provincial-level State Treasuries shall inspect the observance of regulations on state budget spending items at the State Treasury and the observance of regulations by financial funds managed the State Treasury.

The State Securities Commission shall inspect securities offering, listing, transactions, trading, investment and services and securities market, information disclosure and other activities related to securities and securities market.

The Department for Insurance Management and Supervision shall inspect the observance of regulations on insurance business.

Article 14. Elaboration and approval of annual inspection plans

1. The Inspectorate of the Ministry of Finance shall, based on working requirements and tasks of the finance sector, submit to the Minister of Finance the Guidelines on financial inspection plans.

The Minister of Finance shall issue the Guidelines on financial inspection plans before October 15 every year.

2. General Departments and the Insurance Management and Supervision Department shall formulate their inspection plans and send them to the Finance Ministry’s Inspectorate no later than November 1 every year. Based on inspection program orientations and guidance of the General Inspector of the Government, the Minister of Finance and management requirements, the Finance Ministry’s Inspectorate shall summarize inspection plans of the Finance Ministry’s Inspectorate, General Departments and the Insurance Management and Supervision Department and submit them to the Minister of Finance for approval.

The Minister of Finance shall approve inspection plans of the Finance Ministry’s Inspectorate, General Departments and the Insurance Management and Supervision Department no later than November 25 every year.

3. Departments under General Departments shall formulate their inspection plans and send them to General Departments no later than November 25 every year.

General directors shall approve inspection plans of Departments under General Departments no later than November 15 every year.

4. District-level Tax Departments shall formulate their inspection plans and send them to provincial-level Tax Departments no later than December 5 every year.

Directors of provincial-level Tax Departments shall approve inspection plans of district-level Tax Departments no later than December 20 every year.

5. Inspectorates of provincial-level Finance Departments shall formulate their inspection plans and submit them to directors of provincial-level Finance Departments no later than December 5 every year. Directors of provincial-level Finance Departments shall approve inspection plans of Inspectorates of provincial-level Finance Departments no later than December 15 every year and send such plans to the Finance Ministry’s Inspectorate no later than December 25 every year.

6. Adjustments to approved inspection plans must be reported to heads of competent agencies for approval. The Minister of Finance shall issue specific regulations on the adjustment of financial inspection plans.

Article 15. Handling of overlaps in inspection activities

1. If there is an overlap between inspection plans of subordinate agencies and those of superior agencies, inspection plans of superior agencies prevail.

2. The Chief of the Finance Ministry’s Inspectorate shall assume the prime responsibility for handling overlaps in the scope, subjects, contents and time of inspection between General Departments and the Insurance Management and Supervision Department; coordinate with Chiefs of Inspectorates of ministries and ministerial-level agencies in handling overlaps in inspection activities in the finance sector and ministries’ inspection agencies; coordinate with Chiefs of provincial-level Inspectorates in handling overlaps in inspection activities in the finance sector and local inspection agencies; and, if necessary, submit overlapping cases to the Minister of Finance for consideration and decision.

3. Chiefs of Inspectorates of provincial-level Finance Departments shall report to Chiefs of provincial-level Inspectorates for handling overlaps in inspection activities among local inspection agencies. In case of overlap in inspection activities with agencies assigned to conduct specialized financial inspection, related agencies shall coordinate with one another in handling such overlap and, if necessary, report it to the Chief of the Finance Ministry’s Inspectorate for consideration and decision.

4. General Directors shall handle overlaps in inspection activities of subordinate units under their management; coordinate with related units in relevant sectors in handling overlaps; and, if necessary, report such overlaps to the Chief of the Finance Ministry’s Inspectorate for consideration and decision.

Article 16. Competence to issue inspection decisions

1. The Chief of the Finance Ministry’s Inspectorate and Chiefs of Inspectorates of provincial-level Finance Departments may issue administrative inspection decisions and specialized inspection decisions and form inspection teams. When necessary, the Minister of Finance or directors of provincial-level Finance Departments may issue inspection decisions and form inspection teams.

2. Heads of agencies assigned to conduct specialized inspection may issue specialized inspection decisions under plans and form inspection teams.

For complicated cases related to management responsibilities of many attached units, heads of immediate superior agencies assigned to conduct specialized inspection may issue inspection decisions and form inspection teams.

Article 17. Inspection duration

1. An administrative inspection conducted by the Finance Ministry’s Inspectorate must not exceed 45 days, which can be extended in complicated cases but must not exceed 70 days. An administrative inspection conducted by Inspectorates of provincial-level Finance Departments must not exceed 30 days, which can be extended in complicated cases but must not exceed 45 days.

2. A specialized inspection conducted by the Inspectorate of the Ministry of Finance, General Departments or the Insurance Management and Supervision Department must not exceed 45 days, which can be extended in complicated cases but must not exceed 70 days.

3. A specialized inspection conducted by Inspectorates of provincial-level Finance Departments, Departments under General Departments or district-level Tax Departments must not exceed 30 days, which can be extended in complicated cases but must not exceed 45 days.

Article 18. Order and procedures for inspection activities in the finance sector

1. Inspection activities must be conducted by the Finance Ministry’s Inspectorate and Inspectorates of provincial-level Finance Departments under the Inspection Law; the Government’s Decree No. 86/2011/ND-CP of September 22, 2011, detailing and guiding a number of articles of the Inspection Law; and the Government’s Decree No. 07/2012/ND-CP of February 9, 2012, defining agencies assigned to conduct specialized inspection and specialized inspection activities.

2. The order and procedures for specialized inspections by General Departments, the Insurance Management and Supervision Department, Departments under General Departments and district-level Tax Departments comply with the Inspection Law and Decree No. 07/2012/ND-CP.

3. Inspection activities of inspectors and civil servants in charge of specialized inspection conducting independent inspection activities comply with Decree No. 07/2012/ND-CP.

Article 19. Re-inspection of conclusions of financial inspectorates

1. The competence to re-inspect concluded cases in the finance sector in which signs of violation are detected is defined as follows:

a/ When assigned by the Minister of Finance, the Chief of the Finance Ministry’s Inspectorate may decide to re-inspect cases already concluded by General Directors, the director of the Insurance Management and Supervision Department or chairpersons of provincial-level People’s Committees which fall within the scope of state management of the Ministry of Finance but in which signs of violation are detected.

b/ General Directors may decide to re-inspect cases already concluded by Directors of Departments under General Departments  in which signs of violation are detected.

c/ Directors of provincial-level Tax Departments may decide to re-inspect cases already concluded by heads of district-level Tax Departments but in which signs of violation are detected.

2. A re-inspection decision comprises the details specified in Clause 1, Article 52 of the Inspection Law. Within 3 working days after signing a re-inspection decision, the decision issuer shall send such decision to the person who has signed the inspection conclusion and to the subject of re-inspection.

3. Grounds, statute of limitations and duration of re-inspection, tasks and powers and inspection decision issuers, heads of inspection teams, members of inspection teams, and reporting on re-inspection results comply with the Inspection Law, Decree No. 86/2011/ND-CP and Decree No. 07/2012/ND-CP.

4. Re-inspection decision issuers shall make re-inspection conclusions. Details of a re-inspection conclusion comply with the inspection law.

5. Re-inspection conclusions of the Chief of the Finance Ministry’s Inspectorate shall be sent to the Minister of Finance and the Government Inspectorate. Re-inspection conclusions of General Directors must be sent to the Finance Ministry’s Inspectorate. Re-inspection conclusions of Directors of Departments under General Departments must be sent to General Directors.

Article 20. Summarization of and reporting on inspection work in the finance sector

1. The Chief of the Finance Ministry’s Inspectorate shall, within the ambit of their responsibilities, summarize and report to the Minister of Finance and the Inspector General of the Government Inspectorate on inspection work, settlement of complaints and denunciations, and corruption prevention and combat.

2. General Departments and the Insurance Management and Supervision Department shall, within the ambit of their responsibilities, summarize and report to the Finance Ministry’s Inspectorate on specialized inspection work, settlement of complaints and denunciations, and corruption prevention and combat.

3. Departments under General Departments shall, within the ambit of their responsibilities, summarize and report on inspection work, settlement of complaints and denunciations, and corruption prevention and combat to General Departments.

4. District-level Tax Departments shall, within the ambit of their responsibilities, report to provincial-level Tax Departments on specialized inspection work, settlement of complaints and denunciations, and corruption prevention and combat.

5. Chiefs of Inspectorates of provincial-level Finance Departments shall, within the ambit of their responsibilities, report to Chiefs of provincial-level Inspectorates, directors of provincial-level Finance Departments and the Chief of the Finance Ministry’s Inspectorate on inspection work, settlement of complaints and denunciations, and corruption prevention and combat.

Chapter IV

INSPECTORS, CIVIL SERVANTS PERFORMING SPECIALIZED FINANCIAL INSPECTION AND INSPECTION COLLABORATORS IN THE FINANCE SECTOR

Article 21. Inspectors in the finance sector

1. Inspectors in the finance sector (below referred to as inspectors) are civil servants of the Finance Ministry’s Inspectorate and Inspectorates of provincial-level Finance Departments who are appointed to inspector ranks to perform inspection and other tasks as assigned by the Chief of the Finance Ministry’s Inspectorate or Chiefs of Inspectorates of provincial-level Finance Departments.

2. An inspector has the following tasks and powers:

a/ The tasks and powers defined by the inspection law and regulations on finance.

b/ To sanction or propose competent persons to sanction administrative violations under law.

3. To enjoy salaries according to their ranks and benefits applicable to inspectors under law.

4. To bear responsibility for their decisions and handling measures before law and inspection decision issuers.

5. When handling violations, to comply with the order and procedures under law.

Article 22. Civil servants performing specialized financial inspection

1. Persons assigned to conduct specialized inspection are civil servants on payrolls of General Departments, the Insurance Management and Supervision Department, Departments under General Departments or district-level Tax Departments who are assigned by heads of their managing agencies to perform specialized inspection (below referred to as civil servants performing specialized financial inspection).

Civil servants performing specialized financial inspection must satisfy all conditions and criteria specified in Article 12 of Decree No. 07/2012/ND-CP and under the Finance Minister’s regulations.

2. Civil servants performing specialized financial inspection have their own uniforms and cards and enjoy allowances for performing their inspection tasks. The Minister of Finance shall issue specific regulations on uniforms and cards of civil servants performing specialized financial inspection.

3. When on duty, civil servants performing specialized financial inspection may sanction administrative violations under law. They shall report cases falling beyond their competence to competent persons for consideration and handling.

Article 23. Inspection collaborators in the finance sector

1. Inspection collaborators in the finance sector are cadres and civil servants appointed by the Finance Ministry’s Inspectorate or Inspectorates of provincial-level Finance Departments to join inspection teams. Inspection collaborators in the finance sector are not on payrolls of state inspection agencies.

2. Inspection collaborators in the finance sector must have good moral qualities; must have a sense of responsibility and be upright, honest, straightforward and objective; and must have professional qualifications meeting inspection requirements and tasks assigned by appointing agencies.

3. Inspection collaborators in the finance sector have the tasks, powers and responsibilities defined by law.

Chapter V

RESPONSIBILITIES OF AGENCIES, ORGANIZATIONS AND INDIVIDUALS IN FINANCIAL INSPECTION

Article 24. Responsibilities of the Minister of Finance

1. To direct inspection activities within the management scope of the Ministry of Finance.

2. To direct the formulation and approval of inspection programs and plans.

3. To timely handle inspection conclusions and recommendations.

4. To consolidate organization and assign staffs with professional capacity and moral qualities to perform financial inspection; to organize, direct and facilitate financial inspection.

5. To ensure funds and working conditions for agencies assigned to conduct financial inspection.

6. To regularly request inspection agencies under his/her management to report, and regularly report to superior state management agencies on inspection work. To timely remove difficulties and problems related to inspection work; to handle overlaps in inspection and examination activities within his/her management scope.

7. To perform other tasks under law.

Article 25. Responsibilities of directors of provincial-level Finance Departments

1. To direct inspection activities within the management scope of provincial-level Finance Departments.

2. To perform the responsibilities specified in Clauses 2 thru 7, Article 24 of this Decree within the management scope of provincial-level Finance Departments.

Article 26. Responsibilities and rights of agencies, organizations and individuals

1. Responsibilities and rights of agencies, organizations and individuals subject to inspection and related agencies, organizations and individuals comply with Article 10 of the Inspection Law.

2. Responsibilities of agencies, organizations and individuals in the finance sector:

a/ Agencies, organizations and individuals in the finance sector and heads of finance agencies shall provide prompt, adequate and accurate information and documents at the request of agencies assigned to conduct financial inspection to serve inspection activities; and coordinate with agencies assigned to conduct financial inspection upon request.

b/ Within the ambit of their responsibilities, heads of finance agencies shall consider and handle according to their competence, or assist the Minister of Finance in considering and timely handling, violations of individuals, agencies or units which are detected through financial inspection.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 27. Specialized inspection organization under the State Securities Commission

The organization of a specialized inspection section under the State Securities Commission is provided in the Prime Minister’s Decision on the functions, tasks, powers and organizational structure of the State Securities Commission under the Ministry of Finance.

Article 28. Effect

This Decree takes effect on November 25, 2012, and replaces the Government’s Decree No. 81/2005/ND-CP of June 22, 2005, on the organization and operation of Financial Inspectorates.

Article 29. Implementation responsibility

1. The Minister of Finance shall guide the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, heads of agencies assigned to conduct inspection in the finance sector and related agencies, organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG