Decree No. 95/2011/ND-CP dated October 20, 2011 of the Government amending, supplementing some articles of the Decree No. 202/2004/ND-CP of the Government on the punishment of administrative violations in the monetary area and banking activity

THE GOVERNMENT

Decree No. 95/2011/ND-CP of October 20, 2011, amending and supplementing a number of articles of the Government’s Decree No. 202/2004/ND-CP of December 10, 2004, on sanctioning of administrative violations in the monetary and banking sector

THE GOVERNMENT

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

Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;

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

Pursuant to the December 13, 2005 Ordinance on Foreign Exchange;

Pursuant to the July 2, 2002 Ordinance on Handling of Administrative Violations; the April 2, 2008 Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Handling of Administrative Violations;

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

DECREES:

Article 1. To amend and supplement a number of articles of the Government’s Decree No. 202/2004/ND-CP of December 10, 2004, on sanctioning of administrative violations in the monetary and banking sectors, as follows:

1. To amend and supplement Clauses 3, 5 and 7 of Article 18 as follows:

“3. A fine of between VND 50 million and 100 million shall be imposed for any of the following acts:

a/ Lending, providing financial leasing or making payment of domestic debts in foreign currencies in contravention of law;

b/ Remitting or carrying foreign currencies into and out of Vietnam in contravention of law, except the cases specified in Clause 6 of this Article;

c/ Paying commodities or services for foreigners in foreign currencies in contravention of law;

d/ Buying, selling or making payment in foreign currencies in contravention of law;

e/ Paying commodities or services in gold in contravention of law;

f/ Trading, buying or selling gold in contravention of law.”

“5. A fine of between VND 300 million and 500 million shall be imposed for any of the following acts:

a/ Carrying out foreign exchange operations without a license granted by a competent authority or with an expired or suspended license;

b/ Providing foreign exchange services without a license granted by a competent authority;

c/ Importing and exporting foreign currencies or gold without a State Bank license;

d/ Posting up prices and advertising goods, services or land use rights in foreign currencies or gold in contravention of law;”

“7. Application of additional sanctions:

a/ Confiscation of foreign currencies, Vietnam dong or gold, for the acts specified at Points b, d, e and f, Clause 3 of this Article;

b/ Deprivation of the right to use the foreign exchange agent certificate for 12 months, for first violation, and for an indefinite term, for recidivism, for foreign exchange agents committing the violation specified at Point d, Clause 3 of this Article;

c/ Deprivation of the gold trading license for 12 months, for first violation, and for an indefinite term, for recidivism, for gold traders committing the violation specified at Point f, Clause 3 of this Article.”

2. To annul Point e, Clause 4 of Article 18.

3. To add the following Article 18a:

“Article 18a. Management and use of fines from administrative violations

1. Fines from administrative violations in the gold and foreign currency trading shall be paid into the state budget via accounts opened at the State Treasury.

2. Management and use of fines from administrative violations in the gold and foreign currency trading to finance agencies and institutions comply with the Ordinance on Handling of Administrative Violations and the Government’s Decree No. 124/2005/ND-CP of October 6, 2005, providing for fine receipts, management and use of fines from administrative violations, and current regulations on handling of administrative violations.”

4. To amend and supplement Article 37 as follows:

“Article 37. Competence to sanction administrative violations

1. Bank inspectors on duty may:

a/ Give cautions;

b/ Impose fines of up to VND 500,000;

c/ Confiscate material evidences and means used in administrative violation valued at up to VND 2 million;

d/ Take remedial measures under Clause 3, Article 7 of this Decree.

2. Chief Inspectors and controllers of provincial-level State Bank branches may:

a/ Give cautions;

b/ Impose fines of up to VND 30 million;

c/ Apply additional sanctions and take remedial measures provided at Point a, Clause 2, and Clause 3, Article 7 of this Decree;

d/ Propose directors of provincial-level State Bank branches to temporarily or permanently suspend one or some professional operations related to administrative violations under the Law on the State Bank and the Law on Credit Institutions.

3. The Chief Inspector and controllers of the State Bank may:

a/ Give cautions;

b/ Impose fines of up to VND 500 million;

c/ Apply additional sanctions and take remedial measures provided at Point a, Clause 2, and Clause 3, Article 7 of this Decree;

d/ Propose the Governor of the State Bank of Vietnam to temporarily or permanently suspend one or some professional operations related to administrative violations under the Law on the State Bank and the Law on Credit Institutions.

4. Chairpersons of provincial-level People’s Committees; directors of the Police Bureau for Investigation into Economic Management Order and Position-Related Crimes, the Police Bureau for Investigation into Social Order-Related Crimes, the Police Bureau for Investigation into Drug-Related Crimes, and the Immigration Department specified in Article 30 and Clauses 7 and 8, Article 31 of the Ordinance on Handling of Administrative Violations may issue decisions to sanction administrative violations under this Decree and notify the State Bank when they detect individuals and organizations other than credit institutions committing any acts specified at Points b, d, e and f, Clause 3, Points a, c, d, f, g, Clauses 4, and Clause 5, Article 18 of this Decree.

5. Market control agencies specified in Article 37 of the Ordinance on Handling of Administrative Violations that detect individuals and organizations other than credit institutions committing the violation specified at Point d, Clause 5, Article 18 of this Decree shall make records and transfer the cases to the persons specified in Clause 3 or 4 of this Article for handling under this Decree.”

Article 2. Effect

This Decree takes effect on the date of its signing.

Article 3. Implementation responsibility

The Governor of the State Bank of Vietnam, 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 TAN DUNG