Decree 52/2024/ND-CP on non-cash payment

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Decree No. 52/2024/ND-CP dated May 15, 2024 of the Government on non-cash payment
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Official number:52/2024/ND-CPSigner:Le Minh Khai
Type:DecreeExpiry date:Updating
Issuing date:15/05/2024Effect status:
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LuatVietnam.vn is the SOLE distributor of English translations of Official Gazette published by the Vietnam News Agency
Effect status: Known

THE GOVERNMENT
 __________

No. 52/2024/ND-CP

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

____________________

Hanoi, May 15, 2024

DECREE

On non-cash payment

_______________________

 

Pursuant to the Law on Government Organization dated June 19, 2015; Law dated November 22, 2019 Amending and Supplementing a Number of Articles of the Law on Government Organization and the Law on Organization of Local Government;

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

Pursuant to the Law on Credit Institutions dated January 18, 2024;

Pursuant to the Law on Investment dated June 17, 2020;

Pursuant to the Law on the State Budget dated June 25, 2015;

Pursuant to the Law on Cyber Security dated June 12, 2018;

Pursuant to the Law on Anti-Money Laundering dated November 15, 2022;

Pursuant to the Law on Anti-Terrorism dated June 12, 2013;

Pursuant to the Law on Post dated June 17, 2010;

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

The Government hereby promulgates the Decree on non-cash payment.

 

Chapter I
GENERAL PROVISIONS

 

Article 1. Scope of regulation

This Decree provides non-cash payments, including opening and use of payment accounts; non-cash payment services; payment intermediary services; and organization, management and supervision of payment systems.

Article 2. Subjects of application

1. Non-cash payment service providers.

2. Payment intermediary service providers.

3. Organizations and individuals engaged in the provision of non-cash payment services and payment intermediary services.

4. Institutional and individual users of non-cash payment services or payment intermediary services (hereinafter referred to as clients).

Article 3. Interpretation of terms

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

1. Non-cash payment services (hereinafter referred to as payment services) include services of payment via payment accounts of clients and services of payment not via payment accounts of clients.

2. Service of payment via payment accounts of clients means the provision of payment instruments; provision of services of payment by check, payment order, payment authorization, collection, collection authorization, bank card, money transfer, collection and payment on behalf, and other payment services for clients via their payment accounts.

3. Service of payment not via payment accounts of clients means the provision of payment services and performance of payment transactions not via payment accounts of clients.

4. Non-cash payment service provider (hereinafter referred to as payment service providers) mean an organization allowed to provide one or more payment services prescribed in this Decree, including: the State Bank of Vietnam (hereinafter referred to as the State Bank), banks, foreign bank branches, people's credit funds, micro-finance institutions and enterprises providing public postal services.

5. Payment intermediary service provider means an organization other than a bank or a foreign bank branch, which is licensed by the State Bank to provide payment intermediary services.

6. Enterprise providing public postal services means an enterprise designated in accordance with the Law on Post.

7. Non-cash payment transaction (hereinafter referred to as payment transaction) means the use of payment services by an organization or individual to make payments or transfer money.

8. International payment means a payment transaction made to one party which is an organization or individual having a payment account or a payment instrument issued outside the Vietnamese territory.

9. Payment account holder means the person that opens an individual's account or the organization that opens an organization’s account.

10. Non-cash payment instrument (hereinafter referred to as payment instrument) means an instrument issued by a payment service provider or a finance company allowed to issue credit cards, or a payment intermediary service provider providing e-wallet services, and used by a client to make payment transaction. These include: cheque, payment order, collection order, bank card (including: debit card, credit card, prepaid card), e-wallet, and others as prescribed by the State Bank.

11. Illegal payment instruments mean payment instruments not included in Clause 10 of this Article.

12. Electronic money is Vietnamese Dong stored on electronic devices provided on the basis of the equivalent amount of money prepaid by clients to banks, foreign bank branches, and payment intermediary service providers providing e-wallet services.

13. Financial switching service means the service of providing the technical infrastructure for connecting, transmitting, and processing electronic data for domestic payment transactions among payment service providers, finance companies allowed to issue credit cards, and payment intermediary service providers.

14. International financial switching service means the connection to international payment systems to transmit and process electronic data for international payment transactions.

15. Electronic clearing service means the service of providing a platform that facilitates the exchange and reconciliation of payment data and the calculation of amounts receivable or payable after clearing among participants in order for them to conduct the settlement to related parties.

16. E-wallet service means the service provided by a bank, foreign bank branch, or payment intermediary service provider to clients, which allows them to deposit funds into their e-wallets, withdraw funds from their e-wallets, and make payment transactions.

17. Collection/payment on behalf service mean receiving and processing electronic data, calculating amount to be collected/paid on behalf, canceling the collection/payment on behalf of clients who have payment accounts or bank cards, and making payments to related parties.

18. Electronic payment gateway service means the service of providing a secure platform for connecting, transmitting, and processing electronic data on payment transactions performed by payment instruments among clients, merchants, banks, foreign bank branches, finance companies allowed to issue credit cards, and payment intermediary service providers.

19. Payment system means a system of regulations, instruments, processes, procedures, and technical infrastructure that facilitate the processing, switching, clearing, and settlement of payment transactions.

20. International payment system means a payment system established abroad that enables cross-border payment transactions.

21. Important payment system means a payment system that plays a key role in serving payment demands of entities in the economy and carries a potential for systemic risk. Such payment system shall meet at least one of the following criteria:

a) It is the only payment system or accounts for a significant proportion of the total transaction value compared to other payment systems of the same type; or

b) It processes high-value payment transactions; or

c) It is used to settle payments for other payment systems or for transactions in the financial market.

22. Systemic risk means the risk that a participant in a payment system cannot fulfill its financial obligations when due, causing other participants to also fail to meet their financial obligations on time, thereby spreading risk to other payment systems.

23. Common payment account means a payment account opened under the names of at least two persons.

Article 4. State governance responsibilities of the State Bank for non-cash payments

1. Issue, by itself if the case is within its competence or by the competent authority to which the case must be escalated, the legal documents governing non-cash payment and regulations on management, connection, and sharing of data for non-cash payment.

2. Organize, manage, operate, and supervise the national payment system; participate in organizing and supervising the operation of other important payment systems in the economy; supervise the provision of payment services and payment intermediary services.

3. Approve in writing the participation in international payment systems of commercial banks and foreign bank branches.

4. Grant, amend, supplement, and revoke licenses for provision of payment intermediary services.

5. Approve in writing, and revoke written approvals of, the provision of services of payment not via payment accounts of clients by enterprises providing public postal services.

6. Check, inspect, and handle, within its competence, violations of law regulations on non-cash payment committed by organizations and individuals.

7. Manage international cooperation activities related to payment; assume the prime responsibility for, and coordinate with relevant authorities in, managing international payments.

Article 5. Payment in foreign currencies and international payment

1. Payment in foreign currencies and international payment must comply with this Decree, the law regulations on foreign exchange management, user data protection, cybersecurity, tax administration, anti-money laundering, anti-terrorist financing, anti-financing of the proliferation of weapons of mass destruction, and international treaties and agreements on payments to which Vietnam is a contracting party. Commercial terms shall be applied in accordance with Article 3 of the Law on Credit Institutions.

2. Commercial banks and foreign bank branches may participate in international payment systems after they meet the conditions prescribed in Article 21 of this Decree.

3. Foreign organizations providing payment services and payment intermediary services to non-resident clients and foreigners residing in Vietnam in order for them to perform goods and services transactions within Vietnam must do so through commercial banks or foreign bank branches that have been approved by the State Bank to participate in international payment systems of such foreign organizations.

4. Financial switching service providers may connect to international payment systems to perform international financial switching services after they meet the conditions prescribed in Article 22 of this Decree.

5. Payment intermediary service providers (other than financial switching service providers) can provide payment intermediary services to clients for them to perform payment transactions for goods and services abroad. Such cross-border payment transactions must be paid and settled through commercial banks or foreign bank branches that have been approved by the State Bank to operate foreign exchanges on the international market.

6. Parties involved in cross-border payment activities shall be responsible for providing complete, accurate, and timely information and complying with the requirements of State authorities as prescribed by Vietnamese law.

Article 6. E-wallets and prepaid cards

1. E-wallets and prepaid cards are digital storage methods for electronic money.

2. Banks and foreign bank branches are allowed to issue and provide e-wallets and prepaid cards. E-wallets and prepaid cards shall be issued, provided, and used in accordance with the regulations of the State Bank.

3. Payment intermediary service providers providing e-wallet services must ensure that the total balance of all payment guarantee accounts for e-wallet services opened at banks and foreign bank branches is not less than the total balance of all e-wallets issued to clients. They must only allow the use of the services for e-wallets linked to the clients’ own payment accounts or debit cards.

Article 7. Organization, management, and operation of the national payment system

1. The State Bank shall organize, manage, and operate the national payment system to provide payment services to system participants, including the State Bank, credit institutions, foreign bank branches, and the State Treasury; and settle clearing results for other payment systems.

2. The State Bank shall provide regulations on management, operation, and functioning safety of the national payment system.

Article 8. Prohibited acts

1. Altering or editing payment instruments or payment documents in violation of law regulations; forging payment instruments or payment documents; possessing, circulating, transferring, or using forged payment instruments.

2. Illegally intruding or attempting to intrude, stealing data, sabotaging or altering software programs or electronic data used in payment; taking advantage of computer network errors for self-seeking purpose.

3. Untruthfully providing information related to the provision or use of payment services and payment intermediary services.

4. Disclosing or providing information about balances of payment accounts, bank cards, e-wallets, and payment transactions of clients of payment service providers and payment intermediary service providers in violation of relevant legal regulations.

5. Opening or maintaining anonymous or fictitious payment accounts or e-wallets; buying, selling, renting, leasing, borrowing, or lending payment accounts or e-wallets; renting, leasing, buying, selling, or opening bank cards on behalf of others (other than unidentified prepaid cards); stealing or colluding to steal, buying, or selling information about payment accounts, bank cards, or e-wallets.

6. Issuing, providing or using illegal payment instruments.

7. Providing payment intermediary services without being licensed by the State Bank to provide payment intermediary services. Providing payment services without being a payment service provider.

8. Engaging in, organizing, or facilitating the following acts: using payment accounts, payment instruments, payment services, and payment intermediary services for gambling, gambling hosting, frauds, scams, illegal businesses, and other violations of law regulations.

9. Editing or altering licenses; buying, selling, transferring, leasing, lending, or forging licenses for provision of payment intermediary services.

10. Authorizing and delegating other organizations or individuals as agents to perform activities permitted under the licenses for provision of payment intermediary services.

11. Falsifying or forging documents included in the dossiers of application for licenses in order to fraudulently meet the eligibility requirements for obtaining licenses for provision of payment intermediary services.

12. Operating against the licenses for provision of payment intermediary services.

13. Holders of payment accounts at payment service providers provide information or make commitments that they do hold such payment accounts at such payment service providers to parties with rights and obligations under the law regulations on loan disbursement by credit institutions and foreign bank branches.

 

Chapter II

OPENING AND USE OF PAYMENT ACCOUNTS

 

Section I
GENERAL PROVISIONS

 

Article 9. Opening and use of payment accounts

Payment accounts of clients shall be opened and used at payment service providers in accordance with the regulations of the State Bank and relevant law regulations.

Article 10. Use and authorized use of payment accounts

1. Payment account holders may use their own payment accounts to deposit and withdraw cash and request payment service providers to conduct valid payment transactions. Payment account holders may request payment service providers to provide information about transactions and balances of their payment accounts in accordance with the agreements with the payment service providers where they opened such payment accounts.

2. Payment account holders may authorize others to use their payment accounts. Such authorization must be made in writing in accordance with the law regulations on authorization.

3. Payment account holders are obliged to provide sufficient, truthful information and comply with payment service providers' regulations on opening, use and authorized use of payment accounts and assure sufficient money amounts (credit balance) on their accounts for executing payment orders, unless otherwise they have overdraft loan agreements with payment service providers.

4. Payment service providers are obliged to fully and promptly execute valid payment orders of payment account holders.

5. Payment service providers may refuse to execute a payment order from a payment account holder if the payment order is invalid or there is a legal basis to prove that the payment account holder has committed the prohibited acts as prescribed in Article 8 of this Decree or if the payment account does not have sufficient balance, unless otherwise agreed. In case of refusing to execute a payment order from a payment account holder, the payment service provider must notify the payment account holder of the reason for such refusal.

Article 11. Freezing payment accounts

1. A payment account has part or the whole of its balance frozen in any of the following cases:

a) There is a prior agreement between the payment account holder and the payment service provider, or a request of the payment account holder;

b) There is a written decision or request of a competent authority as prescribed by law;

c) The payment service provider discovers an error or mistake in crediting a client's payment account or executes a refund request from the payment service provider for a mistaken or erroneous money transfer in comparison to the payment order of the remitter after crediting the client's payment account. The amount frozen on the payment account shall not exceed the mistaken or erroneous amount;

d) There is a request for freezing from one of the holders of the common payment account, unless otherwise agreed in advance between the payment service provider and the holders of the common payment account.

2. Freezing of a payment account shall be terminated when:

a) There is a written agreement between the payment account holder and the payment service provider;

b) There is a written decision on termination of freezing of a competent authority as prescribed by law;

c) The error or mistake in the transfer prescribed at Point c, Clause 1 of this Article has been rectified;

d) There is a request for termination of such freezing from all holders of the common payment account or a prior written agreement between the payment service provider and the holders of the common payment account.

3. The payment service provider, the payment account holder, and the competent authority shall be liable for compensation in accordance with the law regulations if they freeze a payment account in violation of the law regulations and cause damage to the payment account holder.

Article 12. Closure of payment accounts

1. A payment account must be closed when:

a) Its holder so requests and has fulfilled all obligations related to the payment account;

b) Its holder is an individual who has died or has been declared dead;

c) The provider holding such payment account terminates its operation in accordance with law;

d) Its holder commits the prohibited acts related to payment accounts as prescribed in Clauses 5 and 8, Article 8 of this Decree.

dd) There is a prior written agreement between the payment account holder and the payment service provider;

e) Other cases prescribed by law.

2. Handling of the balance upon the closure of a payment account:

a) Making payments upon the request of the payment account holder or as agreed upon in advance between the payment account holder and the payment service provider; making payments at the request of the payment account holder’s legal representative or guardian in the case where the payment account holder has lost his/her civil act capacity or can hardly cognize or control his/her acts or has his/her civil act capacity restricted in accordance with the civil law regulations; or making payments the heir of the payment account holder or such heir’s legal representative in the case where the payment account holder died or has been declared dead;

b) Making payments under decisions of competent authorities as prescribed by law;

c) Handling in accordance with the law regulations in case the lawful beneficiary of the payment account balance fails to come to receive the balance after being notified.

 

Section 2

OPENING AND USE OF PAYMENT ACCOUNTS OF THE STATE BANK

 

Article 13. Opening and use of payment accounts of the State Bank

1. The State Bank shall open payment accounts for the State Treasury, credit institutions and foreign bank branches in accordance with the Law on the State Bank and the Law on Credit Institutions.

2. The State Bank shall open accounts for central banks of foreign countries, foreign banks, international monetary institutions and international banks under international treaties and agreements to which Vietnam is a contracting party. For a treaty to which Vietnam is not yet a contracting party, payment accounts must be opened under decisions of the Prime Minister.

3. The State Bank shall open payment accounts and conduct transactions on payment accounts at foreign banks, international financial institutions, and international banks. The State Bank shall open payment accounts at central banks of foreign countries and open payment accounts and conduct payment transactions overseas under treaties to which Vietnam is a contracting party.

Article 14. Dossiers and procedures for opening and closure of payment accounts at the State Bank, credit institutions, foreign bank branches, and the State Treasury

1. Principles for making and submitting dossiers:

a) The dossiers must be expressed in Vietnamese. If the documents in the dossier of application for opening of a payment account are expressed in foreign languages, they must be translated into Vietnamese and notarized or certified in accordance with the law regulations;

b) Copies of documents included in the dossier of application for opening or closure of a payment account must be authenticated copies or exact copies from the master register or copies with the presentation of originals for collation as prescribed by the law regulations. In the case where such dossier is submitted online, the regulations on administrative procedures in the electronic environment shall prevail;

c) Dossiers can be submitted by post (postal services) or in person to the single-window section of the State Bank branch where the provider wishes its payment account to be opened, or online through the State Bank's public service portal or the national public service portal;

d) The provider that requests opening or closure of a payment account shall take full responsibility before law for the accuracy and truthfulness of provided information.

2. A dossier of application for opening of a payment account at the State Bank shall comprise:

a) A written application for opening of a payment account enclosed with a form of registration of a sample seal and a sample signature, made using Form No. 01 attached to this Decree, signed and sealed by the legal representative or authorized representative of the provider opening the payment account;

b) Documents proving that the provider opening the payment account is legally established and operating, including: its establishment decision, operation license, enterprise registration certificate, cooperative registration certificate, or any equivalent document;

c) Documents proving the representative capacity of the legal representative or authorized representative of the provider opening the payment account, and the identity card/citizen's identity card/electronic identity card/citizen's identity document/valid passport of such person;

d) The appointment document or decision and the identity card/citizen's identity card/electronic identity card/citizen's identity document/valid passport of the chief accountant or person in charge of accounting, the person who controls documents on transactions with the State Bank of the provider opening the payment account.

3. The process and procedures for opening a payment account at the State Bank:

a) The provider wishing to open a payment account at the State Bank must submit 01 dossier of application for opening of such payment account as prescribed in Clause 2 of this Article to the State Bank branch (the Central Banking Department or the State Bank branch in the province or municipality) where the provider wishes its payment account to be opened;

b) Upon receiving the dossier of application for opening of the payment account, the State Bank shall check the components of the dossier and cross-check them against the information declared in the written application for opening of the payment account to ensure their consistency and accuracy.

If the dossier of application for opening of the payment account is incomplete or invalid, or there are discrepancies between the information declared in the written application for opening of the payment account and the related documents in the dossier, within 01 working day from the date of receiving the dossier of application for opening of the payment account, the State Bank shall notify the provider that requests opening of the account to complete the dossier.

If the provider organization that requests opening of the account fails to submit supplementary documents or finalize the dossier within 05 working days from the date of receiving the State Bank's request for supplementary documents or finalization of the dossier, the State Bank shall send a written refusal to open the payment account and return the dossier to the provider that requests opening of the account;

c) The State Bank must process the opening of the payment account for the provider within 02 working days from the date of receiving the complete and valid dossier of application for opening of the payment account from the applicant provider. If the State Bank refuses to open a payment account, it must notify the provider of the reason in writing.

4. The process and procedures for closing a payment account:

a) A credit institution, foreign bank branch, or State Treasury that needs to close a payment account at the State Bank must make a written application for closure of the payment account and a request for handling of the account balance (if any) using Form No. 02 attached to this Decree, which shall be signed and stamped by the legal representative of the provider, and sent to the State Bank (where the payment account was opened);

b) Upon receiving a written application for closure of the payment account, the State Bank shall check and verify the information on the written application against the account’s information and handle the account balance at the request of the account holder (if any). After completing the handling of the remaining balance on the payment account, the State Bank shall close the payment account;

c) The State Bank must process the closure of the payment account within 02 working days from the date of receiving the dossier of application for closure of such payment account from the provider that opens such payment account;

d) In the case where the payment account is closed in accordance with Points c, d, and dd, Clause 1, Article 12 of this Decree, the handling of the remaining balance on the payment account (if any) after all obligations to related parties have been fulfilled shall be carried out upon written request from the account holder before the decision to revoke the establishment and operation license is issued, under the decision of the competent State authority or in accordance with relevant law regulations. After closing the payment account, the State Bank shall notify the account holder in writing within 05 working days.

 

Section 3

OPENING AND USE OF PAYMENT ACCOUNTS AT CREDIT INSTITUTIONS AND FOREIGN BANK BRANCHES

 

 

Article 15. Opening and use of accounts for payment between credit institutions or foreign bank branches

1. Accounts for payment between credit institutions or foreign bank branches must be opened in accordance with the Law on Credit Institutions. Payment accounts opened by credit institutions or foreign bank branches at others must be used only for the payment purpose, not for lending, overdraft or other purposes.

2. Credit institutions and foreign bank branches authorized to conduct foreign exchanges may open foreign currency payment accounts with other authorized credit institutions. Foreign-currency payment accounts must be opened and used in accordance with the law on foreign exchange.

Article 16. Opening of payment accounts for clients other than credit institutions

1. Banks and foreign bank branches shall guide the opening of payment accounts for their clients in accordance with regulations of the State Bank and other relevant regulations.

2. Holders of common payment accounts may be organizations or individuals. The use purposes of common payment accounts, rights and obligations of common payment account holders and regulations the use of common accounts must be prescribed in writing in accordance with law regulations on opening and use of payment accounts.

 

Chapter III

NON-CASH PAYMENT SERVICES

 

Section 1

SERVICES OF PAYMENT VIA PAYMENT ACCOUNTS OF CLIENTS

 

Article 17. Services of payment via payment accounts of clients

1. Services of payment via payment accounts of clients include:

a) Supply of payment instruments;

b) Provision of services of check payment, payment order, direct debit, collection, authorized collection, bank card, money transfer, collection and payment on clients' behalf;

c) Provision of other payment services in accordance with the regulations of the State Bank.

2. Institutional providers of services of payment via payment accounts of clients:

a) The State Bank, which may provide payment services for clients opening payment accounts at the State Bank;

b) Commercial banks, foreign bank branches and policy banks, which may provide all payment services prescribed in Clause 1 of this Article;

c) Cooperative banks, which may provide some payment services prescribed in Clause 1 of this Article as stated in its establishment and operation license granted by the State Bank.

3. Services of payment via payment accounts of clients shall be provided in accordance with the regulations of the State Bank.

 

Section 2
SERVICES OF PAYMENT NOT VIA PAYMENT ACCOUNTS OF CLIENTS

 

Article 18. Services of payment not via payment accounts of clients

1. Services of payment not via payment accounts of clients include:

a) Provision of payment services: money transfer, collection and payment on clients' behalf;

b) Provision of other services of payment not via accounts in accordance with the regulations of the State Bank.

2. Institutional providers of services of payment not via payment accounts of clients:

a) Commercial banks, foreign bank branches, and policy banks;

b) Cooperative banks may provide some payment services not via payment accounts of clients as stated in its establishment and operation license granted by the State Bank;

c) People's credit funds may provide money transfer services and perform collection/payment on behalf services for their members and clients, as prescribed in their establishment and operation licenses granted by the State Bank;

d) Micro-finance institutions may provide money transfer and perform collection/payment on behalf services for their clients, as prescribed in their establishment and operation licenses granted by the State Bank;

dd) Enterprises providing public postal services may provide money transfer and perform collection/payment on behalf services after they meet the conditions prescribed in Article 19 of this Decree and obtain written approvals from the State Bank.

3. Services of payment not via payment accounts of clients shall be provided in accordance with the regulations of the State Bank.

Article 19. Conditions for provision of services of payment not via payment accounts of clients by enterprises providing public postal services

An enterprise providing public postal services may offer services of payment not via payment accounts of clients if it meets and surely maintains the following conditions throughout the process of providing such services:

1. It must maintain an information system for providing services of payment not via payment accounts of clients, which must meet the requirements for level-3 information system security as prescribed by law.

2. Personnel requirements: The legal representative, Chief Executive Officer (Director), and person in charge of providing services of payment not via payment accounts of clients of the enterprise providing public postal services must hold a university degree or higher in one of the fields of economics, business administration, law, or information technology.

Key personnel involved in providing services of payment not via payment accounts of clients (including Heads of Departments (Committees) or equivalent positions and technical staff) must hold at least an associate degree in one of the following fields: economics, business administration, law, information technology, or a relevant discipline related to the professional operations they are in charge of.

3. It has technical and operational processes for each type of service; take measures to ensure solvency and maintain the balance of its payment account at the bank and the cash greater than the amount payable to clients at the time of payment; internal inspection and control procedures; risk management mechanism; general principles and internal regulations on preventing and combating money laundering, terrorist financing and financing of proliferation of weapons of mass destruction; process and procedures for resolving investigation requests, complaints, and disputes; regulations on the rights and responsibilities of relevant parties.

4. It must take measures to collect, transport, and deposit cash into its payment account opened at the bank at the end of the day, ensuring the security and safety of cash circulation; have devices to ensure the delivery, receipt, and storage of cash; regulate the limits for transferring and receiving money, as well as the cash balance at points of service provision; and ensure fire safety measures in accordance with law regulations.

Article 20. Dossier, process, and procedures for approving in writing, and revoking written approvals of, the provision of services of payment not via payment accounts of clients by enterprises providing public postal services

1. A dossier of application for approval of provision of services of payment not via payment accounts of clients comprises:

a) A written application for providing services of payment not via payment accounts of clients, made using Form No. 03 attached to this Decree;

b) A resolution of the Members' Council or a document of the authorized representative of the owner, in accordance with the competence prescribed in the company's charter, approving the explanations of conditions for providing services of payment not via payment accounts of clients;

c) Explanations of the conditions for providing services of payment not via payment accounts of clients as prescribed in Article 19 of this Decree;

d) The documents on personnel: Curricula vitae, authenticated copies or exact copies from the master register or copies with the presentation of originals for collation of the qualifications proving the capability and proficiency of the legal representative, Chief Executive Officer (Director), In-Charge Person and key personnel that provide such services;

dd) The establishment license or the enterprise registration certificate or any equivalent document issued by a competent authority, the company’s charter (authenticated copies or exact copies from the master register or copies with the presentation of originals for collation).

2. The process and procedures for approval:

a) The enterprise providing public postal services shall submit 03 dossiers, as prescribed Clause 1 of this Article, to the State Bank to apply for provision of services of payment not via payment accounts of clients. Such dossiers can be submitted by post (postal services), or in person at the State Bank's single-window section, or online through the State Bank's public service portal or the national public service portal (online submission shall be subject to the regulations on administrative procedures in the electronic environment). The enterprise providing public postal services that have the request shall take full responsibility before law for the accuracy and truthfulness of provided information.

Based on the dossier, the State Bank shall examine the dossier against the conditions prescribed in Article 19 of this Decree;

b) Within 05 working days from the date of receiving the dossiers, the State Bank shall send a written notice to the enterprise providing public postal services to confirm that it has received all components of the valid dossiers or that the dossiers are incomplete or invalid in accordance with the regulations.

In the case where the dossier of application is incomplete or invalid as prescribed, the State Bank shall send a written request to such enterprise for supplementation and finalization of the dossier. The period of time during which the enterprise is supplementing or finalizing the dossier shall not count towards the examination period.

c) The State Bank shall examine the dossier of application within 60 working days from the date of receiving a complete and valid dossier of application. If more than 60 days have passed since the State Bank sent a written notice requesting to supplement or finalize the dossiers but the enterprise does not submit supplementary documents or after 02 re-submissions the dossiers are still unsatisfactory, the State Bank shall send a written notice of rejection and return the dossiers to the enterprise providing public postal services.

Within 60 working days from the date of receiving the supplementary documents or finalized dossiers of the enterprise providing public postal services, the State Bank shall evaluate and approve in writing in accordance with the regulations. In case of disapproval, the State Bank shall send a written reply to the enterprise and clearly state the reasons for such disapproval therein.

3. The validity period of the written approval is 10 years from the date of such written approval is signed by the State Bank. To renew the written approval for provision of services of payment not via payment accounts of clients, at least 60 days before the expiration of the written approval, the enterprise shall submit 03 dossiers of application for renewal of the written approval, each comprising: a written application for provision of services of payment not via payment accounts of clients, made using Form No. 03 attached to this Decree; a report on the performance of its operations under the written approval from the date of approval to the date of submission for renewal and a copy of the valid written approval, to the State Bank.

Within 30 working days from the date of receiving the enterprise's dossier of application for renewal of the written approval, the State Bank shall consider renewing the written approval or notify in writing its refusal and clearly stating the reason for such refusal therein.

The time limit for renewing the written approval is 10 years from the date the State Bank renews such approval for the enterprise.

4. The written approval for providing services of payment not via payment accounts of clients shall be revoked in the following cases:

a) The enterprise is approved in writing by the State Bank to provide services of payment not via payment accounts of clients is dissolved or declared bankrupt in accordance with the law regulations;

b) The enterprise is approved in writing by the State Bank to provide services of payment not via payment accounts of clients submits a written request for revocation due to termination of its provision of services of payment not via payment accounts of clients, made using Form No. 05 attached to this Decree;

c) A judgment, enforcement decision, or administrative penalty decision from a competent State authority or criminal judgment enforcement authority requires the revocation of the written approval of the enterprise providing public postal services or a competent State authority or criminal judgment enforcement authority requests in writing to revoke the written approval of the enterprise providing public postal services;

d) The enterprise is approved in writing by the State Bank to provide services of payment not via payment accounts of clients commits a prohibited act as prescribed in Clause 8, Article 8 of this Decree;

dd) The enterprise fails to remediate its violation after 03 months from the date the State Bank sends a written notice to the enterprise informing that it has violated one of the conditions in the process of providing services prescribed in Article 19 and requiring its remediation thereof;

e) The enterprise operates against the State Bank's written approval for provision of services of payment not via payment accounts of clients;

g) During inspection or supervision of the enterprise's provision of services of payment not via payment accounts of clients, it is found that the enterprise has not been providing services of payment not via payment accounts of clients for a continuous period of 06 months.

5. The process and procedures for considering revocation of or revoking written approvals for provision of services of payment not via payment accounts of clients of enterprises providing public postal services:

a) In the case where the enterprise is dissolved or declared bankrupt in accordance with Point a, Clause 4 of this Article, the enterprise shall send a written notice to the State Bank within 07 working days from the date the dissolution decision is passed in accordance with the Law on Enterprises or the date of receiving the bankruptcy declaration from the People's Court in accordance with law regulations on bankruptcy. The State Bank shall issue a decision on revocation of the written approval after 10 working days from the date of receiving the enterprise’s written notice.

The State Bank shall issue a decision on revocation of the written approval after 10 working days from the date of receiving the written application for revocation of the written approval for provision of services of payment not via payment accounts of clients as prescribed at Point b, Clause 4 of this Article.

The State Bank shall issue a decision on revocation of the written approval after 10 working days from the occurrence of any cases prescribed at Points c, d, and dd, Clause 4 of this Article;

b) When the enterprise shows signs of violations in one of the cases prescribed at Points e and g, Clause 4 of this Article, the State Bank shall issue a notice and request the enterprise to provide explanations thereof.

If the approved enterprise fails to provide written explanations or the explanations are unsatisfactory after 15 working days from the date of the State Bank’s notice, the State Bank shall consider issuing a decision on revocation of the written approval.

6. Upon receiving the State Bank's decision to revoke the written approval, the enterprise whose written approval is revoked must immediately cease providing services of payment not via payment accounts of clients.

Within 30 days from the date of the State Bank’s decision on revocation of the written approval, the enterprise shall send a written notice to related organizations and individuals for liquidation of their contracts and fulfillment of the obligations and responsibilities between them in accordance with the law regulations.

After fulfilling all obligations and responsibilities between the parties as prescribed by law, after a period of 03 years from the date the enterprise's written approval is revoked in the cases prescribed in Clause 4 (other than Point a, Clause 4) of this Article, the enterprise may apply for providing services of payment not via payment accounts of clients in accordance with Article 19 of this Decree. The process, procedures and dossier must comply with Clauses 1 and 2 of this Article.

 

Section 3
PARTICIPATION IN THE INTERNATIONAL PAYMENT SYSTEM

 

Article 21. Conditions for participating in international payment systems of commercial banks and foreign bank branches

1. They are allowed to conduct basic foreign exchange operations in both domestic and international markets.

2. They adopt policies and procedures for managing risks related to money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction, which must meet the legal requirements for the prevention and combat of money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction, when participating in the international payment systems.

3. They maintain information systems that meet the requirements for management, security, and confidentiality in accordance with Vietnamese law; have internal regulations on standards for selecting connections to international payment systems.

4. The international payment system operators are established and legally operating abroad.

 

Chapter IV
PAYMENT INTERMEDIARY SERVICES

Article 22. Payment intermediary services and conditions for provision thereof

1. Payment intermediary services include: financial switching services, international financial switching services, electronic clearing services, e-wallet services, collection/payment on behalf support services and electronic payment gateway services. Payment intermediary services shall be provided in accordance with the regulations of the State Bank.

2. Conditions for provision of payment intermediary services:

An organization other than a bank or a foreign bank branch may be granted a license for provision of payment intermediary services by the State Bank if they fully meet and surely maintain the following conditions throughout their provision of such services:

a) It has an establishment license or an enterprise registration certificate granted by a competent State authority and is not currently undergoing any spin-off, slit-up, consolidation, merger, transformation, dissolution, or bankruptcy under a decision issued during the process of applying for a license for provision of payment intermediary services. In the case of providing financial switching services or electronic clearing services, the provider must ensure that it does not engage in any other business operations other than provision of payment intermediary services;

b) It possesses minimum paid-up or allocated charter capital of: VND 50 billion if it wishes to provide e-wallet services, collection/payment on behalf support services, and electronic payment gateway services; VND 300 billion if it wishes to provide financial switching services, international financial switching services, and electronic clearing services; and bears full responsibility for the legality of the paid-up or allocated capital;

c) It possesses a scheme for provision of payment intermediary services approved by the competent authority in accordance with its charter, made using Form No. 08 attached to this Decree;

d) Personnel requirements: The legal representative and Chief Executive Officer (Director) of the provider must hold a university degree or higher in one of the fields of economics, business administration, law, or information technology, and have at least 05 years of experience as a manager or operator of the provider in the field of finance and banking. They must not be among the persons prohibited by law; must ensure that there is always at least one legal representative residing in Vietnam (if there is only one legal representative residing in Vietnam, such person must, when leaving Vietnam, authorize in writing another person residing in Vietnam to exercise the rights and obligations of the legal representative). In this case, the legal representative remains responsible for the exercise of the delegated rights and obligations.

The Deputy Chief Executive Officer (Deputy Director) and key personnel implementing the scheme on provision of payment intermediary services (including Heads of Departments (Committees) or equivalent positions and technical staff) must hold at least an associate degree in one of the following fields: economics, business administration, law, information technology, or a relevant discipline related to the professional operations they are in charge of;

dd) It makes explanations of the technical solutions for provision of payment intermediary services, approved by the competent authority in accordance with its charter, meeting the requirements for level-3 information system security as prescribed by law;

e) With regard to e-wallet services and collection and payment on behalf services provided for a client holding accounts in multiple banks or foreign bank branches, the service provider must be provided with financial switching and clearing services by a provider licensed by the State Bank in order to conduct financial transaction switching and clear obligations arising during its provision of payment intermediary services;

g) In addition to the conditions prescribed at Points a, b, c, d, and dd, Clause 2 of this Article, the providers of financial switching services and electronic clearing services must meet the following requirements: utilizing a clearing organization to settle clearing results among related parties; entering into connection agreements with at least 50 banks and foreign bank branches which must represent over 65% of the total charter capital of all banks and foreign bank branches within the credit institution system in the year preceding the year of submitting the dossiers of application for the licenses, and at least 20 payment intermediary service providers; maintaining an information infrastructure that meets at least the minimum security requirements for level-4 information system security as prescribed by law, which can be integrated and connected to the technical systems of participants with which connection agreements are entered into; operating servers in accordance with law regulations with a minimum processing capacity of 10 million payment transactions per day;

Participants may connect to no more than 02 financial switching service providers and electronic clearing service providers;

h) A provider of international financial switching services must meet the following additional requirements: Holding a valid license for provision of financial switching services; utilizing a clearing organization to settle clearing results among related parties; issuing internal regulations for selecting connections to international payment systems for processing international financial switching transactions; issuing internal regulations on the technical and operational processes of international financial switching services to be licensed, and connecting to international payment systems whose operators are legally established and operating abroad.

3. Within a maximum period of 06 months from the date of being granted a license for provision of payment intermediary services by the State Bank, the licensed provider must provide payment intermediary services to the market and is only allowed to provide payment intermediary services to the market after deploying a technical system that meets the requirements prescribed at Point dd, Clause 2 of this Article, meeting the requirements prescribed at Points g and h, Clause 2 of this Article for financial switching services, electronic clearing services, international financial switching services.

Article 23. Principles for making and submitting dossiers of application for grant, re-grant, amendment, supplementation, or revocation of licenses for provision of payment intermediation services

1. The dossiers must be expressed in Vietnamese. For documents granted, notarized, or certified by foreign authorities or organizations, consular legalization in accordance with Vietnamese law is required (unless otherwise consular legalization is exempted in accordance with the law regulations on consular legalization). Such documents must also be translated into Vietnamese.

2. Copies of the dossier or documents must be authenticated copies or exact copies from the master register or copies with the presentation of originals for collation as prescribed by the law regulations. In the case where such dossier is submitted online, the regulations on administrative procedures in the electronic environment shall prevail.

3. Self-made personal curricula vitae must be signed with the signature certified in accordance with the law regulations.

4. Dossiers can be submitted by post (postal services) or in person to the single-window section of the State Bank, or online through the State Bank's public service portal or the national public service portal.

5. The provider that requests the grant, re-grant, amendment, supplementation, or revocation of the license shall take full responsibility before law for the accuracy and truthfulness of provided information.

Article 24. Grant of licenses for provision of payment intermediary services

1. The State Bank shall grant licenses for provision of payment intermediary services, as prescribed in Clause 1, Article 22 of this Decree, to providers that have applied for such licenses.

2. A dossier of application for a license for provision of payment intermediary services:

a) A written application for grant of the license made using Form No. 07 attached to this Decree;

b) A resolution of the Members' Council or the Board of Directors or the General Meeting of Shareholders, or a document from the authorized representative of the owner, in accordance with the competence prescribed in the company's charter, approving the scheme on provision of payment intermediary services and the explanations of technical solutions;

c) A scheme on provision of payment intermediary services, made using Form No. 08 attached to this Decree;

d) Explanations of technical solutions;

dd) Personnel files: curricula vitae made using Form No. 09 attached to this Decree, copies of diplomas evidencing the capacity and professional qualifications of the legal representative, Chief Executive Officer (Director), Deputy Chief Executive Officer (Deputy Director) and other key personnel in charge of implement the scheme on provision of payment intermediary services; certificate of criminal record or equivalent document of the legal representative and Chief Executive Officer (Director) as required by law (granted no more than 06 months before the dossier of application for the license is submitted); written certification from an authorized representative of the providers where the legal representative and Chief Executive Officer (Director) have worked or are currently working, confirming their positions and tenures, or copies of documents proving their positions and tenures at the providers of the legal representative and Chief Executive Officer (Director);

e) Copies of documents evidencing the legal establishment and operation of the applicant for the license, including: establishment license or enterprise registration certificate or equivalent document; its establishment and operational charter; investment certificates of foreign investors (if any);

g) Written commitments and supporting documents from the owner, founding members, and founding shareholders of the provider regarding the maintenance of the actual value of the charter capital;

h) For financial switching services and electronic clearing services: the plan to utilize a settlement organization to carry out clearing of settlement results among related parties, as prescribed in Form No. 08 attached to this Decree; connection agreements with participants, including commitments not to connect to more than two providers of financial switching services and electronic clearing services; documents evidencing that the information infrastructure and server meet the requirements prescribed at Point g, Clause 2, Article 22 of this Decree;

i) For international financial switching services: internal regulations on standards for selecting the international payment system to which it connects to carry out financial switching of international payment transactions; internal regulations on operational processes with risk management measures for the international financial switching services for which it applies for the license; copies of documents evidencing that the international payment system operator is legally established and operating abroad, granted by the competent authorities of the country or territory where the provider is incorporated or headquartered; the plan to utilize a settlement organization to carry out clearing of settlement results among related parties, as prescribed in Form No. 08 attached to this Decree.

3. The process and procedures for granting licenses

For dossiers submitted by post (postal services) or in person at the State Bank's single-window section, the applicants must submit 02 sets of paper documents and 06 CDs (or 06 USBs) containing scanned copies of all such documents, as prescribed in Clause 2 of this Article. Based on the dossier of application for a license, The State Bank shall, in coordination with relevant ministries and authorities, examine the dossier of application against the conditions prescribed in Clause 2, Article 22 of this Decree.

a) Within 05 working days from the date of receiving the dossier of application, the State Bank shall send a written confirmation to the provider that the complete and valid dossier of application is received. In the case where the dossier is incomplete or invalid, the State Bank shall send a written request to the provider for submission of additional or revised documents. The period of time during which the dossier is being supplemented or finalized shall not count towards the examination period of the dossier.

If the provider applying for the license fails to resubmit the dossier of application or the resubmitted dossier is still incomplete within 60 days from the date of the State Bank's request for supplementation or finalization thereof, the State Bank shall return the dossier of application to the provider under a written document;

b) The State Bank shall examine the dossier of application within 90 working days from the date of receiving a complete and valid dossier of application. If the provider fails to resubmit the dossier within 60 days from the date of the State Bank's request for explanation or finalization thereof, the State Bank shall return the dossier of organization under a written document.

Upon receiving a complete and revised dossier of application from the provider, the State Bank shall conduct the examination thereof and grant the license within 90 working days, in accordance with the regulations. In case of refusal to grant the license, the State Bank shall send a written reply to the provider and clearly state the reasons for such refusal therein;

c) From the date the State Bank receives a complete and valid dossier of application, the applicant organization may voluntarily submit supplementary documents or finalize the dossier at least twice. The maximum time limit for voluntarily submitting such supplementary documents or finalized dossier is 60 days from the date the State Bank sends a written confirmation of receiving of a complete and valid dossier of application to the provider.

4. The process and procedures for operating after obtaining a license

At least 30 working days before the scheduled launch of payment intermediary services and no later than 06 months from the date of being granted a license by the State Bank, the licensed payment intermediary service provider must notify and provide supporting documents to the State Bank regarding: compliance of the technical system with the requirements prescribed at Point dd, Clause 2, Article 22 of this Decree; a copy of the technical acceptance record for licensed payment intermediary services with a partner bank for e-wallet services, collection/payment on behalf support services, and electronic payment gateway services, using Form No. 10 attached to this Decree; documents proving that the provider performing settlement of clearing results among related parties for financial switching services, electronic clearing services, and international financial switching services meets the conditions prescribed at Points g and h, Clause 2, Article 22 of this Decree.

Within 15 working days from the date of receiving complete dossier and documents, the State Bank shall conduct on-site inspection at the payment intermediary service provider and send a written notice of compliance or non-compliance with the requirements prescribed at Points dd, g, and h, Clause 2, Article 22 of this Decree. If the payment intermediary service provider fails to meet the requirements, the State Bank shall consider revoking the license for provision of payment intermediary services in accordance with Point e, Clause 1, Article 27 of this Decree.

5. License validity

The operation duration stated on a license is 10 years from the date such license is granted by the State Bank to an organization. For international financial switching services, the operation duration shall not exceed the operation duration stated on the license for provision of financial switching services.

Article 25. Re-grant of licenses for provision of payment intermediary services

The State Bank shall re-grant a license for provision of payment intermediary services in the following cases:

1. The license expires

At least 60 days before the expiration date of the operation duration stated in the license, the payment intermediary service provider must submit a dossier of application for re-grant of the license to the State Bank. For dossiers submitted to the State Bank by post (postal services) or in person to the State Bank's single-window section, the payment intermediary service provider must submit 03 dossiers of application for re-grant of the license, each comprising: a written application for re-grant of the license, made using Form No. 11 attached to this Decree; a report on the performance of its operations under the license from the date of being granted the license to the date of submitting the dossier of application for re-grant of the license; and a copy of the valid license.

Within 30 working days from the date of receiving the provider's dossier of application for re-grant of a license, the State Bank shall consider re-granting the license or notify in writing its refusal to re-grant such license and clearly stating the reason for such refusal therein;

The operation duration stated on a license is 10 years from the date such license is granted by the State Bank to an organization.

2. The license is lost, torn, burned, or canceled in any other form

The payment intermediary service provider shall submit a dossier of application for re-grant of the license using Form No. 11 attached to this Decree and clearly state the reason for the re-grant therein. Within 10 working days from the date of receiving an organization's written application for re-grant of a license, the State Bank shall consider re-granting the license or notify in writing its refusal to re-grant such license and clearly stating the reason for such refusal therein;

The operation duration stated in the re-granted license remains the same as that in the lost, torn, burned, or canceled license.

Article 26. Amendments and supplements to licenses for provision of payment intermediary services

1. In case of any change in the following information contained in the license for provision of payment intermediary payment services: the provider’s name; head office address; discontinuation of one or more licensed payment intermediary services; connection to an additional international payment system of an international financial switching service provider:

a) Payment intermediary service providers shall submit 01 dossier of application for the amendment or supplementation of the license, including: a written application for amendment or supplementation of the license for provision of payment intermediary payment services, made using Form No. 12 attached to this Decree; a copy of the valid license for provision of payment intermediary payment services; a copy of the enterprise registration certificate indicating the change of its name, investment registration certificates of foreign investors (if any); a report on provision of payment intermediary services from the date of being granted the license to the date of submitting the application for amendment or supplementation of such license.

In case of requesting to connect to an additional international payment system, the international financial switching service provider shall additionally provide the documents prescribed at Point i, Clause 2, Article 24 of this Decree;

b) The State Bank shall receive and review the validity of the dossiers for amendment or supplementation of the license within 05 working days from the date of receiving the dossier and decide on the amendment or supplementation of the license for provision of payment intermediary payment services within 30 working days from the date of receiving a complete and valid dossier. In case of refusal of amendments and supplements to the license, the State Bank shall send a written reply to the provider and clearly state the reasons for such refusal therein;

c) The operation duration stated in the amended or supplemented license shall not exceed that in the license for provision of payment intermediary services;

d) For payment intermediary services requested to be discontinued, the payment intermediary service provider must discontinue the services after the State Bank amends or supplements the license and within 30 days from the date the license is amended or supplemented by the State Bank, the payment intermediary service provider must send a written notice to the relevant organizations and individuals to liquidate contracts and complete all obligations and responsibilities between the related parties in accordance with the law regulations.

2. In case of changing any of the following information: legal representative, charter capital, charter capital ownership ratio of the owners; spin-off, split-up, merger, consolidation, corporate transformation during the validity period of the license, the payment intermediary service provider is not required to apply for the amendment or supplementation of the license but must send the State Bank a written notice and supporting documents of related information (if any) within 30 days from the date of the above change.

Article 27. Revocation of licenses for provision of payment intermediary services

1. The State Bank shall consider revoking a license when:

a) The payment intermediary service provider is dissolved or declared bankrupt in accordance with the law regulations;

b) The payment intermediary service provider submits a written application for revocation due to the termination of its licensed payment intermediary services, made using Form No. 15 attached to this Decree;

c) An effective judgment, enforcement decision, or administrative penalty decision from a competent State authority or criminal judgment enforcement authority requires the revocation of the license of the payment intermediary service provider or a competent State authority or criminal judgment enforcement authority requests in writing to revoke the license of the payment intermediary service providers;

d) The payment intermediary service provider uses or abuses payment accounts, payment instruments, payment services, or payment intermediary services for gambling, gambling hosting, frauds, illegal business, money laundering, terrorist financing, or financing the proliferation of weapons of mass destruction;

dd) The provider fails to remediate its violation after 03 months from the date the State Bank sends a written notice to the provider informing that it has violated one of the conditions in the process of providing services as prescribed at Points a, b, c, d, e, g, Clause 2, Article 22 and its technical system does not meet the requirements prescribed at Point dd, Clause 2, Article 22 of this Decree and requiring its remediation thereof;

e) The payment intermediary service provider fails to comply with Clause 3, Article 22 of this Decree or it fails to provide supporting documents or the supporting documents are not satisfactory as prescribed in Clause 4, Article 24 of this Decree and after 03 months from the date the State Bank sends a written notice requiring its remediation thereof, it fails to remediate such violation;

g) During the inspection and supervision of provision of payment intermediary services, it is found that the provider has not been providing licensed payment intermediary services for clients for a continuous period of 06 months;

h) The payment intermediary service provider repeats the act of misreporting e-wallet balances and quantity of e-wallets in accordance with the regulations.

2. The process and procedures for revoking licenses

a) In the case where the provider is dissolved or declared bankrupt in accordance with Point a, Clause 1 of this Article, it shall submit a written application for revocation of its license, made using Form No. 15 attached to this Decree, to the State Bank within 07 working days from the date the dissolution decision is passed in accordance with the Law on Enterprises or the date of receiving the bankruptcy declaration from the People's Court in accordance with law regulations on bankruptcy. The State Bank shall issue a decision on revocation of the license after 10 working days from the date of receiving the provider’s written notice.

The State Bank shall issue a decision on revocation of the license after 10 working days from the date of receiving the written application for revocation of the license due to termination of provision of payment intermediary services from the payment intermediary service provider as prescribed at Point b, Clause 1 of this Article.

The State Bank shall issue a decision on revocation of the license after 20 working days from the occurrence of any cases prescribed at Points c, d, dd, and e, Clause 1 of this Article.

b) When a payment intermediary service provider shows signs of violations as prescribed at Points g and h, Clause 1 of this Article, the State Bank shall consider revoking its license and send a notice requesting such provider to provide explanations thereof.

If the licensed provider fails to provide written explanations or the explanations are unsatisfactory after 20 working days from the date of the State Bank’s notice, the State Bank shall issue a decision on revocation of the license.

3. Upon receiving the State Bank’s decision on revocation of its license, the provider having its license revoked shall immediately stop providing the services.

Within 30 days from the date of the State Bank’s decision on revocation of the license, the provider having its license revoked shall send a written notice to related organizations and individuals for liquidation of their contracts and fulfillment of the obligations and responsibilities between them in accordance with the law regulations.

After the provider whose license is revoked fulfills all obligations and responsibilities as prescribed by law, it may apply for a license for provision of payment intermediary services in accordance with Article 22 of this Decree after 03 years from the date its former license was revoked in accordance with Clause 1 of this Article. The process, procedures and dossier of application for a license must comply with Articles 23 and 24 of this Decree.

Article 28. Responsibilities for coordinating in grant, re-grant, amendment, supplementation, and revocation of licenses for provision of payment intermediation services

1. Responsibilities for coordination in appraisal

a) Before considering granting, re-granting, amending, supplementing, or revoking a license in accordance with Article 24, Clause 1, Article 25, Clause 1, Article 26, Points d and g, Clause 1, Article 27 of this Decree, the State Bank shall send a written request to the Ministry of Public Security and other relevant authorities to obtain their opinions on the compliance of the provider and its legal representative with relevant law regulations during their operation;

b) Within 15 working days from the date of receiving the State Bank’s request, the ministries and authorities mentioned at Point a of this Clause shall provide their written opinions to the State Bank;

c) The State Bank shall consider granting, re-granting, amending, supplementing, or revoking the license based on the dossier of application for such license and the opinions of the relevant ministries and authorities.

2. The State Bank shall publicly announce the grant, re-grant, amendment, supplementation, and revocation of licenses for provision of payment intermediary services on the State Bank's web portal. The payment intermediary service providers must publicly disclose their licenses, decisions on amendment or supplementation, and decisions on revocation of their licenses on their official websites for their clients to know.

 

Chapter V

RESPONSIBILITIES OF RELEVANT PARTIES

 

Article 29. Safety and confidentiality of payments

1. Payment service providers and payment intermediary service providers must take measures to ensure the safety and confidentiality of payments in accordance with law regulations. They are allowed to establish appropriate security measures for their payment operations in accordance with relevant law regulations. Clients using the services shall take these measures as prescribed and guided by service providers.

2. Payment service providers and payment intermediary service providers must take measures to inspect and supervise merchants in order to detect and resolve or propose to competent state authorities to handle payment-related violations in accordance with law regulations.

3. Payment service providers and payment intermediary service providers must take risk management measures to prevent the use or abuse of payment instruments, payment services, and payment intermediary services for gambling, gambling hosting, conducting fictitious payment transactions (payment transactions for goods or services without actual sale and purchase or provision thereof), or other illegal acts.

4. Payment intermediary service providers and related organizations and individuals are obliged to provide full information, documents, and certificates as required by the payment service providers when carrying out foreign exchanges and international payments as prescribed in Clauses 3 and 5, Article 5 of this Decree. They shall be held accountable before the law for the authenticity of the documents and certificates provided. Payment service providers must take measures to review, inspect, and retain documents and certificates related to actual transactions to ensure that foreign exchanges and international payments are made for the intended purpose and in accordance with law regulations.

Article 30. Right to request provision of reports and information

1. The State Bank has the right to request payment service providers and payment intermediary service providers to provide information relating to their provision of services on a periodical or ad-hoc manner. Such information shall be provided in accordance with the regulations of the State Bank.

2. Payment service providers and payment intermediary service providers may request clients using the services to provide relevant information when using their services.

Article 31. Obligation to provide information and reports

1. Payment service providers and payment intermediary service providers are obliged to report and provide information to competent state authorities as prescribed by law.

2. Payment service providers and payment intermediary service providers are obliged to provide information on transactions and account balances of payment account holders, transactions and balances on e-wallets of e-wallet holders in accordance with the agreement with payment account holders and e-wallet holders.

Article 32. Confidentiality of information

1. The right to refuse to provide information

Payment service providers and payment intermediary service providers may reject requests of other organizations and individuals for information relating to accounts, transactions and balances on payment accounts as well e-wallets, transactions and balances in e-wallets of their clients, unless so requested by competent State authorities as prescribed by law or consented by the clients.

2. The obligation to keep confidential information

Payment service providers and payment intermediary service providers shall keep confidential information relating to accounts, transactions and balances on payment accounts as well e-wallets, transactions and balances in e-wallets of their clients, unless consented by the clients or otherwise prescribed by law.

 

Chapter VI

SUPERVISION

 

Article 33. Supervision of important payment systems in the economy

1. The State Bank shall provide regulations on supervision and supervise important payment systems in the economy, thereby contributing to ensuring the stable and secure operation of important payment systems in the economy.

2. The State Bank shall identify important payment systems subject to its supervision. The State Bank shall supervise important payment systems with measures of off-site supervision, on-site inspection and other measures when necessary, on the principle of not hindering the normal operations of the systems and the important payment system operators.

3. The State Bank reserves the right to request the operator, settlement bank, and participants in the important payment system to provide information related to the system.

4. The operator, settlement bank, and participants in the important payment system shall be responsible for providing information related to the system at the request of the State Bank.

5. Operators and settlement banks of important payment systems shall comply with the State Bank's regulations and supervision requests; and issue internal regulations on risk control and assurance of uninterrupted operation of their systems.

Article 34. Supervision of provision of payment services

1. The State Bank shall determine the scope of, provide regulations on supervision, and supervise the provision of payment services.

2. The State Bank shall supervise the provision of payment services with measures of off-site supervision, on-site inspection and other measures when necessary, on the principle of not hindering the normal operation of the payment service providers.

3. The State Bank may request payment service providers to provide information related to their provision of payment services.

4. Payment service providers shall provide information related to their provision of payment services at the request of the State Bank and comply with regulations and abide by the State Bank's supervision requirements.

Article 35. Supervision of provision of payment intermediary services

1. The State Bank shall provide regulations on supervision and supervise the provision of payment intermediary services by providers licensed by the State Bank.

2. The State Bank shall supervise payment intermediary services with measures of off-site supervision, on-site inspection and other measures when necessary, on the principle of not hindering the normal operation of the payment intermediary service providers.

3. The State Bank may request payment intermediary service providers to provide information related to their provision of payment intermediary services.

4. Payment intermediary service providers shall provide information related to their provision of payment intermediary services at the request of the State Bank and comply with regulations and abide by the State Bank's supervision requirements.

5. Payment intermediary service providers must develop and provide online monitoring tools for the State Bank to supervise their operations before officially providing services to clients.

6. Banks cooperating with payment intermediary service providers shall report and provide information related to their cooperation in providing payment intermediary services; data and information related to the opening and management of payment guarantee accounts for payment intermediary service providers for e-wallet services and collection/payment on behalf support services at the request of the State Bank.

 

Chapter VII

IMPLEMENTATION PROVISIONS

 

Article 36. Transitional provisions

1. Commercial banks and foreign bank branches that have participated in international payment systems before the effective date of this Decree shall continue their participation in such international payment systems. Within 24 months from the effective date of this Decree, commercial banks and foreign bank branches must meet the business conditions prescribed in Article 21 of this Decree and complete the procedures for requesting approvals to participate in international payment systems as prescribed by the Governor of the State Bank. After the above deadline, commercial banks and foreign bank branches must cease their participation in international payment systems not listed in their licenses.

2. Payment intermediary service providers granted licenses for provision of electronic money transfer support services (as prescribed in Clause 5, Article 3 of Circular No. 39/2014/TT-NHNN dated December 11, 2014 of the State Bank of Vietnam guiding on payment intermediary services) listed in their licenses for provision of payment intermediary services before the effective date of this Decree shall continue to provide such services in accordance with the agreements between the parties.

3. Financial switching service providers licensed before the effective date of this Decree that have connected to international payment systems shall continue to connect to such international payment systems. Within 24 months from the effective date of this Decree, licensed financial switching service providers must meet the business conditions and complete the procedures for applying for licenses for provision of international financial switching services as prescribed in this Decree. After the above deadline, the providers must terminate their connection to international payment systems not listed in the licenses for provision of international financial switching services.

4. Enterprises providing public postal services shall continue to provide services of payment not via payment accounts of clients in accordance with the law regulations. Within 24 months from the effective date of this Decree, enterprises providing public postal services must meet the business conditions and complete the procedures for applying for written approvals to provide services of payment not via payment accounts of clients as prescribed in this Decree. After the above deadline, the enterprises must cease providing payment services.

5. Payment intermediary service providers granted licenses for provision of payment intermediary services before the effective date of this Decree shall continue to provide such services under the licenses granted by the State Bank until such licenses expire, unless otherwise the providers apply for new licenses as prescribed in this Decree.

Article 37. Effect

1. This Decree takes effect on July 1, 2024.

2. This Decree replaces the Government’s Decree No. 101/2012/ND-CP dated November 22, 2012, on non-cash payments; the Government’s Decree No. 80/2016/ND-CP dated July 1, 2016, amending and supplementing a number of articles of the Government’s Decree No. 101/2012/ND-CP dated November 22, 2012, on non-cash payments and repeals Article 3 of the Government’s Decree No. 16/2019/ND-CP dated February 1, 2019, amending and supplementing a number of articles of the Decrees regulating business conditions under the State governance of the State Bank.

Article 38. Responsibilities for implementation

Ministers, Heads of ministerial-level authorities, Heads of Government-attached agencies; chairpersons of People's Committees of provinces and centrally run cities; chairpersons of Boards of Directors, chairpersons of Members’ Councils and Chief Executive Officers (Directors) of credit institutions and foreign bank branches; chairpersons of Boards of Directors, chairpersons of Members’ Councils, company presidents and Chief Executive Officers (Directors) of enterprises providing public postal services and related organizations and individuals shall be responsible for implementing this Decree.

 

 

ON BEHALF OF THE GOVERNMENT

FOR THE PRIME MINISTER

DEPUTY PRIME MINISTER

 

 

Le Minh Khai

* All Appendices are not translated herein.

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