Decree 174/2024/ND-CP on penalties for administrative violations of regulations on insurance business

DECREE

On penalties for administrative violations of regulations on insurance business

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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 Handling of Administrative Violations dated June 20, 2012; the Law No. 67/2020/QH14 dated November 13, 2020 Amending and Supplementing a Number of Articles of the Law on Handling of Administrative Violations;

Pursuant to the Law on Insurance Business dated December 09, 2000; Law dated November 24, 2010 Amending and Supplementing a Number of Articles of the Law on Insurance Business; Law dated June 14, 2019 Amending and Supplementing a Number of Articles of the Law on Insurance Business and the Law on Intellectual Property;

Pursuant to the Law on Insurance Business dated June 16, 2022;

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

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

At the proposal of the Minister of Finance;

The Government hereby promulgates the Decree on penalties for administrative violations of regulations on insurance business.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree prescribes administrative violations, completed administrative violations and ongoing administrative violations; penalties and specific penalty levels, remedial measures for each of such violation; those for whom penalties shall be imposed; the competence to impose penalties, specific fines that can be imposed by each position, and the competence to draw up written records of administrative violations of regulations on insurance business.

2. For administrative violations of regulations related to insurance business, other than those prescribed in this Decree, penalties shall be imposed therefor in accordance with the respective documents.

Article 2. Subjects of application

1. Vietnamese, foreign individuals and organizations commit administrative violations of regulations on insurance business prescribed in this Decree.

2. The organizations prescribed in Clause 1 of this Article, including:

a) Life insurers, non-life insurers, health insurers, reinsurers, insurance brokers; branches of foreign non-life insurers, branches of foreign reinsurers (hereinafter referred to as Vietnam-based foreign branches);

b) Representative offices of foreign insurers, representative offices of foreign reinsurers, representative offices of foreign insurance brokers, and representative offices of foreign finance or insurance groups in Vietnam (hereinafter referred to as Vietnam-based foreign representative offices);

c) Corporate insurance agents;

d) Mutual organizations providing micro-insurance;

dd) Insurance auxiliary service providers (insurers, insurance brokers and other organizations with legal status);

e) Other relevant organizations prescribed in this Decree.

3. Persons who have the competence to impose penalties, persons who have the competence to draw up written records of administrative violations, and other relevant organizations and individuals prescribed in this Decree.

Article 3. Penalties and remedial measures

1. For each administrative violation of regulations on insurance business, the main penalty to be imposed on an organization or individual shall be a fine.

2. Warnings shall be imposed to individuals from full 14 to under 16 years old who violate the regulations of this Decree.

3. Fines to be imposed on individuals and organizations:

a) The fines to be imposed on administrative violations prescribed in this Decree are those applicable to administrative violations committed by individuals, unless otherwise prescribed in Article 9, Article 10, Clause 2 Article 11, Article 12, Article 14, Clause 2 Article 15, Article 16, Clause 2 Article 18, Article 20, Article 21, Clause 2 Article 22, Article 24, Article 25, Point b and Point c Clause 1 and Point c Clause 2 Article 27, Article 28, Article 33, Clause 1 Article 38, and Article 40 of this Decree, which are solely applicable to administrative violations committed by organizations;

b) The fine to be imposed on an organization shall be double that applicable to an individual committing the same violation;

c) The maximum fine that can be imposed on an individual committing an administrative violation of regulations on insurance business is VND 100,000,000, and that applicable to an organization is VND 200,000,000.

4. Additional penalty: Temporary suspension of operations in a definite period of time.

5. Remedial measures:

a) Forcible restoration of the original condition as prescribed at Point a, Clause 1, Article 28 of the Law on Handling of Administrative Violations;

b) Forcible disclosure or proper disclosure or notification or forcible correction of information;

c) Forcible fulfillment by appointed actuaries of their duties in accordance with the law regulations; forcible employment of appointed actuaries by insurers, reinsurers, Vietnam-based foreign branches, and mutual organizations providing micro-insurance to fulfill the duties in accordance with the law regulations;

d) Forcible provision for policyholders with documents during the conclusion of insurance policies that have not expired at the time the violation is detected;

dd) Forcible provision for policyholders with explicit and full interpretation of insurable interests, terms on exclusion of insurance liability, and rights and obligations of policyholders under the insurance policies that have not expired at the time the violation is detected;

e) Forcible provision for policyholders with evidence of insurance policy conclusion for insurance policies that have not expired at the time the violation is detected;

g) Forcible notification to the Ministry of Finance of the online provision of insurance services and products;

h) Forcible compliance with the law regulations;

i) Forcible discontinuation of employment of persons directly performing insurance brokerage and insurance agency activities;

k) Forcible return of the establishment and operation licenses or the licenses to set up Vietnam-based foreign representative offices;

l) Forcible return of the amount of appropriated money.

Article 4. Statute of limitations for imposing penalties against administrative violations

1. The statute of limitations for imposing penalties on administrative violations of regulations on insurance business as prescribed in Article 6 of the Law on Handling of Administrative Violations.

2. The start of the statute of limitations for imposing a penalty for an administrative violation of regulations on insurance business shall be determined as follows:

a) For ongoing administrative violations of regulations on insurance business, the statute of limitations starts from the date the on-duty persons detect such violations;

b) For administrative violations that have been completed, the statute of limitations starts from the date of completion.

3. The date of completion of a violation of regulations on insurance business on which the statute of limitations for imposing penalties for such violation starts is the date on which law regulations are properly applied, unless otherwise prescribed in Clause 4 of this Article. In cases where the date on which law regulations are properly applied cannot be determined, the date of completion of a violation against regulations on insurance business on which the statute of limitations for imposing penalties for such violation starts is the date such violation is detected.

4. The date of completion of a number of violations of regulations on insurance business prescribed in Chapter II of this Decree, on which the statute of limitations for imposing penalties for such violations starts, is prescribed as follows:

a) For the act of forging documents in dossiers for which establishment and operation licenses have been granted as prescribed in Article 6 of this Decree, the date of completion of the violation is the date the licensed dossier is forged;

b) For the failure to issue procedures or regulations, the failure to approve reinsurance or retrocession programs, the failure to develop risk management policies, internal regulations on risk management as prescribed at Point b, Clause 1, Article 9, Point a, Clause 1, Article 13, Point b, Clause 1, Article 33 of this Decree, the date of completion of such violation is the date on which the procedures or regulations are issued, the reinsurance or retrocession programs are approved, the risk management policies or internal procedures on risk management are developed in accordance with the law regulations;

c) For violations of regulations on reporting prescribed at Point b, Clause 2, Article 8, Clause 1, Article 12, Point b, Clause 1, Article 20, Point b, Clause 2, Article 32; Point d, Clause 1, Article 33; Point b, Clause 1, Article 34; Point c, Clause 1, Article 35, Point d, Clause 1, Article 36, Article 37, Article 39 of this Decree, the date of completion is the date the reports are served;

d) For violations of the regulations on information disclosure prescribed in Article 39 of this Decree, the date of completion of such violations is the date of actual disclosure or the date of disclosure that complies with the prescribed content and form.

Article 5. Principles for determining the specific fines and suspension periods in cases of aggravating and mitigating circumstances; repeated administrative violations

1. When determining the fine or suspension period for any violating organization or individual with both aggravating and extenuating circumstances, the aggravating circumstances shall be offset by the mitigating circumstances on a one-to-one basis.

2. The specific fine to imposed on a violation is determined as follows:

a) If there are no aggravating or mitigating circumstances, the average level of the fine bracket shall apply;

b) In cases where there is 01 mitigating circumstance, the average between the average level and the minimum level of the fine bracket shall apply;

c) In cases where there are 02 or more mitigating circumstances, the minimum level of the fine bracket shall apply;

d) In cases where there is 01 aggravating circumstance, the average between the average level and the maximum level of the fine bracket shall apply;

dd) In cases where there are 02 or more aggravating circumstances, the maximum level of the fine bracket shall apply.

3. The definite suspension period for the additional penalty of temporary suspension of operations in a definite period of time:

a) If there are no aggravating or mitigating circumstances, the average level of the suspension period bracket shall apply;

b) In cases where there is 01 mitigating circumstance, the average between the average level and the minimum level of the suspension period bracket shall apply;

c) In cases where there are 02 or more mitigating circumstances, the minimum level of the suspension period bracket shall apply;

d) In cases where there is 01 aggravating circumstance, the average between the average level and the maximum level of the suspension period bracket shall apply;

dd) In cases where there are 02 or more aggravating circumstances, the maximum level of the suspension period bracket shall apply.

4. Repeated administrative violations:

Organizations or individuals who commit repeated administrative violations shall be subject to penalties on each violation, unless the repeated administrative violations constitute an aggravating circumstance as prescribed in Article 13, Clause 2, Article 16, Article 17, Article 18, Article 19, Clause 3, Article 20, Article 23, Article 24, Article 25, Article 27, Clause 3, Article 30, and Article 31 of this Decree.

Chapter II

ADMINISTRATIVE VIOLATIONS, PENALTIES AND SPECIFIC PENALTY LEVELS, AND REMEDIAL MEASURES

Section 1

ADMINISTRATIVE VIOLATIONS OF REGULATIONS ON ESTABLISHMENT AND OPERATIONS

Article 6. Penalties for violations of regulations on licensed dossiers

A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on any of the violations below:

1. The dossier of application for grant or renewal of a license to set up a Vietnam-based foreign representative office containing fraudulent information in order to be fraudulently eligible for the grant or renewal of such license.

2. The dossier of application for grant of a establishment and operation license containing fraudulent information in order for the insurer, reinsurer, Vietnam-based foreign branch, insurance broker, or mutual organization providing micro-insurance to be fraudulently eligible for being granted such establishment and operation license.

Article 7. Penalties for violations of regulations on establishment and operation licenses, licenses to set up Vietnam-based foreign representative offices

1. A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed on any of the violations below:

a) Failing to make public disclosure or improperly implementing the regulations on information disclosure of Vietnam-based foreign representative offices in accordance with the law regulations, as prescribed in Clause 4, Article 76 of the Law No. 08/2022/QH15 on Insurance Business;

b) Failing to make public disclosure or improperly disclosing details of the license, which has been granted, or the establishment and operation license, and the date of official operation in accordance with the law regulations, as prescribed in Clause 2, Article 72, Article 135 of the Law No. 08/2022/QH15 on Insurance Business;

c) Failing to notify or untimely notifying the satisfaction of the requirements to officially operate in accordance with the law regulations, as prescribed in Clause 3, Article 73 of the Law No. 08/2022/QH15 on Insurance Business;

2. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on tampering with the establishment and operation licenses or the licenses to set up Vietnam-based foreign representative offices.

3. A fine of between VND 60,000,000 and VND 80,000,000 shall be imposed on changing the charter capital or allocated capital without written approval from the Ministry of Finance in accordance with the law regulations, as prescribed at Point b, Clause 1, Article 74, Point b, Clause 1, Article 136 of the Law No. 08/2022/QH15 on Insurance Business.

4. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on any of the violations below:

a) Conducting insurance business, reinsurance or retrocession business before the date of official operation, as prescribed in Clause 2, Article 72, and Clause 4, Article 73 of the Law No. 08/2022/QH15 on Insurance Business;

b) Conducting insurance business, reinsurance or retrocession business, or insurance brokerage without establishment and operation licenses;

c) Conducting insurance business, reinsurance or retrocession business, or insurance brokerage in contravention of the establishment and operation licenses that have been granted;

d) Conducting operations and business directly related to the administrative violations for which the operations are suspended or when their establishment and operation licenses or licenses to set up Vietnam-based foreign representative offices are revoked;

dd) Operating in contravention of the licenses to set up Vietnam-based foreign representative offices that have been granted, operating although the licenses to set up Vietnam-based foreign representative offices have been revoked in accordance with the law regulations, as prescribed in Article 61 of Decree No. 46/2023/ND-CP or they have expired.

5. Remedial measures:

a) Forcible disclosure or proper disclosure or notification or forcible correction in case of committing violations prescribed in Clause 1 and Clause 2 of this Article;

b) Forcible return of the establishment and operation licenses or the licenses to set up Vietnam-based foreign representative offices in case of committing violations prescribed in Clause 2 of this Article;

c) Forcible restoration of the original condition in case of committing violations prescribed in Clause 3 and Clause 4 of this Article.

Article 8. Penalties for violations of regulations on corporate split-up, spin-off, consolidation, merger, transformation, dissolution, and termination of operations of Vietnam-based foreign branches

1. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on dissolving insurers, reinsurers, insurance brokers, or terminating operations of Vietnam-based foreign branches in contravention of the law regulations, as prescribed in Article 115, Point e, Clause 1, Article 136 of Law No. 08/2022/QH15 on Insurance Business, Clause 5, Article 17, Article 55, Article 72 of Decree No. 46/2023/ND-CP.

2. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on corporate split-up, spin-off, merger, transformation of insurers, reinsurers, insurance brokers, Vietnam-based foreign branches that commit any of the violations below:

a) Conducting corporate split-up, spin-off, consolidation, merger or transformation without written approval from the Ministry of Finance in accordance with the law regulations, as prescribed at Point e, Clause 1, Article 74, Point e, Clause 1, Article 136 of the Law No. 08/2022/QH15 on Insurance Business;

b) Failing to report to the Ministry of Finance the results of the corporate split-up, spin-off, consolidation, merger or transformation under the plans approved by the Ministry of Finance in accordance with the law regulations, as prescribed in Clause 4, Article 23, Clause 4, Article 71 of Decree No. 46/2023/ND-CP.

3. Remedial measures:

Forcible restoration of the original condition in case of committing violations prescribed in Clause 1 and Point a Clause 2 of this Article.

Section 2

ADMINISTRATIVE VIOLATIONS OF REGULATIONS ON ORGANIZATION OF OPERATIONS

Article 9. Penalties for violations of regulations on the organization and operations of insurers, reinsurers, Vietnam-based foreign branches, and mutual organizations providing micro-insurance

1. A fine of between VND 60,000,000 and VND 100,000,000 shall be imposed on insurers, reinsurers, Vietnam-based foreign branches, mutual organizations providing micro-insurance that commit any of the violations below:

a) Having the organizational and managerial structure of insurers, reinsurers, and mutual organizations providing micro-insurance in contravention of the law regulations, as prescribed in Article 79 of the Law No. 08/2022/QH15 on Insurance Business, Article 20 of Decree No. 21/2023/ND-CP;

b) Insurers, reinsurers, insurance brokers, and Vietnam-based foreign branches, mutual organization providing micro-insurance failing to issue processes and regulations in accordance with the law regulations, as prescribed at Point c, Clause 2, Article 73 of Law No. 08/2022/QH15 on Insurance Business, Clause 2, Article 26, Clause 4, Article 39 of Circular No. 21/2023/ND-CP;

c) Insurers, reinsurers, insurance brokers, and Vietnam-based foreign branches failing to conduct financial management in accordance with the law regulations, as prescribed in Clause 2, Article 108 of the Law No. 08/2022/QH15 on Insurance Business.

2. A fine of between VND 140,000,000 and VND 180,000,000 shall be imposed on insurers, reinsurers, Vietnam-based foreign branches, mutual organizations providing micro-insurance that commit any of the violations below:

a) Insurers, reinsurers, insurance brokers, and Vietnam-based foreign branches failing to maintain their Chief Executive Officers (Directors)and Appointed Actuaries in accordance with the law regulations, as prescribed in Clause 4, Article 80 of the Law No. 08/2022/QH15 on Insurance Business;

b) Managers or supervisors of insurers, reinsurers, Vietnam-based foreign branches failing to satisfy the conditions and standards in accordance with the law regulations, as prescribed in Article 81 of the Law No. 08/2022/QH15 on Insurance Business, Article 26, Article 27, Article 28, Article 29, Article 30 of Decree No. 46/2023/ND-CP;

c) The Chairperson of the Board of Directors, the Chief Executive Officer (Director), or the Appointed Actuary of a mutual organization providing micro-insurance failing to satisfy the conditions and standards in accordance with the law regulations, as prescribed in Article 24, Clause 1, Clause 2, Clause 3, Article 25 of Decree No. 21/2023/ND-CP;

d) Violating the principles of incumbency prescribed in Article 82 of the Law No. 08/2022/QH15 on Insurance Business;

dd) Changing the Chairperson of the Board of Directors (Chairperson of the Members’ Council), the Chief Executive Officer (Director), or the Appointed Actuary without the written approval of the Ministry of Finance in accordance with the law regulations, as prescribed at Point dd, Clause 1, Article 74 of the Law No. 08/2022/QH15 on Insurance Business.

3. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 and Clause 2 of this Article.

Article 10. Penalties for violations of regulations on managers of insurance brokers

1. A fine of between VND 140,000,000 and VND 180,000,000 shall be imposed on insurance brokers that commit any of the violations below:

a) The Deputy Director or Deputy Chief Executive Officer, Chief Accountant, Head of operational department of an insurance broker failing to satisfy the standards in accordance with the law regulations, as prescribed in Clause 1, Article 138 of Law No. 08/2022/QH15 on Insurance Business, Article 79, Article 80 of Decree No. 46/2023/ND-CP;

b) The Chairperson of the Board of Directors or the Chairperson of the Members’ Council; the Director or the Chief Executive Officer failing to satisfy the standards in accordance with the law regulations, as prescribed in Article 77 and Article 78 of Decree No. 46/2023/ND-CP;

c) Changing the Chairperson of the Board of Directors or the Chairperson of the Members’ Council, the Director or the Chief Executive Officer without the written approval of the Ministry of Finance in accordance with the law regulations, as prescribed at Point dd, Clause 1, Article 136 of the Law No. 08/2022/QH15 on Insurance Business.

2. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 of this Article.

Article 11. Penalties for violations of regulations on appointed actuaries

1. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on any of the violations below committed by the appointed actuary:

a) Failing to fulfill the tasks assigned by the insurers, reinsurers, Vietnam-based foreign branches, or mutual organizations providing micro-insurance in accordance with the law regulations, as prescribed in Clause 4, Article 82 of the Law No. 08/2022/QH15 on Insurance Business, Clause 3, Article 25 of Decree No. 21/2023/ND-CP;

b) Insufficiently fulfilling the tasks assigned by the insurers, reinsurers, Vietnam-based foreign branches in accordance with the law regulations, as prescribed in Clause 4, Article 82 of the Law No. 08/2022/QH15 on Insurance Business, Clause 3, Article 25 of Decree No. 21/2023/ND-CP.

2. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on insurers, reinsurers, Vietnam-based foreign branches, and mutual organizations providing micro-insurance that violate any of the violations including: failing to employ or employing appointed actuaries who do not fully perform their duties in accordance with the law regulations, as prescribed in Clause 4, Article 82 of the Law No. 08/2022/QH15 on Insurance Business, Clause 3, Article 25 of Decree No. 21/2023/ND-CP.

3. Remedial measures:

a) Forcible compliance with the law regulations in case of committing violations prescribed at Point a, Clause 1 of this Article;

b) Forcible fulfillment by appointed actuaries of their duties in accordance with the law regulations in case of committing violations prescribed at Point b, Clause 1 of this Article;

c) Forcible employment of appointed actuaries by insurers, reinsurers, Vietnam-based foreign branches to fulfill the duties in accordance with the law regulations in case of committing violations prescribed in Clause 2 of this Article.

Article 12. Penalties for violations of regulations on changes that must be approved or notified

1. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on insurers, reinsurers, insurance brokers, and Vietnam-based foreign branches that commit any of the violations including: failing to notify or untimely notifying the Ministry of Finance in accordance with the law regulations, as prescribed in Clause 3, Article 74, Clause 2, Article 136 of the Law No. 08/2022/QH15 on Insurance Business.

2. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on insurers, insurance brokers, reinsurers, and Vietnam-based foreign branches that commit violations of regulations on changing the names and locations of their head offices without written approval from the Ministry of Finance in accordance with the law regulations, as prescribed at Point a, Clause 1, Article 74, Point a, Clause 1, Article 136 of the Law No. 08/2022/QH15 on Insurance Business.

3. A fine of between VND 160,000,000 and VND 200,000,000 shall be imposed on insurers, reinsurers, insurance brokers, and Vietnam-based foreign branches that commit violations of regulations on changes that must be approved in writing by the Ministry of Finance in accordance with the law regulations, as prescribed at Point d, Point g, Clause 1, Article 74, Point c, Point d, Clause 1, Article 136 of the Law No. 08/2022/QH15 on Insurance Business.

4. Remedial measures:

a) Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1, Clause 2 and Clause 3 of this Article;

b) Forcible restoration of the original condition in case of committing violations prescribed in Clause 3 of this Article.

Article 13. Penalties for violations of regulations on reinsurance and retrocession of insurers, reinsurers, Vietnam-based foreign branches, and mutual organizations providing micro-insurance

1. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on any of the violations below:

a) Failing to approve reinsurance and retrocession programs in accordance with the law regulations;

b) Having reinsurance and retrocession programs that are incomplete against the law regulations;

c) Organizing the implementation of reinsurance and retrocession programs in contravention of the law regulations.

2. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on any of the violations below:

a) Reinsuring or retroceding all liabilities assumed under an insurance policy or reinsurance policy to any or many insurers or reinsurers, domestic or foreign, or foreign insurance carriers assuming insurance ceded, or foreign branches in Vietnam;

b) Having the retention in contravention of the law regulations;

c) Conducting designated reinsurance or finite risk insurance in contravention of the law regulations;

d) Reinsuring or retroceding liabilities to foreign insurers or foreign reinsurance organizations without satisfying the conditions prescribed by the law regulations;

dd) Assuming the same risks that have been retroceded in contravention of the law regulations.

3. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 and Clause 2 of this Article (for effective policies);

Article 14. Penalties for violations of regulations on transfer of insurance policy portfolio

1. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on insurers, branches of foreign non-life insurers that commit any of the violations below:

a) Transferring insurance policy portfolios without written approval from the Ministry of Finance, as prescribed in Clause 1, Article 93 of the Law No. 08/2022/QH15 on Insurance Business;

b) Failing to transfer insurance policy portfolios in accordance with the law regulations, as prescribed in Article 91 of the Law No. 08/2022/QH15 on Insurance Business;

c) Transferors continuing to sign new insurance policies of the type of insurance transferred, as prescribed in Clause 4, Article 34 of Decree No. 46/2023/ND-CP.

2. Remedial measures:

a) Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 of this Article;

b) Forcible restoration of the original condition in case of committing violations prescribed in Clause 1 of this Article.

Article 15. Penalties for violations of regulations on indemnities and payouts

1. Colluding with the insurance beneficiaries to claim insurance indemnities or payouts in contravention of the law regulations; forging documents and intentionally falsifying information to refuse to claim insurance indemnities or payouts when the insurance events have occurred; forging documents and intentionally falsifying information in the claim dossiers for insurance indemnities or payouts; causing damage to one’s own property or health to enjoy insurable interests, unless otherwise prescribed by the law regulations or not serious enough to warrant criminal prosecution, shall be imposed the fines below:

a) A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed on any of the violations where the amount of misappropriated money is less than VND 10,000,000 or the damage caused is less than VND 20,000,000;

b) A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on any of the violations where the amount of misappropriated money is between VND 10,000,000 and less than VND 15,000,000 or the damage caused is between VND 20,000,000 and less than VND 30,000,000;

c) A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on any of the violations where the amount of misappropriated money is between VND 15,000,000 and less than VND 20,000,000 or the damage caused is between VND 30,000,000 and less than VND 50,000,000.

2. A fine of between VND 160,000,000 and VND 200,000,000 shall be imposed on any of fraudulent violations related to insurance business by commercial legal entities committing one of the violations prescribed in Clause 1, Article 213 of the 2015 Penal Code (amended and supplemented in 2017) where the amount of appropriated money is less than VND 200,000,000 or the damage caused is less than VND 400,000,000 or they are not serious enough to be examined for penal liability.

3. Remedial measures:

Forcible return of the amount of appropriated money in case of committing violations prescribed in Clause 1 and Clause 2 of this Article.

Section 3

PENALTIES FOR VIOLATIONS OF REGULATIONS ON PROVISION OF INSURANCE PRODUCTS

Article 16. Penalties for violations of regulations on provision of insurance products

1. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on insurers, branches of foreign non-life insurers, mutual organizations providing micro-insurance, insurance brokers that fail to notify the Ministry of Finance of their provision of online insurance services and products within 07 working days from the time the online insurance services and products are provided, with information about the enterprise, services, insurance products, organizational form of provision and other information related to the provision of online insurance services and products.

2. A fine of between VND 60,000,000 and VND 100,000,000 shall be imposed on insurers and branches of foreign non-life insurers that commit any of the violations below:

a) Failing to provide policyholders with documents during the conclusion of insurance policies in accordance with the law regulations, as prescribed at Point a, Clause 2, Article 20 of the Law No. 08/2022/QH15 on Insurance Business;

b) Failing to provide policyholders with explicit and full interpretation of insurable interests, terms on exclusion of insurance liability, and rights and obligations of policyholders upon conclusion of insurance policies in accordance with the law regulations, as prescribed at Point b, Clause 2, Article 20 of the Law No. 08/2022/QH15 on Insurance Business;

c) Failing to provide policyholders with the evidence of the insurance policy conclusion in accordance with the law regulations, as prescribed in Article 18 of the Law No. 08/2022/QH15 on Insurance Business;

d) Threatening or coercing the conclusion of insurance policies, as prescribed in Clause 5, Article 9 of Law No. 08/2022/QH15 on Insurance Business.

3. Remedial measures:

a) Forcible notification to the Ministry of Finance of the online provision of insurance services and products in case of committing violations prescribed in Clause 1 of this Article;

b) Forcible provision for policyholders with documents during the conclusion of insurance policies that have not expired at the time the violation is detected, in case of committing violations prescribed at Point a, Clause 2 of this Article;

c) Forcible provision for policyholders with explicit and full interpretation of insurable interests, terms on exclusion of insurance liability, and rights and obligations of policyholders under the insurance policies that have not expired at the time the violation is detected, in case of committing violations prescribed at Point b, Clause 2 of this Article;

d) Forcible provision for policyholders with evidence of insurance policy conclusion for insurance policies that have not expired at the time the violation is detected, in case of committing violations prescribed at Point c, Clause 2 of this Article.

Article 17. Penalties for violations of regulations on the implementation of life insurance and health insurance by insurers, branches of foreign non-life insurers, and mutual organizations providing micro-insurance

1. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on any of the violations below:

a) Having rules, terms and conditions of an insurance product in contravention of the law regulations;

b) Having summary of terms and conditions of life insurance products or health insurance products in contravention of the law regulations;

c) Having sales illustration of the life insurance product in contravention of the law regulations;

d) Having insurance application forms and questionnaires related to insured risks, insured entities/persons of life insurance products or health insurance products in contravention of the law regulations;

dd) Having product brochures of life insurance products or health insurance products in contravention of the law regulations;

e) Having information and advertisement of insurance products in contravention of the law regulations;

g) Failing to comply with the law regulations on investment-linked insurance, pension insurance, and health insurance.

2. Additional penalty:

Suspension in a definite period of between 01 and 03 months of part of operations and operational scope directly related to violations prescribed at Point g, Clause 1 of this Article in establishment and operation licenses.

3. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 of this Article.

Article 18. Penalties for violations of regulations on insurance products and insurance commissions of insurers, branches of foreign non-life insurers, and mutual organizations providing micro-insurance

1. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on any of the violations below:

a) Deploying life insurance, health insurance, motor vehicle insurance, and micro-insurance products before the Ministry of Finance approves the rate-making methodologies and considerations, or approves the amendment and supplementation of the rate-making methodologies and considerations in accordance with the law regulations, as prescribed in Clause 3, Article 87, Clause 2, Article 145 of the Law No. 08/2022/QH15 on Insurance Business, Article 32 of Decree No. 46/2023/ND-CP, Article 6 of Decree No. 21/2023/ND-CP;

b) Failing to comply with the product pricing methodologies and considerations for life insurance, health insurance, motor insurance, and micro-insurance products approved by the Ministry of Finance in accordance with the law regulations, as prescribed in Clause 3, Article 87, Clause 2, Article 145 of the Law No. 08/2022/QH15 on Insurance Business.

2. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on insurers, branches of foreign non-life insurers, mutual organization providing micro-insurance paying insurance agent commissions, bonuses, allowances, and other incentives to agents under the insurance agency contracts in contravention of the law regulations.

3. Additional penalty:

Suspension in a definite period of between 01 and 03 months of part of operations and operational scope directly related to administrative violations prescribed in Clause 1, Clause 2 of this Article in establishment and operation licenses.

4. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 and Clause 2 of this Article.

Article 19. Penalties for violations of regulations on compulsory insurance of non-life insurers, branches of foreign non-life insurers

1. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on any of the violations below:

a) Refusing to sell compulsory insurance to individuals and organizations unless otherwise prescribed by the law regulations;

b) Failing to comply with the insurance coverage, exclusions of insurance liability, premium rates, insurance deductibles, limits of insurance liability, minimum sum assured for compulsory insurance in accordance with the law regulations, as prescribed in Article 6, Article 7, Article 8, Article 24, Article 25, Article 26, Article 33, Article 34, Article 37, Article 42, Article 43, Article 45, Clause 2, Article 48, Article 49, Article 51, Article 55, Article 56, Article 58 of Decree No. 67/2023/ND-CP;

c) Failing to separate the mandatory insurance in cases where the insurance policy expands the insurance conditions, increases the sum assured and the respective rider premium in accordance with the law regulations, as prescribed in Clause 3, Article 4 of Decree No. 67/2023/ND-CP;

d) Offering promotions and discounts for compulsory motor vehicle owner’s civil liability insurance in accordance with the law regulations, as prescribed in Clause 1, Article 75 of Decree No. 67/2023/ND-CP;

dd) Failing to establish and maintain a hotline to promptly receive information about accidents and damages, guide and answer questions of policyholders, the insured and relevant parties on issues related to compulsory insurance in accordance with the law regulations, as prescribed in Clause 3, Article 75 of Decree No. 67/2023/ND-CP;

e) Failing to integrate the functionality to search the Certificates of compulsory motor vehicle owner’s civil liability insurance on the insurer’s websites or portals in accordance with the law regulations, as prescribed in Clause 4, Article 75 of Decree No. 67/2023/ND-CP;

g) Issuing certificates of insurance that do not contain all information in accordance with the law regulations, as prescribed in Clause 2, Article 10, Clause 1, Article 27 of Decree No. 67/2023/ND-CP;

h) Making contributions to the Motor Vehicle Insurance Fund in contravention of the law regulations, as prescribed in Clause 11, Article 75 of Decree 67/2023/ND-CP;

i) Failing to provide and update information into the database on compulsory motor vehicle owner’s civil liability insurance in accordance with the law regulations, as prescribed in Clause 13, Article 75 of Decree No. 67/2023/ND-CP;

k) Failing to record inbound call to the hotline in accordance with the law regulations, as prescribed in Clause 3, Article 75 of Decree 67/2023/ND-CP;

l) Failing to comply with the regulations on coverage period in accordance with the law regulations, as prescribed in Article 9, Article 36, Article 44, Article 50, Article 57 of Decree No. 67/2023/ND-CP;

m) Paying indemnities or making advance payments of indemnities in contravention of the law regulations, as prescribed in Article 12, Article 13, Article 28, Article 29, Article 39, Article 40, Article 46, Article 47, Article 52, Article 53, Article 59, and Article 60 of Decree No. 67/2023/ND-CP.

2. Additional penalty:

Suspension in a definite period of between 01 and 03 months of part of operations and operational scope directly related to administrative violations prescribed at Point b, Clause 1 of this Article in establishment and operation licenses.

3. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 of this Article.

Article 20. Penalties for violations of regulations on providing cross-border insurance services

1. A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed on insurers, foreign branches, insurance brokers that have been granted Licenses in Vietnam and commit any of the violations below:

a) Failing to store and provide documents proving that the providers of cross-border insurance services in Vietnam satisfy the conditions in accordance with the law regulations, as prescribed in Clause 1, Article 90 of Decree No. 46/2023/ND-CP;

b) Failing to submit, or submitting in contravention of the law regulations, reports on participation in providing cross-border insurance services to the Ministry of Finance, as prescribed in Clause 2, Article 90 of Decree No. 46/2023/ND-CP.

2. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on foreign-invested economic institutions and foreigners working in Vietnam committing any of the violations below:

a) Purchasing insurance abroad not through an insurance broker licensed to establish and operate in Vietnam in accordance with the law regulations, as prescribed in Article 6 of the Law No. 08/2022/QH15 on Insurance Business.

b) Purchasing insurance from a foreign insurer that fails to satisfy the conditions for providing cross-border insurance services in accordance with the law regulations, as prescribed in Article 86 of Decree No. 46/2023/ND-CP.

3. A fine of between VND 60,000,000 and VND 80,000,000 shall be imposed on insurers, foreign branches, insurance brokers that have been granted Licenses in Vietnam and commit any of the violations below:

a) Employing foreign insurers or foreign insurance brokers providing cross-border insurance services or insurance brokerage services in Vietnam that fail to satisfy the conditions for providing cross-border insurance services in accordance with the law regulations, as prescribed in Article 86 of Decree No. 46/2023/ND-CP;

b) Employing foreign providers of cross-border insurance auxiliary services in Vietnam that fail to satisfy the conditions for providing cross-border insurance auxiliary services in accordance with the law regulations, as prescribed in Article 87 of Decree No. 46/2023/ND-CP;

c) Employing providers of insurance services or cross-border insurance brokerage services that fail to have head offices in countries or territories with which Vietnam signs international treaties on commerce, including agreements on providing cross-border insurance services in Vietnam in accordance with the law regulations, as prescribed in Clause 1, Article 85 of Decree No. 46/2023/ND-CP.

d) Employing an organization to provide cross-border insurance services not through an insurance broker licensed to establish and operate in Vietnam in accordance with the law regulations, as prescribed in Clause 1, Article 88 of Decree No. 46/2023/ND-CP.

4. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 of this Article.

Section 4

VIOLATIONS OF REGULATIONS ON INSURANCE BROKERAGE, INSURANCE AGENCY, INSURANCE AUXILIARY SERVICES, AND VIETNAM-BASED FOREIGN REPRESENTATIVE OFFICES

Article 21. Penalties for violations of regulations on professional liability insurance purchase of insurance brokers

A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed on insurance brokers that fail to fulfill their obligation to purchase professional liability insurance appropriate to their insurance brokerage activities in accordance with the law regulations, as prescribed at Point dd, Clause 2, Article 137 of the Law No. 08/2022/QH15 on Insurance Business.

Article 22. Penalties for violations of regulations on professional liability insurance purchase of organizations and individuals providing auxiliary insurance services

1. A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed on individuals providing advisory services who do not purchase professional liability insurance for the provision of advisory services in accordance with the law regulations, as prescribed in Clause 4, Article 142 of the Law No. 08/2022/QH15 on Insurance Business.

2. A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on organizations providing insurance auxiliary services that fail to purchase professional liability insurance appropriate to each type of insurance auxiliary service in accordance with the law regulations, as prescribed in Clause 4, Article 142 of the Law No. 08/2022/QH15 on Insurance Business.

Article 23. Penalties for violations of regulations on insurance brokerage

1. A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed on any of the violations below:

a) Failing to make a written agreement with the customer when providing insurance brokerage services or making a written agreement that does not clearly state the details of insurance brokerage activities, the agreement term, the rights and obligations of each party in accordance with the law regulations;

b) Obstructing the policyholder or the person insured from providing information related to the insurance policy or inciting the policyholder, insured not to declare details related to the insurance policy; promotions in the form of promising to provide illegal benefits to entice customers to enter into insurance policies; inciting the policyholder to cancel an in-force insurance policy to purchase a new insurance policy, as prescribed at Point a, Point b, Point c, Clause 3, Article 137 of Law No. 08/2022/QH15 on Insurance Business;

c) Failing to keep confidential information provided by customers, insurers, reinsurers, Vietnam-based foreign branches, except when required by competent state agencies or with the consent of customers, insurers, reinsurers, Vietnam-based foreign branches in accordance with the law regulations, as prescribed at Point a, Clause 2, Article 137 of the Law No. 08/2022/QH15 on Insurance Business;

d) Failing to compensate customers for damages caused by insurance brokerage activities in accordance with the law regulations, as prescribed at Point b, Clause 2, Article 137 of the Law No. 08/2022/QH15 on Insurance Business;

dd) Failing to publicly disclose to customers the information in accordance with the law regulations, as prescribed at Point c, Clause 2, Article 137 of the Law No. 08/2022/QH15 on Insurance Business.

2. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on any of the violations below:

a) Advising customers to purchase insurance from an insurer or foreign non-life insurer branch with less competitive terms and conditions compared to other insurers, branches of foreign non-life insurers in order to gain higher brokerage commissions, as prescribed at Point d, Clause 3, Article 137 of the Law No. 08/2022/QH15 on Insurance Business;

b) Providing customers with incorrect information, inconsistent with the terms and conditions of insurers or foreign non-life insurer branches as prescribed at Point dd, Clause 3, Article 137 of the Law No. 08/2022/QH15 on Insurance Business.

3. A fine of between VND 50,000,000 and VND 70,000,000 shall be imposed on employing persons, who fail to satisfy the conditions in accordance with the law regulations, to directly perform insurance brokerage activities, as prescribed in Clause 2 Article 138 of the Law No. 08/2022/QH15 on Insurance Business.

4. Additional penalty:

Suspension in a definite period of between 01 and 03 months of insurance operations directly related to any of the administrative violations prescribed in Clause 2 of this Article.

5. Remedial measures:

a) Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 and Clause 2 of this Article;

b) Forcible discontinuation of employment of persons directly performing insurance brokerage activities in case of committing violations prescribed in Clause 3 of this Article within 12 months from the date the decisions to impose penalties on the administrative violations are received.

Article 24. Penalties for violations of regulations on insurance agent

1. A fine of between VND 60,000,000 and VND 80,000,000 shall be imposed on insurers and branches of foreign non-life insurers, mutual organizations providing micro-insurance that commit any of the violations below:

a) Employing an individual concurrently acting as an insurance agent for another insurer or foreign non-life insurer branch offering the same type of insurance as the insurer or foreign non-life insurer branch for which he/she is acting as an agent in contravention of the law regulations, as prescribed in Clause 1, Article 127 of Law No. 08/2022/QH15 on Insurance Business;

b) Employing an individual who is acting as an insurance agent for another mutual organization providing micro-insurance in contravention of the law regulations, as prescribed in Clause 1, Article 127 of the Law No. 08/2022/QH15 on Insurance Business;

c) Employing an organization concurrently acting as an insurance agent for another insurer, foreign non-life insurer branch, or mutual organization providing micro-insurance without written approval by the insurer, foreign non-life insurer branch, or mutual organization providing micro-insurance for which such organization is acting as an agent in contravention of the law regulations, as prescribed in Clause 2, Article 127 of Law No. 08/2022/QH15 on Insurance Business;

d) Employing organizations or individuals that fail to satisfy the conditions for acting as insurance agents in accordance with the law regulations, as prescribed in Article 125 of the Law No. 08/2022/QH15 on Insurance Business, Article 62 of Decree No. 46/2023/ND-CP;

dd) Issuing insurance policies in cases where the audio records in accordance with the law regulations do not contain the policyholders’ confirmation that they voluntarily purchase insurance based on their financial capacity and insurance needs;

e) Signing another individual agency agreement with the same employee of the corporate agent in order to perform agent operations for the same insurance policy;

g) Failing to train and update knowledge for insurance agents in accordance with the law regulations, as prescribed at Point b, Clause 2, Article 128 of the Law No. 08/2022/QH15 on Insurance Business.

2. A fine of between VND 60,000,000 and VND 100,000,000 shall be imposed on insurers, branches of foreign non-life insurers, and mutual organizations providing micro-insurance that do not adopt measures to inspect and supervise the performance of insurance agency contracts; evaluate the quality of advice on and introduction of insurance products given by insurance agents and employees of corporate agents in accordance with the law regulations; detect and fail to adopt measures to handle violating insurance agents, allowing any of the violations below to occur:

a) Providing untruthful information or advertisement on operations and operational scope of insurers, branches of foreign non-life insurers or mutual organizations providing micro-insurance, and insurance conditions and terms that harm the lawful rights and interests of policyholders, as prescribed at Point a, Clause 3, Article 129 of the Law No. 08/2022/QH15 on Insurance Business;

b) Preventing policyholders from providing information related to insurance policies or inciting policyholders and the persons insured not to declare information related to insurance policies, as prescribed at Point b, Clause 3, Article 129 of the Law No. 08/2022/QH15 on Insurance Business;

c) Scrambling for customers through obstructing, inducing, buying off or intimidating employees or customers of other insurers, branches of foreign non-life insurers, mutual organizations providing micro-insurance, insurance agents or insurance brokers, as prescribed at Point c, Clause 3, Article 129 of the Law No. 08/2022/QH15 on Insurance Business;

d) Inciting customers to cancel in-force insurance policies in any form, as prescribed at Point d, Clause 3, Article 129 of the Law No. 08/2022/QH15 on Insurance Business;

dd) Giving advice on, introducing, offering insurance products, providing incomplete and inaccurate information about insurance products, insurers, branches of foreign non-life insurers, and mutual organizations providing micro-insurance to policyholders in accordance with the law regulations, as prescribed at Point d, Clause 2, Article 129 of the Law No. 08/2022/QH15 on Insurance Business;

e) Failing to provide explicit and full interpretation of insurable interests, terms on exclusion of insurance liability, and rights and obligations of policyholders in accordance with the law regulations, as prescribed at Point d, Clause 2, Article 129 of the Law No. 08/2022/QH15 on Insurance Business;

g) Arbitrarily declaring information for the policyholder without his/her consent, as prescribed at Point d, Clause 2, Article 129 of the Law No. 08/2022/QH15 on Insurance Business;

h) Failing to explain to the policyholders that purchasing insurance products is not a mandatory condition for using other products or services of the corporate agents in accordance with the law regulations;

i) Giving advice on, introducing, or offering invest-linked insurance products for sale, or arrange the signing of invest-linked insurance policies with customers within the period of 60 days before and 60 days after the full disbursement of such loans;

k) Failing to comply with regulations on providing investment-linked insurance products through insurance agents in accordance with the law regulations.

3. Remedial measures:

a) Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 and Clause 2 of this Article;

b) Forcible discontinuation by insurers, branches of foreign non-life insurers, and mutual organizations providing micro-insurance of employment of insurance agents directly related to violations prescribed in Clause 1 and Clause 2 of this Article within 12 months from the date the decisions to impose penalties on the administrative violations are received.

Article 25. Penalties for violations of regulations on issuance and revocation of insurance certifications, insurance agent certificates, insurance brokerage certificates, and insurance auxiliary operations certificates

1. A fine of between VND 60,000,000 and VND 80,000,000 shall be imposed on insurers, branches of foreign non-life insurers, and mutual organizations providing micro-insurance that organize unsatisfactory insurance agent certification training in accordance with the law regulations, as prescribed in Clause 2, Article 130 of the Law No. 08/2022/QH15 on Insurance Business.

2. A fine of between VND 60,000,000 and VND 80,000,000 shall be imposed on domestic insurance training establishments that issue or revoke insurance certifications, insurance brokerage certificates, and insurance auxiliary operations certificates in contravention of the law regulations, as prescribed in Clause 6, Article 81, Clause 2, Article 139, Clause 4, Article 143 of the Law No. 08/2022/QH15 on Insurance Business.

3. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 and Clause 2 of this Article.

Article 26. Penalties for violations committed by Vietnam-based foreign representative offices

1. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on any of the violations below:

a) Changing the name, nationality, address of a foreign insurer, foreign reinsurer, foreign financial and insurance group, foreign insurance broker or the name of a Vietnam-based foreign representative office or changing the operational scope of a Vietnam-based foreign representative office or changing the location of the head office of a Vietnam-based foreign representative office in contravention of the law regulations, as prescribed in Clause 2, Article 77 of the Law No. 08/2022/QH15 on Insurance Business;

b) Failing to notify changes in accordance with the law regulations, as prescribed in Clause 4, Article 76 of Law No. 08/2022/QH15 on Insurance Business.

2. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 of this Article (unless otherwise the operations of Vietnam-based foreign representative offices are changed).

Article 27. Penalties for violations in providing insurance auxiliary services by individuals, organizations providing insurance auxiliary services

1. A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed on any of the violations below when providing insurance auxiliary services:

a) Failing to keep customer information confidential or using customer information for wrong purposes or providing information to third parties without customer consent, except for cases of providing information as prescribed by the law regulations;

b) Organizations providing insurance auxiliary services providing insurance loss assessment services and assistance in settling insurance claims for insurance policies where the organization is also the policyholder or insured or beneficiary;

c) Insurance brokers providing insurance loss assessment services for insurance policies arranged by the company;

d) Failing to make written contracts for provision of insurance auxiliary services.

2. A fine of between VND 60,000,000 and VND 80,000,000 shall be imposed on any of the violations below when providing insurance auxiliary services:

a) Providing the type of insurance auxiliary services that they are not permitted to provide;

b) Providing insurance auxiliary services without satisfying the conditions for providing insurance auxiliary services in accordance with the law regulations;

c) An organization without legal status providing one of the following insurance auxiliary services: risk assessment, actuarial, damage survey, and third-party administration services.

3. Additional penalty:

a) Suspension in a definite period of between 01 and 03 months of the provision of insurance auxiliary services by individuals committing violations prescribed at Point b, Clause 2 of this Article;

b) Suspension in a definite period of between 01 and 03 months of the provision of insurance auxiliary services by insurance auxiliary service providers committing violations prescribed at Point a and Point b, Clause 2 of this Article.

Article 28. Penalties for violations of regulations on capital

1. A fine of between VND 160,000,000 and VND 200,000,000 shall be imposed on insurers, reinsurers, insurance brokers, Vietnam-based foreign branches, mutual organizations providing micro-insurance that commit any of the violations below:

a) Having the shareholders’ equity lower than the legal capital in accordance with the law regulations, as prescribed in Clause 2, Article 94 of the Law No. 24/2000/QH10 on Insurance Business;

b) Having the charter equity contributed lower than the minimum level in accordance with the law regulations, as prescribed in Clause 2, Article 64 of the Law No. 08/2022/QH15 on Insurance Business;

c) Having the charter capital and shareholders’ equity lower than the minimum charter capital in accordance with the law regulations, as prescribed in Clause 3, Article 138 of the Law No. 08/2022/QH15 on Insurance Business; having the operating capital lower than the minimum establishment capital as prescribed in Clause 2, Article 36 of Decree No. 21/2023/ND-CP;

d) Failing to maintain the capital adequacy ratio in accordance with the law regulations, as prescribed in Clause 2, Article 95 of the Law No. 08/2022/QH15 on Insurance Business.

2. Additional penalty:

Suspension in a definite period of between 01 and 03 months of part of operations and operational scope directly related to administrative violations prescribed in Clause 1 of this Article in establishment and operation licenses.

3. Remedial measures:

Forcible compliance with the law regulations on capital and capital adequacy ratio in case of committing violations prescribed in Clause 1 of this Article.

Article 29. Penalties for violations of regulations on deposits

1. A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed on any of the violations below:

a) Making deposits in contravention of the law regulations, as prescribed in Clause 1 and Clause 2, Article 96 of the Law No. 08/2022/QH15 on Insurance Business; Article 37 of Decree No. 21/2023/ND-CP;

b) Using deposits, withdrawing deposits in contravention of the law regulations, as prescribed in Clause 3 and Clause 4, Article 96 of the Law No. 08/2022/QH15 on Insurance Business.

2. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 of this Article.

Article 30. Penalties for violations of regulations on setting aside, managing and using technical reserves and compulsory reserves

1. A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed on failing to make sufficient compulsory reserves in contravention of the law regulations, as prescribed in Clause 1 and Clause 2, Article 98 of the Law No. 08/2022/QH15 on Insurance Business, and Clause 1, Article 42 of Decree No. 21/2023/ND-CP.

2. A fine of between VND 60,000,000 and VND 80,000,000 shall be imposed on any of the violations below:

a) Failing to register the methodologies and considerations for setting aside technical reserves with the Ministry of Finance, or setting aside technical reserves without the approval of the Ministry of Finance in accordance with the law regulations, as prescribed in Clause 3, Article 97 of the Law No. 08/2022/QH15 on Insurance Business, Article 45 of Decree No. 46/2023/ND-CP;

b) Using the Compulsory reserves in contravention of the law regulations.

3. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on any of the violations below:

a) Setting aside technical reserves not using the rate-making methodology and considerations registered with the Ministry of Finance in accordance with the law regulations, as prescribed in Article 45 of Decree No. 46/2023/ND-CP;

b) Using technical reserves in contravention of the law regulations, as prescribed in Clause 2, Article 38, Clause 2, Article 40, Clause 2, Article 42 of Decree No. 46/2023/ND-CP;

c) Setting aside insurance technical reserves without confirmation from the appointed actuaries in accordance with the law regulations, as prescribed in Clause 1, Article 38 of Decree No. 46/2023/ND-CP;

d) Setting aside technical reserves in contravention of the law regulations, as prescribed in Clause 2, Article 97 of the Law No. 08/2022/QH15 on Insurance Business; Article 38 of Decree No. 21/2023/ND-CP.

4. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1, Clause 2, Point a, Point b, Point d, Clause 3 of this Article.

Article 31. Penalties for violations of capital investment regulations

1. A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed on any of the violations below:

a) Failing to record and monitor separately investment assets from shareholders’ equity and those from idle capital from technical reserves;

b) Reinsurers concurrently conducting life reinsurance, non-life reinsurance and health reinsurance not separately recording and monitoring investment assets from idle capital from technical reserves of each type of reinsurance.

2. A fine of between VND 50,000,000 VND and 70,000,000 VND shall be imposed on any of the violations below in terms of investment principles:

a) Making investments from the sources other than those prescribed by the law regulations, as prescribed in Clause 1, Article 99 of Law No. 08/2022/QH15 on Insurance Business;

b) Investing idle capital from technical reserves in contravention of the law regulations, as prescribed in Article 61, Article 62 of Decree No. 73/2016/ND-CP; Clause 3, Article 39 of Decree No. 21/2023/ND-CP;

c) Investing more than 30% of investment capital in companies in the same group of companies with mutual ownership relations in accordance with the law regulations, as prescribed at Point d, Clause 2, Article 99 of the Law No. 08/2022/QH15 on Insurance Business;

d) Making investments from shareholder’s equity in contravention of the law regulations, as prescribed in Article 46 of Decree No. 46/2023/ND-CP; making investments from establishment capital, compulsory reserves and idle capital from technical reserves of mutual organizations providing micro-insurance in contravention of the law regulations, as prescribed in Clause 3, Article 39 of Decree No. 21/2023/ND-CP;

dd) The entrusted institution failing to be licensed to conduct entrusted investment activities suitable to the entrusted investment in accordance with the law regulations, as prescribed at Point g, Clause 2, Article 99 of the Law No. 08/2022/QH15 on Insurance Business.

3. A fine of between VND 80,000.000 and VND 100,000,000 shall be imposed on any of the violations below:

a) Borrowing to directly invest or entrust investment in securities, real estate or make capital contribution to other enterprises in contravention of the law regulations, as prescribed at Point c, Clause 2, Article 99 of Law No. 08/2022/QH15 on Insurance Business;

b) Making reinvestments under any form in contravention of the law regulations in shareholders, capital-contributing members or persons related to such shareholders or capital-contributing members as prescribed in the Law on Enterprises, except for deposits at shareholders or members being credit institutions, as prescribed at Point dd, Clause 2, Article 99 of the Law No. 08/2022/QH15 on Insurance Business;

c) Using technical reserve to make offshore investment under any form in contravention of the law regulations, as prescribed at Point b, Clause 2, Article 99 of the Law No. 08/2022/QH15 on Insurance Business;

d) Purchasing corporate bonds issued by an enterprise for the purposes one of which is to restructure debts of such issuing enterprise in contravention of the law regulations, as prescribed at Point e Clause 2 Article 99 of the Law No. 08/2022/QH15 on Insurance Business;

dd) Making investments that are not permitted in accordance with the law regulations, as prescribed in Clause 3, Article 99 of Law No. 08/2022/QH15 on Insurance Business;

e) Making offshore investment in contravention of the law regulations, as prescribed in Article 100 of the Law No. 08/2022/QH15 on Insurance Business, unless otherwise prescribed in Clause 3, Article 12 of this Decree.

4. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 2 and Clause 3 of this Article.

Section 5

VIOLATIONS OF REGULATIONS ON SOLVENCY, RISK MANAGEMENT, INTERNAL CONTROL, INTERNAL AUDIT

Article 32. Penalties for violations of regulations on financial safety in operations of enterprises

1. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on failing to promptly reporting on the financial position and the causes of insolvency risks in accordance with the law regulations, as prescribed in Clause 2, Article 78 of the Law No. 24/2000/QH10 on Insurance Business.

2. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on any of the violations below:

a) Failing to implement or incorrectly implementing any or many of the solvency restoration, organizational and operational reinforcement plans of the insurer approved by the Ministry of Finance when the enterprise is at risk of insolvency in accordance with the law regulations, as prescribed in Clause 1, Article 79 of the Law No. 24/2000/QH10 on Insurance Business;

b) Failing to notify the Ministry of Finance in writing of actual situation, causes, and improvement measures that have been applied in accordance with the law regulations, as prescribed in Clause 1, Article 67 of Decree No. 73/2016/ND-CP;

c) Failing to comply with the solvency restoration requirements in accordance with the law regulations, as prescribed in Clause 2, Article 79 of the Law No. 24/2000/QH10 on Insurance Business, Clause 2, Article 67 of Decree No. 73/2016/ND-CP;

d) Transferring profits overseas without ensuring capital adequacy ratio and solvency in accordance with the law regulations, as prescribed at Point a, Clause 1, Article 107 of the Law No. 08/2022/QH15 on Insurance Business.

3. Remedial measures:

a) Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1, Point a, Point b, Point c, Clause 2 of this Article;

b) Forcible restoration of the original condition in case of committing violations prescribed at Point d, Clause 2 of this Article.

Article 33. Penalties for violations of regulations on risk management, internal control, internal audit

1. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on insurers, reinsurers, Vietnam-based foreign branches shall be imposed on any of the violations of regulations on risk management:

a) Failing to organize risk management in accordance with the law regulations;

b) Failing to develop risk management policies, internal regulations on risk management in accordance with the law regulations;

c) Failing to conduct stress tests on capital adequacy and solvency in accordance with the law regulations;

d) Failing to send the Ministry of Finance a risk management report in accordance with the law regulations;

dd) Risk management report failing to contain the details in accordance with the law regulations.

2. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on insurers, reinsurers, Vietnam-based foreign branches that commit any of the violations of regulations on risk management:

a) Internal control activities failing to follow the principles in accordance with the law regulations;

b) Compliance departments failing to perform or insufficiently performing assigned tasks in accordance with the law regulations.

3. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on insurers, reinsurers, Vietnam-based foreign branches shall be imposed on any of the violations of regulations on internal audit:

a) Failing to conduct an annual assessment of internal control activities in accordance with the law regulations;

b) Failing to conducting internal audit on an annual basis in accordance with the law regulations.

4. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1, Clause 2 and Clause 3 of this Article.

Article 34. Penalties for violations of regulations on implementation of improvement measures

1. A fine of between VND 60,000,000 and VND 80,000,000 shall be imposed on any of the violations below in cases where improvement measures must be applied:

a) Failing to select and implement, or inappropriately implementing, any or many improvement measures in accordance with the law regulations, as prescribed in Clause 1 and Clause 2, Article 111 of Law No. 08/2022/QH15 on Insurance Business;

b) Failing to notify the Ministry of Finance in writing of the actual situation, causes, and improvement measures that have been applied in accordance with the law regulations, as prescribed in Clause 1, Article 111 of the Law No. 08/2022/QH15 on Insurance Business.

2. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on any of the violations below during implementation of improvement measures:

a) Transferring profits overseas, distributing profits, paying dividends as prescribed at Point a, Clause 3, Article 111 of the Law No. 08/2022/QH15 on Insurance Business;

b) Increasing the assumption of insurance ceded as prescribed at Point b, Clause 3, Article 111 of Law No. 08/2022/QH15 on Insurance Business.

3. Remedial measures:

a) Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 and Clause 2 of this Article;

b) Forcible restoration of the original condition in case of committing violations prescribed at Point a, Clause 2 of this Article.

Article 35. Penalties for violations of regulations on implementation of early intervention measures

1. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on any of the violations below:

a) Failing to develop or untimely developing the plans on improvement of the capital adequacy ratio in accordance with the law regulations, as prescribed in Clause 2, Article 112 of the Law No. 08/2022/QH15 on Insurance Business;

b) Failing to implement, or untimely implementing the remedial plans in accordance with the law regulations, as prescribed in Clause 2 and Clause 3, Article 112 of Law No. 08/2022/QH15 on Insurance Business;

c) Failing to report or untimely reporting the actual situation, causes, and plans on improvement of the capital adequacy ratios to the Ministry of Finance in accordance with the law regulations, as prescribed in Clause 2, Article 112 of the Law No. 08/2022/QH15 on Insurance Business.

2. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on any of the violations below during implementation of early intervention measures:

a) Transferring profits overseas, distributing profits, paying dividends as prescribed at Point a, Clause 5, Article 112 of the Law No. 08/2022/QH15 on Insurance Business;

b) Increasing the assumption of insurance ceded as prescribed at Point a, Clause 5, Article 112 of Law No. 08/2022/QH15 on Insurance Business;

c) Purchasing stocks, as prescribed at Point b, Clause 5, Article 112 of the Law No. 08/2022/QH15 on Insurance Business;

d) Expanding the operations, operational scope and operational duration, as prescribed at Point c, Clause 5, Article 112 of the Law No. 08/2022/QH15 on Insurance Business.

3. Remedial measures:

a) Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 and Clause 2 of this Article;

b) Forcible restoration of the original condition in case of committing violations prescribed at Point a, Clause 2 of this Article.

Article 36. Penalties for violations of regulations on implementation of improvement measures

1. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on any of the violations below:

a) Failing to hire or untimely hiring an independent auditing organization to review, assess financial status, determine actual value of charter capital, allocated capital and solvency not within the time limit in accordance with the law regulations, as prescribed in Clause 3 Article 113 of the Law No. 08/2022/QH15 on Insurance Business;

b) Failing to develop or untimely developing the plans on improvement of the capital adequacy ratio in accordance with the law regulations, as prescribed in Clause 4, Article 113 of the Law No. 08/2022/QH15 on Insurance Business;

c) Failing to implement or untimely implementing the plans on improvement of the capital adequacy ratio in accordance with the law regulations, as prescribed in Clause 4 and Clause 5, Article 113 of the Law No. 08/2022/QH15 on Insurance Business;

d) Failing to report or untimely reporting the actual situation, causes, and plans on improvement of the capital adequacy ratios to the Ministry of Finance in accordance with the law regulations, as prescribed in Clause 4, Article 113 of the Law No. 08/2022/QH15 on Insurance Business.

2. A fine of between VND 80,000,000 and VND 100,000.000 shall be imposed on any of the violations below during implementation of the control measures:

a) Transferring profits overseas, distributing profits, paying dividends as prescribed at Point a, Clause 7, Article 113 of the Law No. 08/2022/QH15 on Insurance Business;

b) Increasing the assumption of insurance ceded as prescribed at Point a, Clause 7, Article 113 of Law No. 08/2022/QH15 on Insurance Business;

c) Purchasing treasury stocks, as prescribed at Point a, Clause 7, Article 113 of the Law No. 08/2022/QH15 on Insurance Business;

d) Expanding the operations, operational scope and operational duration, as prescribed at Point a, Clause 7, Article 113 of the Law No. 08/2022/QH15 on Insurance Business;

dd) Contributing capital to establish enterprises; purchasing real estate to be used as business locations, working places, or warehousing facilities directly serving professional operations, as prescribed at Point b, Clause 7, Article 113 of the Law No. 08/2022/QH15 on Insurance Business;

e) Investing in high-risk assets or conducting business activities leading to the decrease of the capital adequacy ratio, as prescribed at Point c, Clause 7, Article 113 of the Law No. 08/2022/QH15 on Insurance Business.

3. Remedial measures:

a) Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1 and Clause 2 of this Article;

b) Forcible restoration of the original condition in case of committing violations prescribed at Point a, Clause 2 of this Article.

Article 37. Penalties for violations of regulations on fulfillment of responsibilities when improvement, early intervention, and control measures are applied

A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on failing to report to the Ministry of Finance the implementation results and level of improvement in accordance with the law regulations, as prescribed in Clause 3, Article 114 of the Law No. 08/2022/QH15 on Insurance Business.

Article 38. Penalties for violations of regulations on segregation of the shareholders’ equity from insurance premiums, and distribution of surplus

1. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on insurers, reinsurers, Vietnam-based foreign branches that commit any of the violations below:

a) Failing to register with the Ministry of Finance the principles of segregation of the shareholders’ equity from insurance premiums in accordance with the law regulations, as prescribed in Clause 1, Article 101 of the Law No. 08/2022/QH15 on Insurance Business, and Clause 1, Article 51 of Decree No. 46/2023/ND-CP;

b) Incorrectly implementing the principles of segregation of shareholders’ equity from insurance premiums registered and approved by the Ministry of Finance in accordance with the law regulations, as prescribed in Clause 1, Article 101 of Law No. 08/2022/QH15 on Insurance Business;

c) Failing to register with the Ministry of Finance the method of distributing surpluses of the with-profits policyholders’ fund of life insurers before applying in accordance with the law regulations, as prescribed in Clause 4, Article 101 of the Law No. 08/2022/QH15 on Insurance Business;

d) Failing to properly implement the method of surplus distribution approved by the Ministry of Finance in accordance with the law regulations, as prescribed in Clause 2 and Clause 4, Article 101 of the Law No. 08/2022/QH15 on Insurance Business.

2. A fine of between VND 60,000,000 and VND 80,000,000 shall be imposed on any of the violations below:

a) Life insurers failing to segregating, separately recording and monitoring assets, capital sources, revenues, expenses, business results of with-profits life insurance policies using the methodologies approved by the Ministry of Finance in accordance with the law regulations, as prescribed in Clause 2, Article 101 of the Law No. 08/2022/QH15 on Insurance Business;

b) Life insurers transferring assets and compensating for deficits of the policyholders’ funds in contravention of the law regulations, as prescribed in Article 101 of the Law No. 08/2022/QH15 on Insurance Business.

3. A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on any of the violations below:

a) Failing to segregate the shareholders’ equity from insurance premiums in accordance with the law regulations, as prescribed in Clause 1, Article 101 of the Law No. 08/2022/QH15 on Insurance Business;

b) Failing to distribute surpluses in accordance with the law regulations, as prescribed in Clause 2 and Clause 4, Article 101 of the Law No. 08/2022/QH15 on Insurance Business.

4. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1, Clause 2 and Clause 3 of this Article.

Section 6

VIOLATIONS OF REGULATIONS ON REPORTING AND INFORMATION DISCLOSURE

Article 39. Penalties for violations of regulations on reporting, disclosure, update of agent information

1. A fine of between VND 10,000,000 and VND 30,000,000 shall be imposed on any of the violations below:

a) Untimely submitting reports in accordance with the law regulations;

b) Submitting incomplete reports in accordance with the law regulations, as prescribed in Clause 1, Article 106 and Clause 5, Article 138 of the Law No. 08/2022/QH15 on Insurance Business, Article 34 of Decree No. 21/2023/ND-CP regulating micro-insurance, Clause 2, Article 75 of Decree No. 67/2023/ND-CP on compulsory insurance for motor vehicle owner’s civil liability, compulsory fire and explosion insurance and compulsory insurance in construction investment activities;

c) Untimely notifying the Ministry of Finance of the information disclosed in accordance with the law regulations, as prescribed in Clause 3, Article 117 and Clause 8, Article 138 of the Law No. 08/2022/QH15 on Insurance Business.

2. A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed on any of the violations below:

a) Information and data in the report being incomplete or inaccurate in accordance with the law regulations;

b) Disclosing information that is not truthful and sufficient in accordance with the law regulations, as prescribed in Clause 1, Article 117, Clause 8, Article 138 of the Law No. 08/2022/QH15 on Insurance Business, Article 45 of Decree No. 21/2023/ND-CP;

c) Disclosing information not in the form and timeline in accordance with the law regulations, as prescribed in Clause 2, Article 117, Clause 8, Article 138 of the Law No. 08/2022/QH15 on Insurance Business, Article 44 of Decree No. 21/2023/ND-CP.

3. A fine of between VND 40,000,000 and VND 60,000,000 shall be imposed on any of the violations below:

a) Failing to submit reports in accordance with the law regulations, as prescribed in Article 106, Article 138 of the Law No. 08/2022/QH15 on Insurance Business; Article 34 of Decree No. 21/2023/ND-CP;

b) Having annual financial statements not certified by an independent auditor in accordance with the law regulations, as prescribed in Clause 1 and Clause 2, Article 105 of the Law No. 08/2022/QH15 on Insurance Business;

c) Failing to publicly disclose information in accordance with the law regulations, as prescribed in Clause 1, Article 117, Article 138 of the Law No. 08/2022/QH15 on Insurance Business; Article 44, Article 45 of Decree No. 21/2023/ND-CP;

d) Failing to notify the Ministry of Finance of the information disclosed in accordance with the law regulations, as prescribed in Clause 3, Article 117 and Article 138 of the Law No. 08/2022/QH15 on Insurance Business.

4. A fine of between VND 60,000,000 and VND 80,000,000 shall be imposed on failing to register and update information of insurance agents and employees of corporate agents directly conducting insurance agency activities into the insurance business database in accordance with the law regulations, as prescribed in Clause 4, Article 127, Point l, Clause 2, Article 128 of the Law No. 08/2022/QH15 on Insurance Business.

Section 7

VIOLATIONS OF REGULATIONS ON ANTI-MONEY LAUNDERING, ANTI-TERRORIST FINANCING, AND NON-PROLIFERATION OF WEAPONS OF MASS DESTRUCTION RELATED TO LIFE INSURANCE BUSINESS

Article 40. Penalties for violations of regulations on anti-money laundering, anti-terrorist financing, and non-proliferation of weapons of mass destruction related to life insurance business

1. Life insurers that violate regulations on customer identification, and collection, updating, and verification of customer identification information; on the responsibility for developing internal regulations and reporting, providing, and retaining information and records shall be imposed the penalties below:

a) A fine of between VND 20,000,000 and VND 40,000,000 shall be imposed on failing to identify, update and verify customer identification information in accordance with the law regulations, as prescribed in Article 9, Article 10, Article 11, Article 12, Article 13 and Article 14 of the Law on Anti-Money Laundering, Clause 1, Article 34 of the Law on Counter-Terrorism, Point a, Clause 2, Article 22 of Decree No. 81/2019/ND-CP;

b) A fine of between VND 30,000,000 and VND 60,000,000 shall be imposed on failing to supervise certain special transactions in accordance with the law regulations, as prescribed in Article 20 of the Law on Anti-Money Laundering;

c) A fine of between VND 30,000,000 and VND 60,000,000 shall be imposed on failing to comply with regulations on retention and confidentiality of information, records, documents, and reports: regarding anti-money laundering, anti-terrorist financing in accordance with the law regulations, as prescribed in Article 38, Article 40 of the Law on Anti-Money Laundering, Article 34 of the Law on Counter-Terrorism;

d) A fine of between VND 40,000,000 and VND 80,000,000 shall be imposed on failing to issue and comply with internal regulations on anti-money laundering, anti-terrorist financing, anti-proliferation and anti-financing of proliferation of weapons of mass destruction in accordance with the law regulations, as prescribed in Article 24 of the Law on Anti-Money Laundering, Article 34 of the Law on Counter-Terrorism, Article 22 of Decree No. 81/2019/ND-CP;

dd) A fine of between VND 50,000,000 and VND 100,000,000 shall be imposed on failing to conduct risk assessments on money laundering, terrorist financing, and financing of proliferation of weapons of mass destruction; failing to update annual risk assessment results, failing to submit or untimely submitting risk assessment and update reports, failing to disseminate risk assessment and update results throughout the reporting entity's system in accordance with the law regulations on anti-money laundering, counter-terrorism, and anti-financing of proliferation of weapons of mass destruction;

e) A fine of between VND 50,000,000 and VND 100,000,000 shall be imposed on failing to develop regulations on customer classification, failing to classify customers according to risk levels, failing to develop a risk management process for money laundering, terrorist financing, and financing of proliferation of weapons of mass destruction in accordance with the law regulations on anti-money laundering, counter-terrorism, and anti-financing of proliferation of weapons of mass destruction;

g) A fine of between VND 50,000,000 and VND 100,000,000 shall be imposed on failing to issue policies and procedures for identifying and assessing money laundering risks before providing new products and services and existing products and services applying innovative technologies in accordance with the law regulations, as prescribed in Article 19 of the Law on Anti-Money Laundering;

h) A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on the violation of regulations on responsibilities related to foreign politically exposed persons in accordance with the law regulations, as prescribed in Article 17 of the Law on Anti-Money Laundering.

2. Life insurers that violate regulations on providing information on anti-money laundering, conducting prohibited acts in anti-money laundering, reporting large-value transactions, reporting suspicious transactions, and cryptocurrency transfers shall be imposed the penalties below:

a) A fine of between VND 30,000,000 and VND 50,000,000 shall be imposed on failing to comply with regulations on reporting large-value transactions, reporting suspicious transactions, and reporting cryptocurrency transfers in accordance with the law regulations, as prescribed in Article 25, Article 26, and Article 34 of the Law on Anti-Money Laundering;

b) A fine of between VND 30,000,000 and VND 60,000,000 shall be imposed on obstructing the provision of information for the purpose of anti-money laundering in accordance with the law regulations, as prescribed in Article 8 of the Law on Anti-Money Laundering;

c) A fine of between VND 50,000,000 and VND 100,000,000 shall be imposed on failing to report and provide information, records, documents, and reports for the purpose of anti-money laundering, anti-terrorist financing, and non-proliferation of weapons of mass destruction at the request of competent State authorities in accordance with the law regulations, as prescribed in Article 39 of the Law on Anti-Money Laundering, Article 33 of the Law on Counter-Terrorism, Article 22 of Decree No. 81/2019/ND-CP;

d) A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on organizing, participating in, facilitating or assisting in money laundering that is not serious enough to warrant criminal prosecution in accordance with the law regulations, as prescribed in Article 8 of the Law on Anti-Money Laundering;

dd) A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on failing to apply transaction delay measures, failing to report to competent State authorities in accordance with the law regulations, as prescribed in Article 44 of the Law on Anti-Money Laundering; failing to freeze accounts, seal or temporarily detain assets in accordance with the law regulations, as prescribed in Article 45 of the Law on Anti-Money Laundering.

3. Life insurers committing violations of regulations on anti-terrorist financing shall be imposed the penalties below:

a) A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on failing to report to counter-terrorism forces upon detecting signs or acts of terrorist financing in accordance with the law regulations, as prescribed in Article 33 of the Law on Counter-Terrorism;

b) A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on failing to report suspicious transactions related to terrorist financing; failing to apply provisional measures or failing to report the application of provisional measures when there is suspicion that a customer or a customer’s transaction is related to terrorist financing or the customer is on the Counter-Terrorism Blacklist.

4. Life insurers committing violations of regulations on non-proliferation of weapons of mass destruction shall be imposed the penalties below:

A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed on failing to notify competent authorities when detecting acts of proliferation and financing of proliferation or other violations of the law regulations on weapons of mass destruction, as prescribed in Article 25 of Decree No. 81/2019/ND-CP.

5. Remedial measures:

Forcible compliance with the law regulations in case of committing violations prescribed in Clause 1, Clause 2, Clause 3 and Clause 4 of this Article.

6. Life insurers that violate regulations on anti-money laundering, anti-terrorist financing, and non-proliferation of weapons of mass destruction related to life insurance business, other than those prescribed in this Decree, shall be imposed penalties in accordance with the Government's Decree on penalties for administrative violations of monetary and banking regulations.

Section 8

COMPETENCE TO IMPOSE PENALTIES ON ADMINISTRATIVE VIOLATIONS OF REGULATIONS ON INSURANCE BUSINESS

Article 41. Competence to impose penalties on violations of regulations on insurance business

1. Persons assigned to perform specialized inspection tasks under the Insurance Supervisory Authority under the Ministry of Finance have the right to:

a) Issue warnings;

b) Impose fines up to VND 500,000;

c) Apply remedial measures prescribed in Clause 5, Article 3 of this Decree.

2. Heads of specialized inspection teams under the Insurance Supervisory Authority under the Ministry of Finance have the right to:

a) Issue warnings;

b) Impose fines up to VND 50,000,000;

c) Temporarily suspend operations;

d) Apply remedial measures prescribed in Clause 5, Article 3 of this Decree.

3. The Director of the Insurance Supervisory Authority has the right to:

a) Issue warnings;

b) Impose fines up to VND 100,000,000;

c) Temporarily suspend operations;

d) Apply remedial measures prescribed in Clause 5, Article 3 of this Decree.

4. Directors of provincial-level Police Departments has the right to:

a) Issue warnings;

b) Impose fines up to VND 50,000,000;

c) Apply remedial measures prescribed in Clause 5, Article 3 of this Decree.

5. The Director of the Economic Security Department, the Director of the Police Department for Investigation of Corruption, Economic, and Smuggling Crimes, the Director of the Police Department for Administrative Management of Social Order, the Director of the Police Department for Investigation of Social Order Crimes, the Director of the Fire and Rescue Police Department have the right to:

a) Issue warnings;

b) Impose fines up to VND 100,000,000;

c) Apply remedial measures prescribed in Clause 5, Article 3 of this Decree.

6. Banking inspectors have the right to:

a) Issue warnings;

b) Impose fines up to VND 500,000;

c) Apply remedial measures prescribed in Clause 5, Article 3 of this Decree.

7. Department Directors of the Banking Supervision Agency have the right to:

a) Issue warnings;

b) Impose fines up to VND 70,000,000;

c) Apply remedial measures prescribed in Clause 5, Article 3 of this Decree.

8. The Chief Inspector of the Banking Supervision Agency has the right to impose penalties for violations of the provisions in Clause 2, Article 40 of this Decree:

a) Issue warnings;

b) Impose fines up to VND 100,000,000;

c) Apply remedial measures prescribed in Clause 5, Article 3 of this Decree.

Article 42. Principles of determination delegation of the competence to impose penalties on violations of regulations on insurance business

1. The Head of the specialized inspection team has the competence to impose penalties on administrative violations within the scope and related to details of the inspection within the inspection period in accordance with the law regulations on inspection. In cases where the inspection period expires in accordance with the law regulations on inspection, but a decision to impose penalties cannot be made due to objective reasons, the violation case must be transferred to the competent authority for imposing penalties.

2. In cases where an administrative violation of regulations on insurance business fall under the competence of multiple persons, the first person to accept the case shall impose a penalty on such violation.

3. In cases where the penalties, specific fines, additional penalties, and remedial measures prescribed for any of the violations are beyond the competence to impose penalties in accordance with this Decree, the persons having the competence to impose penalties, who are handling the cases, must immediately transfer the violation case files to the competent authorities or persons for imposing penalties.

4. The competence of the persons prescribed in Article 41 of this Decree empowers them to impose penalties on single administrative violations committed by individuals; in cases where a fine is imposed, their competence to impose such a penalty on an organization is double that applicable to an individual.

5. The competence to impose penalties on administrative violations shall be delegated among the positions prescribed in Article 41 of this Decree as follows:

a) The positions prescribed in Clause 1, Clause 2, Clause 3, Article 41 of this Decree have the right to impose penalties on violations of this Decree, unless otherwise prescribed in Clause 2, Clause 3, Clause 4, Article 40 of this Decree;

b) The positions of the People's Public Security Forces prescribed in Clause 4 and Clause 5, Article 41 of this Decree have the right to impose penalties on violations prescribed in Article 15, Point d, Clause 2, Article 16, Point b, Clause 1, Article 39, and Article 40 of this Decree;

c) The positions of the State Bank of Vietnam prescribed in Clause 6, Clause 7 and Clause 8, Article 41 of this Decree have the right to impose penalties on violations prescribed in Clause 1 and Clause 2, Article 40 of this Decree.

Article 43. Competence to draw up written records of administrative violations of regulations on insurance business

1. The positions prescribed in Article 41 of this Decree, upon detecting administrative violations of regulations on insurance business, shall have the competence to draw up written records of such administrative violations in accordance with the regulations.

2. People’s Public Security officers and competent persons, who are performing official duties as defined by legal documents or administrative documents issued by competent authorities or persons, shall have the competence to draw up written records of administrative violations in accordance with the law regulations.

Article 44. Enforcement of penalties and remedial measures

1. Decisions to impose penalties on administrative penalties shall be enforced in accordance with Section 2, Chapter III, Part Two of the Law on Handling of Administrative Violations and the Government’s Decree No. 118/2021/ND-CP dated December 23, 2021 detailing a number of articles and measures to implement the Law on Handling of Administrative Violations.

2. Written records, materials, documents, or other relevant papers recording the enforcement of penalties and remedial measures must be included in the administrative violation handling dossiers as prescribed in Article 57 of the Law on Handling of Administrative Violations.

Chapter III

IMPLEMENTATION PROVISIONS

Article 45. Effect

1. This Decree takes effect from February 15, 2025.

2. The regulations on penalties for violations related to insurance business prescribed in Articles 1 thru 33 of the Government’s Decree No. 98/2013/ND-CP dated August 28, 2013 on penalties for violations of the regulations on insurance and lottery business, of which a number of articles were amended and supplemented by the Government's Decree No. 48/2018/ND-CP dated March 21, 2018, Decree No. 80/2019/ND-CP dated November 01, 2019, and Decree No. 102/2021/ND-CP dated November 16, 2021.

3. Point a, Clause 1, Article 28, Clause 1, Point a, Point b, Point c, Clause 2, Article 32 of this Decree shall be in effect until December 31, 2027.

4. Point d, Clause 1, Article 28, Point dd, Clause 3, Article 31, Article 34, Article 35, Article 36, Article 37 of this Circular shall take effect from January 01, 2028.

5. In cases where legal documents incorporated by reference in this Decree are amended, supplemented, or replaced, the amendments, supplements, or replacements shall be applied accordingly.

Article 46. Transitional provisions

1. In cases where the decision to impose a penalty for an administrative violation was issued before the effective date of this Decree, but after the effective date of this Decree, the individual or organization subject to such penalty still files a complaint, the complaint shall be resolved in accordance with the Decree on penalties for violations of regulations on insurance business that was in effect at the time such administrative violation was committed.

2. For administrative violations that occurred and were completed before the effective date of this Decree, but were only detected or are being considered for penalty after the effective date of this Decree, the Decree on penalties for administrative violations of regulations on insurance business that was in effect at the time such administrative violation was committed shall apply, unless this Decree does not provide for legal liability or provides for lighter legal liability for the violating individual or organization, in which case the penalty regulations of this Decree shall apply.

Article 47. Organization of implementation

Ministers, Heads of ministerial-level agencies, Heads of Government-attached agencies, Chairpersons of People’s Committees of provinces and municipalities, and the subjects of application hereof shall be responsible for implementing this Decree.