Circular No. 02/2006/TT-NHNN guiding the deposit guarantee at banks for enterprises engaged in job introduction services

CIRCULAR

Issued by the State Bank of Vietnam on April 12, 2006, No. 02/2006/TT-NHNN

guiding the depositing of collateral with banks for enterprises

operating job placement services

__________

To implement the provisions regarding licensing conditions under Clause 3, Article 12 of Decree No. 19/2005/NĐ-CP dated February 28, 2005 of the Government on conditions, procedures for establishment and operation of organizations providing job placement services (hereinafter referred to as Decree 19), and after reaching consensus with the Ministry of Labor, Invalids and Social Affairs, the State Bank of Vietnam guides the depositing of collateral with banks for enterprises operating job placement services as follows:

I. SUBJECTS AND SCOPE OF APPLICATION

1. This Circular stipulates that enterprises operating job placement services according to Decree 19 shall implement the depositing of collateral with commercial banks (hereinafter referred to as enterprises and banks).

2. Enterprises, banks, and related parties shall carry out the opening, use, and closure of accounts for collateral deposits for job placement activities in accordance with the provisions of this Circular and relevant laws.

II. OPENING, USING, AND CLOSING ACCOUNTS FOR JOBS PLACEMENT COLLATERAL DEPOSITS

3. Opening an account for collateral deposits:

3.1. The enterprise submits to the bank a dossier requesting the opening of an account for collateral deposits for job placement activities including:

a. A request for opening a collateral deposit account;

b. Documents proving the establishment of the enterprise in accordance with the law;

c. Documents proving the legal representative's status of the account holder.

3.2. The bank records the amount of collateral deposit into the account "Receivables from Collateral Deposits in Vietnamese Dong - Guaranteeing Other Payments" and confirms the amount of collateral deposited by the enterprise for job placement activities.

4. Using the account for collateral deposits:

During the course of operations, the enterprise may withdraw funds from the collateral deposit account to address risks and compensation payments as specified in Clause 3, Article 12 of Decree 19, with specific procedures as follows:

a. There must be a request from the enterprise accompanied by a document from the Department of Labor, Invalids and Social Affairs confirming the resolution of risks or compensation payments during the course of operations.

b. As for interest on the account, the enterprise can withdraw it without the consent of the Department of Labor, Invalids and Social Affairs.

5. Limit of the job placement collateral deposit account:

a. The enterprise must deposit collateral in the amount specified in Clause 3, Article 12 of Decree 19 and must maintain this level of collateral throughout the period of job placement activities.

b. In cases where the enterprise withdraws collateral deposits from the bank in accordance with the provisions of Clause 4, Section II of this Circular, within a maximum period of 30 days from the date of withdrawal, the enterprise must replenish the required collateral deposit amount. If the enterprise fails to do so, the bank will notify the Department of Labor, Invalids and Social Affairs to take appropriate measures.

6. Closing the account:

The bank will refund the collateral deposit to the enterprise and close the collateral deposit account when the enterprise requests it and provides one of the following conditions:

a. A document from the Department of Labor, Invalids and Social Affairs responding that the enterprise does not meet the conditions for obtaining or extending a license for job placement activities.

b. A document from the Department of Labor, Invalids and Social Affairs confirming that the enterprise has ceased job placement activities and has resolved all related obligations in accordance with the law.

c. The license has been revoked and there is a document from the Department of Labor, Invalids and Social Affairs confirming that all related obligations have been resolved in accordance with the law.

7. Responsibilities of the bank and the enterprise:

7.1. Responsibilities of the bank:

a. Implement and guide enterprises in opening, using, and managing collateral deposit accounts in accordance with this Circular and relevant laws;

b. Confirm the collateral deposit for job placement activities for the enterprise;

c. Pay interest on the balance of the collateral deposit at the agreed rate between the bank and the enterprise opening the collateral deposit account.

7.2. Responsibilities of the enterprise:

a. Deposit and maintain the required amount of collateral deposit as stipulated in Clause 5, Section II of this Circular.

b. Comply with the provisions of this Circular and relevant laws regarding the opening, use, and closing of collateral deposit accounts.

III. IMPLEMENTATION

8. This Circular takes effect 15 days after its publication in the Official Gazette.

9. Heads of units under the State Bank of Vietnam, Governors of provincial branches of the State Bank of Vietnam, Boards of Directors, General Managers (Directors) of commercial banks, Departments of Labor, Invalids and Social Affairs of provinces and centrally-administered cities, and enterprises eligible for consideration for a license to operate job placement services are responsible for implementing this Circular./.