Circular No. 07/2024/TT-NHNN on payment agency activities.

CIRCULAR

Provisions on Payment Agency Activities

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

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

Pursuant to Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Based on Decree No. 52/2024/NĐ-CP dated May 15, 2024, of the Government on non-cash payments;

At the proposal of the Payment Department Director;

The Governor of the State Bank of Vietnam issues this Circular on payment agency activities.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates payment agency activities conducted in Vietnamese currency within the territory of Vietnam.

Article 2. Applicability

1. Commercial banks.

2. Cooperative banks.

3. Branches of foreign banks.

4. People's Credit Funds.

5. Microfinance organizations.

6. Other organizations that are not credit institutions or branches of foreign banks related to payment agency activities (hereinafter referred to as other organizations).

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

Payment agency activity refers to the act where the principal payment agent authorizes the payment agent to perform part of the account opening process for payment accounts, issuing bank cards, and providing payment services to customers.

The principal includes commercial banks, cooperative banks, and branches of foreign banks (hereinafter referred to as the principal).

Payment agents include commercial banks, cooperative banks, foreign bank branches, people's credit funds, microfinance organizations, and other entities (hereinafter referred to as the agent).

A payment agency point is the location where the agent conducts payment agency activities.

The payment agency point of other organizations must be the business premises of the agent or a branch of the agent.

A payment agency agreement is an agreement between the principal payment agent and the agent regarding the performance of part of the account opening process for payment accounts, issuing bank cards, and providing payment services to customers.

The principal's payment agency fee is the amount of money paid by the principal to the agent for carrying out the entrusted payment agency activities, agreed upon by both parties and in compliance with the provisions of the law.

Chapter II
PAYMENT AGENCY ACTIVITIES

The Governor of the State Bank of Vietnam issues this Circular amending and supplementing certain provisions of Circular No. 07/2024/TT-NHNN on payment agency activities.

Article 1. Amending and supplementing Article 4

1. Receiving applications for opening payment accounts, checking and verifying customer identification information to send to the principal, and guiding customers on how to use payment accounts.

2. Receiving applications for issuing bank cards, checking and verifying customer identification information to send to the principal, and guiding customers on how to use bank cards.

Receiving customer requests for payment services, preparing, signing, controlling, processing transaction documents of customers, transferring customer transaction information to the principal payment agent, receiving cash from customers or paying cash to customers to execute transactions.

2. Receiving applications for issuing bank cards; conducting legality and compliance checks; ensuring the accuracy and correctness of all provided documents, information, and data; verifying customer identification information according to the entrusting party's guidelines and sending the results to the entrusting party, and guiding customers on how to use bank cards.

3. Accepting customer requests for payment services; preparing, signing, or applying electronic confirmation methods; controlling and processing customer payment documents; transferring transaction information from customers to the entrusting party; receiving cash from customers or paying cash to customers to execute transactions:

a) Depositing/withdrawing cash into/from customers' payment accounts opened with the entrusting party;

b) Depositing/withdrawing cash into/from prepaid debit cards issued by the entrusting party;

Within one working day from the time of receiving customer requests for payment services, the agent must process customer transaction documents and transfer customer transaction information to the principal payment agent, except in cases of system information failures and/or other force majeure conditions that prevent the execution of customer transactions.

Article 5. Transaction Limits

The principal payment agent must implement measures to manage the balance and transaction limit of the agent which is another entity, including:

a) The transaction limit (including cash deposit and withdrawal transactions) for individual customers shall not exceed 20 million VND/customer/day;

b) The agent can only conduct transactions for customers within the deposit balance of the payment account to perform the assigned agency operations of the agent opened at the principal payment agent as stipulated in Clause 4, Article 7 of this Circular, and each payment agency point may transact up to VND 200 million per day and a maximum of VND 5 billion per month.

The transaction limit of the agent which is a commercial bank, cooperative bank, foreign bank branch, people's credit fund, or microfinance organization shall be agreed upon between the principal payment agent and the agent.

3. Microfinance organizations may act as agents for banks for customers of such microfinance organizations.

Commercial banks, cooperative banks, foreign bank branches, people's credit funds, and microfinance organizations conducting agency activities must comply with the content recorded in the License for Establishment and Operation or the License for Establishment or Decision on Organization and Operation issued by the competent authority and any amendments or supplements to such licenses or decisions (if any).

People's credit funds may act as agents for cooperative banks for members and customers of such people's credit funds.

Microfinance organizations may act as agents for banks for customers of such microfinance organizations.

3. The agency party is not permitted to re-entrust the agency to a third party.

Commercial banks, cooperative banks, foreign bank branches, and microfinance organizations may act as agents for multiple principals. Other organizations may only act as agents for one principal.

5. The agency-granting party collects fees from customers through the agency party according to the fee rates set by the agency-granting party during each period. Neither the agency-granting party nor the agency party may collect additional fees beyond those specified in the fee schedule published by the agency-granting party. The service fee schedule of the agency-granting party must clearly state the types and rates of fees applicable to each type of service, in compliance with the law, and must be publicly displayed at payment agency points and on the website of the agency party (if available).

6. The agency-granting party and the agency party must commit to customer information confidentiality in accordance with the Law on Credit Institutions, implementing guidelines, and related legal provisions.

The principal payment agent may authorize the agent to perform the operations specified in Article 4 of this Circular and consistent with the content recorded in the License for Establishment and Operation or the License for Establishment or Decision on Organization and Operation issued by the competent authority and any amendments or supplements to such licenses or decisions (if any) of the principal payment agent, where the agent is a financial institution or a foreign bank branch.

3. The agent shall not be permitted to subdelegate to a third party.

When performing the operations specified in Clause 3, Article 4 of this Circular, the agent which is another entity must open and maintain a payment account at the principal payment agent to perform the assigned agency operations within the agreed balance; this payment account must be separate from other payment accounts serving other activities or purposes of the agent opened at the principal payment agent.

The principal payment agent collects fees from customers through the agent according to the fee rates set by the principal payment agent during each period. Neither the principal payment agent nor the agent may collect additional fees outside the fee schedule established and publicly announced by the principal payment agent. The service fee schedule of the principal payment agent must clearly state the types of fees and the applicable rates for each type of service, in compliance with the law and must be publicly posted at payment agency points and on the agent's website (if available).

The principal payment agent and the agent must commit to maintaining customer information confidentiality in accordance with the Law on Credit Institutions, implementing guidelines, and relevant laws.

The number of payment agencies which are financial institutions or foreign bank branches is determined by the principal payment agent based on its management capacity; the number of payment agency points of financial institutions or foreign bank branches is decided by the financial institution or foreign bank branch based on their network of operations.

Article 8. Contents stipulated in the payment agency contract

1. The payment agency contract must include at least the following contents:

a) Name and address of the entrusting party, the legal representative or authorized representative of the entrusting party;

b) Name and address of the agency party, the legal representative or authorized representative of the agency party;

c) Scope of agency, including the activities entrusted to the agency party and the applicable limits for customers, and the applicable limits for the agency party;

d) Term of agency;

đ) Daily transaction hours and working hours;

e) Agency fee for payment;

g) Number of agency points or list of agency points;

h) Rights and obligations of the entrusting party and the agency party;

i) Dispute resolution procedures;

k) Termination of the payment agency contract.

2. In addition to the contents prescribed in Clause 1 of this Article, the parties may agree on other contents in the payment agency contract in accordance with this Circular and relevant laws.

Article 9. Rights and Obligations of the Entrusting Party

The principal payment agent has the following rights:

a) To select partners and sign payment agency agreements;

b) To establish and apply criteria for selecting partners to act as agents;

c) To agree with the agency party on the content of agency activities and the agency fee for payment;

d) To request the agency party to report and provide documents and information about the implementation of the payment agency contract;

đ) To request the agency party to pay legitimate benefits (if any) arising from the implementation of the agency activities stipulated in the payment agency contract;

e) To inspect and supervise the implementation of the payment agency contract by the agency party;

g) To have the right to terminate the payment agency contract if the agency party breaches the payment agency contract;

h) Other rights as stipulated in the payment agency contract, in compliance with the provisions of the law.

2. The entrusting party has the following obligations:

a) To manage, supervise, and bear full responsibility for the agency payment activities carried out by the agency party;

b) To publicly announce the list of agency parties that have signed contracts (including payment agency points) on the entrusting party's website and application;

c) To issue guidance documents and train agents on payment agency activities to ensure compliance with laws governing the provision of payment services, regularly updating them in line with relevant legal provisions and practical operations to ensure safety during implementation, and guiding agents to publicly announce the agency activities at their headquarters and operational networks.

d) Guide the agent to perform customer identification, verification, and update customer information in accordance with the procedures currently being implemented by the entrusting party; be responsible for the accuracy of the agent's customer identification and verification information and comply with the customer identification regulations under the Law on Anti-Money Laundering;

đ) To assess risks to determine the scope of transactions and transaction limits for customer accounts identified and verified through the agency party;

e) To agree with the agency party on the establishment of information technology infrastructure to ensure smooth transaction processing and monitoring of the agency party's payment activities;

g) Be responsible for ensuring the security, safety, and confidentiality of the information system, protecting customer rights, safeguarding personal information and data of customers, and implementing measures to prevent money laundering, terrorist financing, and the proliferation of weapons of mass destruction;

h) Manage the balance and transaction limits of other agents in accordance with Clause 1 of Article 5 of this Circular;

To be responsible towards customers in case the agency party breaches the payment agency contract, causing damage to the customers' rights and legitimate interests;

k) Have mechanisms and measures to protect customers, including maintaining the reception of review and complaint information from customers at payment agency points; simultaneously establish and maintain a 24/7 hotline to promptly receive and process customer complaints and information;

l) To collect, compare, and store all data and transaction documents generated at the agency party in accordance with relevant legal provisions;

m) To pay the agency fee for payment to the agency party as stipulated in the payment agency contract;

n) To develop and issue internal regulations on agency payment including cash receipt, storage, and preservation procedures to ensure safe operation;

o) To fulfill other obligations as stipulated in the payment agency contract, in compliance with the provisions of the law.

Article 10. Rights and Obligations of the Agent Party

1. The agent has the following rights:

a) Refuse requests from the principal party that are not stipulated in the payment agency contract or are not in accordance with the law;

b) Request the principal party to provide guidance, information, and necessary documents related to the payment agency activities;

c) Enjoy agency fees and other lawful benefits (if any) as stipulated in the payment agency contract;

d) Other rights as provided for in the payment agency contract and in compliance with the law.

2. The agent party has the following obligations:

a) Carry out the entrusted agency activities as stipulated in Article 4 of this Circular and agreed upon in the payment agency contract;

c) Pay the principal party any lawful benefits (if any) arising from the execution of the payment agency activities as stipulated in the payment agency contract;

d) Accept supervision and inspection by the principal party regarding the execution of the payment agency activities;

đ) Comply with legal provisions on protecting personal information of customers, bear responsibility for the accuracy of customer identification and verification, and implement measures to prevent money laundering, terrorist financing, and proliferation financing during the agency process;

đ) Comply with legal provisions regarding the protection of customer personal information, be responsible for the accuracy of customer identification and verification information, and implement measures to prevent money laundering, terrorist financing, and the proliferation of weapons of mass destruction during the agency period;

e) Jointly bear responsibility for the quality of products and services provided to customers if there is an error on the part of the agent; be responsible for compensating the entrusting party for compensation amounts paid to customers due to losses and damages caused by the agent's breach of the payment agency contract and any losses and damages caused by the agent's fault in leaking customer information, errors, and mistakes during operations;

g) During the agency period, the agent must manage the entrusting party’s funds and assets in accordance with the law, and may not use the entrusting party’s funds and assets for other business purposes;

h) Receive customer review and complaint information and cooperate with the entrusting party to handle reviews and complaints; the deadline for processing review requests and complaints and the handling of review results shall be carried out in accordance with the regulations on providing non-cash payment services;

i) Develop internal procedures to manage risks for each specific agency activity, including cash receipt and storage procedures; have facilities, networks, and staff with appropriate qualifications and expertise to ensure the implementation of payment agency activities or as required by the entrusting party;

k) Notify the entrusting party when temporarily suspending transactions with customers or ceasing service for more than four hours during trading hours, clearly stating the reasons and solutions to ensure uninterrupted payment agency operations;

l) Safeguarding the integrity of data, records, and documents and providing them to the principal upon request;

m) Fulfilling other obligations stipulated in the payment agency contract in accordance with the law.

Chapter III
REPORTING AND IMPLEMENTATION ORGANIZATION

Article 11. Obligation to Report and Provide Information

1. At least thirty days before implementing the payment agency activities, the entrusting party must send a written notice to the State Bank of Vietnam (Payment Department), the State Bank branch in the province or centrally-administered city where the entrusting party's headquarters is located, and on all areas where payment agency points are located, and post detailed information about the agent, cooperation methods, agency scope, agency term, and management methods for payment agency points on its website;

2. Quarterly, the party granting the agency must submit a report on the implementation of the agency payment activities according to the Appendix issued together with this Circular to the State Bank of Vietnam (Payment Department) for monitoring.

3. When ceasing payment agency activities with an agent, within five working days, the entrusting party must send a written notice to the State Bank of Vietnam (Payment Department), the State Bank branch in the province or centrally-administered city where the entrusting party's headquarters is located, and on all areas where the ceased payment agency points are located, to monitor and supervise and post the information on its website;

Article 12. Responsibilities of Units Under the State Bank of Vietnam

a) Monitor the implementation and advise the Governor of the State Bank of Vietnam to handle difficulties during the implementation of this Circular.

1. Payment Department

b) Serve as the point of contact and monitor reports and notifications from the party granting the agency as stipulated in Article 11 of this Circular.

c) Serve as the point of contact and coordinate with related units to develop tools and software to supervise agency payment activities.

Serve as the point of contact and coordinate with the Banking Inspection and Supervision Authority, the State Bank branch of the province or city directly under the central government in conducting inspections of the party granting the agency and the agent's compliance with the provisions of this Circular.

d) Serve as the point of contact and coordinate with Banking Inspection and Supervision Agencies, State Bank branches in provinces and centrally-administered cities in conducting inspections of the entrusting party and the agent's compliance with this Circular;

2. The Banking Inspection and Supervision Authority; the State Bank branch of the province or city directly under the central government

Shall serve as the point of contact for receiving, reviewing, and submitting to the competent authority the application files for changing licenses, adding agency payment activities and/or agency service provision activities to the operating license of commercial banks, cooperative banks, foreign bank branches, people's credit funds, and microfinance organizations according to the authority prescribed by the State Bank of Vietnam regarding the issuance and operation of credit institutions and foreign bank branches.

a) Serve as the point of contact for receiving, reviewing, and submitting applications for license changes, additional content of payment agency activities and/or service provision agency activities to the commercial bank, cooperative bank, foreign bank branch, people's credit fund, and microfinance organization's operating license according to the authority prescribed by the State Bank of Vietnam on issuing licenses for financial institutions and foreign bank branches;

b) Conduct inspections of the entrusting party and the agent and supervise the entrusting party's compliance with this Circular, handle violations within their authority, and report the results to the Payment Department and related units;

Chapter IV
IMPLEMENTING PROVISIONS

Article 13. Effective Date

The Director of the Office, the Head of the Payment Department, the Heads of relevant units under the State Bank of Vietnam, credit institutions, foreign bank branches, and other related organizations are responsible for implementing this Circular./.

Article 14. Implementation Organization

The Director of the Office, the Head of the Payment Department, the Heads of relevant units of the State Bank of Vietnam, financial institutions, foreign bank branches, and other related organizations are responsible for implementing this Circular./.

Appendix

(Issued together with Circular No. /2024/TT-NHNN dated /.../2024

of the Governor of the State Bank of Vietnam)

REPORT

(Quarter    year

(Quarterly)

Note:

(2) Cumulative number from the beginning of the year to the end of the reporting period;

(3) Number of agents being commercial banks, foreign bank branches, cooperative banks, people's credit funds, and microfinance organizations;

(4) Number of agents being other organizations;

(5) Number of agency payment points of other organizations;

(6) Number of agency payment points of other organizations in district-level areas;

(7) Number of transactions as specified in Point 3, Article 4 of the Circular;

(8) Value of transactions as specified in Point 3, Article 4 of the Circular.

Periodicity and deadlines for reports are as follows:

(i) Quarterly reporting period runs from the first day of the quarter to the last day of the last month of the quarter (the party granting the agency only reports quarters I, II, and III); the deadline for submitting the report is the tenth day of the first month of the next quarter;

(i) The quarterly report period runs from the first day of the quarter to the last day of the final month of the quarter (the entrusting party only reports Q1, Q2, and Q3); the deadline for submitting the report is the tenth day of the first month of the next quarter;

No.: 05/VBHN-NHNN