Circular No. 16/2020/TT-NHNN Amending and Supplementing Certain Provisions of Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the Governor of the State Bank of Vietnam guiding the opening and use of payment accounts at service providers

CIRCULAR

Amending and supplementing certain provisions of Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the Governor of the State Bank of Vietnam on the opening and use of payment accounts 

at organizations providing payment services

guiding the opening and use of payment accounts

at organizations providing payment servicesFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.

 

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

Pursuant to the Law on Credit Institutions dated June 16, 2010; the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions dated November 20, 2017;

Based on the Law on Prevention and Combating Money Laundering dated June 18, 2012;

Pursuant to Decree No. 101/2012/NĐ-CP dated November 22, 2012 of the Government on non-cash payments and Decree No. 80/2016/NĐ-CP dated July 1, 2016 of the Government amending and supplementing certain provisions of Decree No. 101/2012/NĐ-CP;

Pursuant to Decree No. 116/2013/NĐ-CP dated October 4, 2013 of the Government detailing implementation of some articles of the Law on Anti-Money Laundering and Decree No. 87/2019/NĐ-CP dated November 14, 2019 amending and supplementing certain provisions of Decree No. 116/2013/NĐ-CP;

Pursuant to Government Decree No. 16/2017/NĐ-CP dated February 17, 2017 on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Payment Department Director;

The Governor of the State Bank of Vietnam promulgates this Circular amending and supplementing certain provisions of Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the Governor of the State Bank of Vietnam guiding the opening and use of payment accounts at organizations providing payment services.

Article 1. Amending and supplementing certain provisions of Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the Governor of the State Bank of Vietnam guiding the opening and use of payment accounts at organizations providing payment services.

1. Clause 5 of Article 3 shall be amended and supplemented as follows:

"5. The balance on the payment account shall accrue interest at the rate applicable to demand deposits for payment accounts. The interest rate shall be determined and publicly announced by the organization providing payment services in accordance with the provisions of the law."

2. Article 12 shall be amended and supplemented as follows:

“Article 12. Documents for opening a payment account

1. For individual payment accounts, banks, and foreign bank branches shall specify and guide customers on the types of documents required in the account opening application but must include at least the following documents:

a) An account opening application form in accordance with the model provided by the bank or foreign bank branch where the account is opened and in compliance with Clause 1 of Article 13 of this Circular;

b) Identity documents including citizen identification cards, identity cards, passports valid for use, or birth certificates (for individuals under 14 years old who have not obtained a passport); entry visas valid for use or documents proving visa exemption (for foreign individuals), except in cases where foreign individuals open payment accounts in accordance with Clause 4 of Article 14 of this Circular;

c) In cases where an individual opens a payment account through a legal representative (hereinafter referred to as the legal representative of the individual), in addition to the documents mentioned in points a and b of Clause 1 hereof, the account opening application must also include:

- In cases where the legal representative is an individual: identity documents of the legal representative of the individual and documents proving the lawful representative status of that person in relation to the individual opening the payment account;

- In cases where the legal representative is a legal entity: establishment decision, business license, business registration certificate, or other documents as prescribed by law; documents proving the lawful representative status of the legal entity in relation to the individual opening the payment account; identity documents and documents proving the representative status of the legal entity's authorized representative.

2. For organizational payment accounts, banks, and foreign bank branches shall specify and guide customers on the types of documents required in the account opening application but must include at least the following documents:

a) An account opening application form in accordance with the model provided by the bank or foreign bank branch where the account is opened and in compliance with Clause 2 of Article 13 of this Circular;

b) Documents proving the lawful establishment and operation of the organization opening the payment account: establishment decision, business license, business registration certificate, or other documents as prescribed by law;

c) Documents proving the status of the authorized representative accompanied by their identity documents;

d) Appointment decision for the chief accountant or accounting supervisor or service contract for accounting services of the organization opening the payment account (if any) accompanied by the identity documents of the chief accountant or accounting supervisor.

3. For joint payment accounts, banks, and foreign bank branches shall specify and guide customers on the types of documents required in the account opening application but must include at least the following documents:

a) An account opening application form in accordance with the model provided by the bank or foreign bank branch where the account is opened and in compliance with Clause 3 of Article 13 of this Circular;

b) Documents of the subjects named in the joint payment account opening application:

- In cases where the subject named in the joint payment account opening application is an individual, the account opening application includes the documents as specified in Clause 1 hereof;

- In cases where the subject named in the joint payment account opening application is an organization, the account opening application includes the documents as specified in Clause 2 hereof.

c) In cases where the agreement or contract (hereinafter referred to as the agreement) for opening and using the payment account does not contain provisions regarding the management and use of the joint payment account by the subjects named in the joint payment account opening application, there must be a separate written agreement regarding the management and use of the joint payment account by the subjects named in the joint payment account opening application.

4. The documents in the account opening application file specified in Clauses 1 and 2 of this Article shall be originals or electronic copies or certified copies or copies extracted from the original register or copies accompanied by originals for verification in accordance with the provisions of the law. In cases where originals are presented for verification, banks and foreign bank branches must certify on the copies and bear responsibility for the accuracy of the copies compared to the originals. Legalization of consular documents for documents issued by competent authorities of foreign countries shall be carried out in accordance with the provisions of the law. In cases where the documents in the account opening application file are electronic copies, banks and foreign bank branches must have solutions and technology to collect, check, and verify to ensure that the electronic copies contain complete and accurate information matching the originals in accordance with the provisions of the law.

5. Banks and foreign bank branches may agree with customers on whether or not to translate documents in the account opening application file in a foreign language, but must ensure the following principles:

a) Banks and foreign bank branches must check, control, and ensure the accuracy and completeness of the content translated into Vietnamese compared to the content of the documents in a foreign language;

b) Documents in a foreign language must be translated when required by competent state agencies; the translation must be confirmed by an authorized person of the bank or foreign bank branch or must be notarized or certified.”

3. Article 13 shall be amended and supplemented as follows:

“Article 13. Account Opening Request Form

1. The model of the account opening request form for individuals shall be prescribed by banks and foreign bank branches but must include at least the following contents:

a) For Vietnamese individuals: full name; date of birth; nationality; occupation and position; telephone number; citizen identification card number or identity card number or passport number still valid; date of issuance and place of issuance; registered permanent residence address and current residence address; resident or non-resident status; tax code (if applicable);

b) For foreign individuals: full name; date of birth; nationality; occupation and position; telephone number; passport number still valid, date of issuance and place of issuance; entry visa (if applicable); registered residence address abroad, registered residence address in Vietnam; resident or non-resident status; tax code (if applicable);

c) In cases where an individual opens an account through a legal representative, in addition to the information of the account holder as prescribed in Points a and b of this Clause, the customer's account opening request form must also include information about the customer's legal representative, specifically:

- If the customer's legal representative is an individual, the information about the legal representative shall be implemented according to the provisions of Points a and b of this Clause;

- If the customer's legal representative is an organization, the information includes: full trading name and abbreviation, main office address, transaction address, telephone number, fax number (if applicable), business field, and the legal representative of the organization.

2. The model of the account opening request form for organizations shall be prescribed by banks and foreign bank branches but must include at least the following contents:

a) Full trading name and abbreviation; main office address; transaction address; telephone number; business field; tax code (if applicable);

b) Information about the legal representative of the organization opening the account as prescribed in Points a and b of Clause 1 of this Article;

c) Information about the chief accountant or accounting supervisor (if applicable) of the organization opening the account as prescribed in Points a and b of Clause 1 of this Article;

3. The model of the joint account opening request form shall be prescribed by banks and foreign bank branches but must include at least the following contents:

a) In cases where the entity named as the account opener is an individual, the information as prescribed in Article 1 of this Law must be included;

b) In cases where the entity named as the account opener is an organization, the information as prescribed in Article 2 of this Law must be included.”

4. Add Article 13a as follows:

“Article 13a. Agreement on opening and using a payment account

1. The agreement between banks, foreign bank branches, and customers on opening and using a payment account must include at least the following contents:

a) The document number (if any), the establishment date (day, month, year) of the agreement;

b) The name of the bank, foreign bank branch;

c) The name of the account holder, the legal representative's full name of the account holder (if the account holder is an organization), the legal representative's full name of the account holder (if the account holder is an individual as specified in point c, d Clause 1 Article 11 of this Circular);

d) Contents regarding the rights and obligations of the parties;

đ) Provisions on fees (types of fees, fee levels (if any), changes to fees);

e) Provision of information and notification methods for the account holder to be informed about: balance and transactions occurring on the payment account, temporary suspension, freezing of the payment account, and other necessary information during the use of the payment account;

g) Cases of temporary suspension, cessation of temporary suspension, freezing, and lifting of the freeze on the payment account, including cases where the payment account is temporarily suspended or frozen upon discovery of discrepancies or unusual signs between customer identification information and biometric factors of the customer during the process of opening and using an electronic payment account as stipulated in point c Clause 2 Article 14a of this Circular;

h) Scope of use, transaction limits through the payment account, and cases of temporarily stopping, refusing to execute payment orders from the account holder;

i) Use of the payment account to pay regular, periodic payments at the request of the account holder or for the bank, foreign bank branch to collect overdue debts, interest, and other costs incurred during the management of the account and provision of payment services;

k) Implementation of measures to ensure safety and security in using the payment account;

l) Methods for receiving requests for review and complaints; deadlines for processing review requests and complaints, and handling the results of reviews and complaints as provided for in Article 15a of this Circular;

m) Cases of closing the payment account and handling the remaining balance when closing the payment account;

n) In cases where joint account holders have not yet provided the document as required in point c Clause 3 Article 12, the agreement on opening and using the payment account must include contents on managing and using the joint payment account of the joint account holders.

2. In cases where standard contracts or general terms and conditions are used in concluding agreements on opening and using payment accounts, banks, foreign bank branches must perform the following:

a) Publicly display the standard contract or general terms and conditions for opening and using payment accounts at legitimate transaction locations within the network of operations of the bank, foreign bank branch, and post them on the bank’s, foreign bank branch’s online information website, mobile application for online transactions (if available);

b) Provide complete information about the standard contract or general terms and conditions to customers before proceeding with opening a payment account for customers and obtain confirmation from the customer that they have been fully informed by the bank, foreign bank branch.

5. Article 14 is amended and supplemented as follows:

“Article 14. Procedures for Opening a Payment Account

1. When there is a need to open a payment account, the customer shall prepare one (01) set of documents in accordance with the provisions of Article 12 of this Circular and submit it directly or send it via postal service or electronic means to the bank or foreign bank branch where the payment account opening is requested.

2. Upon receipt of the customer's payment account opening documents, the bank or foreign bank branch must check and verify the documents in the payment account opening file and proceed as follows:

a) If the documents in the payment account opening file are complete, lawful, and valid, and all elements declared on the payment account opening request form match exactly with the documents in the payment account opening file, the bank or foreign bank branch shall open the payment account for the customer in accordance with the provisions of Clause 3 of this Article;

b) If the documents in the payment account opening file are incomplete, unlawful, or invalid, or if the elements declared on the payment account opening request form do not match exactly with the documents in the payment account opening file, the bank or foreign bank branch shall notify the customer to complete the file;

c) In case the bank or foreign bank branch refuses to open the payment account, it must inform the customer.

3. After completing the verification and confirmation of customer identification information in accordance with the laws on preventing money laundering, the bank or foreign bank branch shall enter into an agreement with the customer to open and use the payment account as follows:

a) For individual payment account holders: the bank or foreign bank branch must meet the customer or the legal representative of the customer (in cases where the account is opened through a legal representative) face-to-face to enter into an agreement to open and use the payment account, except in the cases provided for in Clause 4, 6 of this Article and Article 14a of this Circular;

b) For organizational payment accounts: the bank or foreign bank branch may meet the legal representative of the customer face-to-face or not face-to-face when entering into an agreement to open and use the payment account. In cases where they do not meet the legal representative of the customer face-to-face, the foreign bank branch must apply appropriate measures to verify the accuracy of the signature, seal (if any), digital certificate (if any) of the legal representative of the account holder on the agreement to open and use the payment account and ensure that these match the signature, seal (if any), digital certificate (if any) of the legal representative of the account holder during the use of the payment account;

c) For joint payment accounts:

- In cases where the entity named as the account opener for the joint payment account is an individual, the bank or foreign bank branch shall enter into an agreement to open and use the payment account in accordance with the provisions of Point a of this Clause;

- In cases where the entities named as the account openers for the joint payment account are organizations, the bank or foreign bank branch shall enter into an agreement to open and use the payment account in accordance with the provisions of Point b of this Clause;

4. In cases where the customer is an individual from abroad, the bank or foreign bank branch may open an account without meeting the customer face-to-face but must verify the customer identification information through an agent bank or intermediary and must ensure accurate verification of the customer opening the account and bear full responsibility for identifying and verifying the customer opening the payment account at their unit. The selection of the intermediary to perform customer identification information verification must comply with the laws on preventing money laundering.

5. The procedures for opening an individual payment account electronically shall be carried out in accordance with the provisions of Article 14a of this Circular.

6. The decision to open a payment account for customers with whom the bank or foreign bank branch has established a relationship and completed customer identification and verification shall be made by the bank or foreign bank branch itself, but must ensure that all necessary information and documents in the payment account opening file as stipulated in Article 12 of this Circular are available or collected.

7. After entering into an agreement to open and use the payment account with the customer, the bank or foreign bank branch shall notify the customer of the account number, account name, and the date the account begins operation. The bank or foreign bank branch must ensure the collection of samples of signatures, digital certificates (if any) of the account holder or the legal representative of the account holder and other related persons (if any), and seals (if any, for organizational account holders) for comparison and verification during the use of the payment account.

8. Based on its own conditions and supply capabilities, the bank or foreign bank branch shall guide the customer on the procedures and steps for opening a payment account, including cases of refusing to open a payment account in accordance with this Circular and the laws on preventing money laundering, and shall be responsible for the accuracy, thoroughness, and completeness of the payment account opening file with the customer.

6. Supplement Article 14a as follows:

“Article 14a. Opening of Personal Payment Accounts via Electronic Methods

1. Banks and foreign bank branches implementing the opening of payment accounts via electronic methods must establish, promulgate, and publicly disclose procedures and processes for opening payment accounts via electronic methods that comply with the provisions of this Article, laws on anti-money laundering, laws on electronic transactions, and other relevant laws concerning the security and confidentiality of customer information and the safety of banking operations, including at least the following steps:

a) Collecting information about the account opening application according to Clause 1, 4, and 5 of Article 12 and Clause 1 of Article 13 of this Circular;

b) Conduct checks, comparisons, and verification of customer identification information;

c) Warning customers about actions not allowed during the process of opening and using payment accounts opened via electronic methods;

d) Providing customers with the content of the agreement on opening and using payment accounts as stipulated in Clause 1 of Article 13a of this Circular and executing the agreement on opening and using payment accounts with customers;

d) Notifying customers of the account number, account name, transaction limit through the payment account, and the start date of the payment account's operation;

2. Banks and foreign bank branches may decide on measures, forms, and technologies to identify and verify customers for the purpose of opening payment accounts via electronic methods; they shall be responsible for any risks arising (if any) and must meet the following minimum requirements:

a) Having solutions and technology to collect, check, compare, and ensure the accuracy of customer identification information and biometric data of customers (which are biological factors closely linked to the customer performing identity verification, difficult to forge, and have low matching rates such as fingerprints, facial features, iris, voice, and other biometric factors) with corresponding information and biometric factors on personal identification documents of customers as stipulated in Clause 1 of Article 12 of this Circular or with verified individual identification data by competent state agencies or by other credit institutions or by organizations providing electronic identity verification services;

b) Having technical measures to confirm that customers who have been identified agree with the contents of the agreement on opening and using payment accounts;

c) Establishing a management, control, and risk assessment process, including measures to prevent impersonation, interference, modification, and distortion of customer identification information verification before, during, and after opening payment accounts for customers; measures to check and verify customer identification information to ensure that the customer conducting transactions on the payment account opened via electronic methods is the account holder. In case of discovering risks, discrepancies, or unusual signs between customer identification information and customer biometric factors or suspicious transactions under the law on anti-money laundering during the use of payment accounts, banks and foreign bank branches must promptly refuse or stop transactions, temporarily lock or freeze the payment account and reverify customer identification information. The risk management and control process must be regularly reviewed and improved based on updated information and data during service provision;

d) Storing and preserving all customer identification information in detail throughout the period when customers open and use payment accounts, such as: customer identification information; customer biometric factors; audio, images, video recordings; phone numbers used for transactions; transaction logs. Information and data must be stored securely and confidentially, backed up, ensuring the completeness and integrity of the data to serve inspection, comparison, dispute resolution, complaint handling, and information provision upon request from competent state management authorities. Storage time must comply with the provisions of the law on anti-money laundering.

3. Banks and foreign bank branches base their technological conditions to assess risks, determine the scope of use, and decide on applying transaction limits for payment accounts opened via electronic methods but must ensure that the total transaction value limit (Debit) through the payment accounts of such customers does not exceed VND 100 million/month/customer.

4. Banks and foreign bank branches may apply higher transaction limits for payment accounts opened via electronic methods than those specified in Clause 3 of this Article in any of the following cases:

a) Banks and foreign bank branches apply video call solutions to collect, check, and verify customer identification information during the account opening process, ensuring effectiveness similar to face-to-face customer identification and verification processes; the video call solution must meet at least the following requirements: ensuring security and confidentiality; high resolution; continuous signal; allowing real-time interaction with customers for person recognition; storing all audio, image, or video recordings during the account opening process for customers;

b) Banks and foreign bank branches apply technology to check and compare customer biometric characteristics with citizen biometric data through the national ID database;

c) After banks and foreign bank branches have completed customer identification and verification through face-to-face meetings with the account holder;

d) Transactions transferring funds for savings deposits or term deposits via electronic methods to the same account holder at the same bank or foreign bank branch.

đ) The cases where banks and foreign bank branches are authorized to deduct from the customer's settlement account balance in accordance with point a, Clause 1, Article 6 of this Circular.

5. The provisions on opening electronic settlement accounts under this Article shall not apply to common settlement accounts, individual customers who are foreigners, and the entities specified in points b, c, and d, Clause 1, Article 11 of this Circular.”

Article 2. Responsibility for Implementation

The Head of the Office, Heads of units under the State Bank of Vietnam; banks and foreign bank branches are responsible for organizing the implementation of this Circular.

Article 3. Implementation Provisions

1. This Circular takes effect from March 5, 2021.

2. This Circular abolishes Clause 7, 8, and 9 of Article 1 of Circular No. 02/2019/TT-NHNN dated February 28, 2019, issued by the Governor of the State Bank of Vietnam amending and supplementing certain articles of Circular No. 23/2014/TT-NHNN dated August 19, 2014, issued by the Governor of the State Bank of Vietnam guiding the opening and use of settlement accounts at service-providing organizations.