Decision No. 17/2007/QD-NHNN on the issuance of the Regulations on the Operation of the Anti-Corruption and Crime Prevention Steering Committee in the Banking Sector

Pursuant to …;

REGARDING THE ISSUANCE OF REGULATIONS ON THE OPERATIONS OF THE ANTI-CORRUPTION AND CRIME CONTROL COMMITTEE IN THE BANKING SECTOR

CORRUPTION AND CRIMES OF THE BANKING SECTOR

_____________________

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam dated December 12, 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam dated June 17, 2003;

Pursuant to the Law on Anti-Corruption dated November 29, 2005;

Based on the proposal of the Head of the Anti-Corruption and Crime Control Committee in the Banking Sector.

DECISION:

Article 1. The Regulations on the Operations of the Anti-Corruption and Crime Control Committee in the Banking Sector are hereby promulgated together with this Decision.

Article 2. This Decision replaces Decision No. 669/2002/QĐ-NHNN dated June 27, 2002 of the Governor of the State Bank of Vietnam regarding the issuance of the Regulations on the Operations of the Anti-Corruption and Crime Prevention Committee in the Banking Sector and shall take effect fifteen days from the date of publication in the Official Gazette.

Article 3. The Heads of the Office of the State Bank of Vietnam, the Department of Organization and Cadres, the Inspector General of the State Bank of Vietnam, the Heads of Departments, Bureaus, and affiliated units under the State Bank of Vietnam; the Governors of the State Bank of Vietnam Branches in provinces and centrally governed cities; the Chairman of the Vietnam Bank Workers' Union; the Directors of enterprises directly under the State Bank of Vietnam; the Director of the Bank Academy; the Rector of the University of Banking in Ho Chi Minh City; the Chairmen of the Boards of Directors of State Commercial Banks, Joint Stock Commercial Banks, the Social Policy Bank, and the Deposit Insurance Corporation of Vietnam; the Central Credit Union and members of the Anti-Corruption and Crime Control Committee in the Banking Sector are responsible for implementing this Decision.

REGULATIONS

OPERATIONS OF THE ANTI-CORRUPTION AND CRIME CONTROL COMMITTEE IN THE BANKING SECTOR
(Issued together with Decision No. 17/2007/QĐ-NHNN dated April 20, 2007 of the Governor of the State Bank of Vietnam)

Chapter 1:

GENERAL PROVISIONS

Article 1The Anti-Corruption and Crime Control Committee in the Banking Sector (hereinafter referred to as the Committee) is established pursuant to the Decision of the Governor of the State Bank of Vietnam.

The Committee operates based on the principle of democratic centralism; the Committee has a permanent office located at the Inspection and Complaint Resolution Division of the State Bank of Vietnam.

Article 2. The Heads of agencies, organizations, and units specified in Article 3 of Decision No. 17/2007/QĐ-NHNN dated April 20, 2007 of the Governor of the State Bank of Vietnam (hereinafter referred to as the Governor) are responsible for establishing and improving the Anti-Corruption and Crime Control Committee within their respective agencies, organizations, and units; they shall direct the establishment of Sub-Committees within subordinate units.

Chapter 2:

DUTIES AND POWERS OF THE COMMITTEE

Section 1:

THE ANTI-CORRUPTION AND CRIME CONTROL COMMITTEE IN THE BANKING SECTOR

Article 3. The Committee consists of the following members:

-The Deputy Governor of the State Bank of Vietnam serves as the Chairman;

-The Inspector General of the State Bank of Vietnam, Vice-Chairman in charge of day-to-day operations;

-The Director of the Department of Comprehensive Supervision of the State Bank of Vietnam, Vice-Chairman;

-The Director of the Department of Organization and Cadres of the State Bank of Vietnam, Member;

-The Director of the Department of Accounting and Finance of the State Bank of Vietnam, Member;

-The Director of the Legal Affairs Department of the State Bank of Vietnam, Member;

-The Permanent Deputy Secretary of the Party Central Committee of the State Bank of Vietnam, Member;

-The Permanent Deputy Chairman of the Vietnam Bank Workers' Union, Member;

-The Chairman of the Board of Directors of the Vietnam Foreign Trade Bank, Member;

-The Chairman of the Board of Directors of the Vietnam Industrial and Commercial Bank, Member;

-The Chairman of the Board of Directors of the Vietnam Agricultural and Rural Development Bank, Member;

-The Chairman of the Board of Directors of the Vietnam Investment and Development Bank, Member;

-The Chairman of the Board of Directors of the Vietnam Social Policy Bank, Member;

Article 4. The Steering Board has the tasks and powers:

1. To develop programs, plans, measures to organize the implementation of the Law on Prevention and Control of Corruption and other Party and State documents on anti-corruption and crime prevention work in the banking sector;

2. To direct agencies, organizations, units in the banking sector to implement the contents stipulated in Clause 1 of this Article;

3. To organize inspections and audits regarding anti-corruption and crime prevention work at agencies, organizations, units in the banking sector; to periodically report to the Governor for reporting to the Central Steering Board on Anti-Corruption, Steering Board 138 of the Government, and the Government Inspectorate on anti-corruption and crime prevention work in the banking sector;

4. To receive information and compile situations of negative cases, corruption incidents; prominent cases, violations of laws discovered through state audit, complaints, and denunciations; media and mass communication means; transferred by law enforcement agencies; especially economic crime situations and business risks; to study and propose solutions to the Governor; to assist the Governor in handling negative cases and corruption within his authority according to the law and cases assigned by competent authorities;

5. To propose and report to the Governor for the Governor to recommend to the Prime Minister on measures to enhance the effectiveness of anti-corruption and crime prevention work related to banking activities;

Article 5. The Steering Board shall be the focal point for coordinating actions, advising on international cooperation in anti-corruption and crime prevention work related to banking activities; to direct the reception and introduction of projects to international organizations, governmental and non-governmental organizations both domestically and internationally according to Party and State documents on anti-corruption and crime prevention work related to banking activities;

Article 6. Tasks and powers of members of the Steering Board:

The Chairman of the Steering Board has the tasks and powers:

1.1. The Chairman of the Steering Board is authorized by the Governor and is responsible before the Governor for directing and organizing the implementation of programs and plans to implement the Law on Prevention and Control of Corruption, implementing Party and State documents on anti-corruption and crime prevention in the banking sector; organizing inspections and urging units in the banking sector to implement the program and plan of the Steering Board's work; being responsible before the Governor for the results of the Steering Board's activities;

To perform other tasks prescribed in Article 4 of this Regulation;

1.2. The Chairman of the Steering Board has the following powers:

a. To advise the Governor to issue decisions temporarily suspending the work of cadres under the management of the Bank of Vietnam Party Committee and the Governor; to request competent authorities of units in the banking sector to temporarily suspend the work of officials, civil servants, employees, and workers who have signs of violating the law or if there is evidence that they may continue to engage in negative or corrupt behavior or obstruct inspection, examination, and verification work;

b. To assist the Governor in handling the responsibility of heads of agencies, organizations, units under the Governor's authority; to propose the Governor to decide or propose the Governor to request competent agencies and organizations to apply necessary measures to recover and confiscate assets obtained through corruption according to the law;

c. When discovering acts of corruption, to promptly handle them within his authority, report to the Governor for handling or notify competent authorities for handling according to the law;

d. To require heads of banking units to conduct inspections, examinations, verifications, conclusions, and handling of negative, corrupt, or illegal acts within their scope of responsibility;

đ. To exercise other powers prescribed in Article 4 of this Regulation;

2. Deputy Chairmen of the Steering Board have the tasks and powers:

2.1. The Deputy Chairman in charge of the Office of the Inspector General of Banking has the following tasks and powers:

a. To assist the Chairman of the Steering Board in implementing and organizing the implementation of the Steering Board's programs and plans to implement the Law on Prevention and Control of Corruption and Party and State documents on anti-corruption and crime prevention work in the banking sector;

b. To be responsible for directing and managing the Steering Board's Working Group; the Inspector General of Banking Agency to perform its function as the permanent office of the Steering Board as stipulated in Article 7 of this Regulation;

c. To perform the tasks and powers of the Steering Board according to the authorization of the Chairman of the Steering Board;

d. When the Chairman of the Steering Board is absent, the Deputy Chairman in charge can organize meetings of the Steering Board regularly or urgently to handle the Steering Board's work. Matters not authorized by the Chairman of the Steering Board or exceeding his authority must be reported to seek guidance from the Governor;

2.2. The Deputy Chairman in charge of the Department of Comprehensive Supervision has the following tasks and powers:

a. To perform the tasks and powers specified in sub-item a, sub-item c, point 2.1, Clause 2, this Article; to perform the task specified in sub-item d, point 2.1, Clause 2, this Article when the Chairman of the Steering Board and the Deputy Chairman in charge are absent;

b. To direct and organize the implementation of programs, plans, and measures for anti-corruption and crime prevention work in Departments, Bureaus, and subordinate units of the State Bank;

3. Members of the Steering Board have the tasks and powers:

3.1. To direct the organization to implement programs, plans, and measures for anti-corruption and crime prevention work according to the functions of their own unit and banking system; to build proposals and perform other tasks assigned by the Chairman of the Steering Board to follow up and manage;

3.2. Specific tasks and powers of Steering Board members:

a. Member of the Steering Board is the Head of the Organization and Cadre Department:

- Advise and assist the Governor in issuing and guiding the implementation of Conduct Rules; Professional Ethics Rules; and Regulations on job position transfers for civil servants and employees; guide and urge banking units to effectively implement the Governor's regulations on moral standards and lifestyle for civil servants and employees in the banking sector;

- Advise and assist the Governor in directing banking units to comply with the provisions of the Anti-Corruption Law regarding asset and income transparency; and income control for individuals holding positions of authority;

- Propose handling measures for officials involved in cases stipulated in Clause 4, Article 4 of this Regulation; compile the situation of handling officials throughout the banking sector for the Governor to report to the Government and National Assembly as required;

b. The Member of the Steering Committee is the Director of the Accounting and Finance Department:

- Advise and assist the Governor in establishing, issuing, and implementing systems, norms, and standards to effectively organize the implementation of the Law on Thrift and Combating Wastefulness;

- Coordinate with functional units under the Ministry of Finance to study, establish, amend, and supplement accounting and auditing systems and standards specific to the banking sector in accordance with international accounting practices;

- Guide and urge banking units to effectively implement the banking sector's action program on thrift and combating wastefulness;

c. The Member of the Steering Committee is the Director of the Legal Affairs Department, responsible for reviewing documents, advising the Governor on amending, supplementing, or issuing new documents related to business and operational areas of credit institutions; documents concerning public disclosure and transparency in the activities of agencies, organizations, and units; and disseminating legal documents; respond to law enforcement agencies and relevant departments regarding cases stipulated in Clause 4, Article 4 of this Regulation that require criminal prosecution;

d. The Member of the Steering Committee is the Permanent Deputy Secretary of the Party Central Committee of the State Bank of Vietnam, responsible for coordinating between the Steering Committee and the Party Central Committee of the State Bank of Vietnam in anti-corruption and crime prevention work; coordinate with functional departments and bureaus of the State Bank of Vietnam in examining, verifying, and concluding on officials and party members who have complaints or are involved in cases;

đ. The Member of the Steering Committee is the Permanent Vice President of the Vietnam Bank Employees' Union, responsible for directing all levels of the Union within the banking sector to effectively carry out propaganda, education, and encouragement for union members and workers to comply with legal regulations on anti-corruption and crime prevention; propose measures to detect and prevent corruption;

e. The Member of the Steering Committee is the Chairman of the Board of Directors of the State Commercial Bank and the Vietnam Social Policy Bank, responsible for directing anti-corruption and crime prevention work within their respective systems;

Depending on the specific circumstances of anti-corruption and crime prevention tasks at different periods, Members of the Steering Committee shall perform their duties according to the division of labor and directives of the Chairperson of the Steering Committee.

Article 7. The Banking Inspection performs the functions of the Standing Office of the Steering Committee with the following duties and powers:

1. Directing the Working Group of the Steering Committee in researching and drafting quarterly and annual work programs of the Steering Committee; assisting the Steering Committee in piloting activities at certain key units and areas.

2. Guiding and urging banking units to effectively implement the Action Program of the banking industry under the Law on Prevention and Combating Corruption.;

3. Requesting banking units to provide information and submit regular or ad hoc reports; reporting situations and cases as stipulated in Clause 4, Article 4 of this Regulation to the Standing Office for consolidation and reporting to the Leadership.

4. Receiving information and reports from units regarding the results of anti-corruption and crime prevention work; consolidating and reporting to the Chairman of the Steering Committee.

5. Advising the Chairman of the Steering Committee and the Governor on inspection and supervision activities aimed at preventing abuse of power, corruption, and harassment by bank officials and staff in their operations and in anti-corruption efforts; in handling complaints about corruption and malpractice involving bank officials and staff.

6. Being responsible for coordinating the work between the Banking Inspection Agency and the State Audit Office and other law enforcement agencies in detecting, preventing corruption and malpractice, or transferring corruption case files to law enforcement agencies for handling.

7. Chairing or coordinating the preparation of content, organization, and service for meetings and working sessions of the Steering Committee, the Chairman of the Steering Committee with relevant agencies, organizations, units, localities, and individuals; informing banking units of the Steering Committee's and the Chairman's directives and conclusions on anti-corruption and crime prevention work; supervising, urging, and inspecting the implementation of these directives and conclusions announced by the Standing Office; consolidating and reporting to the Chairman of the Steering Committee on anti-corruption and crime prevention work in the banking sector.

8. Advising the Governor on coordinating with relevant agencies in international cooperation activities related to research, training, document development, information exchange, technical assistance, and experience sharing in anti-corruption and crime prevention.

SECTION 2:

THE STEERING COMMITTEE FOR PREVENTION AND COMBATING CORRUPTION AND CRIME IN BANKING UNITS

Article 8. The Steering Committee at the State Bank Branches in Provinces and Cities

1. Composition of the Steering Committee:

a. The Steering Committee is headed by the Director of the State Bank Branch in the province or city.

b. The Chief Inspector of the State Bank Branch in the province or city serves as the Deputy Chairman in charge.

c. Depending on specific circumstances in the locality, additional Deputy Chairmen may be appointed from the Directors of State Commercial Bank branches in the province or city.

d. Other members of the Steering Committee include representatives from the Party Committee of the State Bank Branch in the province or city; the Directors of State Commercial Bank branches in the province or city.

2. Duties and Powers of the Steering Committee:

a. The Chairman of the Steering Committee is responsible to the Governor for directing and organizing the implementation of Party and State documents and banking industry regulations on the implementation of laws on anti-corruption and crime prevention in banking units within the jurisdiction.

b. Developing the Steering Committee’s program and plan for implementing anti-corruption laws.

c. Coordinating with the Steering Committees of commercial banks in directing and organizing the implementation of Party and State documents, local Party committees, and government regulations, as well as banking industry regulations on the implementation of the Law on Anti-Corruption.

d. Assigning specific tasks to Deputy Chairmen and Steering Committee members to oversee particular fields and areas of operation.

đ. Inspecting and urging credit institutions and branches of credit institutions in the province or city to implement anti-corruption and crime prevention programs and plans; compiling the situation and results of the implementation of these programs and plans by banking units within the jurisdiction, reporting to the national banking Steering Committee as required; especially significant cases of serious corruption causing substantial financial loss must be reported fully and in detail.

e. Advising and proposing to the national banking Steering Committee on handling issues related to anti-corruption and crime prevention work.

Article 9. The Steering Committee at enterprises under the State Bank, commercial banks, Vietnam Social Policy Bank, Vietnam Deposit Insurance Corporation, and Central Credit Union:

1. Composition of the Steering Committee:

a. The Chairman of the Board of Directors is the Chairman of the Steering Committee.

b. The Head of Internal Audit and Control is the Deputy Chairman in charge. Depending on the specific circumstances of each unit, additional Deputy Chairmen may be appointed.

c. Other members of the Steering Committee include representatives from the Party Committee, Trade Union, Human Resources Organization, Accounting-Finance, and Legal Department.

2. Duties and Powers of the Steering Committee:

a. The Chairman of the Steering Committee is responsible to the Governor for developing the operational rules of the Steering Committee, programs, and plans; directing and organizing the implementation of Party and State documents and banking industry regulations on the implementation of laws on anti-corruption and crime prevention within their system.

b. Coordinating with the Steering Committee of the State Bank Branch in the province or city in directing and organizing the implementation of Party and State documents, local Party committees, and government regulations, as well as banking industry regulations on the implementation of laws on anti-corruption and crime prevention within their banking system.

c. Assigning specific tasks to Deputy Chairmen and Steering Committee members to oversee particular fields and areas of operation.

d. Inspecting and urging member units to implement anti-corruption and crime prevention programs and plans; compiling the situation and results of the implementation of these programs and plans within the system and reporting to the national banking Steering Committee as required.

d. Advise and propose to the Steering Committee of the Banking Industry on handling issues related to anti-corruption and crime prevention work.

Chapter 3:

IMPLEMENTATION

Article 10. Based on the Operational Regulations of the Steering Committee for Anti-Corruption and Crime Prevention of the Banking Industry, the heads of units within the Banking Industry as stipulated in Article 3 of Decision No. 17/2007/QĐ-NHNN dated April 20, 2007, shall be responsible for establishing and improving the Steering Committee for Anti-Corruption and Crime Prevention of their own unit; drafting the Operational Regulations of the Steering Committee at their unit. State-owned Commercial Banks, Social Policy Banks, Vietnam Deposit Insurance Corporation, and Central Credit Union Fund shall direct the establishment and improvement of Sub-Steering Committees at member units (the composition of Sub-Steering Committees shall comply with Clause 1 of Article 9).

The Governor of the State Bank of Vietnam branch in provinces and cities shall be responsible for organizing the implementation of laws on anti-corruption and crime prevention to other credit organizations in their jurisdiction; urging and inspecting the implementation of laws on anti-corruption and crime prevention at credit organizations in their jurisdiction.

Article 11. In case a member of the Steering Committee is on long-term business trips or study (three months or more) or there are changes in personnel, that member must notify the Permanent Office of the Steering Committee so that the Permanent Office can advise the Chairman of the Steering Committee to coordinate activities according to the program and plan of the Steering Committee.

Article 12. The Steering Committee shall convene meetings regularly every three months to review the implementation of the program and plan and hold ad hoc meetings as required by the Chairman of the Steering Committee.

Article 13. Reporting regime:

1. The Steering Committee at the State Bank of Vietnam branch in provinces and cities shall be responsible for compiling the situation and results of anti-corruption and crime prevention work at the State Bank of Vietnam branch in provinces and cities and banking units in the locality to report to the Steering Committee of the Banking Industry;

2. The Steering Committee of units under the State Bank of Vietnam shall be responsible for compiling the situation and results of anti-corruption and crime prevention work at their own unit to report to the Steering Committee of the Banking Industry;

3. The Steering Committee of commercial banks, social policy banks, Vietnam Deposit Insurance Corporation, and central credit union fund shall be responsible for compiling the situation and results of anti-corruption and crime prevention work at their own unit to report to the Steering Committee of the Banking Industry. Branches of commercial banks, social policy banks, Vietnam Deposit Insurance Corporation, and central credit union fund shall be responsible for reporting through the system; simultaneously reporting to the Steering Committee of the State Bank of Vietnam branch in provinces and cities to report to the Steering Committee of the Banking Industry;

4. The Steering Committees shall report the results of implementation to the Steering Committee of the Banking Industry (through the State Bank Inspectorate) as follows:

- Report on anti-corruption and crime prevention work annually from September 15 of the previous year to September 15 of the reporting year; sent to the Steering Committee of the Banking Industry (through the State Bank Inspectorate) before September 30 each year;

- Report on anti-corruption and crime prevention work quarterly from the third month of the previous quarter to the third month of the current quarter; sent to the Steering Committee of the Banking Industry (through the State Bank Inspectorate) before the end of the quarter;

- The Permanent Office of the Steering Committee (State Bank Inspectorate) shall be responsible for monitoring, urging, drafting a comprehensive report on the implementation and deployment of anti-corruption and crime prevention work in the Banking Industry to submit to the Chairman of the Steering Committee to assist the Governor of the State Bank of Vietnam in implementing the reporting system according to regulations to the Central Steering Committee on Anti-Corruption; Government Steering Committee 138 and the Government Inspectorate.

Article 14. Within the scope of their functions, duties, and authority, units and authorized persons shall be responsible for timely and fully implementing the directives of the Steering Committee, while having the right to reserve opinions to request the Party Cadre and Member Council of the State Bank of Vietnam and the Governor to consider and resolve.