Circular No. 17/2024/TT-NHNN on the opening and use of payment accounts at payment service providers

CIRCULAR

Regulations on opening and using payment accounts

at service providers

 

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

On the basis of the Law on Credit Institutions dated January 18, 2024;

On the basis of the Law on Prevention and Combating Money Laundering dated November 15, 2022;

On the basis of Decree No. 52/2024/NĐ-CP dated May 15, 2024 of the Government on cashless payments;

On the basis of Decree No. 19/2023/NĐ-CP dated April 28, 2023 of the Government detailing certain provisions of the Law on Prevention and Combating Money Laundering;

On the basis of 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;

Pursuant to the proposal of the Director of the Payment Department;

The Governor of the State Bank of Vietnam issues this Circular regulating the opening and use of payment accounts at payment service providers.

 

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular regulates the opening and use of payment accounts by organizations and individuals at payment service providers.

2. The opening and use of foreign currency payment accounts by residents and non-residents, and Vietnamese dong payment accounts by non-residents and resident individuals who are foreigners shall be carried out in accordance with the laws on foreign exchange management and the provisions of this Circular.

Article 2. Applicability

1. Payment service providers that can open payment accounts include:

a) The State Bank of Vietnam (hereinafter referred to as the State Bank);

b) Commercial banks, policy banks, and cooperative banks (hereinafter referred to as banks);

c) Branches of foreign banks.

2. Organizations and individuals opening payment accounts at payment service providers (hereinafter referred to as customers).

3. Other organizations and individuals related to the opening and use of payment accounts at payment service providers.

Article 3. Forms of Payment Accounts

1. The forms of payment accounts include: individual payment accounts, organizational payment accounts, and joint payment accounts.

2. An individual payment account is a payment account opened by an individual customer at a payment service provider.

3. An organizational payment account is a payment account opened by an organizational customer at a payment service provider. The holder of an organizational payment account is the organization that opens the payment account.

4. A joint payment account is a payment account opened by at least two subjects jointly. The holders of a joint payment account are organizations and/or individuals.

Article 4. Interest on the Balance of Payment Accounts

1. The balance on payment accounts opened by customers at banks and branches of foreign banks shall accrue interest at the rate of interest for demand deposits determined and publicly announced by the banks and branches of foreign banks in accordance with the Governor's decisions of the State Bank during each period.

2. The payment of interest on the balance of payment accounts opened by customers at the State Bank shall be decided by the Governor of the State Bank during each period.

Article 5. Authorization in the Use of Payment Accounts

1. The account holder is authorized to use the payment account. Such authorization must be made in writing and comply with the legal provisions on authorization and the following requirements:

a) For individual payment accounts: the account holder shall submit to the service provider organization where the account is opened a written authorization along with documentation, information, and data for verifying the identity of the individual or legal entity being authorized. Documentation, information, and data for verifying the identity of the authorized person shall be carried out in accordance with Clause 2 and Clause 3 of Article 12 of this Circular;

b) For organizational payment accounts: the account holder shall submit to the service provider organization where the account is opened a written authorization from the legal representative of the organization or the authorized representative of the organization (hereinafter referred to collectively as the authorized representative), together with the chief accountant (or the person responsible for accounting) and documentation, information, and data for verifying the identity of the individual being authorized in accordance with Clause 2 of Article 12 of this Circular.

2. The service provider organization must apply measures to verify the identity of the authorized person in accordance with Clause 2 of Article 15 of this Circular.

Article 6. Freezing Payment Accounts

1. A payment account may be partially or fully frozen in accordance with Clause 1 of Article 11 of Decree No. 52/2024/NĐ-CP dated May 15, 2024, of the Government on non-cash payments and legal provisions on counter-terrorism; preventing the proliferation of weapons of mass destruction.

2. The lifting of the freezing of a payment account shall be carried out in accordance with Clause 2 of Article 11 of Decree No. 52/2024/NĐ-CP and legal provisions on counter-terrorism; preventing the proliferation of weapons of mass destruction.

3. After freezing a payment account, the service provider organization must notify the account holder or the legal representative, guardian of the individual who opened the payment account as stipulated in Point b and c of Clause 1 of Article 11 of this Circular (hereinafter referred to collectively as the representative) about the reasons and scope of the account freeze (except in cases where the competent authority has a written request for the service provider organization not to inform the customer about the account freeze). The form of notification shall be agreed upon in accordance with the provisions of Article 13 of this Circular.

4. The funds frozen on a payment account must be preserved and strictly controlled according to the terms of the freeze. In cases where a payment account is partially frozen, the unfrozen portion can still be used normally.

 

Chapter II

OPENING AND USING PAYMENT ACCOUNTS

AT THE STATE BANK

Article 7. Subjects Opening Payment Accounts at the State Bank

1. The Branch of the State Bank opens payment accounts for the following organizations:

a) Credit institutions (head office);

b) Foreign bank branches in Vietnam;

c) Central Treasury;

d) Other organizations as prescribed in Clause 2 of Article 13 of Decree No. 52/2024/NĐ-CP.

2. The provincial branch of the State Bank (hereinafter referred to as the State Bank branch) opens payment accounts for provincial treasuries, county treasuries, credit institutions, and foreign bank branches within its jurisdiction.

Article 8. Opening Payment Accounts at the State Bank

1. The procedures and formalities for opening payment accounts for treasuries, credit institutions, and foreign bank branches shall be implemented in accordance with Article 14 of Decree No. 52/2024/NĐ-CP.

2. The opening of payment accounts for other organizations as prescribed in Clause 2 of Article 14 of Decree No. 52/2024/NĐ-CP shall be carried out in accordance with the Prime Minister's decision or international treaties and agreements to which Vietnam is a party.

Article 9. Use of Payment Accounts Open at the State Bank

1. Payment accounts opened at the State Bank shall be used for depositing, withdrawing cash, issuing checks, accounting, monitoring, and executing payment orders through payment systems organized and operated by the State Bank, single payments through payment accounts, and other payment services provided by the State Bank.

2. Payment accounts of credit institutions and foreign bank branches opened at the State Bank Trading Center shall be used to conduct transactions when participating in open market operations, buying and selling transferable securities, government bonds, Treasury bills, State Bank bills, and other activities as prescribed by law.

3. The State Bank Trading Center and State Bank branches have the following rights and responsibilities:

a) Actively deduct (record Debit) from the payment account of customers in the following cases:

(i) Collect overdue debts, interest, and fees arising during the management of payment accounts and provision of payment services according to regulations of the State Bank;

(ii) Adjust entries that are incorrectly recorded, not in accordance with their true nature, or not consistent with the intended use of the payment account as prescribed by law;

(iii) When a mistaken Credit entry is found in the customer's payment account or upon request to cancel/reverse a Credit transfer order from a service provider due to discrepancies identified by the service provider compared to the payer's payment instruction;

(iv) Upon written request from authorized agencies for enforcement of administrative penalty decisions, execution of judgments, tax collection decisions, or other payment obligations as prescribed by law.

b) Refuse to execute payment orders of the account holder in the following cases:

(i) The payment order is illegal or invalid;

(ii) The account holder does not fully comply with payment procedures, and the payment order does not match the registered elements in the payment account opening file at the State Bank;

(iii) The payment account has insufficient balance;

(iv) Upon written request from authorized agencies as prescribed by law.

c) Maintain and update all relevant documents, information, and data in the payment account opening file, including signatures and seals (if any) of the account-opening organization for verification and comparison during the use of the payment account.

d) Provide information about payment transactions and balances on the payment account to organizations that have opened payment accounts at the State Bank for verification and comparison.

4. The National Treasury, credit institutions, and foreign bank branches that open payment accounts at the State Bank have the following rights and responsibilities:

a) Use the balance on their payment account to execute lawful and valid payment orders;

b) Choose to use payment instruments, services, and payment conveniences provided by the State Bank;

c) Request the State Bank Trading Center and State Bank branches where the payment account is opened to execute lawful and valid payment orders and provide transaction information and account balances;

d) Provide complete, accurate, and timely documentation, information, and data in the payment account opening file and other required information to the State Bank Trading Center and State Bank branches where the payment account is opened;

đ) The National Treasury, credit institutions, and foreign bank branches shall notify the State Bank Trading Center and State Bank branches where the payment account is opened of changes to account information using Model Appendix No. 01 issued together with this Circular;

e) Bear responsibility for risks arising from incomplete, inaccurate, or untimely provision or updating of information and damages caused by their own errors.

 

 

Article 10. Closing a Payment Account Opened at the State Bank

1. The dossier, procedure, and process for closing a payment account and handling the remaining balance on the payment account of the State Treasury, credit organizations, and foreign bank branches at the State Bank shall be carried out in accordance with the provisions of Clause 4, Article 14 of Decree No. 52/2024/NĐ-CP.

2. The closure of payment accounts of central banks of other countries, foreign banks, international monetary organizations, and international banks shall be implemented in accordance with international treaties and agreements to which Vietnam is a member.

 

Chapter III

OPENING AND USING PAYMENT ACCOUNTS AT

BANKS, FOREIGN BANK BRANCHES

 

Article 11. Subjects Opening a Payment Account

1. Individuals opening a payment account at a bank or foreign bank branch include:

a) Persons aged 15 years or older who are not restricted or deprived of civil capacity under Vietnamese law;

b) Persons under 15 years old, persons whose civil capacity is restricted or deprived according to Vietnamese law, opening a payment account through their legal representative;

c) Persons with difficulties in understanding and controlling their actions according to Vietnamese law opening a payment account through their guardian.

2. Organizations established and operating legally according to Vietnamese law, including legal entities (Vietnamese legal entities, foreign legal entities), private enterprises, households engaged in business, and other organizations may open a payment account at a bank or foreign bank branch in accordance with the law.

Article 12. Dossier for Opening a Payment Account

1. The dossier for opening a payment account includes the following documents, information, and data:

a) Agreement on opening and using a payment account as stipulated in Article 13 of this Circular;

b) Documents, information, and data for verifying customer identification information as provided for in Clauses 2 and 3 of this Article;

c) Agreement on managing and using a joint payment account among the subjects named in the account opening (if applicable) for the case of opening a joint payment account.

2. Documents, information, and data about personal identification documents of individual customers:

a) In the case of Vietnamese citizens: Citizen Identity Card, Citizen Card, or Electronic Identity Card (through accessing the level 2 electronic identity account) or Identity Card or Birth Certificate for those under 14 years old;

b) In the case of Vietnamese-origin individuals whose nationality has not been determined: Proof of Identity Card;

c) In the case of foreign individuals:

(i) Passport, for foreign individuals residing in Vietnam must also have an entry visa or a document substituting for a visa or a document proving exemption from entry visa requirement; or

(ii) Electronic identity (through accessing an electronic identification account level 02).

3. Documents, information, and data of organizational customers: Documents, information, and data for verifying customer identification information as provided for in Point b, Clause 1, Article 12 of the Law on Anti-Money Laundering, including documents, information, and data of the legal representative as stipulated in Clause 2 of this Article.

4. In the case where an individual opens a payment account through a legal representative as provided for in Points b and c, Clause 1 of this Circular, in addition to the documents, information, and data mentioned in Clause 1 of this Article, the dossier for opening a payment account must also include:

a) In the case where the legal representative is an individual: documents, information, and data serving the purpose of identifying and verifying the legal representative's identification information as stipulated in Clause 2 of this Article and proof of the legal representative's legal status for the individual opening the payment account.

b) In case the representative is a legal entity: documents, information, and data serving to identify and verify the identification information of the legal entity in accordance with Clause 3 of this Article, and documents proving the legitimate representative status of that legal entity for the individual opening a payment account.

5. Banks and foreign bank branches may require additional documents, information, and data in the application for opening a payment account beyond those specified in Clauses 1, 2, 3, and 4 of this Article, but they must notify and provide specific guidance to customers.

6. The collection and retention of documents for opening a payment account must meet the following requirements:

a) Documents in paper form within the application for opening a payment account must be original or certified copies or copies issued from the original register or copies accompanied by the original for comparison in accordance with the provisions of the law on issuing copies from the original register, certifying copies from originals, certifying signatures, and certifying contracts and transactions. For cases where the original is presented for comparison, banks and foreign bank branches must certify the copy and bear responsibility for its accuracy compared to the original. For documents issued by competent authorities of foreign countries, legalization according to the law on legalization of foreign public documents shall be carried out.

b) For electronic data in the application for opening a payment account, banks and foreign bank branches must check, compare, and authenticate to ensure completeness and accuracy, and store them in compliance with the law on electronic transactions.

c) In cases where the documents, information, and data in the application for opening a payment account mentioned in Points a and b of this Clause are in a foreign language, banks and foreign bank branches may agree with customers on whether to translate them into Vietnamese or not, but must ensure the following principles:

(i) Banks and foreign bank branches must verify, control, and take responsibility for confirming the content of documents, information, and data in a foreign language to ensure they contain all required information as stipulated in this Circular.

(ii) Documents, information, and data in a foreign language must be translated upon request of a competent authority; the translation must be confirmed by an authorized person of the bank or foreign bank branch or must be notarized or certified.

d) The documents, information, and data in the application for opening a payment account as specified in Clauses 1, 2, 3, and 4 of this Article must remain valid and within their usage period during the process of opening and using the payment account.

                   Article 13Agreement on Opening and Using Payment Accounts

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

a) Document number (if applicable), date (day, month, year) of establishing the agreement;

b) Name of the bank, foreign bank branch;

c) Information about the customer opening a payment account as prescribed in Article 14 of this Circular;

d) Specific rights and obligations of the parties in accordance with Articles 20 and 21 of this Circular;

đ) Content regarding maintaining the minimum balance in the payment account and types, rates, methods of charging fees, and adjustments to fees during the opening and use of the payment account;

e) Usage of the payment account including:

(i) The use of the payment account must comply with the provisions of Article 17 of this Circular;

(ii) Scope and transaction limits on the payment account when making payments;

(iii) Cases of debiting the payment account according to the law and other cases of debiting related to fraud and deception based on conclusions by competent authorities;

(iv) Management and use of a joint payment account (for joint payment accounts);

g) Cases of freezing and unfreezing the payment account, including:

(i) Cases where discrepancies or unusual signs are detected during the process of opening and using the payment account;

(ii) Cases where there is reasonable suspicion that the customer's payment account is involved in fraud or violation of the law;

(iii) Other cases in accordance with the law.

h) Cases of closing a payment account and handling the remaining balance when closing the payment account, including:

(i) The case where it is discovered that a customer uses fake documents or impersonates another person to open or use a payment account for fraudulent, deceptive purposes or other illegal activities;

(ii) The case where the account does not maintain sufficient balance and does not generate transactions within a specified period as defined by the bank or foreign bank branch;

(iii) Other cases in accordance with the provisions of the law;

i) Providing information and notification methods to inform the account holder about: the balance and transactions occurring on the payment account; the freezing or closure of the payment account; the expiration date of personal identification documents in the account opening file and other necessary information during the use of the payment account;

k) Methods of receiving requests for review and complaints; deadlines for processing such requests and handling the results of reviews and complaints in accordance with the regulations on non-cash payment services;

l) Implementing risk management measures, ensuring safety and security in the use of payment accounts, including: re-verifying customer identification information and refusing to execute transactions or temporarily suspending payment transactions from the payment account in accordance with the provisions of this Circular;

Handling customer personal data or personal data provided by customers, providing information to third parties to serve the provision of payment services to customers, and handling suspected fraud, forgery, or violations of the law;

n) Cases of providing information include:

(i) Providing information at the request of authorized agencies as prescribed by law or with the customer's consent;

(ii) Providing information about the balance on the payment account to the representative, heir (or the representative of the heir) of the individual account holder when the account holder dies or is declared dead;

2. In the case of agreements for opening and using payment accounts based on standard forms and general transaction conditions, banks and foreign bank branches must implement:

a) Publicly posting the standard agreement form and general transaction conditions at transaction locations and publishing them on the bank’s electronic information website, mobile banking application software (if available);

b) Providing full information about the standard agreement form and general transaction conditions to customers and taking measures to confirm that customers have read and agreed to having been fully informed;

3. In addition to the contents stipulated in Clause 1 of this Article, banks and foreign bank branches may agree with customers on other contents that do not contravene the law;

                                Article 14. Information about customers opening payment accounts

1. For individual payment accounts, the following information must be included:

a) For individuals who are Vietnamese citizens or Vietnamese origin persons whose nationality has not been determined: surname and given name; date of birth; nationality; occupation and position; telephone number; personal identification number or citizen identification card number; issuance date, place of issuance, and expiration date of personal identification documents; tax identification number (if applicable); registered residence address and current address (if different); whether they are residents or non-residents;

b) For individuals who are foreigners: surname and given name; date of birth; nationality; occupation and position; telephone number; passport number or unique identifier issued by an authorized foreign agency, issuance date, place of issuance, and expiration date of the passport; foreigner identification number (if applicable); entry visa number or substitute entry permit number (for foreigners residing in Vietnam), except in cases where visa exemption applies according to the law; foreign country of residence registration address and Vietnam residence registration address (in the case of foreigners residing in Vietnam); whether they are residents or non-residents;

c) For individual customers with two or more nationalities, including the corresponding information as specified in points a and b of this clause; passport number, date of issue, place of issue, expiration date of passport; nationality, residential address in the country holding the remaining nationality;

d) In cases where individuals open settlement accounts as prescribed in points b and c of Clause 1, Article 11 of this Circular, the information on the representative shall be as follows:

(i) The representative is an individual, the information on the individual representative shall be carried out in accordance with the provisions of points a, b, and c of this clause;

(ii) The representative is a legal entity, the information on the legal entity representative shall be carried out in accordance with the provisions of Clause 2 of this Article.

2. For settlement accounts of organizations, the following information must be included:

a) Information about the account holder, including: full trading name and abbreviation; main office address; transaction address; establishment license number or proof of lawful establishment and operation; business registration number or tax code (if applicable); seal sample (if applicable); organization identification number (if applicable); telephone number; fax number, electronic information page (if applicable); field of activity, business;

b) Information about the legal representative of the organization opening the settlement account and authorized person(s) (if any), as prescribed in points a, b, and c of Clause 1 of this Article;

c) Information about the chief accountant or accounting officer (if any) of the organization opening the settlement account, as prescribed in points a, b, and c of Clause 1 of this Article.

3. For joint settlement accounts, the following information must be included:

a) In cases where the subject named to open a joint settlement account is an individual, the information as prescribed in this Article shall apply;

b) In cases where the subject named to open a joint settlement account is an organization, the information as prescribed in Clause 2 of this Article shall apply.

Article 15. Procedures and formalities for opening settlement accounts

1. When there is a need to open a settlement account, the customer provides the bank or foreign bank branch where the settlement account is to be opened with documents, information, and data to verify customer identification information as prescribed in Article 12 of this Circular.

2. The bank or foreign bank branch checks the legality and validity of the documents, information, and data provided by the customer and ensures their accuracy through verification, in accordance with laws on anti-money laundering.

3. After completing the verification process, the bank or foreign bank branch shall proceed as follows:

a) If the documents, information, and data are complete, accurate, and legal, the bank or foreign bank branch shall provide the customer with the terms and conditions for opening and using the settlement account as prescribed in Article 13 of this Circular;

b) If the documents, information, and data are incomplete, inaccurate, or do not match, the bank or foreign bank branch shall notify the customer to check and complete the application or refuse to open the settlement account and clearly state the reasons to the customer.

c) In the case of detecting that customers are using counterfeit, illegal documents, information, data, or if the customer is listed on the blacklist under the laws on anti-money laundering, the bank or foreign bank branch shall report to the competent authority and handle according to the provisions of the law.

4. After the customer agrees with the contents of the agreement on opening and using the payment account, the bank or foreign bank branch shall open the payment account and notify the customer of the account number, account name, and the date the payment account begins operation.

5. The bank or foreign bank branch shall base on its own conditions and supply capabilities to guide customers who are persons with disabilities on the dossier, procedures, and formalities for opening a payment account, while ensuring the collection of sufficient documents, information, and data to verify customer identification information as stipulated in this Circular.

6. The bank or foreign bank branch shall base on its own conditions and supply capabilities to guide customers on the dossier, procedures, and formalities for opening a payment account, including cases of refusing to open a payment account in accordance with this Circular, laws on preventing and combating money laundering, and shall be responsible for the accuracy, strictness, and completeness of the payment account opening dossier with the customer.

Article 16. Opening a Payment Account via Electronic Means

1. The bank or foreign bank branch shall issue internal regulations on the procedures and formalities for opening a payment account via electronic means in compliance with this Circular, laws on preventing and combating money laundering, electronic transactions, personal data protection, ensuring safety and confidentiality, and shall include at least the following steps:

a) Collecting documents, information, and data to verify customer identification information as stipulated in Clause 2 and Clause 3 of Article 12 of this Circular, and:

(i) Biometric information of the account holder for individual customers;

(ii) Biometric information of the authorized representative for organizational customers;

b) Checking the legality and validity of the documents, information, and data verifying customer identification information, and must conduct a biometric match between the biometric information of the payment account holder (for individual customers) and the authorized representative (for organizational customers) with:

(i) Biometric data stored in the encrypted information storage section of the citizen identity card or the verified citizen identity card issued by the police agency, or through the verification of the electronic identity account created by the electronic identity and authentication system; or

(ii) Biometric data collected and checked (ensuring the match between the biometric data of the person and the biometric data in the encrypted information storage section of the verified citizen identity card issued by the police agency or with the biometric data of the person through the verification of the electronic identity account created by the electronic identity and authentication system);

c) Displaying warnings to customers about actions not to be performed when opening and using a payment account via electronic means, and having technical solutions to confirm that the customer has read all warning contents fully;

d) Providing customers with the content of the agreement on opening and using the payment account as stipulated in Article 13 of this Circular and confirming the customer's approval of the agreement on opening and using the payment account as stipulated in point b, Clause 2 of this Article;

đ) Notifying customers of the account number, account name, transaction limit through the payment account, and the date the payment account begins operation.

2. The bank or foreign bank branch shall independently decide on measures, forms, and technologies serving the opening of a payment account via electronic means, bear any resulting risks (if any), and must meet the following minimum requirements:

a) Measures, forms, and technologies selected by banks and foreign bank branches must ensure security, safety, and confidentiality standards as prescribed by the State Bank.

b) Confirmation that customers agree with the contents of the agreement for opening and using payment accounts:

(i) For individual payment accounts: technical measures using electronic means to confirm the account holder's consent to the contents of the agreement for opening and using payment accounts;

(ii) For organizational payment accounts: the legally authorized representative signs an electronic signature to affirm the account holder's consent to the contents of the agreement for opening and using payment accounts;

c) Proper storage and preservation of all detailed customer identification documents, information, and data during the process of opening and using electronic payment accounts, such as: customer identification information; biometric factors of individual payment account holders and the legally authorized representatives of organizations opening payment accounts; audio, video, recorded images, recordings; registered phone numbers for transactions on internet banking applications; unique device identification information (MAC address); transaction logs; results of biometric information verification as stipulated at point b, Clause 1 of this Article. The information and data must be securely stored, backed up, and maintained to ensure completeness and integrity for use in account holder verification during account usage, dispute resolution, complaints, and providing information upon request from competent authorities. The time frame shall comply with laws on anti-money laundering and electronic transactions.

d) Banks and foreign bank branches must regularly check and evaluate the level of security and confidentiality of measures, forms, and technologies, and temporarily suspend service provision to upgrade, modify, and improve when there are signs of insecurity.

3. Opening of electronic payment accounts does not apply to the following cases:

a) Joint payment accounts;

b) Foreign currency payment accounts;

c) Individual customers as specified at points b and c, Clause 1, Article 11 of this Circular, and individual customers aged from 15 to under 18 years old.

Article 17. Usage of Payment Accounts

1. Account holders may use payment accounts to deposit, withdraw cash, and request banks and foreign bank branches to provide payment services through the account, such as: providing payment instruments, executing check, debit order, mandate, collection, remittance, bank card, transfer, agency collection, agency payment, and other additional services in accordance with current laws.

2. The use of payment accounts by individuals under 15 years old, those with limited or no civil capacity, or those with difficulties in understanding and controlling their actions must be conducted through a legal representative. The representative conducts transactions through the payment account of the represented person in accordance with civil law regulations on guardianship and representation.

3. The use of payment accounts opened to monitor pledged funds, ensure payment capability, and other purposes as prescribed by law must comply with relevant legal provisions. Banks and foreign bank branches may not proactively deduct funds from pledged amounts, balances on guarantee accounts, or funds set aside to fulfill legal obligations, except for pledges or funds set aside for the benefit of the bank or foreign bank branch itself.

4. The use of joint payment accounts must be carried out strictly according to the contents of the management and usage agreement (or contract) for joint payment accounts among account holders and must adhere to the following principles:

a) The account holders of a joint payment account have equal rights and obligations with respect to the joint payment account, and the use of the joint payment account must be approved by all account holders. Each account holder shall be responsible for paying off all debts arising from the use of the joint payment account.

b) Notifications related to the use of a joint payment account must be sent to all account holders, except where the bank, foreign bank branch, and the account holders of the joint payment account have agreed otherwise.

c) Each account holder of a joint payment account may authorize another person (including the remaining joint payment account holders) to use the joint payment account on their behalf, but such authorization must be in writing and agreed upon by all remaining joint payment account holders.

d) When one of the subjects named in opening a joint payment account is an individual who has died, been declared dead, or declared missing, or lost civil capacity; or when the subject named in opening a joint payment account is an organization that has been dissolved, declared bankrupt, or ceased operations according to the provisions of the law, the right to use the account and obligations arising from the use of the joint payment account shall be resolved in accordance with the provisions of the law.

e) In cases where the account holders of a joint payment account have different nationalities or residency statuses, the joint payment account can only be used within the scope permitted by all joint payment account holders under the regulations on foreign exchange management.

5. Banks and foreign bank branches shall guide customers in using payment accounts in accordance with the principles:

a) The scope of use and transaction limits for each customer category must be consistent with the risk management regulations and the agreement on opening and using the payment account as stipulated in Point c Clause 1 Article 19 of this Circular;

b) There must be sufficient information necessary to verify customer identification information during the use of the payment account;

c) Withdrawals and electronic payment transactions on the payment account can only be carried out after verifying the identity documents and biometric information of the account holder or representative (for individual customers) or the legally authorized representative (for organizational customers) against:

(i) Biometric data stored in the encrypted information storage section of the citizen identity card or identity card issued by the police authority and verified as accurate, or through the verification of the electronic identity account created by the Electronic Identification and Authentication System; or

(ii) Biometric data collected through direct face-to-face meetings with the individual concerned, for non-electronic identity users who are foreigners or Vietnamese nationals whose nationality cannot be determined; or

(iii) Biometric data that has been collected and checked (ensuring the match between the individual's biometric data and the biometric data stored in the encrypted information storage section of the citizen identity card or identity card issued by the police authority, or with the individual's biometric data through the verification of the electronic identity account created by the Electronic Identification and Authentication System); or

(iv) Biometric data of the individual stored in the National Population Database when using a citizen identity card without an encrypted information storage section;

d) Implement authentication measures for each type of electronic payment transaction according to the State Bank's regulations on security and confidentiality for providing electronic banking services;

đ) The use of Vietnamese currency payment accounts by non-residents, individual foreign residents, and foreign currency payment accounts must comply with the provisions of this Article and the regulations on foreign exchange management.

6. The handling of inquiries and complaints in the use of payment accounts shall be carried out in accordance with the agreement between the payment account holder and the bank, foreign bank branch, and the regulations on cashless payment services.

Article 18. Closing a Payment Account

1. The closure of a payment account and the handling of remaining balances on the payment account upon closure shall be carried out in accordance with Article 12 of Decree No. 52/2024/NĐ-CP and the agreement between the bank or foreign bank branch and the account holder as stipulated in Point h Clause 1 of this Circular.

2. After closing the payment account, the bank or foreign bank branch must notify the account holder, representative, or lawful heir in cases where the individual account holder has died or been declared dead. In cases where the account holder, representative, or lawful heir has been notified but does not come to claim it, the bank or foreign bank branch shall handle the remaining balance upon closure of the payment account according to the prior agreement between the account holder and the service provider and in accordance with relevant laws.

3. After closing the payment account, if the customer wishes to use the payment account again, they must follow the procedures for opening a payment account as prescribed in this Circular.

Article 19. Ensuring Safety and Confidentiality in Opening and Using Payment Accounts

1. Banks and foreign bank branches must issue internal regulations on risk management in opening and using payment accounts, including the following contents:

a) Measures for checking, reconciling, and verifying customer identification information during the opening and use of payment accounts, including:

(i) Measures to verify the legality and accuracy of customer account opening documents, information, and data, ensuring their consistency and correctness;

(ii) Applying measures to prevent impersonation, interference, modification, or distortion of customer identification verification during the opening and use of payment accounts;

(iii) Technical measures and technological solutions to reconcile biometric information of customers as stipulated in Point b Clause 1 Article 16 and Point c Clause 5 Article 17 of this Circular;

(iv) Measures to ensure that the use of payment accounts is conducted by the account holder, authorized person, representative, or lawful representative;

(v) Other measures established by banks or foreign bank branches to prevent fraud, impersonation, violation of laws, or the misuse of payment accounts for illegal purposes;

b) Minimum criteria for identifying suspicious payment accounts indicative of fraud, deception, or law violations (hereinafter referred to as the Criteria), including signs such as: suspicion regarding the legality and validity of documents, information, and data in the account opening file; the number, value, and frequency of transactions through the payment account being inconsistent with the customer's identification information; the account holder or the lawful representative of the organization opening the account being listed in the warning list of competent authorities. Banks and foreign bank branches must regularly review, adjust, supplement, and update the Criteria based on documents, information, and data during the opening and use of customer payment accounts;

c) Identifying types of risks that may arise in the activities of opening and using payment accounts and corresponding risk management measures. Risk management measures include:

(i) Regulations on transaction scope and limits according to different risk levels categorized by customer type, including specific risk management measures for customers under 18 years old;

(ii) Situations requiring updates and re-verification of customer identification information, including those stipulated in Clause 4 of this Article;

(iii) Situations where refusal or temporary suspension of cash withdrawal and electronic payment transactions should be applied.

d) Provide regulations on verifying and cross-checking account holder identification information with the State Bank of Vietnam's Information System for Managing, Monitoring, and Preventing Fraud Risks in Payment Activities and the list of suspicious fraudulent customers provided by the Ministry of Public Security and other competent authorities (if applicable) to apply appropriate risk management measures.

đ) Internal risk management regulations must be regularly reviewed and updated based on directives, recommendations, and warnings from competent authorities and up-to-date information and risks arising during the process of opening and using payment accounts for customers.

2. Banks and foreign bank branches must continuously warn and guide customers about criminal methods and schemes in opening and using payment accounts; guide the secure handling of information data and the safe use of payment accounts.

3. Banks and foreign bank branches must monitor the validity period of personal identification documents of account holders and related parties during the use of payment accounts; notify customers at least 30 days before the expiration date of their identification documents to timely request customers to update and supplement information; suspend payment transactions and withdrawals from payment accounts for cases where customers' identification documents have expired or exceeded their validity period.

4. Banks and foreign bank branches must re-verify customer identification information and promptly apply measures prescribed by law on preventing and combating money laundering in the following situations:

a) Customers exhibit suspicious signs as stipulated by the Law on Prevention and Combating Money Laundering;

b) Banks and foreign bank branches have grounds to suspect the legality and validity of documents in the customer's account opening and payment account files collected previously;

c) Information of individual payment account holders or legal representatives of organizations opening payment accounts included in the blacklist under laws on preventing and combating money laundering, the list of suspected fraud from the State Bank of Vietnam's Information System for Managing, Monitoring, and Preventing Fraud Risks in Payment Activities, or the list of suspicious fraudulent customers provided by the Ministry of Public Security and other competent authorities (if applicable);

d) Information about payment accounts and payment account holders that are inconsistent or not in accordance with the information and data of authorized agencies.

5. Banks and foreign bank branches must comply with regulations on information security and safety in the activities of opening and using payment accounts as prescribed by law.

Article 20. Rights and Obligations of Payment Account Holders

1. Payment account holders have the right:

a) To use funds in their payment accounts to execute lawful and valid payment orders;

b) To choose and agree on the use of payment instruments, services, and payment facilities at the bank or foreign bank branch where they opened the payment account;

c) To authorize the use of payment accounts according to Clause 5 of this Circular;

d) To request the bank or foreign bank branch where the payment account was opened to execute lawful and valid payment orders and provide information on account balances and transactions occurring on their payment account as agreed with the bank or foreign bank branch;

đ) To request the bank or foreign bank branch where the payment account was opened to implement freezing and unfreezing of accounts according to point a, Clause 1, point a, Clause 2, Article 11 of Decree No. 52/2024/NĐ-CP, close the opened payment account; notify the bank or foreign bank branch of disputes arising between joint payment account holders regarding joint payment accounts;

e) To request the bank or foreign bank branch to guide the management and use of payment accounts safely and resolve inquiries and complaints during the process of opening and using payment accounts as agreed with the bank or foreign bank branch;

g) Other rights as prescribed by law or agreed in writing between the payment account holder and the bank or foreign bank branch where the payment account was opened, which do not contravene the provisions of law.

2. The account holder has the obligation:

a) To ensure that there is sufficient money in the payment account to execute payment orders that have been established. In cases where there is an overdraft agreement with the bank or foreign bank branch where the account is opened, they must fulfill related obligations when payments exceed the credit balance on the account;

b) To comply with regulations on opening and using payment accounts as stipulated in this Circular and agreements with the bank or foreign bank branch;

c) To promptly notify the bank or foreign bank branch where the account is opened upon discovering errors, mistakes on their payment account or suspecting that their account is being misused;

d) To refund or cooperate with the bank or foreign bank branch to refund amounts credited erroneously to their payment account;

đ) To provide complete, accurate, and timely information about the account opening documents and additional information requested by the bank or foreign bank branch according to the agreement; to be responsible for risks arising from incomplete, inaccurate, or untimely provision or updating of information and losses caused by their own errors;

e) To maintain a minimum balance in the payment account as prescribed by the bank or foreign bank branch;

g) Not to engage in prohibited actions regarding the opening and use of payment accounts as stipulated in Article 8 of Decree No. 52/2024/NĐ-CP.

Article 21. Rights and Obligations of Banks and Foreign Bank Branches

1. The bank or foreign bank branch where the customer opens an account has the right:

a) To debit the customer's payment account proactively in the following situations:

(i) At the written request of an authorized agency for enforcement of administrative penalty decisions, execution of court judgments, tax collection decisions, or other payment obligations as prescribed by law and to inform the account holder;

(ii) To correct entries that were incorrectly recorded, not in accordance with the true nature, or not consistent with the intended use of the payment account as prescribed by law and to inform the account holder;

(iii) When it is discovered that an erroneous credit was made to the customer's account or at the request to cancel a credit order of the bank or foreign bank branch serving the remitter due to discrepancies found between the remitter's payment order and the actual transaction; the debiting of the payment account must be notified to the account holder;

(iv) According to a prior written agreement between the account holder and the bank or foreign bank branch to make regular or periodic payments or collect overdue debts, interest, and incidental costs; the debiting of the payment account must be notified to the account holder;

b) To refuse to execute payment orders from the account holder in the following situations:

(i) The payment order is illegal or invalid;

(ii) The account holder does not fully comply with payment procedures or elements on the payment order do not match those registered in the account opening documents or the payment order is inconsistent with the agreements on opening and using the payment account;

(iii) The payment account does not have sufficient balance to execute the payment order or exceeds the overdraft limit;

(iv) The payment account is closed or frozen entirely;

(v) Upon receiving a written request from an authorized agency as prescribed by law;

(vi) The account holder violates prohibited actions as stipulated in Article 8 of Decree No. 52/2024/NĐ-CP;

(vii) The account holder refuses to provide information or provides incomplete information on customer identification at the request of the bank or foreign bank branch, or when there is suspicion about the truthfulness of the information and the purpose of special transactions that must be monitored according to anti-money laundering laws;

(viii) Other cases agreed upon beforehand with the customer in the agreement for opening and using the payment account, including cases where the payment account shows signs of being related to fraud, serving illegal purposes according to the criteria set by the bank or foreign bank branch;

c) Refuse to execute the account holder's request to close or freeze the payment account if the account holder has not fulfilled the payment obligations under the enforcement decision of the competent authority or has not settled all debts owed to the bank or foreign bank branch;

d) Specify the minimum balance, usage scope, usage method, transaction limit on the payment account, and publicly announce and provide specific guidance for customers to be aware of these provisions;

đ) Specify measures to ensure safety and confidentiality in opening and using the payment account in accordance with the provisions of the law;

e) Exercise other rights as provided by law or by written agreement between the account holder and the bank or foreign bank branch, provided such exercise does not contravene current legal regulations;

2. The bank and foreign bank branch shall have the obligation:

a) To execute the payment order of the account holder after verifying and controlling the legality and validity of the payment order;

b) To retain and update fully the signatures and seals (if any) of the customer registered for verification and comparison during the use of the payment account;

c) To promptly credit the payment account of the customer with incoming payment orders, cash deposits into the account; refund amounts erroneously debited from the customer's payment account; cooperate to refund amounts mistakenly transferred into the customer's payment account at the request of the bank or foreign bank branch to serve the remitter due to errors compared to the remitter's payment order;

d) To provide full and timely information to the account holder regarding the account balance, transactions, and transaction documents generated on the payment account and the freezing of the payment account in writing or through the methods specified in the agreement for opening and using the payment account, and bear responsibility for the accuracy of the information provided;

đ) To update customer information periodically or when the customer notifies changes in the account opening documentation, and to promptly update and verify customer identification information when determining that the customer poses a high risk level according to the criteria established by the bank or foreign bank branch. To store and retain account documentation and transaction documents processed through the account in compliance with legal requirements;

e) To protect the privacy of customer personal information or personal data provided by the customer, and information related to the payment account and transactions on the payment account in accordance with legal provisions;

g) To be responsible for damages arising in the following circumstances:

(i) Damages caused by errors or mistakes of the bank or foreign bank branch, including failure to comply with legal regulations on safety and confidentiality in service provision;

(ii) Damages caused by the bank or foreign bank branch failing to properly implement the requirements of the competent authority regarding the handling of cases involving fraud, deception, and violation of the law;

(iii) Damages caused by the bank or foreign bank branch failing to apply internal management measures for risk control in opening and using the payment account when receiving a notification from the competent authority regarding the involvement of the customer or the customer's payment account in fraud, deception, and violation of the law;

h) Comply with legal provisions on anti-money laundering and terrorist financing and refrain from engaging in prohibited acts related to opening and using payment accounts as stipulated in Article 8 of Decree No. 52/2024/NĐ-CP;

i) Guide customers in the safe use of payment accounts, inform and explain to customers about prohibited acts in opening and using payment accounts, and promptly address and resolve customer inquiries and complaints regarding the opening and use of payment accounts in accordance with this Circular and the agreement between the payment account holder and the bank or foreign bank branch;

k) Issue internal regulations on opening and using payment accounts at banks and foreign bank branches; provide guidance and publicize them for customers to be aware and comply. The internal regulations must include at least the following contents:

(i) Provisions on the dossier, procedures, and formalities for opening payment accounts, including cases of opening electronic payment accounts and opening payment accounts for customers who are persons with disabilities, those without full civil capacity, or those with restricted civil capacity;

(ii) Provisions on agreements for opening and using payment accounts;

(iii) Provisions on the use of payment accounts;

(iv) Provisions on handling disputes and complaints, including sample dispute resolution request forms;

(v) Provisions on risk management in opening and using payment accounts in accordance with Clause 1 of Article 19 of this Circular.

Article 22. Provision of Information

1. Banks and foreign bank branches shall provide information on their customers' payment accounts according to the guidelines of the State Bank of Vietnam to fulfill state management functions.

2. By the 10th day of each month at the latest, banks and foreign bank branches shall provide, upon request of the State Bank of Vietnam, information on accounts showing signs of fraud, deception, or violation of laws as set out in Appendix No. 02 attached to this Circular. The provision of information shall be conducted electronically in accordance with technical connection guidelines issued by the State Bank of Vietnam.

 

Chapter IV

IMPLEMENTATION ORGANIZATION

 

Article 23. Effective Date

1. This Circular shall take effect from July 1, 2024, except for the cases specified in Clauses 2, 3, 4, and 5 of this Article.

2. Articles 12, 13, 14, 15, 16, and Article 19 (excluding the provisions in Clause 3) of this Circular shall take effect from October 1, 2024.

3. The provisions in Point c Clause 5 Article 17 and Clause 3 Article 19 of this Circular shall take effect from January 1, 2025, for individual payment accounts.

4. The provisions in Point c Clause 5 Article 17 of this Circular shall take effect from July 1, 2025, for organizational payment accounts.

5. For credit institutions under special control:

a) Article 16, the provisions in Point c Clause 5 Article 17 applicable to individual payment accounts, and Clause 3 Article 19 of this Circular shall take effect from July 1, 2025;

b) The provisions in Point c Clause 5 Article 17 of this Circular applicable to organizational payment accounts shall take effect from January 1, 2026.

                   6. 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 payment accounts at payment service providers has been amended and supplemented with certain articles pursuant to 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, guiding the opening and use of payment accounts at payment service providers, and Circular No. 16/2020/TT-NHNN dated December 4, 2020, 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, guiding the opening and use of payment accounts at payment service providers shall cease to be effective from the date this Circular takes effect, except for Articles 12, 13, 13a, 14, and Article 14a which remain effective until September 30, 2024.

  Article 24. Transitional Provisions

 For customers who opened payment accounts before October 1, 2024, banks and foreign bank branches shall cooperate with customers to update and supplement documentation, information, and data in the payment account files to comply with the provisions of Article 12 of this Circular, to be completed by January 1, 2026.

Article 25. Implementation Organizations

 1. The Payment Department shall be responsible for monitoring, inspecting, and coordinating with relevant units to address any issues arising during the implementation of this Circular.

2. Banking inspection and supervision agencies and State Bank of Vietnam branches shall be responsible for inspecting and supervising the implementation of this Circular and handling violations within their authority.

3. The Director of the Office, Heads of the Payment Department, and Heads of units under the State Bank of Vietnam; banks and foreign bank branches shall be responsible for organizing the implementation of this Circular./.