DECREE NO. 174/2024/ND-CP ON ADMINISTRATIVE SANCTIONS FOR VIOLATIONS IN THE INSURANCE BUSINESS SECTOR

DECREE

Regulations on Administrative Sanctions for Violations in the Insurance Business Sector

                                             

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Handling Administrative Violations dated June 20, 2012; the Law Amending and Supplementing Certain Provisions of the Law on Handling Administrative Violations No. 67/2020/QH14 dated November 13, 2020;

Pursuant to the Law on Insurance Business dated December 9, 2000; the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business dated November 24, 2010; the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business and the Law on Intellectual Property dated June 14, 2019;

Pursuant to the Law on Insurance Business dated June 16, 2022;

Pursuant to the Law on Prevention and Combating Money Laundering dated November 15, 2022;

Pursuant to the Law on Prevention and Combating Terrorism dated June 12, 2013;

At the proposal of the Minister of Finance;

The Government promulgates this Decree on administrative sanctions for violations in the insurance business sector.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree stipulates acts of administrative violation, completed acts of administrative violation, and ongoing acts of administrative violation; forms of administrative sanction, levels of administrative sanction, measures to remedy consequences for each act of administrative violation; subjects subject to administrative sanction; authority to impose administrative sanctions, specific monetary fines according to each position and authority to prepare administrative violation reports in the insurance business sector.

2. Acts of administrative violation in other sectors related to the insurance business sector that are not specified in this Decree shall be handled in accordance with the relevant provisions for administrative sanctions.

Article 2. Applicability

1. Vietnamese individuals and organizations, foreign individuals and organizations committing acts of administrative violation in the insurance business sector as prescribed in this Decree.

2. Organizations referred to in Clause 1 of this Article include:

a) Life insurance companies, non-life insurance companies, health insurance companies, reinsurance companies, insurance brokerage companies; branches of foreign non-life insurance companies, branches of foreign reinsurance companies (hereinafter referred to as foreign branches in Vietnam);

b) Representative offices of foreign insurance companies, representative offices of foreign reinsurance companies, representative offices of foreign insurance brokerage companies, representative offices of foreign financial and insurance groups in Vietnam (hereinafter referred to as foreign representative offices in Vietnam);

c) Organizations engaged in insurance agency activities;

d) Mutual organizations providing micro-insurance;

đ) Organizations providing auxiliary insurance services (insurance companies, insurance brokerage companies, and other entities with legal personality);

e) Other organizations as prescribed in this Decree.

3. Individuals or organizations authorized to impose administrative sanctions, individuals or organizations authorized to prepare administrative violation reports, and other agencies or individuals related as prescribed in this Decree.

Article 3. Forms of Administrative Sanction and Measures to Remedy Consequences

1. For each act of administrative violation in the insurance business sector, organizations and individuals shall be subject to the primary form of administrative sanction being a monetary fine.

2. Warning shall be applied to individuals aged from 14 to under 16 years old who commit violations as prescribed in this Decree.

3. Levels of monetary fines for individuals and organizations:

a) The level of monetary fine for acts of administrative violation prescribed in this Decree applies to individuals, except for cases prescribed in Articles 9, 10, Clause 2 of Article 11, Article 12, Article 14, Clause 2 of Article 15, Article 16, Clause 2 of Article 18, Article 20, Article 21, Clause 2 of Article 22, Article 24, Article 25, Point b and Point c of Clause 1 and Point c of Clause 2 of Article 27, Article 28, Article 33, Clause 1 of Article 38, and Article 40 of this Decree which only apply to organizations;

b) The level of monetary fine for organizations is twice the level of monetary fine for individuals for the same act of violation;

c) The maximum level of monetary fine for individuals committing acts of administrative violation in the insurance business sector is VND 100,000,000, and for organizations it is VND 200,000,000.

4. Additional forms of administrative sanction: Suspension of operations for a limited period.

5. Measures to remedy consequences:

a) Compel restoration to the original state as provided for in Point a, Clause 1, Article 28 of the Law on Handling Administrative Violations;

b) Compel publication or correct publication or notification or compel correction of information;

c) Compel actuaries to fully perform their tasks as prescribed by law; compel insurance companies, reinsurance companies, foreign branches in Vietnam, mutual organizations providing micro-insurance to use actuaries to fully perform their tasks as prescribed by law;

d) Compel provision to policyholders of documents during the process of concluding insurance contracts that have not yet expired at the time of discovery of the violation;

đ) Compel clear and full explanation to policyholders about insurance benefits, exclusion clauses, rights and obligations of policyholders of insurance contracts that have not yet expired at the time of discovery of the violation;

e) Compel provision to policyholders of evidence of conclusion of insurance contracts of insurance contracts that have not yet expired at the time of discovery of the violation;

g) Compel notification to the Ministry of Finance regarding the provision of insurance services and products over the internet;

h) Compel compliance with the law;

i) Compel use of directly involved personnel in insurance brokerage and agency activities;

k) Compel return of the Certificate of Establishment and Operation or the Certificate of Establishment of Foreign Representative Office in Vietnam;

l) Compel return of the amount of money embezzled.

Article 4. Time Limit for Administrative Sanctions

1. The statute of limitations for administrative sanctions in the insurance business sector shall be implemented in accordance with Article 6 of the Law on Handling Administrative Violations.

2. The point in time for calculating the statute of limitations for administrative sanctions in the insurance business sector is defined as follows:

a) For ongoing acts of administrative violation in the insurance business sector, the statute of limitations is calculated from the date when the person authorized to enforce public duties discovers the violation.

b) For completed acts of administrative violation, the statute of limitations begins from the date the violation ends.

3. The time point for terminating the violation act to calculate the statute of limitations for administrative penalties in the insurance business sector is the day when all legal provisions are complied with, except for cases specified in Clause 4 of this Article. In case the day when all legal provisions are complied with cannot be determined, the time point for terminating the violation act to calculate the statute of limitations for administrative violations in the insurance business sector is the day the violation act is discovered.

4. The time point for terminating the violation act to calculate the statute of limitations for certain violation acts under Chapter II of this Decree is defined as follows:

a) For the act of falsifying documents in the establishment and operation license application files as stipulated in Article 6 of this Decree, the time point for terminating the violation act is the day the falsified license application file is discovered;

b) For the act of not issuing procedures and regulations, not approving reinsurance programs, ceding reinsurance, not establishing risk management policies, internal procedures on risk management as stipulated in Point b, Clause 1, Article 9; Point a, Clause 1, Article 13; Point b, Clause 1, Article 33 of this Decree, the time point for terminating the violation act is the day these procedures and regulations are issued, reinsurance programs and ceding reinsurance are approved, and risk management policies and internal procedures on risk management are established in accordance with the law;

c) For the act of violating reporting requirements as stipulated in Point b, Clause 2, Article 8; Clause 1, Article 12; Point b, Clause 1, Article 20; Point b, Clause 2, Article 32; Point d, Clause 1, Article 33; Point b, Clause 1, Article 34; Point c, Clause 1, Article 35; Point d, Clause 1, Article 36; Article 37 and Article 39 of this Decree, the time point for terminating the violation act is the day the report is submitted in compliance with the law;

d) For the act of violating the public disclosure requirements as stipulated in Article 39 of this Decree, the time point for terminating the violation act is the day the information is disclosed or disclosed correctly according to the prescribed content and form.

Article 5. Principles for determining the amount of fine and suspension period in cases involving aggravating and mitigating circumstances; multiple administrative violations

1. When determining the amount of fine or suspension period for organizations or individuals who have committed violations with both aggravating and mitigating circumstances, one mitigating circumstance can offset one aggravating circumstance.

2. The specific amount of fine for a single violation is applied as follows:

a) If there are no mitigating or aggravating circumstances, the average level within the fine range shall be applied;

b) If there is one mitigating circumstance, the middle level between the average and the minimum level within the fine range shall be applied;

c) If there are two or more mitigating circumstances, the minimum level within the fine range shall be applied;

d) If there is one aggravating circumstance, the middle level between the average and the maximum level within the fine range shall be applied;

đ) If there are two or more aggravating circumstances, the maximum level within the fine range shall be applied.

3. The specific suspension period for supplementary sanctions of suspending activities for a limited period:

a) If there are no mitigating or aggravating circumstances, the average suspension period within the penalty range shall be applied;

b) If there is one mitigating circumstance, the middle suspension period between the average and the minimum level within the penalty range shall be applied;

c) If there are two or more mitigating circumstances, the minimum suspension period within the penalty range shall be applied;

d) If there is one aggravating circumstance, the middle suspension period between the average and the maximum level within the penalty range shall be applied;

đ) If there are two or more aggravating circumstances, the maximum suspension period within the penalty range shall be applied.

4. Multiple Administrative Violations:

Organizations or individuals committing multiple administrative violations shall be subject to penalties for each individual violation, except for multiple violations that are considered aggravating circumstances as stipulated in Article 13, Clause 2, Article 16, Article 17, Article 18, Article 19, Clause 3, Article 20, Article 23, Article 24, Article 25, Article 27, Clause 3, Article 30, and Article 31 of this Decree.

Chapter II

VIOLATIONS OF ADMINISTRATIVE LAW AND PENALTY FORMS AND REMEDIAL MEASURES FOR CONSEQUENCES

Section 1

VIOLATIONS OF PROVISIONS ON ESTABLISHMENT AND OPERATIONS

Article 6. Penalty for violations concerning licensed documents

A fine of VND 80,000,000 to VND 100,000,000 shall be imposed for one of the following violations:

1. The application file for obtaining or extending a permit to establish a foreign representative office in Vietnam contains false information to meet the conditions for issuance or extension of the permit.

2. The application file for obtaining a permit to establish and operate contains false information to meet the conditions for issuance of the establishment and operation permit for insurance companies, reinsurance companies, foreign branches in Vietnam, insurance brokerage companies, micro-insurance mutual organizations.

Article 7. Penalty for violations concerning the Establishment and Operation Permit, and the Permit to Establish a Foreign Representative Office in Vietnam

1. A fine of VND 10,000,000 to VND 30,000,000 shall be imposed for one of the following violations:

a) Failure to make public or making public in violation of the provisions on the publication of information of a foreign representative office in Vietnam as stipulated by law, Clause 4, Article 76 of the Insurance Business Law No. 08/2022/QH15;

b) Failure to make public or making public in violation of the provisions on the publication of the contents of the issued permit or the establishment and operation permit and the date of official commencement of operations as stipulated by law, Clause 2, Article 72, and Article 135 of the Insurance Business Law No. 08/2022/QH15;

c) Failure to report or reporting out of time about meeting the requirements for official commencement of operations as stipulated by law, Clause 3, Article 73 of the Insurance Business Law No. 08/2022/QH15;

2. A fine of VND 40,000,000 to VND 60,000,000 shall be imposed for the violation of amending the establishment and operation permit or the permit to establish a foreign representative office in Vietnam.

3. A fine of VND 60,000,000 to VND 80,000,000 shall be imposed for changing the charter capital or authorized capital without written approval from the Ministry of Finance as stipulated by law, Point b, Clause 1, Article 74, and Point b, Clause 1, Article 136 of the Insurance Business Law No. 08/2022/QH15.

4. A fine of VND 80,000,000 to VND 100,000,000 shall be imposed for one of the following violations:

a) Engaging in insurance business, reinsurance business, reinsurance cession before the official commencement of operations, as stipulated in Clause 2, Article 72, and Clause 4, Article 73 of the Insurance Business Law No. 08/2022/QH15;

b) Engaging in insurance business, reinsurance business, reinsurance cession, insurance brokerage without an establishment and operation permit;

c) Engaging in insurance business, reinsurance business, reinsurance cession, insurance brokerage not in accordance with the established and operation permit already issued;

d) Engaging in activities directly related to the content and scope of administrative violations that have been suspended or had their establishment and operation permits revoked or expired;

đ) Conducting activities not in accordance with the permit to establish a foreign representative office in Vietnam already issued, operating when the permit to establish a foreign representative office in Vietnam has been revoked according to the law, as stipulated in Article 61 of Decree No. 46/2023/NĐ-CP or has expired.

5. Measures to remedy consequences:

a) Order to make public or make public in accordance with the regulations or report or order to correct the violations as stipulated in Clause 1 and Clause 2 of this Article;

b) Order to return the establishment and operation permit or the permit to establish a foreign representative office in Vietnam for the violation as stipulated in Clause 2 of this Article;

c) Order to restore the original status for the violation as stipulated in Clause 3 and Clause 4 of this Article.

Article 8. Sanctions for violations of regulations on division, separation, merger, consolidation, conversion of form, dissolution of enterprises, termination of foreign branch operations in Vietnam

1. A fine of from VND 80,000,000 to VND 100,000,000 shall be imposed on the act of dissolving insurance enterprises, reinsurance enterprises, insurance brokerage enterprises, terminating foreign branch operations in Vietnam not in accordance with the provisions of the law, as stipulated in Article 115, point e, Clause 1, Article 136 of the Insurance Business Law No. 08/2022/QH15, Clause 5, Article 17, Article 55, Article 72 of Decree No. 46/2023/NĐ-CP.

2. A fine of from VND 80,000,000 to VND 100,000,000 shall be imposed on the act of dividing, separating, merging, consolidating, converting the form of insurance enterprises, reinsurance enterprises, insurance brokerage enterprises, foreign branches in Vietnam in violation of:

a) Dividing, separating, merging, consolidating, converting the form without written approval from the Ministry of Finance as prescribed by law, as stipulated in point e, Clause 1, Article 74, point e, Clause 1, Article 136 of the Insurance Business Law No. 08/2022/QH15;

b) Not reporting to the Ministry of Finance the results of implementing the division, separation, merger, consolidation, conversion of form according to the plan approved by the Ministry of Finance as prescribed by law, as stipulated in Clause 4, Article 23, Clause 4, Article 71 of Decree No. 46/2023/NĐ-CP.

3. Measures to remedy consequences:

Compel restoration to the original state in cases of violation of the provisions of Clause 1, point a, Clause 2 of this Article.

Section 2

VIOLATIONS OF REGULATIONS ON ORGANIZATION AND OPERATIONS

Article 9. Sanctions for violations of regulations on organization and operations of insurance enterprises, reinsurance enterprises, foreign branches in Vietnam, mutual organizations providing micro-insurance

1. A fine of from VND 60,000,000 to VND 100,000,000 shall be imposed on insurance enterprises, reinsurance enterprises, foreign branches in Vietnam, mutual organizations providing micro-insurance violating any of the following acts of violation:

a) The management structure of insurance enterprises, reinsurance enterprises, mutual organizations providing micro-insurance not in accordance with the provisions of the law, as stipulated in Article 79 of the Insurance Business Law No. 08/2022/QH15, Article 20 of Decree No. 21/2023/NĐ-CP;

b) Insurance enterprises, reinsurance enterprises, foreign branches in Vietnam, mutual organizations providing micro-insurance not promulgating procedures, regulations as prescribed by the law, as stipulated in point c, Clause 2, Article 73 of the Insurance Business Law No. 08/2022/QH15, Clause 2, Article 26, Clause 4, Article 39 of Decree No. 21/2023/NĐ-CP;

c) Insurance enterprises, reinsurance enterprises, foreign branches in Vietnam not implementing financial management as prescribed by the law, as stipulated in Clause 2, Article 108 of the Insurance Business Law No. 08/2022/QH15.

2. A fine of from VND 140,000,000 to VND 180,000,000 shall be imposed on insurance enterprises, reinsurance enterprises, foreign branches in Vietnam, mutual organizations providing micro-insurance violating any of the following acts of violation:

a) Insurance enterprises, reinsurance enterprises, foreign branches in Vietnam not maintaining a General Director (Director), Actuary as prescribed by the law, as stipulated in Clause 4, Article 80 of the Insurance Business Law No. 08/2022/QH15;

b) Managers, supervisors of insurance enterprises, reinsurance enterprises, foreign branches in Vietnam not meeting conditions, standards as prescribed by the law, as stipulated in Article 81 of the Insurance Business Law No. 08/2022/QH15, Article 26, Article 27, Article 28, Article 29, Article 30 of Decree No. 46/2023/NĐ-CP;

c) Chairman of the Board of Management, General Director (Director), Actuary of mutual organizations providing micro-insurance not meeting conditions, standards as prescribed by the law, as stipulated in Article 24, Clause 1, Clause 2, Clause 3, Article 25 of Decree No. 21/2023/NĐ-CP;

d) Violation of the principle of assuming duties as stipulated in Article 82 of the Insurance Business Law No. 08/2022/QH15;

đ) Changing the Chairman of the Board of Management (Chairman of the Board of Members), General Director (Director), Actuary without written approval from the Ministry of Finance as prescribed by the law, as stipulated in point đ, Clause 1, Article 74 of the Insurance Business Law No. 08/2022/QH15.

3. Measures to remedy consequences:

Compel compliance with legal provisions for violations stipulated in Clause 1, Clause 2 of this Article.

Article 10. Sanctions for violations concerning the management personnel of insurance brokerage enterprises

1. A fine of VND 140,000,000 to VND 180,000,000 shall be imposed on an insurance brokerage enterprise that commits one of the following violations:

a) The Deputy Director, Deputy General Director, Chief Accountant, or head of business department of the insurance brokerage enterprise does not meet the standards prescribed by law, as stipulated in Clause 1, Article 138 of the Insurance Business Law No. 08/2022/QH15, Articles 79 and 80 of Decree No. 46/2023/NĐ-CP.

b) The Chairman of the Board of Directors, Chairman of the Board of Members, Director, or General Director does not meet the standards prescribed by law, as stipulated in Articles 77 and 78 of Decree No. 46/2023/NĐ-CP;

c) Changing the Chairman of the Board of Directors, Chairman of the Board of Members, Director, or General Director without the written approval of the Ministry of Finance as prescribed by law, as stipulated in Point d, Clause 1, Article 136 of the Insurance Business Law No. 08/2022/QH15.

2. Measures to remedy consequences:

Compel compliance with the relevant laws for violations stipulated in Clause 1 of this Article.

Article 11. Sanctions for violations concerning actuarial experts

1. A fine of VND 40,000,000 to VND 60,000,000 shall be imposed on the violation committed by an actuarial expert:

a) Not performing tasks assigned by an insurance enterprise, reinsurance enterprise, foreign branch in Vietnam, or micro-insurance mutual organization as prescribed by law, as stipulated in Clause 4, Article 82 of the Insurance Business Law No. 08/2022/QH15, Clause 3, Article 25 of Decree No. 21/2023/NĐ-CP;

b) Fully performing tasks assigned by an insurance enterprise, reinsurance enterprise, or foreign branch in Vietnam as prescribed by law, as stipulated in Clause 4, Article 82 of the Insurance Business Law No. 08/2022/QH15, Clause 3, Article 25 of Decree No. 21/2023/NĐ-CP.

2. A fine of VND 80,000,000 to VND 100,000,000 shall be imposed on an insurance enterprise, reinsurance enterprise, foreign branch in Vietnam, or micro-insurance mutual organization that violates one of the following acts: not using or using an actuarial expert who does not fully perform tasks as prescribed by law, as stipulated in Clause 4, Article 82 of the Insurance Business Law No. 08/2022/QH15, Clause 3, Article 25 of Decree No. 21/2023/NĐ-CP.

3. Measures to remedy consequences:

a) Compel compliance with the relevant laws for the case of violation stipulated in Point a, Clause 1 of this Article;

b) Compel the actuarial expert to fully perform tasks as prescribed by law for the case of violation stipulated in Point b, Clause 1 of this Article;

c) Compel the insurance enterprise, reinsurance enterprise, or foreign branch in Vietnam to use an actuarial expert to fully perform tasks as prescribed by law for the violation stipulated in Clause 2 of this Article.

Article 12. Sanctions for violations concerning changes that must be approved or notified

1. A fine of VND 40,000,000 to VND 60,000,000 shall be imposed on an insurance enterprise, reinsurance enterprise, insurance brokerage enterprise, or foreign branch in Vietnam that commits one of the following violations: failing to notify or notifying out of time to the Ministry of Finance as prescribed by law, as stipulated in Clause 3, Article 74, Clause 2, Article 136 of the Insurance Business Law No. 08/2022/QH15.

2. A fine of VND 50,000,000 to VND 70,000,000 shall be imposed on an insurance enterprise, insurance brokerage enterprise, reinsurance enterprise, or foreign branch in Vietnam that violates the regulations on changing name or main office location without written approval from the Ministry of Finance as prescribed by law, as stipulated in Point a, Clause 1, Article 74, Point a, Clause 1, Article 136 of the Insurance Business Law No. 08/2022/QH15.

3. A fine of VND 160,000,000 to VND 200,000,000 shall be imposed on an insurance enterprise, reinsurance enterprise, insurance brokerage enterprise, or foreign branch in Vietnam that violates the regulations requiring written approval from the Ministry of Finance as prescribed by law, as stipulated in Points d and g, Clause 1, Article 74, Points c and d, Clause 1, Article 136 of the Insurance Business Law No. 08/2022/QH15.

4. Measures to remedy consequences:

a) Compel compliance with the relevant laws for cases of violation stipulated in Clauses 1, 2, and 3 of this Article;

b) Compel restoration to the original state for cases of violation stipulated in Clause 3 of this Article.

Article 13. Sanctions for violations of regulations on reinsurance and cession of reinsurance by insurance enterprises, reinsurance enterprises, foreign branches in Vietnam, and micro-insurance service organizations

1. A fine of VND 50,000,000 to VND 70,000,000 shall be imposed for one of the following violations:

a) Not approving the reinsurance program or cession of reinsurance as prescribed by law;

b) Having a reinsurance program but not fully covering all required contents as prescribed by law;

c) Implementing the reinsurance program or cession of reinsurance not in accordance with the provisions of law.

2. A fine of from 80,000,000 VND to 100,000,000 VND shall be imposed for any of the following violations:

a) Reinsuring or ceding full responsibility for insurance received or reinsured under one insurance contract or reinsurance contract to one or more insurance enterprises, reinsurance enterprises within and outside the country, foreign insurance organizations accepting reinsured business, foreign branches in Vietnam;

b) The retention level not complying with the provisions of law;

c) Designated reinsurance or limited reinsurance not complying with the provisions of law;

d) Reinsuring or ceding reinsurance to foreign insurance enterprises, foreign reinsurance organizations that do not meet the conditions prescribed by law;

đ) Accepting reinsurance for risks already ceded without complying with the provisions of law.

3. Measures to remedy consequences:

Compel compliance with the legal provisions for cases violating the provisions of Clause 1 and Clause 2 of this Article (for contracts still in effect).

Article 14. Sanctions for violations of regulations on transferring the portfolio of insurance contracts

1. A fine of from 80,000,000 VND to 100,000,000 VND shall be imposed on insurance enterprises, foreign non-life insurance branch offices violating any of the following acts:

a) Transferring the portfolio of insurance contracts without written approval from the Ministry of Finance as stipulated in Clause 1, Article 93 of the Law on Insurance Business No. 08/2022/QH15;

b) Not implementing the transfer of the portfolio of insurance contracts in accordance with the provisions of law as stipulated in Article 91 of the Law on Insurance Business No. 08/2022/QH15;

c) The transferring party continuing to enter into new insurance contracts belonging to the transferred insurance business as stipulated in Clause 4, Article 34 of Decree No. 46/2023/NĐ-CP.

2. Measures to remedy consequences:

a) Compel compliance with the legal provisions for cases violating the provisions of Clause 1 of this Article;

b) Compel restoration to the original state for cases violating the provisions of Clause 1 of this Article.

Article 15. Sanctions for violations of regulations on insurance compensation and payment

1. Acts of colluding with the beneficiary of insurance benefits to settle insurance compensation and payment contrary to the law; acts of forging documents or intentionally distorting information to refuse compensation and payment when the insured event has occurred; acts of forging documents or intentionally distorting information in claims for compensation and payment; acts of self-inflicting damage to property or health to enjoy insurance benefits except where otherwise provided by law and not reaching the threshold for criminal prosecution shall be punished as follows:

a) A fine of from 20,000,000 VND to 40,000,000 VND shall be imposed for any of the above violations where the amount embezzled is less than 10,000,000 VND or the loss caused is less than 20,000,000 VND;

b) A fine of from 40,000,000 VND to 60,000,000 VND shall be imposed for any of the above violations where the amount embezzled is from 10,000,000 VND to less than 15,000,000 VND or the loss caused is from 20,000,000 VND to less than 30,000,000 VND;

c) A fine of from 80,000,000 VND to 100,000,000 VND shall be imposed for any of the above violations where the amount embezzled is from 15,000,000 VND to less than 20,000,000 VND or the loss caused is from 30,000,000 VND to less than 50,000,000 VND.

2. A fine of from 160,000,000 VND to 200,000,000 VND shall be imposed for any of the above violations of fraud in insurance business by commercial entities committing any of the acts stipulated in Clause 1, Article 213 of the Penal Code 2015 (amended and supplemented in 2017) where the amount embezzled is less than 200,000,000 VND or the loss caused is less than 400,000,000 VND or not reaching the threshold for criminal prosecution.

3. Measures to remedy consequences:

Compel restitution of the amount embezzled for cases violating the provisions of Clause 1 and Clause 2 of this Article.

Section 3

VIOLATIONS OF REGULATIONS ON PROVIDING INSURANCE PRODUCTS

Article 16. Sanctions for violations concerning the provision of insurance products

1. A fine of VND 30,000,000 to VND 50,000,000 shall be imposed on insurance enterprises, branches of non-life foreign insurance enterprises, micro-insurance mutual organizations, and insurance brokerage enterprises that fail to notify the Ministry of Finance about providing insurance services and products through the internet within seven working days from the date of commencing such activities, including information about the enterprise, services, insurance products, organizational forms of provision, and other related information.

2. A fine of VND 60,000,000 to VND 100,000,000 shall be imposed on insurance enterprises, branches of non-life foreign insurance enterprises that violate any of the following acts:

a) Failing to provide the buyer with documents during the conclusion of insurance contracts as prescribed by law and stipulated in point a, Clause 2, Article 20 of Law on Insurance Business No. 08/2022/QH15;

b) Failing to clearly and fully explain to the buyer the rights of insurance benefits, exclusion clauses, and the rights and obligations of the buyer when concluding insurance contracts as prescribed by law and stipulated in point b, Clause 2, Article 20 of Law on Insurance Business No. 08/2022/QH15;

c) Failing to provide the buyer with evidence of the conclusion of insurance contracts as prescribed by law and stipulated in Article 18 of Law on Insurance Business No. 08/2022/QH15;

d) Threatening or compelling the conclusion of insurance contracts as prescribed in Clause 5, Article 9 of Law on Insurance Business No. 08/2022/QH15.

3. Measures to remedy consequences:

a) Compel the notification to the Ministry of Finance regarding the provision of insurance services and products through the internet for the violation stipulated in Clause 1 of this Article;

b) Compel the provision to the buyer of documents during the conclusion of insurance contracts that have not yet expired at the time of discovery of the violation for the violation stipulated in point a, Clause 2 of this Article;

c) Compel the clear and full explanation to the buyer of the rights of insurance benefits, exclusion clauses, and the rights and obligations of the buyer of insurance contracts that have not yet expired at the time of discovery of the violation for the violation stipulated in point b, Clause 2 of this Article;

d) Compel the provision to the buyer of evidence of the conclusion of insurance contracts of insurance contracts that have not yet expired at the time of discovery of the violation for the violation stipulated in point c, Clause 2 of this Article.

Article 17. Sanctions for violations concerning the implementation of life insurance and health insurance by insurance enterprises, branches of non-life foreign insurance enterprises, and micro-insurance mutual organizations

1. A fine of VND 80,000,000 to VND 100,000,000 shall be imposed on any of the following violations:

a) Rules, conditions, and terms of insurance do not comply with legal provisions;

b) Summary documents of rules, conditions, and terms of life insurance products and health insurance products do not comply with legal provisions;

c) Sales illustration documents of life insurance products do not comply with legal provisions;

d) Insurance application forms, questionnaires related to insured risks, and insured objects of life insurance products and health insurance products do not comply with legal provisions;

đ) Product introduction documents of life insurance products and health insurance products do not comply with legal provisions;

e) Information and advertisements about life insurance products do not comply with legal provisions;

g) Failure to comply with legal provisions concerning investment-linked insurance business, retirement insurance, and health insurance.

2. Additional forms of punishment:

Suspension of operations for a period of one to three months of part of the content and scope directly related to the violation in the License for Establishment and Operation for cases violating the provisions stipulated in point g, Clause 1 of this Article.

3. Measures to remedy consequences:

Compel compliance with legal provisions for cases violating the provisions stipulated in Clause 1 of this Article.

Article 18. Sanctions for violations concerning insurance products and insurance commissions of insurance companies, branches of foreign non-life insurance companies, and micro-insurance mutual organizations

1. A fine of VND 80,000,000 to VND 100,000,000 shall be imposed on any of the following violations:

a) Launching life insurance, health insurance, motor vehicle insurance, and micro-insurance products before obtaining approval from the Ministry of Finance on the method and basis for calculating insurance premiums, or amendments and supplements to such methods and bases as prescribed by law, as stipulated in Clause 3, Article 87 and Clause 2, Article 145 of the Law on Insurance Business No. 08/2022/QH15, Article 32 of Decree No. 46/2023/NĐ-CP, and Article 6 of Decree No. 21/2023/NĐ-CP;

b) Failing to comply with the method and basis for calculating insurance premiums for life insurance, health insurance, motor vehicle insurance, and micro-insurance products that have been approved by the Ministry of Finance as prescribed by law, as stipulated in Clause 3, Article 87 and Clause 2, Article 145 of the Law on Insurance Business No. 08/2022/QH15.

2. Imposing a fine of VND 80,000,000 to VND 100,000,000 on insurance companies, branches of foreign non-life insurance companies, and micro-insurance mutual organizations for paying, disbursing insurance agent commissions, bonuses, and other benefits to insurance agents not in accordance with the provisions of the law as agreed upon in the insurance agency contract.

3. Additional forms of punishment:

Suspending operations for a period of one to three months for part of the content and scope directly related to the administrative violation in the License for Establishment and Operation in cases of violations as stipulated in Clause 1 and Clause 2 of this Article.

4. Measures to remedy consequences:

Compelling compliance with the provisions of the law in cases of violations as stipulated in Clause 1 and Clause 2 of this Article.

Article 19. Sanctions for violations concerning mandatory insurance of non-life insurance companies, branches of foreign non-life insurance companies

1. Imposing a fine of VND 30,000,000 to VND 50,000,000 on one of the following violations:

a) Refusing to sell mandatory insurance to individuals or organizations except where otherwise provided by law;

b) Failing to comply with the scope of insurance coverage, exclusions, premium rates, deductibles, liability limits, and minimum insurance amounts for mandatory insurance as prescribed by law, as stipulated in Articles 6, 7, 8, 24, 25, 26, 33, 34, 37, 42, 43, 45, Clause 2, Article 48, Articles 49, 51, 55, 56, 58 of Decree No. 67/2023/NĐ-CP;

c) Failing to separate the mandatory insurance portion in cases where the insurance contract expands the conditions of insurance coverage, increases the insurance amount, and adds corresponding additional premiums as prescribed by law, as stipulated in Clause 3, Article 4 of Decree No. 67/2023/NĐ-CP;

d) Promoting, discounting payments for mandatory civil liability insurance for motor vehicles as stipulated in Clause 1, Article 75 of Decree No. 67/2023/NĐ-CP;

đ) Failing to establish and maintain a hotline to promptly receive information about accidents, losses, provide guidance, and answer questions for policyholders, insured parties, and related parties regarding mandatory insurance as prescribed by law, as stipulated in Clause 3, Article 75 of Decree No. 67/2023/NĐ-CP;

e) Failing to integrate the function of searching for Certificates of Mandatory Civil Liability Insurance for Motor Vehicles on the company's website or electronic bulletin board as prescribed by law, as stipulated in Clause 4, Article 75 of Decree No. 67/2023/NĐ-CP;

g) The Certificate of Insurance being incomplete in content as prescribed by law, as stipulated in Clause 2, Article 10 and Clause 1, Article 27 of Decree No. 67/2023/NĐ-CP;

h) Failing to contribute to the Motor Vehicle Insurance Fund as prescribed by law, as stipulated in Clause 11, Article 75 of Decree No. 67/2023/NĐ-CP;

i) Failing to provide and update information into the database on Mandatory Civil Liability Insurance for Motor Vehicle Owners as prescribed by law, as stipulated in Clause 13, Article 75 of Decree No. 67/2023/NĐ-CP;

k) Failing to record calls to the hotline as prescribed by law, as stipulated in Clause 3, Article 75 of Decree No. 67/2023/NĐ-CP;

I) Failing to comply with the insurance term as prescribed by law, as stipulated in Articles 9, 36, 44, 50, 57 of Decree No. 67/2023/NĐ-CP;

m) Paying compensation or advance compensation not in accordance with the provisions of the law, as stipulated in Articles 12, 13, 28, 29, 39, 40, 46, 47, 52, 53, 59, 60 of Decree No. 67/2023/NĐ-CP.

2. Additional forms of punishment:

Suspending operations for a period of one to three months for part of the content and scope directly related to the administrative violation in the License for Establishment and Operation in cases of violations as stipulated in Point b, Clause 1 of this Article.

3. Measures to remedy consequences:

Compelling compliance with the provisions of the law in cases of violations as stipulated in Clause 1 of this Article.

Article 20. Sanctions for violations concerning the provision of cross-border insurance services

1. A fine of from twenty million dong to forty million dong shall be imposed on insurance enterprises, foreign branches, and insurance brokerage enterprises licensed in Vietnam for one of the following violations:

a) Failure to retain and provide documents proving that the entities providing cross-border insurance services in Vietnam meet the conditions stipulated by law, as specified in Clause 1, Article 90 of Decree No. 46/2023/ND-CP.

b) Failure to submit or submitting reports on participation in cross-border insurance service provision to the Ministry of Finance in accordance with the provisions of law, as specified in Clause 2, Article 90 of Decree No. 46/2023/ND-CP.

2. A fine of from forty million dong to sixty million dong shall be imposed on economic organizations with foreign investment capital and foreigners working in Vietnam for one of the following violations:

a) Participating in insurance outside Vietnam through insurance brokerage enterprises not licensed to operate in Vietnam in accordance with the provisions of law, as specified in Article 6 of the Insurance Business Law No. 08/2022/QH15.

b) Participating in insurance at foreign insurance enterprises that do not meet the conditions for providing cross-border insurance services as stipulated by law, as specified in Article 86 of Decree No. 46/2023/ND-CP.

3. A fine of from sixty million dong to eighty million dong shall be imposed on insurance enterprises, foreign branches, and insurance brokerage enterprises licensed in Vietnam for one of the following violations:

a) Using foreign insurance enterprises or insurance brokerage enterprises to provide insurance and insurance brokerage services across borders in Vietnam that do not meet the conditions for providing cross-border insurance services as stipulated by law, as specified in Article 86 of Decree No. 46/2023/ND-CP.

b) Using foreign organizations to provide cross-border insurance auxiliary services in Vietnam that do not meet the conditions for providing cross-border insurance auxiliary services as stipulated by law, as specified in Article 87 of Decree No. 46/2023/ND-CP.

c) Using organizations to provide cross-border insurance and insurance brokerage services without their main office located in a country or territory with which Vietnam has concluded international treaties on trade, including agreements on cross-border insurance service provision in Vietnam, as stipulated by law, as specified in Clause 1, Article 85 of Decree No. 46/2023/ND-CP.

d) Using organizations to provide cross-border insurance services without going through insurance brokerage enterprises licensed to operate in Vietnam in accordance with the provisions of law, as specified in Clause 1, Article 88 of Decree No. 46/2023/ND-CP.

4. Measures to remedy consequences:

Compel compliance with legal provisions for cases violating the provisions stipulated in Clause 1 of this Article.

Section 4

VIOLATIONS OF PROVISIONS ON INSURANCE BROKERAGE ACTIVITIES

INSURANCE AGENCY, INSURANCE AUXILIARY SERVICES AND

FOREIGN REPRESENTATIVE OFFICES IN VIETNAM

Article 21. Sanctions for violations concerning the purchase of professional liability insurance by insurance brokerage enterprises

A fine of from twenty million dong to forty million dong shall be imposed on insurance brokerage enterprises failing to fulfill the obligation to purchase professional liability insurance commensurate with their insurance brokerage activities in accordance with the provisions of law, as specified in Point d, Clause 2, Article 137 of the Insurance Business Law No. 08/2022/QH15.

Article 22. Penalty for violations concerning the purchase of professional liability insurance by organizations and individuals providing auxiliary insurance services

1. A fine of VND 10,000,000 to VND 30,000,000 shall be imposed on individuals providing consulting services who fail to purchase professional liability insurance for their consulting services as prescribed by law, as stipulated in Clause 4, Article 142 of the Insurance Business Law No. 08/2022/QH15.

2. A fine of VND 30,000,000 to VND 50,000,000 shall be imposed on organizations providing auxiliary insurance services that fail to purchase appropriate professional liability insurance for each type of auxiliary insurance service as prescribed by law, as stipulated in Clause 4, Article 142 of the Insurance Business Law No. 08/2022/QH15.

Article 23. Penalty for violations concerning insurance brokerage activities

1. A fine of VND 20,000,000 to VND 40,000,000 shall be imposed for any of the following violations:

a) Not agreeing in writing with customers when providing insurance brokerage services, or having a written agreement but the agreement does not clearly state the content of the brokerage activities, the duration of the agreement, and the rights and obligations of each party as prescribed by law;

b) Obstructing the insured or the policyholder from providing information related to the insurance contract, or inciting the insured or the policyholder not to disclose details related to the insurance contract; offering incentives in the form of illegal benefits to incite customers to conclude insurance contracts; inciting the insured to terminate an existing valid insurance contract to purchase a new one, as stipulated in Point a, Point b, and Point c, Clause 3, Article 137 of the Insurance Business Law No. 08/2022/QH15;

c) Not keeping confidential information provided by customers, insurance companies, reinsurance companies, and foreign branches in Vietnam, except where required by competent state authorities or with the consent of the customer, insurance company, reinsurance company, and foreign branch in Vietnam as prescribed by law, as stipulated in Point a, Clause 2, Article 137 of the Insurance Business Law No. 08/2022/QH15;

d) Not compensating customers for damages caused by insurance brokerage activities as prescribed by law, as stipulated in Point b, Clause 2, Article 137 of the Insurance Business Law No. 08/2022/QH15;

đ) Not publicly disclosing information to customers on matters as prescribed by law, as stipulated in Point c, Clause 2, Article 137 of the Insurance Business Law No. 08/2022/QH15.

2. A fine of VND 40,000,000 to VND 60,000,000 shall be imposed for any of the following violations:

a) Advising customers to purchase insurance from an insurance company or a foreign non-life insurance company branch under less competitive terms and conditions than those offered by another insurance company or foreign non-life insurance company branch in order to obtain higher brokerage commissions, as stipulated in Point d, Clause 3, Article 137 of the Insurance Business Law No. 08/2022/QH15;

b) Providing customers with false or inappropriate information regarding the terms and conditions of insurance offered by an insurance company or a foreign non-life insurance company branch, as stipulated in Point đ, Clause 3, Article 137 of the Insurance Business Law No. 08/2022/QH15.

3. A fine of VND 50,000,000 to VND 70,000,000 shall be imposed for using persons directly engaged in insurance brokerage activities who do not meet the requirements prescribed by law, as stipulated in Clause 2, Article 138 of the Insurance Business Law No. 08/2022/QH15.

4. Additional forms of administrative punishment:

Suspension of business operations for one to three months for insurance activities directly related to administrative violations for cases involving any of the violations specified in Clause 2 of this Article.

5. Measures to remedy consequences:

a) Compel compliance with legal provisions for violations stipulated in Clause 1 and Clause 2 of this Article;

b) Compel insurance brokerage companies to stop using persons directly engaged in insurance brokerage activities who violate the provisions stipulated in Clause 3 of this Article within twelve months from the date of receipt of the administrative penalty decision.

Article 24. Penalties for violations of regulations on insurance agency

1. A fine of VND 60,000,000 to VND 80,000,000 shall be imposed on insurance companies, branches of non-life insurance companies from foreign countries, and micro-insurance mutual organizations that violate any of the following acts:

a) Using individuals who are insurance agents for another insurance company, branch of a non-life insurance company from a foreign country operating in the same type of insurance business without complying with the provisions of the Law on Insurance Business 08/2022/QH15, as stipulated in Clause 1, Article 127 of the Law on Insurance Business.

b) Using individuals who are insurance agents for another micro-insurance mutual organization without complying with the provisions of the Law on Insurance Business 08/2022/QH15, as stipulated in Clause 1, Article 127 of the Law on Insurance Business.

c) Using organizations that are insurance agents for another insurance company, branch of a non-life insurance company from a foreign country, or micro-insurance mutual organization without written approval from the insurance company, branch of a non-life insurance company from a foreign country, or micro-insurance mutual organization that such organization is currently representing, without complying with the provisions of the Law on Insurance Business 08/2022/QH15, as stipulated in Clause 2, Article 127 of the Law on Insurance Business.

d) Using organizations or individuals who do not meet the conditions for operating as insurance agents as prescribed by law, as stipulated in Article 125 of the Law on Insurance Business 08/2022/QH15 and Article 62 of Decree No. 46/2023/NĐ-CP.

đ) Issuing insurance contracts in cases where the audio recording required by law does not have the voluntary confirmation of the insured party regarding their participation in insurance based on their financial capacity and insurance needs.

e) Signing additional individual agency contracts with employees of insurance agency organizations to exploit the same insurance contract.

g) Failing to organize training and update knowledge for insurance agents as prescribed by law, as stipulated in Point b, Clause 2, Article 128 of the Law on Insurance Business 08/2022/QH15.

2. A fine of VND 60,000,000 to VND 100,000,000 shall be imposed on insurance companies, branches of non-life insurance companies from foreign countries, and micro-insurance mutual organizations that fail to implement measures to monitor and supervise the performance of insurance agency contracts, evaluate the quality of advice and product introduction by insurance agents and employees within insurance agency organizations as prescribed by law; failing to detect and take measures to address violations by insurance agents, resulting in any of the following violations:

a) Providing false information or advertising about the content and scope of activities of insurance companies, branches of non-life insurance companies from foreign countries, micro-insurance mutual organizations, conditions and terms of insurance, damaging the legitimate rights and interests of the insured party, as stipulated in Point a, Clause 3, Article 129 of the Law on Insurance Business 08/2022/QH15.

b) Obstructing the insured party from providing information related to insurance contracts or inciting the insured party or the beneficiary not to declare information related to insurance contracts, as stipulated in Point b, Clause 3, Article 129 of the Law on Insurance Business 08/2022/QH15.

c) Competing for customers through various means such as obstructing, enticing, bribing, or threatening employees or customers of insurance companies, branches of non-life insurance companies from foreign countries, micro-insurance mutual organizations, insurance agents, or other insurance brokerage companies, as stipulated in Point c, Clause 3, Article 129 of the Law on Insurance Business 08/2022/QH15.

d) Inciting customers to terminate valid insurance contracts in any form, as stipulated in Point d, Clause 3, Article 129 of the Law on Insurance Business 08/2022/QH15.

đ) Advising, introducing, or selling insurance products, providing incomplete or inaccurate information about insurance products, insurance companies, branches of non-life insurance companies from foreign countries, or micro-insurance mutual organizations to the insured party as prescribed by law, as stipulated in Point d, Clause 2, Article 129 of the Law on Insurance Business 08/2022/QH15.

e) Failing to clearly and fully explain the benefits of insurance, exclusion clauses, rights and obligations of the insured party as prescribed by law, as stipulated in Point d, Clause 2, Article 129 of the Law on Insurance Business 08/2022/QH15.

g) Unilaterally declaring information for the insured party without their consent, as stipulated in Point d, Clause 2, Article 129 of the Law on Insurance Business 08/2022/QH15.

h) Failing to explain to the insured party that participating in an insurance product is not a mandatory condition for using other products or services of the insurance agency organization as prescribed by law.

i) Advising, introducing, selling, or arranging the conclusion of investment-linked insurance contracts for customers within 60 days before and after the full disbursement of a loan.

k) Failing to comply with the provisions on providing investment-linked insurance products through insurance agencies as prescribed by law.

3. Measures to remedy consequences:

a) Compel compliance with the provisions of the law in cases of violation as stipulated in Clause 1 and Clause 2 of this Article.

b) Compel insurance companies, branches of non-life insurance companies from foreign countries, and micro-insurance mutual organizations to cease using insurance agents directly related to the violations stipulated in Clause 1 and Clause 2 of this Article for a period of 12 months from the date of receipt of the administrative penalty decision.

Article 25. Sanctions for violations concerning the issuance and revocation of insurance certificates, insurance agency certificates, insurance brokerage certificates, and insurance auxiliary certificates.

1. A fine of VND 60,000,000 to VND 80,000,000 shall be imposed on insurance enterprises, branches of non-life insurance enterprises from foreign countries, and organizations providing micro-insurance training for insurance agency certificates that do not meet the content stipulated by law, as specified in Clause 2, Article 130 of the Insurance Business Law No. 08/2022/QH15.

2. A fine of VND 60,000,000 to VND 80,000,000 shall be imposed on domestic training institutions issuing or revoking insurance certificates, insurance brokerage certificates, and insurance auxiliary certificates without complying with the provisions of the law, as specified in Clause 6, Article 81, Clause 2, Article 139, and Clause 4, Article 143 of the Insurance Business Law No. 08/2022/QH15.

3. Measures to remedy consequences:

Compelling compliance with the provisions of the law in cases of violations as stipulated in Clause 1 and Clause 2 of this Article.

Article 26. Sanctions for violations committed by foreign representative offices in Vietnam.

1. A fine of VND 40,000,000 to VND 60,000,000 shall be imposed for any of the following violations:

a) Changing the name, nationality, or address of a foreign insurance enterprise, foreign reinsurance enterprise, foreign financial or insurance group, foreign insurance brokerage enterprise, or the name of a foreign representative office in Vietnam, or changing the scope of activities of a foreign representative office in Vietnam, or changing the location of the headquarters of a foreign representative office in Vietnam without complying with the provisions of the law, as specified in Clause 2, Article 77 of the Insurance Business Law No. 08/2022/QH15;

b) Failing to report changes as required by law, as specified in Clause 4, Article 76 of the Insurance Business Law No. 08/2022/QH15.

2. Measures to remedy consequences:

Order compliance with the provisions of the law for cases violating the provisions of Clause 1 of this Article (except for changes in the scope of activities of a foreign representative office in Vietnam).

Article 27. Sanctions for violations in providing insurance auxiliary services by individuals and organizations providing insurance auxiliary services.

1. A fine of VND 20,000,000 to VND 40,000,000 shall be imposed for any of the following violations when providing insurance auxiliary services:

a) Failing to keep customer information confidential or using customer information for purposes other than those permitted by law or providing such information to third parties without the customer's consent, except where provided for by law;

b) An organization providing insurance auxiliary services offering loss assessment and claim settlement assistance for insurance contracts where the organization is simultaneously the policyholder or insured party or beneficiary;

c) An insurance brokerage enterprise providing loss assessment services for insurance contracts where the enterprise has arranged the conclusion of the insurance contract;

d) The insurance auxiliary service provision contract is not established in writing.

2. A fine of VND 60,000,000 to VND 80,000,000 shall be imposed for any of the following violations when providing insurance auxiliary services:

a) Providing insurance auxiliary services that do not correspond to the type of insurance auxiliary services authorized to be provided;

b) Providing insurance auxiliary services that do not meet the conditions for providing insurance auxiliary services as stipulated by law;

c) An organization without legal person status providing one of the following insurance auxiliary services: risk assessment, premium calculation, loss assessment, and claim settlement assistance.

3. Additional forms of punishment:

a) Suspension of insurance auxiliary service provision activities for a period of one to three months for individuals committing violations as specified in Point b, Clause 2 of this Article;

b) Suspension of insurance auxiliary service provision activities for a period of one to three months for organizations providing insurance auxiliary services committing violations as specified in Points a and b, Clause 2 of this Article.

Article 28. Penalty for violations concerning capital provisions

1. A fine of from 160,000,000 VND to 200,000,000 VND shall be imposed on insurance enterprises, reinsurance enterprises, insurance brokerage enterprises, foreign branches in Vietnam, micro-insurance mutual organizations that violate any of the following acts:

a) The paid-in capital is lower than the statutory capital as prescribed by law, as stipulated in Clause 2, Article 94 of the Insurance Business Law No. 24/2000/QH10;

b) The subscribed capital is lower than the minimum level prescribed by law, as stipulated in Clause 2, Article 64 of the Insurance Business Law No. 08/2022/QH15;

c) The subscribed capital and paid-in capital are lower than the minimum subscribed capital level prescribed by law, as stipulated in Clause 3, Article 138 of the Insurance Business Law No. 08/2022/QH15; the operating capital is lower than the minimum establishment capital level prescribed in Clause 2, Article 36 of Decree No. 21/2023/NĐ-CP;

d) Failure to maintain the safety capital ratio as prescribed by law, as stipulated in Clause 2, Article 95 of the Insurance Business Law No. 08/2022/QH15.

2. Additional forms of punishment:

Suspension of operations for a period of from one month to three months for part or all of the contents and scope directly related to the administrative violation in the License for Establishment and Operation in cases of violation as stipulated in Clause 1 of this Article.

3. Measures to remedy consequences:

Compel compliance with the legal provisions on capital and safety capital ratio in cases of violation as stipulated in Clause 1 of this Article.

Article 29. Penalty for violations concerning deposit provisions

1. A fine of VND 20,000,000 to VND 40,000,000 shall be imposed for any of the following violations:

a) Deposit not in accordance with the provisions of law, as stipulated in Clause 1, Clause 2, Article 96 of the Insurance Business Law No. 08/2022/QH15, Article 37 of Decree No. 21/2023/NĐ-CP;

b) Using or withdrawing deposit funds not in accordance with the provisions of law, as stipulated in Clause 3, Clause 4, Article 96 of the Insurance Business Law No. 08/2022/QH15.

2. Measures to remedy consequences:

Compel compliance with the legal provisions in cases of violation as stipulated in Clause 1 of this Article.

Article 30. Penalty for violations concerning the establishment, management, and use of business reserves and mandatory reserves

1. A fine of from 20,000,000 VND to 40,000,000 VND shall be imposed on the act of establishing the Mandatory Reserve Fund not in accordance with the provisions of law, as stipulated in Clause 1, Clause 2, Article 98 of the Insurance Business Law No. 08/2022/QH15, Clause 1, Article 42 of Decree No. 21/2023/NĐ-CP.

2. A fine of from 60,000,000 VND to 80,000,000 VND shall be imposed on any of the following violations:

a) Not registering the method and basis for establishing business reserves with the Ministry of Finance, establishing business insurance reserves without approval from the Ministry of Finance as prescribed by law, as stipulated in Clause 3, Article 97 of the Insurance Business Law No. 08/2022/QH15, Article 45 of Decree No. 46/2023/NĐ-CP;

b) Using the Mandatory Reserve Fund not in accordance with the provisions of law.

3. A fine of from 80,000,000 VND to 100,000,000 VND shall be imposed on any of the following violations:

a) Establishing business reserves not in accordance with the registered method and basis with the Ministry of Finance as prescribed by law, as stipulated in Article 45 of Decree No. 46/2023/NĐ-CP;

b) Using the Business Reserve Fund not in accordance with the provisions of law, as stipulated in Clause 2, Article 38, Clause 2, Article 40, Clause 2, Article 42 of Decree No. 46/2023/NĐ-CP;

c) Establishing business insurance reserves without confirmation from a qualified actuary as prescribed by law, as stipulated in Clause 1, Article 38 of Decree No. 46/2023/NĐ-CP;

d) Establishing business reserves not in accordance with the provisions of law, as stipulated in Clause 2, Article 97 of the Insurance Business Law No. 08/2022/QH15; Article 38 of Decree No. 21/2023/NĐ-CP.

4. Measures to remedy consequences:

Compel compliance with the legal provisions in cases of violation as stipulated in Clause 1, Clause 2, Point a, Point b, Point d of Clause 3 of this Article.

Article 31. Penalties for violations of provisions on capital investment

1. A fine of VND 20,000,000 to VND 40,000,000 shall be imposed for any of the following violations:

a) Failing to record and separately monitor assets invested from own capital and idle funds from business reserves;

b) A reinsurance enterprise simultaneously conducting life reinsurance, non-life reinsurance, and health reinsurance without recording and separately monitoring assets invested from idle funds from business reserves for each type of reinsurance.

2. A fine of between 50,000,000 VND and 70,000,000 VND shall be imposed for any of the following violations regarding investment principles:

a) Investing outside the sources of investment as prescribed by law, as stipulated in Clause 1, Article 99 of the Law on Insurance Business No. 08/2022/QH15;

b) Investing idle funds from business reserves not in accordance with the law, as stipulated in Articles 61 and 62 of Decree No. 73/2016/NĐ-CP; Clause 3, Article 39 of Decree No. 21/2023/NĐ-CP;

c) Investing more than 30% of the investment capital into companies within the same group of companies with mutual ownership relationships as prescribed by law, as stipulated in Point d, Clause 2, Article 99 of the Law on Insurance Business No. 08/2022/QH15;

d) Investing from own capital not in accordance with the law, as stipulated in Article 46 of Decree No. 46/2023/NĐ-CP; investing from establishment capital, mandatory reserve fund, and idle funds from business reserves of micro-insurance mutual organizations not in accordance with the law, as stipulated in Clause 3, Article 39 of Decree No. 21/2023/NĐ-CP;

đ) An organization entrusted to manage investments without being permitted to carry out investment management activities in accordance with the content of the entrusted investment management as prescribed by law, as stipulated in Point g, Clause 2, Article 99 of the Law on Insurance Business No. 08/2022/QH15.

3. A fine of from 80,000,000 VND to 100,000,000 VND shall be imposed on any of the following violations:

a) Borrowing to directly invest or entrust investment in securities, real estate business, or contribute capital to other enterprises not in accordance with the law, as stipulated in Point c, Clause 2, Article 99 of the Law on Insurance Business No. 08/2022/QH15;

b) Reinvesting in any form to shareholders, contributing members, or related parties of shareholders or contributing members as prescribed by the Law on Enterprises, except for deposits at shareholders or contributing members who are credit organizations not in accordance with the law, as stipulated in Point đ, Clause 2, Article 99 of the Law on Insurance Business No. 08/2022/QH15;

c) Using business reserve funds to invest abroad in any form not in accordance with the law, as stipulated in Point b, Clause 2, Article 99 of the Law on Insurance Business No. 08/2022/QH15;

d) Purchasing corporate bonds issued where the purpose includes restructuring debts of the issuing corporation not in accordance with the law, as stipulated in Point e, Clause 2, Article 99 of the Law on Insurance Business No. 08/2022/QH15;

đ) Carrying out investment activities not permitted by law, as stipulated in Clause 3, Article 99 of the Law on Insurance Business No. 08/2022/QH15;

e) Investing abroad not in accordance with the law, as stipulated in Article 100 of the Law on Insurance Business No. 08/2022/QH15, except as provided for in Clause 3, Article 12 of this Decree;

4. Measures to remedy consequences:

Compel compliance with legal provisions in cases of violation as stipulated in Clauses 2 and 3 of this Article.

Section 5

VIOLATIONS OF PROVISIONS ON PAYMENT CAPACITY,
RISK MANAGEMENT, INTERNAL CONTROL, INTERNAL AUDIT

Article 32. Sanctions for violations of financial safety regulations in business operations

1. A fine of VND 40,000,000 to VND 60,000,000 shall be imposed on the failure to report promptly on the current financial status, causes leading to the risk of loss of payment capability as prescribed by law, as stipulated in Clause 2, Article 78 of the Insurance Business Law No. 24/2000/QH10.

2. A fine of from 80,000,000 VND to 100,000,000 VND shall be imposed for any of the following violations:

a) Failure to implement or improperly implementing one or more recovery plans for payment capability, organizational consolidation, and operation of the insurance company approved by the Ministry of Finance when the company is at risk of losing its payment capability as prescribed by law, as stipulated in Clause 1, Article 79 of the Insurance Business Law No. 24/2000/QH10;

b) Failure to notify in writing the Ministry of Finance about the current status, causes, and measures to improve the situation as prescribed by law, as stipulated in Clause 1, Article 67 of Decree No. 73/2016/NĐ-CP;

c) Failure to comply with requirements for restoring payment capability as prescribed by law, as stipulated in Clause 2, Article 79 of the Insurance Business Law No. 24/2000/QH10, and Clause 2, Article 67 of Decree No. 73/2016/NĐ-CP;

d) Transferring profits abroad without ensuring the safe capital ratio and payment capability as prescribed by law, as stipulated in Point a, Clause 1, Article 107 of the Insurance Business Law No. 08/2022/QH15.

3. Measures to remedy consequences:

a) Compel compliance with legal provisions for violations under Clause 1, Point a, Point b, and Point c, Clause 2 of this Article;

b) Restore the initial condition for violations under Point d, Clause 2 of this Article.

Article 33. Sanctions for violations of risk management, internal control, and internal audit regulations

1. A fine of VND 40,000,000 to VND 60,000,000 shall be imposed on insurance companies, reinsurance companies, and foreign branches in Vietnam for any of the following violations of risk management regulations:

a) Failure to organize risk management as prescribed by law;

b) Failure to establish risk management policies and internal regulations on risk management as prescribed by law;

c) Failure to conduct capital and payment capability stress tests as prescribed by law;

d) Failure to submit to the Ministry of Finance a risk management report as prescribed by law;

đ) Risk management reports not meeting the prescribed content as required by law.

2. A fine of VND 40,000,000 to VND 60,000,000 shall be imposed on insurance companies, reinsurance companies, and foreign branches in Vietnam for any of the following violations of internal control regulations:

a) Internal control activities not adhering to prescribed principles as required by law;

b) The compliance control department failing to perform or inadequately performing tasks as prescribed by law.

3. A fine of VND 40,000,000 to VND 60,000,000 shall be imposed on insurance companies, reinsurance companies, and foreign branches in Vietnam for any of the following violations of internal audit regulations:

a) Failure to annually assess internal control activities as prescribed by law;

b) Failure to annually conduct internal audits as prescribed by law.

4. Measures to remedy consequences:

Compel compliance with legal provisions for violations stipulated in Clause 1, Clause 2, and Clause 3 of this Article.

Article 34. Sanctions for violations of provisions on the implementation of improvement measures

1. A fine of VND 60,000,000 to VND 80,000,000 shall be imposed for any of the following violations when improvement measures must be applied:

a) Not selecting, implementing, or implementing incorrectly one or more improvement measures as prescribed by law, as stipulated in Clause 1 and Clause 2, Article 111 of the Insurance Business Law No. 08/2022/QH15;

b) Not notifying in writing the Ministry of Finance about the current situation, causes, and improvement measures applied as prescribed by law, as stipulated in Clause 1, Article 111 of the Insurance Business Law No. 08/2022/QH15.

2. A fine of VND 80,000,000 to VND 100,000,000 shall be imposed for any of the following violations during the implementation of improvement measures:

a) Transferring profits abroad, distributing profits, paying dividends, as stipulated in Point a, Clause 3, Article 111 of the Insurance Business Law No. 08/2022/QH15;

b) Increasing reinsurance receipts, as stipulated in Point b, Clause 3, Article 111 of the Insurance Business Law No. 08/2022/QH15.

3. Measures to remedy consequences:

a) Compel compliance with the provisions of the law in cases of violation as stipulated in Clause 1 and Clause 2 of this Article.

b) Order to restore the initial status in cases of violation as stipulated in Point a, Clause 2 of this Article.

Article 35. Sanctions for violations of provisions on the implementation of early intervention measures

1. A fine of VND 40,000,000 to VND 60,000,000 shall be imposed for any of the following violations:

a) Not developing or developing a remediation plan for the capital adequacy ratio outside the prescribed time limit under the law, as stipulated in Clause 2, Article 112 of the Insurance Business Law No. 08/2022/QH15;

b) Not organizing or organizing the implementation of the remediation plan outside the prescribed time limit under the law, as stipulated in Clause 2 and Clause 3, Article 112 of the Insurance Business Law No. 08/2022/QH15;

c) Not reporting or reporting the Ministry of Finance outside the prescribed time limit about the current situation, causes, and remediation plan for the capital adequacy ratio under the law, as stipulated in Clause 2, Article 112 of the Insurance Business Law No. 08/2022/QH15.

2. A fine of VND 80,000,000 to VND 100,000,000 shall be imposed for any of the following violations during the implementation of early intervention measures:

a) Transferring profits abroad, distributing profits, paying dividends, as stipulated in Point a, Clause 5, Article 112 of the Insurance Business Law No. 08/2022/QH15;

b) Increasing reinsurance receipts, as stipulated in Point a, Clause 5, Article 112 of the Insurance Business Law No. 08/2022/QH15;

c) Purchasing treasury shares, as stipulated in Point b, Clause 5, Article 112 of the Insurance Business Law No. 08/2022/QH15;

d) Expanding the scope, content, and duration of operations, as stipulated in Point c, Clause 5, Article 112 of the Insurance Business Law No. 08/2022/QH15.

3. Measures to remedy consequences:

a) Compel compliance with the provisions of the law in cases of violation as stipulated in Clause 1 and Clause 2 of this Article.

b) Order to restore the initial status in cases of violation as stipulated in Point a, Clause 2 of this Article.

Article 36. Sanctions for violations of provisions on the implementation of control measures

1. A fine of VND 40,000,000 to VND 60,000,000 shall be imposed for any of the following violations:

a) Not hiring or hiring an independent auditing organization to review and assess the financial status, determine the actual value of the charter capital, issued capital, and solvency capacity outside the prescribed time limit under the law, as stipulated in Clause 3, Article 113 of the Insurance Business Law No. 08/2022/QH15;

b) Not developing or developing a remediation plan for the capital adequacy ratio outside the prescribed time limit under the law, as stipulated in Clause 4, Article 113 of the Insurance Business Law No. 08/2022/QH15;

c) Not organizing or organizing the implementation of the remediation plan for the capital adequacy ratio outside the prescribed time limit under the law, as stipulated in Clause 4 and Clause 5, Article 113 of the Insurance Business Law No. 08/2022/QH15;

d) Not reporting or reporting the Ministry of Finance outside the prescribed time limit about the current situation, causes, and remediation plan for the capital adequacy ratio under the law, as stipulated in Clause 4, Article 113 of the Insurance Business Law No. 08/2022/QH15.

2. A fine of VND 80,000,000 to VND 100,000,000 shall be imposed for any of the following violations during the implementation of control measures:

a) Transferring profits abroad, distributing profits, paying dividends, as stipulated in Point a, Clause 7, Article 113 of the Insurance Business Law No. 08/2022/QH15;

b) Increasing reinsurance receipts, as stipulated in Point a, Clause 7, Article 113 of the Insurance Business Law No. 08/2022/QH15;

c) Purchasing treasury shares, as stipulated in Point a, Clause 7, Article 113 of the Insurance Business Law No. 08/2022/QH15;

d) Expanding the scope, content, and duration of operations, as stipulated in Point a, Clause 7, Article 113 of the Insurance Business Law No. 08/2022/QH15;

đ) Participating in capital contributions to establish a business; purchasing real estate for use as a business headquarters, workplace, or warehouse directly serving business activities, as stipulated in Point b, Clause 7, Article 113 of the Insurance Business Law No. 08/2022/QH15;

e) Investing in high-risk assets or engaging in business activities that reduce the capital adequacy ratio, as stipulated in Point c, Clause 7, Article 113 of the Insurance Business Law No. 08/2022/QH15.

3. Measures to remedy consequences:

a) Compel compliance with the provisions of the law in cases of violation as stipulated in Clause 1 and Clause 2 of this Article.

b) Order to restore the initial status in cases of violation as stipulated in Point a, Clause 2 of this Article.

Article 37. Penalty for violations concerning the implementation of responsibilities when applying measures to improve, early intervention, and control.

A fine of from 40,000,000 VND to 60,000,000 VND shall be imposed on the act of not reporting to the Ministry of Finance the results of implementation and the degree of improvement as prescribed by law, as stipulated in Clause 3, Article 114 of the Insurance Business Law No. 08/2022/QH15.

Article 38. Penalty for violations concerning the separation of capital and insurance premium funds and the distribution of surplus.

1. A fine of from 40,000,000 VND to 60,000,000 VND shall be imposed on insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam that violate any of the following acts:

a) Not registering with the Ministry of Finance the principles of separating capital and insurance premium funds as prescribed by law, as stipulated in Clause 1, Article 101 of the Insurance Business Law No. 08/2022/QH15, and Clause 1, Article 51 of Decree No. 46/2023/NĐ-CP;

b) Implementing incorrectly the principles of separating capital and insurance premium funds that have been registered and approved by the Ministry of Finance as prescribed by law, as stipulated in Clause 1, Article 101 of the Insurance Business Law No. 08/2022/QH15;

c) Not registering with the Ministry of Finance the method of distributing surplus of the fund of life insurance contracts with dividends before implementing it as prescribed by law, as stipulated in Clause 4, Article 101 of the Insurance Business Law No. 08/2022/QH15;

d) Implementing incorrectly the method of distributing surplus that has been approved by the Ministry of Finance as prescribed by law, as stipulated in Clauses 2 and 4, Article 101 of the Insurance Business Law No. 08/2022/QH15.

2. A fine of from 60,000,000 VND to 80,000,000 VND shall be imposed on any of the following acts:

a) Life insurance enterprises not implementing the separation, recording, and monitoring separately of assets, capital, revenue, expenses, and operational results of life insurance contracts with dividends according to the method approved by the Ministry of Finance as prescribed by law, as stipulated in Clause 2, Article 101 of the Insurance Business Law No. 08/2022/QH15;

b) Life insurance enterprises transferring assets and making up deficits of the fund of life insurance contracts without following the provisions of law, as stipulated in Article 101 of the Insurance Business Law No. 08/2022/QH15.

3. A fine of from 80,000,000 VND to 100,000,000 VND shall be imposed on any of the following violations:

a) Not implementing the separation of capital and insurance premium funds as prescribed by law, as stipulated in Clause 1, Article 101 of the Insurance Business Law No. 08/2022/QH15;

b) Not implementing the distribution of surplus as prescribed by law, as stipulated in Clauses 2 and 4, Article 101 of the Insurance Business Law No. 08/2022/QH15.

4. Measures to remedy consequences:

Compel compliance with legal provisions for violations stipulated in Clause 1, Clause 2, and Clause 3 of this Article.

Chapter 6

VIOLATIONS OF REPORTING AND INFORMATION DISCLOSURE REGULATIONS

Article 39. Penalty for violations concerning reporting and information disclosure, and updating agent information.

1. A fine of VND 10,000,000 to VND 30,000,000 shall be imposed for one of the following violations:

a) Submitting reports not in accordance with the deadlines prescribed by law;

b) Submitting incomplete reports as prescribed by law, as stipulated in Clause 1, Article 106 and Clause 5, Article 138 of the Insurance Business Law No. 08/2022/QH15, Article 34 of Decree No. 21/2023/NĐ-CP on micro-insurance, Clause 2, Article 75 of Decree No. 67/2023/NĐ-CP on mandatory civil liability insurance for motor vehicles, fire and explosion insurance, and mandatory insurance in construction activities;

c) Notifying the Ministry of Finance about the content of public information not in accordance with the deadlines prescribed by law, as stipulated in Clause 3, Article 117 and Clause 8, Article 138 of the Insurance Business Law No. 08/2022/QH15.

2. A fine of from 20,000,000 VND to 40,000,000 VND shall be imposed on any of the following acts:

a) Information and data in reports being incomplete and inaccurate as prescribed by law;

b) Publicly disclosed information being inaccurate and incomplete as prescribed by law, as stipulated in Clause 1, Article 117 and Clause 8, Article 138 of the Insurance Business Law No. 08/2022/QH15, and Article 45 of Decree No. 21/2023/NĐ-CP;

c) Disclosing information not in accordance with the prescribed form and deadlines as prescribed by law, as stipulated in Clause 2, Article 117 and Clause 8, Article 138 of the Insurance Business Law No. 08/2022/QH15, and Article 44 of Decree No. 21/2023/NĐ-CP.

3. A fine of from 40,000,000 VND to 60,000,000 VND shall be imposed on any of the following acts:

a) Not submitting reports as prescribed by law, as stipulated in Articles 106 and 138 of the Insurance Business Law No. 08/2022/QH15, and Article 34 of Decree No. 21/2023/NĐ-CP;

b) Annual financial reports not having independent auditor's confirmation as prescribed by law, as stipulated in Clauses 1 and 2, Article 105 of the Insurance Business Law No. 08/2022/QH15;

c) Not disclosing information as prescribed by law, as stipulated in Clause 1, Article 117 and Article 138 of the Insurance Business Law No. 08/2022/QH15, and Articles 44 and 45 of Decree No. 21/2023/NĐ-CP;

d) Not notifying the Ministry of Finance about the content of publicly disclosed information as prescribed by law, as stipulated in Clause 3, Article 117 and Article 138 of the Insurance Business Law No. 08/2022/QH15.

4. A fine of from 60,000,000 VND to 80,000,000 VND shall be imposed on the act of not registering and updating information of individuals engaged in insurance agency activities and employees directly performing insurance agency activities in the database on insurance business operations as prescribed by law, as stipulated in Clause 4, Article 127 and Point 1, Clause 2, Article 128 of the Insurance Business Law No. 08/2022/QH15.

Section 7

VIOLATIONS OF REGULATIONS ON PREVENTION AND COMBATING MONEY LAUNDERING,
PREVENTION AND COMBATING TERRORIST FINANCING,
PREVENTION AND COMBATING THE SPREAD OF WEAPONS OF MASS DESTRUCTION
IN THE FIELD OF LIFE INSURANCE BUSINESS

Article 40. Sanctions for violations of regulations on anti-money laundering, counter-terrorism financing, and non-proliferation of weapons of mass destruction in the life insurance business sector

1. A life insurance enterprise that commits acts violating provisions on customer due diligence, collection, updating, and verification of customer identification information; on internal regulation development and reporting, provision, and storage of information and records shall be subject to the following sanctions:

a) A fine of VND 20,000,000 to VND 40,000,000 for failing to identify, update, and verify customer identification information as prescribed by law, including Articles 9, 10, 11, 12, 13, and 14 of the Law on Anti-Money Laundering, Clause 1 of Article 34 of the Law on Counter-Terrorism Financing, and Point a of Clause 2 of Article 22 of Decree No. 81/2019/NĐ-CP.

b) A fine of VND 30,000,000 to VND 60,000,000 for failing to monitor certain special transactions as prescribed by law, including Article 20 of the Law on Anti-Money Laundering.

c) A fine of VND 30,000,000 to VND 60,000,000 for failing to properly store, secure information, records, and documents, and report on anti-money laundering and counter-terrorism financing as prescribed by law, including Articles 38 and 40 of the Law on Anti-Money Laundering, and Article 34 of the Law on Counter-Terrorism Financing.

d) A fine of VND 40,000,000 to VND 80,000,000 for failing to issue and comply with internal regulations on anti-money laundering, counter-terrorism financing, and non-proliferation and financing of weapons of mass destruction as prescribed by law, including Article 24 of the Law on Anti-Money Laundering, Article 34 of the Law on Counter-Terrorism Financing, and Article 22 of Decree No. 81/2019/NĐ-CP.

đ) A fine of VND 50,000,000 to VND 100,000,000 for failing to conduct risk assessments regarding money laundering, terrorism financing, and proliferation financing; failing to update annual risk assessment results, failing to submit or submit risk assessment reports late, or failing to disseminate risk assessment and update results throughout the reporting entity's system as prescribed by law on anti-money laundering, counter-terrorism financing, and non-proliferation financing of weapons of mass destruction.

e) A fine of VND 50,000,000 to VND 100,000,000 for failing to establish customer classification regulations, failing to classify customers according to risk levels, or failing to establish risk management procedures for money laundering, terrorism financing, and proliferation financing as prescribed by law on anti-money laundering, counter-terrorism financing, and non-proliferation financing of weapons of mass destruction.

g) A fine of VND 50,000,000 to VND 100,000,000 for failing to issue policies and procedures to identify and assess money laundering risks before providing new products or services; existing products or services applying innovative technology as prescribed by law, including Article 19 of the Law on Anti-Money Laundering.

h) A fine of VND 80,000,000 to VND 100,000,000 for violating provisions related to responsibilities concerning foreign individuals with political influence as prescribed by law, including Article 17 of the Law on Anti-Money Laundering.

2. A life insurance enterprise that commits acts violating provisions on providing information on anti-money laundering, prohibited acts in anti-money laundering, large transaction reports, suspicious transaction reports, and electronic fund transfer reports shall be subject to the following sanctions:

a) A fine of VND 30,000,000 to VND 50,000,000 for failing to properly report large transactions, suspicious transactions, and electronic fund transfer reports as prescribed by law, including Articles 25, 26, and 34 of the Law on Anti-Money Laundering.

b) A fine of VND 30,000,000 to VND 60,000,000 for obstructing the provision of information for anti-money laundering work as prescribed by law, including Article 8 of the Law on Anti-Money Laundering.

c) A fine of VND 50,000,000 to VND 100,000,000 for failing to report, provide information, records, documents, and reports serving anti-money laundering, counter-terrorism financing, and non-proliferation of weapons of mass destruction work upon request from competent state agencies as prescribed by law, including Article 39 of the Law on Anti-Money Laundering, Article 33 of the Law on Counter-Terrorism Financing, and Article 22 of Decree No. 81/2019/NĐ-CP.

d) A fine of VND 80,000,000 to VND 100,000,000 for organizing, participating in, or facilitating money laundering activities not reaching the level of criminal prosecution as prescribed by law, including Article 8 of the Law on Anti-Money Laundering.

đ) A fine of VND 80,000,000 to VND 100,000,000 for failing to apply transaction delay measures, failing to report to competent state agencies as prescribed by law, including Article 44 of the Law on Anti-Money Laundering; failing to freeze accounts, seal, or temporarily seize assets as prescribed by law, including Article 45 of the Law on Anti-Money Laundering.

3. A life insurance enterprise that commits acts violating provisions on counter-terrorism financing shall be subject to the following sanctions:

a) A fine of VND 80,000,000 to VND 100,000,000 for failing to report to anti-terrorism forces when discovering signs or acts of terrorism financing as prescribed by law, including Article 33 of the Law on Counter-Terrorism Financing.

b) A fine of VND 80,000,000 to VND 100,000,000 for failing to report suspicious transactions related to terrorism financing; failing to apply temporary measures or failing to report the application of temporary measures when suspecting that a customer or their transaction is related to terrorism financing or the customer is listed on the Blacklist for Counter-Terrorism Financing.

4. A life insurance enterprise that commits acts violating provisions on non-proliferation of weapons of mass destruction shall be subject to the following sanctions:

A fine of from 80,000,000 VND to 100,000,000 VND shall be imposed for the act of not reporting to the competent authority when discovering acts of disseminating and financing activities of dissemination or other violations of laws on weapons of mass destruction as prescribed by law, as stipulated in Article 25 of Decree No. 81/2019/NĐ-CP.

5. Measures to remedy consequences:

Order compliance with the provisions of law in cases of violation of the provisions of Clause 1, Clause 2, Clause 3, Clause 4 of this Article.

6. Life insurance enterprises that commit violations of regulations on preventing and combating money laundering, financing terrorism, and financing the proliferation of weapons of mass destruction in the field of insurance business which are not provided for in this Decree shall be subject to penalties as prescribed in the Government's Decree on administrative penalties in the field of currency and banking.

Section 8

AUTHORITY TO IMPOSE ADMINISTRATIVE PENALTIES IN THE FIELD OF INSURANCE BUSINESS

Article 41. Authority to impose administrative penalties in the field of insurance business

1. Persons assigned to perform specialized inspection tasks under the Insurance Management and Supervision Department of the Ministry of Finance have the right:

a) To issue warnings;

b) Impose a fine up to 500,000 VND;

c) To apply measures to remedy consequences as prescribed in Clause 5 of Article 3 of this Decree.

2. The Head of the specialized inspection team under the Insurance Management and Supervision Department of the Ministry of Finance has the right:

a) To issue warnings;

b) To impose fines up to VND 50,000,000;

c) To suspend operations for a period of time;

d) To apply measures to remedy consequences as prescribed in Clause 5 of Article 3 of this Decree.

3. The Director of the Insurance Management and Supervision Department has the right:

a) To issue warnings;

b) Impose a fine up to VND 100,000,000.

c) To suspend operations for a period of time;

d) To apply measures to remedy consequences as prescribed in Clause 5 of Article 3 of this Decree.

4. The Provincial Public Security Director has the right:

a) To issue warnings;

b) To impose fines up to VND 50,000,000;

c) To apply measures to remedy consequences as prescribed in Clause 5 of Article 3 of this Decree.

5. The Directors of the Economic Security Bureau, the Bureau of Investigation into Corruption, Economic Crimes, and Smuggling, the Bureau of Administrative Police for Social Order Management, the Bureau of Investigation into Social Order Crimes, and the Bureau of Fire Prevention, Fighting, and Rescue have the right:

a) To issue warnings;

b) Impose a fine up to VND 100,000,000.

c) To apply measures to remedy consequences as prescribed in Clause 5 of Article 3 of this Decree.

6. Banking inspectors have the right:

a) To issue warnings;

b) Impose a fine up to 500,000 VND;

c) To apply measures to remedy consequences as prescribed in Clause 5 of Article 3 of this Decree.

7. The Director of the Banking Inspection and Supervision Department has the right:

a) To issue warnings;

b) To impose fines up to VND 70,000,000;

c) To apply measures to remedy consequences as prescribed in Clause 5 of Article 3 of this Decree.

8. The Chief Inspector and Supervisor of Banking has the right to impose penalties on violations of the provisions of Clause 2 of Article 40 of this Decree.

a) To issue warnings;

b) Impose a fine up to VND 100,000,000.

c) To apply measures to remedy consequences as prescribed in Clause 5 of Article 3 of this Decree.

Article 42. Principles for Determining and Dividing Authority to Impose Administrative Penalties in the Field of Insurance Business

1. The Head of the specialized inspection team has the authority to impose penalties on administrative violations within the scope and content of the inspection as prescribed by law during the inspection period. In cases where the inspection period expires according to the law on inspections but it is not possible to issue a penalty decision due to objective reasons, the case must be transferred to the person with authority to impose penalties.

2. In cases where administrative violations in the field of insurance business fall under the authority of multiple persons to impose penalties, the administrative penalty case shall be handled by the first person to take charge of the case.

3. In cases where the form, amount of fines, supplementary penalties, and remedial measures prescribed for one of the violations exceed the authority to impose penalties as prescribed in this Decree, the person with authority to impose penalties handling the case must immediately transfer the case file to the agency or person with authority to impose penalties.

4. The authority to impose administrative penalties of the persons prescribed in Article 41 of this Decree applies to individual violations committed by individuals; in cases of fines, the authority to impose penalties on organizations is twice the authority to impose penalties on individuals.

5. The division of authority to impose administrative penalties for the positions prescribed in Article 41 of this Decree is as follows:

a) The positions prescribed in Clause 1, Clause 2, Clause 3 of Article 41 of this Decree have the right to impose penalties on violations of this Decree, except for violations of the provisions of Clause 2, Clause 3, Clause 4 of Article 40 of this Decree;

b) Positions belonging to the People's Public Security Forces prescribed in Clause 4, Clause 5 of Article 41 of this Decree have the right to impose penalties on violations of Article 15, Point d Clause 2 of Article 16, Point b Clause 1 of Article 39, Article 40 of this Decree;

c) Positions belonging to the State Bank of Vietnam prescribed in Clause 6, Clause 7, Clause 8 of Article 41 of this Decree have the right to impose penalties on violations of Clause 1, Clause 2 of Article 40 of this Decree.

Article 43. Competence to draw up administrative violation records in the insurance business sector

1. The positions specified in Article 41 of this Decree, upon discovering acts of administrative violations in the insurance business sector, have the authority to draw up administrative violation records in accordance with the regulations.

2. People's Public Security, persons authorized who are performing their duties according to normative legal documents or administrative documents issued by agencies or authorized persons have the authority to draw up administrative violation records in accordance with the provisions of the law.

Article 44. Enforcement of sanctions and measures to remedy consequences

1. The enforcement of decisions on administrative violation penalties shall be carried out in accordance with the provisions of Section 2 Chapter III Part II of the Law on Handling Administrative Violations and Decree No. 118/2021/NĐ-CP dated December 23, 2021 of the Government detailing certain articles and implementing mechanisms for the Law on Handling Administrative Violations.

2. Records, documents, texts, or other related papers recording the enforcement of sanctions and measures to remedy consequences must be included in the administrative violation penalty file in accordance with Article 57 of the Law on Handling Administrative Violations.

Chapter III

IMPLEMENTING PROVISIONS

Article 45. Effective Date

1. This Decree takes effect from February 15, 2025.

2. Abolish the contents stipulated regarding administrative violation penalties in the insurance business sector from Article 1 to Article 33 of Decree No. 98/2013/NĐ-CP dated August 28, 2013 of the Government on administrative violation penalties in the insurance business sector and lottery business, which has been amended and supplemented by Decree No. 48/2018/NĐ-CP dated March 21, 2018 of the Government, Decree No. 80/2019/NĐ-CP dated November 1, 2019 of the Government, and Decree No. 102/2021/NĐ-CP dated November 16, 2021 of the Government.

3. Point a Clause 1 Article 28, Clause 1, point a, point b, point c Clause 2 Article 32 of this Decree take effect until December 31, 2027.

4. Point đ Clause 1 Article 28, point đ Clause 3 Article 31, Article 34, Article 35, Article 36, Article 37 of this Decree take effect from January 1, 2028.

5. In cases where the normative legal documents cited for application in this Decree are amended, supplemented, or replaced, they will be applied according to those amended, supplemented, or replaced documents.

Article 46. Transitional Provisions

1. For cases where decisions on administrative violation penalties have been issued before the effective date of this Decree, if individuals or organizations subject to administrative violation penalties still lodge complaints after the effective date of this Decree, they will be resolved according to the Decree on administrative violation penalties in the insurance business sector that was in effect at the time the administrative violation occurred.

2. For administrative violations occurring and concluded before the effective date of this Decree, but discovered or being considered and resolved for administrative violation penalties thereafter, the Decree on administrative violation penalties in the insurance business sector that was in effect at the time the administrative violation occurred will be applied, except in cases where this Decree does not provide legal liability or provides lighter legal liability for violators, then the provisions on penalties stipulated in this Decree will be applied.

Article 47. Implementation organization

The Ministers, Heads of ministerial-level agencies, Heads of government agencies under the Prime Minister, Chairpersons of People's Committees of provinces and centrally governed cities, and entities subject to this Decree shall be responsible for implementing this Decree./.