Decree No. 20/2000/NĐ-CP On Administrative Sanctions for Violations in the Field of Currency and Banking Activities

DECREE

On administrative penalties for violations

in the field of currency and banking activities

____________________

 

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997;

Based on the Law on Credit Organizations No. 02/1997/QH10 dated December 12, 1997;

Pursuant to the Administrative Offense Handling Ordinance dated July 6, 1995;

At the proposal of the Governor of the State Bank of Vietnam,

DECREE:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and applicable subjects

1. Administrative violations in the field of currency and banking activities are acts committed by organizations and individuals intentionally or negligently violating state management rules in the field of currency and banking activities that have not reached the level of criminal prosecution.

2. Organizations and individuals committing administrative violations in the field of currency and banking activities as prescribed in this Decree shall be subject to administrative violation penalties.

Foreign organizations and individuals engaging in activities related to the field of currency and banking activities on the territory of the Socialist Republic of Vietnam who commit administrative violations shall also be subject to penalties under this Decree, except where international treaties to which Vietnam is a party provide otherwise.

Article 2. Principles of administrative penalties

The principles for imposing administrative violation penalties in the field of currency and banking activities shall be implemented according to the provisions of Article 3 of the Ordinance on Handling Administrative Violations.

Article 3. Statute of Limitations for Administrative Penalties

The statute of limitations for imposing administrative violation penalties in the field of currency and banking activities is two years, counted from the date the administrative violation was committed.

If the time limit mentioned above has expired, no penalty will be imposed, but measures provided for in point b, Clause 3, Article 9 of this Decree shall be applied.

Article 4. Time limit considered as not having been administratively penalized

An organization or individual subject to administrative violation penalties, if they do not reoffend within one year from the date of completion of the penalty decision or from the date the penalty decision ceases to be effective, shall be considered as not having been subject to administrative violation penalties.

Article 5. 2. Organizations and individuals fined must pay the fine at the place designated in the administrative penalty decision and receive a receipt for the fine payment. In remote, isolated areas, on rivers, at sea, or in regions where travel is difficult, or outside regular working hours, individuals and organizations subject to penalties may pay the fine to the person authorized to impose penalties and receive a receipt for the fine payment.

Procedures for imposing administrative violation penalties in the field of currency and banking activities shall be carried out according to the provisions of Chapter VI of the Ordinance on Handling Administrative Violations.

Article 6. Enforcement, statute of limitations for implementing administrative violation penalty decisions

The enforcement and statute of limitations for implementing administrative violation penalty decisions shall be carried out according to the provisions of Articles 55 and 56 of the Ordinance on Handling Administrative Violations.

Article 7. Implementation of administrative violation penalty decisions

The implementation of administrative violation penalty decisions against organizations and individuals with administrative violations in the field of currency and banking activities shall be carried out according to the provisions of Article 54 of the Ordinance on Handling Administrative Violations.

Article 8. Mitigating and Aggravating Circumstances

When imposing administrative violation penalties in the field of currency and banking activities, the following circumstances shall be considered mitigating and aggravating circumstances:

1. Mitigating circumstances:

The violator has taken action to prevent or reduce the harm caused by the violation or voluntarily remedied the consequences and compensated for losses.

2. Aggravating circumstances:

a) Organized violation;

b) Repeated or recidivist violation.

c) Taking advantage of position or authority;

d) Taking advantage of wartime, natural disasters, or other particularly difficult social conditions to violate;

đ) Violating during the period of implementing an administrative violation penalty decision;

e) Violating during the period of serving a criminal sentence;

g) Engaging in evasive behavior after the violation.

Chapter II

FORMS AND AUTHORITY FOR IMPOSING ADMINISTRATIVE VIOLATION PENALTIES IN THE FIELD OF CURRENCY AND BANKING ACTIVITIES

Article 9. Forms of administrative violation penalties

1. For each act of administrative violation, the violating organization or individual must bear one of the following main forms of administrative sanction:

a) To issue warnings;

b) Fine.

2. Depending on the nature and degree of the violation, organizations and individuals committing administrative violations may also be subject to one or more of the following supplementary forms of punishment:

a) Confiscation of objects and means used to commit administrative violations;

b) Revoking the right to use a license with a term or without a term for conducting one or several business operations related to the administrative violation in the field of currency and banking activities.

3. In addition to the forms of punishment prescribed in Clauses 1 and 2 of this Article, organizations and individuals committing administrative violations may also be subject to one of the following measures:

a) Compelling compensation for damages caused by the administrative violation according to the provisions of the law;

b) Compelling restoration to the original condition altered by the administrative violation.

Article 10. Authority for imposing administrative violation penalties in the field of currency and banking activities

1. The Director of the State Bank of Vietnam's Inspectorate has the authority:

a) To issue warnings;

b) To impose fines up to VND 20,000,000;

c) To apply supplementary forms of punishment and other measures as provided for in point a, Clause 2 and Clause 3, Article 9 of this Decree.

d) To request the Governor of the State Bank of Vietnam to revoke the right to use a license with a term or without a term for conducting one or several business operations related to the administrative violation in the field of currency and banking activities; and report to the Director of the State Bank of Vietnam's Inspectorate.

2. The Director of the State Bank of Vietnam's branch inspectorate has the authority:

a) To issue warnings;

b) Impose fines up to 10,000,000 VND;

c) To apply supplementary forms of punishment and other measures as provided for in point a, Clause 2 and Clause 3, Article 9 of this Decree.

d) To request the Director of the State Bank of Vietnam's provincial or centrally-administered city branch to revoke the right to use a license with a term or without a term for conducting one or several business operations related to the administrative violation in the field of currency and banking activities; and report to the Director of the State Bank of Vietnam's Inspectorate.

Banking inspectors performing their duties have the authority:

a) To issue warnings;

b) Imposing a fine up to VND 200,000.

Article 11. Delegation to impose administrative penalties

In cases where those authorized to impose administrative penalties as stipulated in Clauses 1 and 2 of Article 10 of this Decree delegate their authority to deputies or are absent, the deputies shall impose penalties according to the authority specified in Article 10 of this Decree.

Chapter III

ADMINISTRATIVE VIOLATIONS IN THE FIELD OF CURRENCY AND BANKING ACTIVITIES, FORMS OF PENALTIES AND AMOUNTS

PART 1

ADMINISTRATIVE VIOLATIONS REGARDING LICENSES FOR ESTABLISHMENT AND OPERATIONS, BUSINESS LICENSES, AND ORGANIZATIONAL STRUCTURE OF CREDIT ORGANIZATIONS

Article 12. Violations concerning licenses for establishment and operations, business licenses (referred to collectively as licenses)

1. A fine of from five million dong to ten million dong shall be imposed for any of the following acts:

a) Lending, leasing, or transferring the license to another organization or individual.

b) Operating contrary to the Charter or operating without prior approval of the competent authority on the Charter (except where otherwise provided by law);

c) Altering, erasing, or modifying licenses.

2. A fine of from fifteen million dong to twenty million dong shall be imposed for continuing banking activities when the license has expired or not been renewed (in cases where renewal is required).

Article 13. Imposing penalties for violations concerning office locations, establishment, and dissolution of credit organizations

1. A fine of from two million dong to ten million dong shall be imposed for changing the location of the main office, branch offices, subsidiaries, representative offices without permission from the competent authority;

2. A fine of from fifteen million dong to twenty million dong shall be imposed for any of the following acts:

a) Dividing, splitting, merging, absorbing, acquiring, or dissolving credit organizations without written approval from the competent authority;

b) Opening branch offices, subsidiaries, representative offices within domestic and foreign territories, including the location of the main office, without written approval from the competent authority;

c) Establishing subsidiaries with independent legal status and separate accounting using own capital to operate in certain banking fields without written approval from the competent authority.

PART 2

ADMINISTRATIVE VIOLATIONS CONCERNING MANAGEMENT, OPERATION, SUPERVISION, INTERNAL AUDIT

Article 14. Imposing penalties for violations concerning management, operation, supervision

1. A fine of from one million dong to five million dong shall be imposed for any of the following acts:

a) The Chairman of the Board of Management concurrently holding the position of General Director (Director) or Deputy General Director (Deputy Director) of a credit organization (except where otherwise provided by law);

b) The Chairman or other members of the Board of Management delegating tasks to persons who are not members of the Board of Management;

c) The Chairman of the Board of Management participating in another credit organization's Board of Management or operational management (except where that organization is a subsidiary of the credit organization);

d) The General Director (Director) or Deputy General Director (Deputy Director) not residing in Vietnam during their term of office;

đ) Appointing individuals who are parents, siblings, spouses, children, brothers, sisters, or half-siblings of Board of Management members or General Directors (Directors) as members of the Supervisory Board or Chief Accountants in the same credit organization;

e) Members of the Supervisory Board appointed by nomination or elected by the Shareholders' Meeting failing to perform their duties and powers as prescribed by law.

2. A fine of from two million dong to ten million dong shall be imposed on credit organizations for appointing or assigning the following individuals as members of the Board of Management, Supervisory Board, General Director (Director), Deputy General Director (Deputy Director), or Chief Accountant:

a) Currently being pursued for criminal responsibility;

b) Individuals convicted of offenses endangering national security, violating socialist public property, citizens' property, serious economic offenses; or convicted of other offenses without having had their criminal records expunged;

c) Individuals who have previously served as members of the Board of Management or General Director (Director) of a company that went bankrupt or were legal representatives of companies whose operations were suspended due to serious violations of the law, except in cases stipulated in Clause 2 of Article 50 of the Bankruptcy Law.

3. A fine of from fifteen million dong to twenty million dong shall be imposed for the act: The Board of Management acting on behalf of the credit organization making decisions related to the purpose and interests of the credit organization but contrary to the Charter of the credit organization or other provisions of the law.

Article 15. Violations concerning changes to the name, capital level, content, and scope of operations of credit organizations

1. A fine of from one million dong to five million dong shall be imposed for changing any of the following items without written approval from the competent authority:

a) The name of the credit organization;

b) Members of the Board of Management, General Director (Director), members of the Supervisory Board.

2. A fine of from three million dong to fifteen million dong shall be imposed for changing any of the following items without written approval from the competent authority:

a) Registered capital, authorized capital;

b) Content, scope of operations;

c) Proportion of shares held by individuals or organizations owning more than 10% of registered capital or holding more than 10% of shares.

3. Supplementary sanctions shall be applied:

Revocation of the right to use the license for a period of three months to six months for violations stipulated in Clauses 1 and 2 of this Article.

Article 16. Violations concerning internal audit

1. A warning shall be issued for the act:

a) Not establishing an internal audit program as prescribed by law;

b) Organizing an internal audit department under the management structure not in accordance with the provisions of the law.

2. A fine of over two million dong to ten million dong shall be imposed for any of the following acts:

a) Not conducting regular internal audits or not inspecting compliance with laws and business operations in all areas at the main office, branch offices, subsidiaries, representative offices, and affiliated companies as prescribed by law;

b) Not conducting internal audits of the business operations of credit organizations as prescribed by law.

PART 3

ADMINISTRATIVE VIOLATIONS CONCERNING FUNDS RAISING

Article 17. Violations concerning receiving deposits

1. A warning shall be issued to organizations participating in mandatory deposit insurance but failing to pay the deposit insurance premium on time as prescribed by law.

2. A fine of from 10,000,000 VND to 20,000,000 VND shall be imposed on non-bank credit organizations that fail to comply with regulations on receiving deposits from organizations and individuals as stipulated in Article 45 of the Law on Credit Institutions.

Article 18. Violation concerning issuance of securities

A fine of from 15,000,000 VND to 20,000,000 VND shall be imposed on credit institutions that issue deposit certificates, bonds, and other securities to raise funds from domestic and foreign organizations and individuals without written approval from competent authorities.

PART 4

ADMINISTRATIVE VIOLATIONS CONCERNING LOANS, BANK GUARANTEES, DISCOUNTS AND FOR FINANCIAL LEASE

Article 19. Violations concerning loans

1. A fine of VND 200,000 to VND 500,000 shall be imposed on any of the following acts:

a) Failure to retain sufficient credit file documentation as prescribed in Article 55 of the Law on Credit Institutions;

b) Failure to publicly announce interest rates for loans for customers to know;

c) The form of the credit contract and accompanying presentation materials and documents not conforming to legal provisions.

2. A fine of from over 500,000 VND to 2,000,000 VND shall be imposed on any of the following acts:

a) Establishing a credit contract not in accordance with legal provisions;

b) Failure to monitor the loan process, use of borrowed funds, and repayment by customers during the validity period of the credit contract.

3. A fine of from over 2,000,000 VND to 10,000,000 VND shall be imposed on any of the following acts:

a) Granting loans to organizations and individuals who do not meet the full borrowing conditions as prescribed by law;

b) Applying interest rates; exempting, reducing interest on loans; collecting loan commission fees; extending debt terms; adjusting debt periods; swapping debts not in accordance with legal provisions.

4. A fine of from 3,000,000 VND to 15,000,000 VND shall be imposed on the act of granting loans based on collateral in the form of shares of the lending credit institution itself.

5. Other measures shall be applied

Compel restoration to the original state within one month for violations stipulated in Clause 3 of this Article.

Article 20. Violations concerning discounting, rediscounting, endorsement of commercial bills and other short-term securities

A fine of from 5,000,000 VND to 20,000,000 VND shall be imposed on the act of providing credit in the form of discounting, rediscounting, endorsement of commercial bills and other short-term securities not in accordance with legal provisions.

Article 21. Violations concerning loan guarantees, payment guarantees, performance guarantees, tender guarantees and other types of bank guarantees (collectively referred to as guarantees)

1. A fine of from 200,000 VND to 500,000 VND shall be imposed on the act of failing to retain sufficient guarantee file documentation as prescribed by law.

2. A fine of from 2,000,000 VND to 10,000,000 VND shall be imposed on any of the following acts:

a) Guaranteeing for organizations and individuals who do not meet the required conditions as prescribed by law;

b) Applying guarantee fee ratios not in accordance with legal provisions.

3. A fine of from 5,000,000 VND to 15,000,000 VND shall be imposed on any of the following acts:

a) Exceeding the guaranteed amount as prescribed by law;

b) Accepting collateral for guarantees and implementing other guarantee provisions not in accordance with legal provisions.

4. A fine of from 15,000,000 VND to 20,000,000 VND shall be imposed on credit institutions that have not been permitted by competent authorities to conduct international settlements but engage in loan guarantees, payment guarantees, and other types of bank guarantees for foreign organizations and individuals.

5. Additional penalties shall be applied:

Suspension of the right to use the license for guarantee operations for three months for violations stipulated in Clause 2 of this Article.

Article 22. Violations concerning financial leasing activities

1. A fine of from 200,000 VND to 500,000 VND shall be imposed on the act of failing to retain sufficient leasing file documentation as prescribed by law.

2. A fine of from 1,000,000 VND to 10,000,000 VND shall be imposed on the act of establishing a leasing contract not in accordance with legal provisions.

3. A fine of from 3,000,000 VND to 15,000,000 VND shall be imposed on any of the following acts:

a\. Failing to establish a financial leasing contract;

b) Leasing to organizations and individuals who do not meet the required conditions as prescribed by law;

c) Total value of leased assets for one customer exceeding the ratio prescribed by law compared to own capital.

4. A fine of from 15,000,000 VND to 20,000,000 VND shall be imposed on credit institutions conducting leasing operations without a permit.

5. Additional penalties shall be applied:

Suspension of the right to use the leasing operation license for three to six months for violations stipulated in Clauses 2 and 3 of this Article.

PART 5

ADMINISTRATIVE VIOLATIONS CONCERNING FOREIGN EXCHANGE MANAGEMENT AND GOLD TRADING AND

Article 23. Violations concerning foreign exchange management and gold trading

1. A fine of VND 200,000 to VND 500,000 shall be imposed on any of the following acts:

a) Failure to publicly display exchange rates for buying and selling foreign currencies and prices for buying and selling gold at business premises as prescribed by competent authorities;

b) Failure to submit reports as prescribed by competent authorities on foreign exchange activities and gold trading activities.

2. A fine of from over 500,000 VND to 2,000,000 VND shall be imposed on any of the following acts:

a) Engaging in fraudulent practices in buying and selling gold; not using invoices and documents issued by the Ministry of Finance;

b) Buying, selling, or settling foreign currency transactions with customers or paying foreign currency sent back by overseas Vietnamese residents not in accordance with listed exchange rates and other legal provisions.

3. A fine of from over 2,000,000 VND to 10,000,000 VND shall be imposed on the act of granting foreign currency loans not in accordance with legal provisions.

4. A fine of from over 10,000,000 VND to 15,000,000 VND shall be imposed on any of the following acts:

a) Opening or using foreign currency accounts abroad without permission or not in accordance with the provisions in the authorization from competent authorities;

b) Transferring foreign exchange or gold in and out of the country contrary to legal provisions;

c) Credit institutions failing to comply with legal provisions regarding foreign exchange status or Vietnamese dong status;

d) Organizations with foreign currency revenue failing to comply with legal provisions regarding selling acquired foreign currency to credit institutions;

đ) Organizations failing to comply with legal provisions regarding foreign borrowing and repayment, guarantees, and re-guarantees for foreign loans;

e) Organizations and individuals buying, selling, or using standard international gold contrary to legal provisions;

g) Organizations and individuals concealing or colluding with acts violating laws on foreign exchange activities or gold trading activities.

5. A fine of VND 15,000,000 to VND 20,000,000 shall be imposed for any of the following acts:

a) Conducting foreign exchange or gold trading business without a license from competent authorities;

b) An organization conducting foreign exchange activities or gold trading business when such activities have been suspended or the foreign exchange operation permit or gold trading business permit has expired;

c) A credit institution conducting foreign exchange activities or gold trading business, issuing or acting as an agent to issue various deposit certificates, bonds, and other securities denominated in foreign currency or gold to raise funds from organizations, individuals within the country or abroad without being authorized by the State Bank;

6. Apply additional penalties and other measures:

a) Confiscate the amount of foreign currency or gold as specified in points b and e of Clause 4 of this Article;

b) Revoke the right to use the foreign exchange operation permit or gold trading business permit for a period of three months if there is a repeat violation as specified in point c of Clause 5 of this Article;

c) Order the cessation of the activities specified in points a and b of Clause 5 of this Article;

Section 6

VIOLATIONS OF ADMINISTRATIVE LAW REGARDING ACCOUNTING, TREASURY FUNDS, FINANCE, AUDITING, PURCHASES, INVESTMENTS IN FIXED ASSETS AND REAL ESTATE BUSINESS

Article 24. Violations concerning accounting and statistics

The competent authority as stipulated in Article 10 of this Decree shall impose administrative penalties for violations related to accounting and statistics in the monetary and banking sectors according to the Government's regulations on administrative penalties in the fields of accounting and statistics;

Article 25. Violations concerning treasury security

Impose a fine of between 200,000 VND and 2,000,000 VND for any of the violations of treasury security regulations as prescribed by the State Bank;

Article 26. Administrative penalties for violations concerning opening accounts and maintaining reserve requirements

1. Issue a warning for the act of opening a deposit account at the State Bank but maintaining an average balance lower than the legally prescribed reserve requirement;

2. Apply other measures:

1. A warning shall be issued for failing to open a deposit account for mandatory reserves at the State Bank or for maintaining a balance lower than the mandatory reserve ratio as prescribed by law.

Article 27. Violations concerning treasury funds

Impose a fine of between 5,000,000 VND and 15,000,000 VND for any of the following acts:

1. Establishing funds contrary to the provisions of the law;

2. Using the annual supplementary capital reserve fund extracted at a rate of 5% of post-tax profits and other funds to pay dividends;

3. Transferring the supplementary capital reserve fund and other funds abroad in violation of the law;

Article 28. Violations concerning purchases and investments in fixed assets

Impose a fine of between 5,000,000 VND and 20,000,000 VND for the act of purchasing or investing in fixed assets exceeding 50% of own capital;

Article 29. Administrative penalties for violations concerning real estate business

1. Impose a fine of between 15,000,000 VND and 20,000,000 VND on credit institutions directly engaging in real estate business;

2. Apply other measures:

Order the cessation of direct real estate business activities;

Section 7

VIOLATIONS OF ADMINISTRATIVE LAW REGARDING SAFEGUARDING THE SECURITY OF CREDIT INSTITUTION OPERATIONS

Article 30. Violations concerning safety in lending and guarantee operations

1. Impose a fine of between 1,000,000 VND and 5,000,000 VND for the act of lending where the total outstanding loan balance of the credit institution to the following entities exceeds 5% of the credit institution’s own capital:

a) Auditing organizations, auditors auditing at the credit institution, Chief Accountants, Inspectors;

b) Organizations or individuals holding more than 10% of the charter capital or holding more than 10% of the shares of the credit institution;

2. A fine of from 2,000,000 VND to 10,000,000 VND shall be imposed on any of the following acts:

a) Engaging in joint lending in violation of the law;

b) Maintaining the level of guarantees for a single customer and the total level of guarantees exceeding the ratio set by the competent authority relative to the credit institution’s own capital;

3. Impose a fine of between 5,000,000 VND and 15,000,000 VND on credit institutions for any of the following acts:

a) Lending to members of the Board of Directors, members of the Supervisory Board, General Managers (Directors), Deputy General Managers (Deputy Directors) of the credit institution;

b) Lending to the person assessing or the person approving the loan;

c) Lending to the father, mother, wife, husband, child of members of the Board of Directors, members of the Supervisory Board, General Managers (Directors), Deputy General Managers (Deputy Directors) of the credit institution;

d) Credit institutions accepting guarantees from the entities specified in points a, b, and c of Clause 3 of this Article as the basis for granting credit to customers;

đ) Granting credit without collateral or granting credit with preferential conditions for the following entities:

- Auditing organizations, auditors auditing at the credit institution, Chief Accountants, Inspectors;

- Individuals or organizations holding more than 10% of the charter capital or holding more than 10% of the shares of the credit institution;

- Enterprises where one of the entities specified in Clause 1 of this Article holds more than 10% of the charter capital of that enterprise;

4. Impose a fine of between 10,000,000 VND and 20,000,000 VND for the act:

Total outstanding loan balance for a single customer exceeding 15% of the credit institution’s own capital, except in cases of loans as prescribed by the Government, loans from entrusted funds of the Government, organizations, or individuals, or where the borrower is another credit institution;

5. Apply other measures:

Order restoration to the original state within one month for violations as stipulated in this Article;

Article 31. Violations concerning the minimum safety ratios in bank operations

1. Impose a fine of between 3,000,000 VND and 15,000,000 VND on credit institutions for failing to comply with the legal provisions regarding maintaining one of the following ratios:

a) Liquidity;

b) Minimum capital adequacy ratio;

c) Maximum proportion of short-term capital used for medium and long-term lending;

d) Maximum loan-to-deposit ratio;

2. Apply other measures:

Order restoration to the original state within one month for violations as stipulated in this Article;

Article 32. Violations concerning limits on capital contributions and share purchases

1. Impose a fine of between 10,000,000 VND and 20,000,000 VND on credit institutions for any of the following acts:

a) Contributing capital or purchasing shares in a company or the total amount of capital contributions or share purchases in all companies exceeding the maximum limit prescribed by law;

b) Transferring shares in violation of the law;

2. Apply other measures:

Order restoration to the original state within one month for violations as stipulated in this Article;

Article 33. Violations concerning risk reserves

1. Impose a fine of between 1,000,000 VND and 10,000,000 VND on credit institutions for classifying banking assets contrary to the provisions of the competent authority;

2. Impose a fine of between 5,000,000 VND and 15,000,000 VND on credit institutions for any of the following acts:

a) Establishing risk reserves contrary to the provisions of the law;

b) Using risk reserves contrary to the provisions of the law.

3. APPLY OTHER MEASURES:

ORDER TO RESTORE THE INITIAL STATUS WITHIN ONE MONTH FOR VIOLATIONS AS PROVIDED IN CLAUSE 2 OF THIS ARTICLE.

SECTION 8

ADMINISTRATIVE VIOLATIONS REGARDING INFORMATION AND SECRECY OF BANKING ACTIVITIES

Article 34. VIOLATIONS IN MANAGING INFORMATION AND REPORTING BANKING ACTIVITIES

1. A warning shall be issued for the act of submitting reports late as prescribed by the competent authority.

2. IMPOSE A FINANCIAL PENALTY FROM MORE THAN 200,000 VND TO 2,000,000 VND FOR THE FAILURE TO SUBMIT COMPLETE REPORTS OR SUBMITTING REPORTS THAT DO NOT COMPLY WITH THE FORMS PRESCRIBED BY THE AUTHORIZED AUTHORITIES.

3. IMPOSE A FINANCIAL PENALTY FROM MORE THAN 2,000,000 VND TO 5,000,000 VND FOR ANY OF THE FOLLOWING ACTIONS:

a) Submitting false reports on the activities of credit organizations;

b) PROVIDE ORGANIZATIONS OR INDIVIDUALS WITH INFORMATION RELATED TO THE OPERATIONS OF THE STATE BANK OF VIETNAM OR CREDIT ORGANIZATIONS WITHOUT THE PERMISSION OF THE AUTHORIZED AUTHORITIES AS PROVIDED BY LAW OR WITHOUT THE CONSENT OF CUSTOMERS, EXCEPT IN THE CASES PROVIDED FOR IN ARTICLES 102, 103, AND CLAUSE 2 OF ARTICLE 104 OF THE LAW ON CREDIT ORGANIZATIONS.

4. IMPOSE A FINANCIAL PENALTY FROM MORE THAN 5,000,000 VND TO 20,000,000 VND FOR THE FAILURE TO IMMEDIATELY REPORT TO THE AUTHORIZED AUTHORITIES ANY UNUSUAL DEVELOPMENTS IN OPERATIONS THAT MAY SEVERELY IMPACT THE BUSINESS SITUATION OF CREDIT ORGANIZATIONS.

Article 35. VIOLATIONS REGARDING SECRECY OF BANKING ACTIVITIES

IMPOSE A FINANCIAL PENALTY FOR THE INADVERTENT DISCLOSURE OF SECRETS OR THE LOSS OF DOCUMENTS, DATA LISTED IN THE NATIONAL SECRECY CATALOGUE OF THE BANKING SECTOR WITHOUT CAUSING SERIOUS CONSEQUENCES:

1. IMPOSE A FINANCIAL PENALTY FROM 100,000 VND TO 500,000 VND FOR THE INADVERTENT DISCLOSURE OF SECRETS OF DOCUMENTS, DATA LISTED IN THE NATIONAL SECRECY CATALOGUE OF THE BANKING SECTOR AT THE "CONFIDENTIAL" LEVEL.

2. IMPOSE A FINANCIAL PENALTY FROM MORE THAN 500,000 VND TO 2,000,000 VND FOR THE INADVERTENT DISCLOSURE OF SECRETS OF DOCUMENTS, DATA LISTED IN THE NATIONAL SECRECY CATALOGUE OF THE BANKING SECTOR AT THE "TOP SECRET" LEVEL.

3. IMPOSE A FINANCIAL PENALTY FROM MORE THAN 2,000,000 VND TO 10,000,000 VND FOR THE INADVERTENT DISCLOSURE OF SECRETS OF DOCUMENTS, DATA LISTED IN THE NATIONAL SECRECY CATALOGUE OF THE BANKING SECTOR AT THE "ABSOLUTE SECRET" LEVEL.

SECTION 9

ADMINISTRATIVE VIOLATIONS REGARDING INFRINGEMENT OF AUTONOMOUS BUSINESS RIGHTS OF CREDIT ORGANIZATIONS, OBSTRUCTION OF INSPECTION AND AUDIT, FAILURE TO COMPLY WITH INSPECTOR'S REQUIREMENTS, ILLEGAL COMPETITION

Article 36. ACTIONS INFRINGING UPON RELATIONSHIPS AND AUTONOMOUS BUSINESS RIGHTS OF CREDIT ORGANIZATIONS AND OTHER ENTITIES ENGAGED IN BANKING ACTIVITIES

A warning shall be imposed for any of the following acts:

1. COERCING CREDIT ORGANIZATIONS TO ISSUE LOANS OR MAKE CAPITAL CONTRIBUTIONS, PURCHASE SHARES, OR ENGAGE IN FOREIGN EXCHANGE ACTIVITIES IN VIOLATION OF REGULATIONS;

2. HIDING OR ASSOCIATING WITH VIOLATIONS AS PROVIDED IN CLAUSE 1 OF THIS ARTICLE.

Article 37. ACTIONS OBSTRUCTING INSPECTION AND AUDIT OR FAILING TO COMPLY WITH INSPECTOR'S REQUIREMENTS

1. Warning shall be imposed for any of the following acts:

a) DELAYING, EVADING, OR REFUSING TO PROVIDE DOCUMENTS, RECORDS, RECEIPTS, DATA AS REQUIRED BY THE INSPECTION ORGANIZATION, INSPECTION TEAM, OR USING STRATEGIES TO OBTAIN ADVANTAGES OVER INSPECTORS PERFORMING THEIR DUTIES;

b) HIDING, ALTERING RECEIPTS, LEDGERS, OR MODIFYING EVIDENCE WHILE UNDER INSPECTION;

c) REMOVING, MOVING, OR ENGAGING IN OTHER ACTIONS THAT ALTER THE SEALED STATUS OF WAREHOUSES, TREASURY, SAFE DEPOSIT BOXES, GEMS, LEDGERS, ACCOUNTING RECEIPTS, CREDIT FILES, GUARANTEE FILES, OR OTHER EVIDENCE THAT ARE SEALED OR TEMPORARILY HELD.

2. A fine of from over 500,000 VND to 2,000,000 VND shall be imposed on any of the following acts:

a) FAILING TO COMPLY WITH DECISIONS ISSUED BY BANK INSPECTORS;

b) INTERFERING WITH THE DECISION-MAKING PROCESS OF BANK INSPECTORS.

Article 38. PENALTIES FOR ILLEGAL COMPETITIVE PRACTICES

IMPOSE A FINANCIAL PENALTY FROM 200,000 VND TO 5,000,000 VND FOR THE FALSE INFORMATION THAT DAMAGES THE INTERESTS OF CREDIT ORGANIZATIONS AND THE LEGAL INTERESTS OF OTHER ORGANIZATIONS AND INDIVIDUALS.

Chapter IV

SETTLEMENT OF COMPLAINTS, ACCUSATIONS, AND VIOLATION HANDLING AGAINST PERSONS WITH AUTHORITY TO IMPOSE ADMINISTRATIVE PENALTIES IN THE FIELD OF CURRENCY AND BANKING ACTIVITIES

Article 39. SETTLEMENT OF COMPLAINTS AND LAWSUITS REGARDING DECISIONS ON ADMINISTRATIVE VIOLATIONS AND ACCUSATIONS OF ILLEGAL ACTIONS BY PERSONS WITH AUTHORITY TO IMPOSE ADMINISTRATIVE PENALTIES IN THE FIELD OF CURRENCY AND BANKING ACTIVITIES

1. THE PROCEDURE FOR COMPLAINTS, LAWSUITS, AND SETTLEMENT OF COMPLAINTS AND LAWSUITS REGARDING DECISIONS ON ADMINISTRATIVE VIOLATIONS IN THE FIELD OF CURRENCY AND BANKING ACTIVITIES SHALL BE IMPLEMENTED IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 128 OF THE LAW ON CREDIT ORGANIZATIONS, THE LAW ON COMPLAINTS AND ACCUSATIONS, AND OTHER RELEVANT LEGAL PROVISIONS.

2. THE PROCEDURE FOR ACCUSATIONS AND SETTLEMENT OF ACCUSATIONS REGARDING ILLEGAL ACTIONS BY PERSONS WITH AUTHORITY TO IMPOSE ADMINISTRATIVE PENALTIES IN THE FIELD OF CURRENCY AND BANKING ACTIVITIES SHALL BE IMPLEMENTED IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 90 OF THE ORDINANCE ON HANDLING VIOLATIONS OF ADMINISTRATIVE LAW AND OTHER RELEVANT LEGAL PROVISIONS.

Article 40. HANDLING VIOLATIONS AGAINST PERSONS WITH AUTHORITY TO IMPOSE ADMINISTRATIVE PENALTIES IN THE FIELD OF CURRENCY AND BANKING ACTIVITIES

PERSONS WITH AUTHORITY TO IMPOSE ADMINISTRATIVE PENALTIES IN THE FIELD OF CURRENCY AND BANKING ACTIVITIES WHO ENGAGE IN COVERING UP, PROTECTING, OR NOT IMPOSING PENALTIES ON OR IMPOSING PENALTIES IN VIOLATION OF THE LAW OR EXCEEDING THEIR AUTHORITY SHALL BE SUBJECT TO DISCIPLINARY ACTION OR CRIMINAL LIABILITY DEPENDING ON THE NATURE AND GRAVITY OF THE VIOLATION; IF DAMAGE IS CAUSED, THEY MUST PROVIDE COMPENSATION IN ACCORDANCE WITH THE LAW.

Chapter V

IMPLEMENTING PROVISIONS

Article 41. THIS DECREE SHALL TAKE EFFECT 15 DAYS AFTER ITS DATE OF SIGNING. PRIOR PROVISIONS CONTRARY TO THIS DECREE SHALL BE ABROGATED.

Article 42. THE GOVERNOR OF THE STATE BANK OF VIETNAM SHALL BE RESPONSIBLE FOR GUIDING THE IMPLEMENTATION OF THIS DECREE.

Article 43. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally governed city People's Committees are responsible for implementing this Decree.