Decision No. 20/2019/QD-TTg on the functions, tasks, powers, and organizational structure of the Banking Inspection and Supervision Agency under the State Bank of Vietnam

Pursuant to …;

                Regulations on functions, tasks, powers

                          and organizational structure of the Banking Inspection and Supervision Agency under the State Bank of Vietnam

Pursuant to the Law on Government Organization dated June 19, 2015;

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

Pursuant to the Law on Credit Institutions dated June 16, 2010, and the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions dated November 20, 2017; Pursuant to Decree No. 123/2016/ND-CP dated September 1, 2016 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

Based on the Inspection Law dated November 15, 2010;

Pursuant to Decree No. 16/2017/ND-CP dated February 17, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;/Pursuant to Decree No. 26/2014/ND-CP dated April 7, 2014 of the Government on the organization and operation of Banking Inspection and Supervision, and Decree No. 43/2019/ND-CP dated May 17, 2019 of the Government amending and supplementing certain provisions of Decree No. 26/2014/ND-CP dated April 7, 2014 of the Government on the organization and operation of Banking Inspection and Supervision;

1. The Banking Inspection and Supervision Agency is a unit equivalent to a General Department under the State Bank of Vietnam (hereinafter referred to as the State Bank), performing the function of advising and assisting the Governor of the State Bank in managing state affairs concerning credit institutions, foreign bank branches, anti-money laundering, anti-terrorism financing, deposit insurance, administrative inspection, specialized inspection, and banking supervision within the scope of state management of the State Bank; implementing anti-money laundering and anti-terrorism financing according to the laws and assignments of the Governor of the State Bank.

2. The Banking Inspection and Supervision Agency has legal personality, a seal with the National Emblem, separate accounts as prescribed by law, and its headquarters in Hanoi City.

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

The Prime Minister stipulates the functions, tasks, powers, and organizational structure of the Banking Inspection and Supervision Agency under the State Bank of Vietnam.

Article 1. Position and Functions

Article 2. Tasks and Powers

a) Draft laws, draft resolutions of the National Assembly, draft ordinances, draft resolutions of the Standing Committee of the National Assembly; draft decrees of the Government, draft decisions of the Prime Minister regarding the organization and operation of credit institutions, foreign bank branches, representative offices of foreign credit institutions, other foreign organizations engaged in banking activities, banking inspection and supervision, anti-money laundering, and deposit insurance;

b) Strategies, programs, projects, and important plans for reforming and developing systems of credit institutions, foreign bank branches, representative offices of foreign credit institutions, other foreign organizations engaged in banking activities, banking inspection and supervision, anti-money laundering, and deposit insurance.

1. Submit to the Governor of the State Bank for submission to the Government and the Prime Minister for consideration and decision:

a) Long-term, five-year, and annual plans for developing systems of credit institutions, foreign bank branches, representative offices of foreign credit institutions, other foreign organizations engaged in banking activities, banking inspection and supervision, anti-money laundering, and anti-terrorism financing;

b) Circulars stipulating the organization and operation, and safety of banking operations of credit institutions, foreign bank branches; regulations on establishment, restructuring, dissolution, bankruptcy, liquidation of credit institutions, foreign bank branches, representative offices of foreign credit institutions, other foreign organizations engaged in banking activities; regulations on banking inspection and supervision, deposit insurance, and anti-money laundering, anti-terrorism financing;

2. Submit to the Governor of the State Bank for decision, approval, or issuance:

c) Issuing, amending, supplementing, revoking licenses for establishment and operation of credit institutions, licenses for establishment of foreign bank branches, licenses for establishment of representative offices of foreign credit institutions, other foreign organizations engaged in banking activities, and other types of banking operation licenses according to the assignment of the Governor of the State Bank;

d) Issuing, revoking licenses for providing credit information services to organizations;

đ) Issuing, revoking Registration Certificates for microfinance programs and projects according to the law and the assignment of the Governor of the State Bank;

d) Issuing and revoking licenses for organizations providing credit information services;

đ) Issuing and revoking certificates of registration for microfinance programs and projects in accordance with the provisions of the law and the assignment of the Governor of the State Bank of Vietnam;

e) Approving the purchase, sale, division, merger, consolidation, conversion of legal form, dissolution of credit organizations, foreign bank branches; approving the list of candidates for election or appointment as members of the Board of Members, members of the Board of Management, members of the Supervisory Board, and General Director (Director) of credit organizations, except personnel of state-owned commercial banks, personnel appointed or recommended by the owner of the state capital in joint-stock commercial banks where the state holds more than 50% of the charter capital; approving the person to be appointed as the General Director (Director) of foreign bank branches; approving the establishment, termination, dissolution of branches, representative offices, domestic units, branches, representative offices, and other forms of commercial presence abroad of credit organizations; approving the establishment, acquisition of subsidiaries and associated companies of credit organizations; approving the contribution of capital, purchase of shares of credit organizations; approving other issues related to governance, organization, finance, and activities that must be approved or permitted by the State Bank of Vietnam according to the assignment of the Governor of the State Bank of Vietnam;

g) Handling issues related to the organization, management, and operation of credit organizations, foreign bank branches to contribute to ensuring that these organizations operate soundly, safely, and in accordance with the provisions of the law, according to the assignment of the Governor of the State Bank of Vietnam;

Implementing certain contents regarding the rights and responsibilities of the agency representing the state capital at credit organizations, financial organizations, and enterprises managed by the State Bank of Vietnam, as stipulated by law and the assignment of the Governor of the State Bank of Vietnam;

Building and organizing the implementation of plans, schemes to consolidate, rectify, restructure, and specially control credit organizations, foreign bank branches according to the assignment of the Governor of the State Bank of Vietnam;

3. Implementing tasks and powers stipulated in points c, d, đ, e, g, h, i of Clause 2 of this Article according to the分级授权和委托的分工。

4. Popularizing, promoting, and organizing the implementation of regulatory legal documents, policies, strategies, plans, programs, projects, proposals, and schemes stipulated in Clause 1 and Clause 2 of this Article after they have been issued or approved by competent state authorities.

5. Preparing the annual inspection plan of the Banking Inspection and Supervision Department for submission to the Governor of the State Bank of Vietnam for approval; organizing the implementation of the inspection plan of the Banking Inspection and Supervision Department; guiding, supervising, urging, and inspecting the implementation of the inspection plan for banking inspection and supervision departments under the State Bank of Vietnam branches (hereinafter referred to as Banking Inspection and Supervision Departments of State Bank of Vietnam branches).

6. Conducting administrative inspections, banking inspections, anti-money laundering inspections, deposit insurance inspections, and inspections in other areas within the scope of the State Bank of Vietnam's management on banking inspection objects as stipulated in Clause 1 of Article 2 of Decree No. 26/2014/NĐ-CP dated April 7, 2014 of the Government on the organization and operation of Banking Inspection and Supervision, in accordance with the law and the assignment of the Governor of the State Bank of Vietnam; conducting investigations assigned by the Governor of the State Bank of Vietnam.

7. Implementing tasks related to handling complaints, accusations, anti-corruption, thrift, and waste prevention as stipulated by law and the assignment of the Governor of the State Bank of Vietnam.

8. Monitoring, urging, and inspecting the implementation of conclusions, recommendations, and decisions on handling inspections and supervision by the Governor of the State Bank of Vietnam and Banking Inspection and Supervision Agencies.

9. Inspecting the accuracy and legality of inspection conclusions and post-inspection handling decisions made by the Chief Inspector and Supervisor of State Bank of Vietnam branches, the Director of State Bank of Vietnam branches, and the Chairman of the People's Committee of the province concerning cases within the jurisdiction of the State Bank of Vietnam when necessary.

10. Conducting banking supervision over banking supervision objects as stipulated in Clause 2 of Article 2 of Decree No. 26/2014/NĐ-CP in accordance with the law and the assignment of the Governor of the State Bank of Vietnam.

11. Applying measures within authority or recommending competent authorities to implement measures to ensure safety and handle violations against banking inspection objects and banking supervision objects as stipulated by law.

12. Advising and assisting the Governor of the State Bank of Vietnam to fulfill the State Bank's responsibilities in preventing and combating money laundering and terrorist financing as stipulated by laws on preventing and combating money laundering and terrorism.

13. Advising and assisting the Governor of the State Bank of Vietnam to manage deposit insurance.

14. Directing, inspecting, and organizing the implementation of inspection and supervision work; guiding inspection and supervision business procedures for banking inspection and supervision departments under State Bank of Vietnam branches. Guiding and inspecting units within the banking sector to comply with laws on banking inspection and supervision, complaints, accusations, anti-corruption, and anti-money laundering and anti-terrorist financing within the scope of the State Bank of Vietnam's management.

15. Requiring banking inspection objects, banking supervision objects, and relevant agencies, organizations, and individuals to report and provide information and documents for banking inspection and supervision, anti-money laundering, and anti-terrorist financing work.

16. Summarizing and drawing lessons from inspection and supervision work within the scope of the State Bank of Vietnam's management.

17. Request the State Bank of Vietnam branch to report on banking supervision and inspection work, complaints and denunciations resolution, anti-corruption, anti-money laundering, and anti-terrorism financing activities; compile and report on the results of banking supervision and inspection, complaints and denunciations resolution, anti-corruption, and anti-money laundering, anti-terrorism financing activities within the scope of State management of the State Bank of Vietnam.

18. Carry out certain tasks and powers over associations and non-governmental organizations within the scope of State management of the State Bank of Vietnam according to the provisions of the law and the delegation of authority by the Governor of the State Bank of Vietnam.

19. Organize research and application of scientific and technological progress into management, supervision, and inspection activities, anti-money laundering, and anti-terrorism financing; modernize technical infrastructure of the banking supervision and inspection system, anti-money laundering, and anti-terrorism financing; organize training for banking inspectors and other civil servants in the banking supervision and inspection sector; provide professional and vocational training for officials, civil servants, and employees engaged in banking supervision and inspection, complaints and denunciations resolution, anti-corruption, and anti-money laundering, anti-terrorism financing.

20. International cooperation in the field of banking management, supervision, and inspection, anti-money laundering, and anti-terrorism financing.

21. Implement administrative reform in the fields of operation of the Banking Supervision and Inspection Authority according to the State Bank of Vietnam's administrative reform plan.

22. Manage organizational structure and staffing; implement salary systems and incentive policies, recruitment, employment, appointment, dismissal, retirement, resignation, rewards, and disciplinary measures for officials, civil servants, and workers under the Banking Supervision and Inspection Authority according to the delegation of the Governor of the State Bank of Vietnam; provide opinions on commendation for collectives and individuals in the banking sector according to the provisions of the law.

23. Manage and use financial resources and assets allocated according to the delegation of the Governor of the State Bank of Vietnam and the provisions of the law.

24. Perform other tasks and powers as prescribed by law and assigned by the Governor of the State Bank of Vietnam.

Article 3. Organizational Structure

1. The Administrative Inspection and Complaints Resolution Department, Anti-Corruption Department (referred to as Department I).

2. The Banking Safety Policy Department (referred to as Department II).

3. Office.

4. The Banking Inspection and Supervision Bureau I (referred to as Bureau I).

5. The Banking Inspection and Supervision Bureau II (referred to as Bureau II).

6. The Banking Inspection and Supervision Bureau III (referred to as Bureau III).

7. The Banking System Safety Supervision Bureau (referred to as Bureau IV).

8. The Anti-Money Laundering Department (referred to as Department V).

The Director of the Banking Supervision and Inspection Bureau may issue decisions to inspect, establish inspection teams for the inspected banking entities (except for inspections decided and organized by the Chief Inspector of Banking Supervision according to Clause 4, Article 1 of Decree No. 43/2019/NĐ-CP), perform the duties and powers of the decision-making inspector and administrative penalty according to the law. The Director of the Anti-Money Laundering Department is responsible for receiving, collecting information, reporting on anti-money laundering and anti-terrorism financing; has the right to request provision and transfer of information on anti-money laundering and anti-terrorism financing; cooperate and exchange information on anti-money laundering and anti-terrorism financing with foreign authorities competent in anti-money laundering and anti-terrorism financing according to the law and the delegation of the Governor of the State Bank of Vietnam.

The Office has 6 departments, Banking Supervision and Inspection Bureau I has 6 departments, Banking Supervision and Inspection Bureau II has 6 departments, Banking Supervision and Inspection Bureau III has 4 departments, Credit Institution Safety System Supervision Bureau has 4 departments, Anti-Money Laundering Department has 4 departments.

The Governor of the State Bank of Vietnam shall prescribe the functions, tasks, powers, and organizational structure of units under the Banking Inspection and Supervision Agency.

Article 4Leadership of the Banking Supervision and Inspection Authority

1. The Banking Inspection and Supervision Agency has a Chief Inspector and Supervisor of Banking and not more than four Deputy Chief Inspectors and Supervisors of Banking.

2. The Chief Inspector of Banking Supervision is appointed, dismissed, or removed from office by the Governor of the State Bank of Vietnam after consultation with the General Inspector of the Government.

The Governor of the State Bank of Vietnam appoints, relieves, or dismisses Deputy Chief Inspectors and Supervisors of Banking upon the proposal of the Chief Inspector and Supervisor of Banking and in accordance with the law.

3. The Chief Inspector of Banking Supervision is responsible before the Governor of the State Bank of Vietnam and the law for all activities of the Banking Supervision and Inspection Authority; Deputy Chief Inspectors of Banking Supervision are responsible before the Chief Inspector of Banking Supervision and the law for the areas of work they are assigned to manage.

4. The Chief Inspector of Banking Supervision performs the tasks and powers stipulated in Article 8 of Decree No. 26/2014/NĐ-CP and Clause 4, Article 1 of Decree No. 43/2019/NĐ-CP; the tasks and powers of the Chief Inspector of Ministries and agencies at the ministerial level according to the law on inspection and other relevant laws.

Article 5. Transitional Provisions

The Domestic Credit Institutions Inspection and Supervision Department, Foreign Credit Institutions Inspection and Supervision Department, Banking System Safety Supervision Department, Credit Institutions Licensing Management and Banking Activities Department, Cadres and Personnel Organization Department, Banking Supervision and Inspection Bureau of Hanoi City, Banking Supervision and Inspection Bureau of Ho Chi Minh City continue to perform their functions, tasks, and powers according to current regulations until the Governor of the State Bank of Vietnam issues a Decision specifying the new functions, tasks, powers, and organizational structure of Banking Supervision and Inspection Bureau I, Banking Supervision and Inspection Bureau II, Banking Supervision and Inspection Bureau III, Credit Institution Safety System Supervision Bureau, Office of the Banking Supervision and Inspection Authority, State Bank of Vietnam Branch in Hanoi City, State Bank of Vietnam Branch in Ho Chi Minh City.

Article 6. Effectiveness and responsibility for implementation

1. This Decision takes effect from the date of issuance and replaces Decision No. 35/2014/QĐ-TTg dated June 12, 2014, of the Prime Minister prescribing the functions, tasks, powers, and organizational structure of the Banking Supervision and Inspection Authority under the State Bank of Vietnam.

2. The Governor of the State Bank of Vietnam, Ministers, Heads of agencies at the ministerial level, Heads of government agencies, Chairmen of provincial People's Committees directly under the central government, and the Chief Inspector of Banking Supervision are responsible for implementing this Decision./.