Circular No. 32/2016/TT-NHNN amends and supplements certain provisions of Circular No. 23/2014/TT-NHHN dated August 19, 2014 of the State Bank of Vietnam guiding the opening and use of settlement accounts at service providers.

CIRCULAR

Amending and supplementing some articles of Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the State Bank of Vietnam guiding the opening and use of settlement accounts at service providers;For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.

WHEREAS Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Organizations No. 47/2010/QH12 dated June 16, 2010;

BASED ON DECREE NO. 16/2017/NĐ-CP DATED FEBRUARY 17, 2017 OF THE GOVERNMENT ON THE FUNCTIONS, TASKS, POWERS, AND ORGANIZATIONAL STRUCTURE OF THE STATE BANK OF VIETNAM;

On the basis of Decree No. 80/2016/NĐ-CP dated July 1, 2016 of the Government amending and supplementing some articles of Decree No. 101/2012/NĐ-CP dated November 22, 2012 of the Government on non-cash payment;

Pursuant to Decree No. 156/2013/NĐ-CP dated November 11, 2013, of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Payment Department Director;

The Governor of the State Bank of Vietnam issues this Circular amending and supplementing some articles of Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the State Bank of Vietnam guiding the opening and use of settlement accounts at service providers;

Article 1. Amending and supplementing some articles and appendices of Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the State Bank of Vietnam guiding the opening and use of settlement accounts at service providers;

1. Clause 3 of Article 3 is amended and supplemented as follows:

“3. A settlement account of an organization is an account opened by an organizational customer at a service provider. The holder of the settlement account of an organization is the organization that opens the account. The legal representative or authorized representative (collectively referred to as the lawful representative) of the organization that opens the settlement account shall act on behalf of the organization to carry out transactions related to the settlement account within the scope of representation.”

Clause 1 and Clause 2 of Article 4 shall be amended and supplemented as follows:

“1. The holder of a settlement account may authorize another person to use their settlement account.

2. The authorization for using a settlement account must be in writing and carried out in accordance with the provisions of the law on authorization.”

Clause 2 of Article 5 shall be amended and supplemented as follows:

“d) Providing complete, clear, and accurate information related to the opening and use of settlement accounts. Timely notifying and sending relevant documents to the service provider where the account is opened when there is a change in the information in the application for opening a settlement account. Changes in information about a settlement account opened at the State Bank shall be implemented according to Appendix No. 03 attached to this Circular;”

Clause 2 of Article 6 shall be amended and supplemented as follows:

“b) Retaining and updating all samples of signatures, seals (if any) of customers registered for verification and comparison during the use of settlement accounts;”

“d) Providing full and timely information about the balance, transactions occurring on the settlement account, and the freezing of the settlement account in writing or through the forms prescribed in the contract for opening and using the settlement account, and being responsible for the accuracy of the information provided;”

Clause 1 of Article 8 shall be amended and supplemented as follows:

“c) Documents proving the lawful representative's status of the lawful representative of the organization opening the settlement account and the identity card or citizen identification card or passport still valid of that person;

d) Written authorization or appointment decision and the identity card or citizen identification card or passport still valid of the chief accountant or accounting officer, transaction control personnel with the State Bank.”

6. Article 11 shall be amended and supplemented as follows:

“Article 11. Subjects Opening Settlement Accounts

1. Individuals opening payment accounts at banks, foreign bank branches include:

a) Persons aged 18 years or older with full civil capacity under Vietnamese law;

b) Persons aged 15 years or older but under 18 years old not losing or having limited civil capacity;

c) Persons under 15 years old, persons with limited civil capacity, persons without civil capacity under Vietnamese law opening payment accounts through their legal representatives;

d) Persons with difficulties in understanding and controlling their actions under Vietnamese law opening payment accounts through their guardians.

2. An organization as a legal entity opens a settlement account at a bank or foreign bank branch.”

Clause 1, Clause 2, and Clause 4 of Article 12 shall be amended and supplemented as follows:

“1. For individual settlement accounts:

a) An application for opening a payment account prepared according to the model of the bank, foreign bank branch where the account is opened and consistent with the provisions of Clause 1 of Article 13 of this Circular;

b) Identity card or citizen identification card or passport still valid, birth certificate (for individuals under 14 years old who are Vietnamese citizens), entry visa or document proving exemption from entry visa (for foreign individuals) of the account holder;

c) In cases where an individual opens a settlement account through a guardian or legal representative, in addition to the documents mentioned in point a and b of clause 1 of this Article, the application for opening a settlement account must also include the identity card or citizen identification card or passport still valid of the guardian or legal representative and documents proving the lawful representative's status of that person towards the account holder.”

2. For organizational payment accounts:

a) An application for opening a payment account prepared according to the model of the bank, foreign bank branch where the account is opened and consistent with the provisions of Clause 2 of Article 13 of this Circular;

b) Documents proving the establishment and legal operation of the organization opening the settlement account: Decision on establishment, business license, business registration certificate, or other documents as prescribed by law;

c) Documents proving the status of the lawful representative and the appointment decision of the chief accountant or accounting officer (if any) of the organization opening the settlement account, along with the identity card or citizen identification card or passport still valid of those persons.”

“4. The documents in the application for opening a settlement account stipulated in clauses 1 and 2 of this Article (excluding the Application for Opening a Settlement Account prepared according to the model of the bank) are original or copies. For documents in the application for opening a settlement account in a foreign language, the bank or foreign bank branch may agree with the customer to translate them into Vietnamese but must ensure the following principles:

a) Documents proving the establishment and legal operation of the organization opening the settlement account (decision on establishment, business license, business registration certificate); documents proving the status of the lawful representative of the account holder in opening and using the settlement account (appointment decision, authorization letter) must be fully translated into Vietnamese;

b) Passports and other documents in the account opening file for a payment account only need to be translated into Vietnamese upon request from competent state agencies;

c) The Vietnamese translation must be attached to the original document in a foreign language for verification and comparison;

d) Service providers are responsible for controlling and ensuring the authenticity, accuracy, and completeness of the content translated into Vietnamese compared to the content of the documents in a foreign language.”

8. Clause 1, clause 2 of Article 13 are amended and supplemented as follows:

“1. The application for opening an individual settlement account must contain the following main contents:

a) Information about the account holder, including:

- For Vietnamese individuals: name, date of birth, nationality; occupation, position; telephone number; identity card number or citizen identification card number or passport number still valid, date of issue, place of issue; permanent residence address and current address; whether they are residents or non-residents;

- For foreign individuals: full name, date of birth, nationality; profession, position; telephone number; valid passport number, issue date, issuing authority, entry visa; address of residence abroad and address of residence in Vietnam; whether they are residents or non-residents.

b) In cases where an individual opens a payment account through a guardian or legal representative: information about the guardian or legal representative of the account holder, including:

- In the case where the guardian or legal representative of the account holder is an individual, the information about the guardian or legal representative shall be carried out in accordance with the provisions of point a, Clause 1 of this Article;

- In the case where the guardian of the account holder is an organization, the information includes: full trading name and abbreviation; main office address, transaction address, telephone number, fax number (if any); field of operation, business; legal representative of the organization.

c) Sample signature of the account holder or legal representative, guardian, and other related persons (if any) on transaction documents with the bank, foreign bank branch.

2. The application form for opening a payment account of an organization must include the main contents as follows:

a) Full trading name and abbreviation; headquarters address, transaction address, phone number, field of operation, business;

b) Information about the legal representative of the organization opening a payment account as stipulated in point a of Clause 1 of this Article;

c) Information about the chief accountant or person responsible for accounting (if any) of the organization opening a payment account in accordance with the provisions of point a, Clause 1 of this Article;

d) Sample signature of the legal representative of the organization opening the account, sample seal (if any), sample signature of the chief accountant or person responsible for accounting (if any) of the organization opening the payment account.”

d) Sample signature of the legal representative of the organization opening the account, sample seal (if any), sample signature of the chief accountant or accounting supervisor (if any) of the organization opening a payment account."

“3. After completing the verification and ensuring that all documents in the account opening file comply with the regulations, the bank, foreign bank branch will proceed to sign the contract for opening and using the payment account with the customer as follows:

a) For individual account holders: the bank, foreign bank branch must meet face-to-face with the account holder or guardian, legal representative of the account holder (in the case of opening an account through a guardian or legal representative) when signing the contract for opening and using the payment account. In cases where the individual is outside the country, if the bank, foreign bank branch cannot meet face-to-face, they may verify customer identification information through an agent bank or intermediary but must ensure accurate verification of the account holder and bear full responsibility for verifying and identifying the payment account holder. The selection of intermediaries to verify customer information must comply with the provisions of Article 10 of Decree No. 116/2013/NĐ-CP dated October 4, 2013 detailing the implementation of certain articles of the Law on Anti-Money Laundering and subsequent amendments, supplements, or replacements (if any).

b) For organizational payment accounts: the bank, foreign bank branch does not need to meet face-to-face with the legal representative of the account holder when signing the contract for opening and using the payment account, but must apply measures to verify the accuracy of the seal (if any) and signature of the legal representative of the account holder on the contract for opening and using the payment account and ensure it matches the sample seal (if any), sample signature in the payment account opening file;

c) For joint payment accounts:

- In the case where the entity named as the account opener for the joint payment account is an individual, the bank, foreign bank branch will proceed to sign the contract for opening and using the payment account in accordance with the provisions of point a of this clause;

- In the case where the entities named as the account openers for the joint payment account are organizations, the bank, foreign bank branch will proceed to sign the contract for opening and using the payment account in accordance with the provisions of point b of this clause.

4. Contract for opening and using the payment account:

a) The contract for opening and using the payment account must include at least the following contents:

a) The contract for opening and using a payment account includes the following contents:

- Name of the bank, foreign bank branch; name of the account holder and full name of the legal representative of the account holder (if the account holder is an organization), full name of the guardian, legal representative of the account holder (if the account holder is an individual as specified in point c, d of Clause 1 of this Circular);

- Account number, start date of the payment account;

- Contents regarding the rights and obligations of the parties;

- Fee provisions (types of fees, changes to fees);

- Provision of information and notification methods to inform the account holder about: account balance and transactions, account freezing, and other necessary information during the use of the payment account;

- Cases of temporary suspension and lifting of the temporary suspension of the settlement account;

- Scope of use of the settlement account and cases where the account holder's payment orders are refused;

- Use of the payment account to pay regular, periodic payments at the request of the account holder or the bank, foreign bank branch to collect overdue debts, interest, and other costs incurred in managing the account and providing payment services;

- Implementation of measures to ensure safety and confidentiality in the use of the settlement account;

- Methods for receiving requests for review and complaints; time limit for handling review and complaint requests and the processing of review and complaint results as stipulated in Article 15a of this Circular;

- Cases of closing the settlement account and the handling of remaining balances after closing the settlement account;

b) In addition to the contents stipulated in point a of this Clause, the parties may agree on other contents in accordance with this Circular and relevant laws;

c) In cases where a standard contract or general terms of trade are used in concluding the contract for opening and using the payment account, the bank, foreign bank branch must carry out:

- Publicly display the standard contract, general terms of trade for opening and using the payment account at its headquarters and post them on its electronic information website;

- Provide complete information about the standard contract, general terms of trade to the customer before signing the contract for opening and using the payment account and obtain confirmation from the customer that they have been provided with complete information by the bank, foreign bank branch;

d) The contract for opening and using the payment account must be sent to the customer one copy.

5. Banks and foreign bank branches shall guide customers on the procedures and formalities for receiving and processing applications to open settlement accounts, methods and locations for signing contracts to open and use settlement accounts tailored to each category of customer in accordance with their own conditions and supply capabilities, but must ensure compliance with laws on anti-money laundering and other relevant laws, and bear responsibility for the accuracy, thoroughness, and completeness of the application and contract for opening and using settlement accounts.

6. The procedures and formalities for receiving and processing applications to open settlement accounts for cases where customers open additional settlement accounts at the same bank or foreign bank branch shall be decided by the bank or foreign bank branch, but must ensure the full collection and verification of customer identification information in accordance with the laws on anti-money laundering.

10. Clause 2 Article 15 is amended and supplemented as follows:

2. The use of settlement accounts by individuals under 15 years old, persons with limited or lost capacity for civil conduct, or persons with difficulties in understanding and controlling their actions must be carried out through guardians or legal representatives. Guardians or legal representatives shall carry out transactions through the settlement account of the person under guardianship or the person they represent in accordance with the Civil Code provisions on guardianship and representation.

11. Add Article 15a as follows:

“Article 15a. Handling of inquiries and complaints in the use of settlement accounts

1. The bank, foreign bank branch has the responsibility to accept customer review and complaint requests during the use of settlement accounts, ensuring compliance with the following principles:

a) Apply at least two forms of information reception for inquiries and complaints including through a call center (with recording) and through bank transaction points; ensuring the verification of basic information provided by customers to banks or foreign bank branches;

b) Develop a form for requesting inquiries and complaints for customers to use when making such requests. In cases where information is received through a call center, banks or foreign bank branches require customers to submit a request form within the time frame specified by the bank or foreign bank branch as the basis for handling inquiries and complaints. In cases where another person is authorized to make the request, the customer must follow the provisions of the law on authorization;

c) Banks and foreign bank branches may agree and specify the period during which customers have the right to request inquiries and complaints, but not less than 60 days from the date of the transaction requiring inquiry or complaint;

2. Time limit for handling reviews and complaints:

a) Within a maximum period of 30 working days from the date of receipt of the first customer's inquiry or complaint request according to one of the reception forms stipulated in point a, Clause 1 of this Article, banks or foreign bank branches are responsible for handling the customer's inquiry or complaint request;

b) Within a maximum period of 05 working days from the date of notification of the results of the inquiry or complaint to the customer, banks or foreign bank branches shall implement compensation for losses suffered by the customer in accordance with agreements and current laws for losses arising from non-customer fault and/or not falling under force majeure situations agreed upon in the terms and conditions for opening and using settlement accounts;

c) In cases where the deadline for handling inquiries or complaints as stipulated in point a of this clause has expired without determining the cause or fault of either party, within the following 15 working days, banks or foreign bank branches shall negotiate with the customer regarding the resolution plan for the inquiry or complaint;

3. In cases where there are signs of criminal offenses, banks or foreign bank branches shall notify competent state agencies in accordance with the Criminal Procedure Law and report to the State Bank of Vietnam (Payment Department, Banking Inspection and Supervision Agency, State Bank Branches in the locality); simultaneously, notify the customer in writing about the status of the inquiry or complaint request handling. The resolution of the inquiry or complaint result falls under the responsibility of the competent state agency. If the competent state agency notifies that there are no criminal elements in the resolution, within 15 working days from the date of the conclusion of the competent state agency, banks or foreign bank branches shall negotiate with the customer regarding the resolution plan for the inquiry or complaint;

4. In cases where banks or foreign bank branches, customers, and related parties cannot reach an agreement or disagree with the inquiry or complaint process, the dispute resolution shall be carried out in accordance with the law.

12. Point b, Clause 1 and Clause 2 of Article 17 are amended and supplemented as follows:

1. Service providers shall freeze part or all of the funds in a customer's settlement account in the following cases:

b) Service providers discover errors or mistakes when crediting funds to a customer's settlement account or upon request to refund money due to errors or mistakes compared to the payment order of the remitter. The amount frozen in the settlement account shall not exceed the amount of the error or mistake;

2. Immediately after freezing the settlement account, service providers must notify (in writing or by the agreed notification method in the settlement account opening and usage contract between the service provider and the customer) the account holder or guardian or legal representative of the account holder about the reason and scope of the settlement account freeze; the frozen amount in the settlement account must be preserved and strictly controlled according to the freeze content. In cases where only part of the account is frozen, the unfrozen portion can still be used normally.

13. Point a, Clause 1 and point a, Clause 4 of Article 18 are amended and supplemented as follows:

"1. Payment service providers shall close the payment accounts of customers in the following cases:

a) Upon receipt of a written request to close the payment account from the account holder and when the account holder has fulfilled all obligations related to the payment account. In cases where the account holder is under 15 years old, a person with limited civil capacity, a person without civil capacity, or a person with difficulty in understanding and controlling their actions, the closure of the account shall be carried out at the request of the guardian or the legal representative of the account holder;"

"4. The remaining balance after closing the payment account shall be handled as follows:

a) Payment according to the request of the account holder; the guardian or the legal representative of the account holder in cases where the account holder is under 15 years old, a person with limited civil capacity, a person without civil capacity, or a person with difficulty in understanding and controlling their actions; or the heir or the representative of the heir in cases where the individual account holder has died, been declared dead, or missing;"

14. Replacing Appendix No. 01 issued together with Circular No. 23/2014/TT-NHNN with Appendix No. 01 attached to this Circular.

15. Replacing Appendix No. 02 issued together with Circular No. 23/2014/TT-NHNN with Appendix No. 02 attached to this Circular.

16. Supplementing Appendix No. 03 attached to this Circular.

Article 2.

Revoking Clause 2 Article 1, Clause 3 Article 15; Point c Clause 1, Clause 3 and Point d Clause 4 Article 17.

Article 3. Effectiveness

This Circular takes effect from March 1, 2017.

Article 4. Transitional Provisions

1. Payment service providers shall review the application forms, contracts for opening and using payment accounts of corporate customers that were opened before the date this Circular takes effect and implement changes to the account holder's name without needing to sign new contracts for opening and using the account, except in cases where there is a written request from the payment account holder.

2. Banks and foreign bank branches shall review the application forms, contracts for opening and using payment accounts of household customers, cooperative organizations, and other entities without legal status that were opened before the date this Circular takes effect and shall carry out the following:

a) Within three months from the date this Circular takes effect, notify the customer about the conversion to an individual payment account or a joint payment account, the deadline for completing the account conversion, and the handling after the conversion period ends as stipulated in point b, c of this clause;

b) Within twelve months from the date this Circular takes effect, cooperate with the customer to complete the signing of new contracts for opening and using payment accounts to convert to an individual payment account or a joint payment account, or close the account (if requested by the customer);

c) After twelve months from the date this Circular takes effect, close the payment accounts of household customers, cooperative organizations, and other entities without legal status that have not completed the conversion of account form as stipulated in point b of this clause.

3. For payment accounts opened before the date this Circular takes effect, banks and foreign bank branches shall inform the account holders about the contents of the contracts for opening and using payment accounts as stipulated in Clause 4 Article 14 of this Circular. The notification shall be made on the electronic information page of the bank or foreign bank branch and through agreed notification methods in the contract for opening and using payment accounts. Banks and foreign bank branches shall sign new contracts for opening and using payment accounts (or sign contracts for amendment and supplementation) upon request of the customer. Any amendments or supplements to signed contracts must comply with the provisions of this Circular.

Article 5. Timplementation

The Director of the Office, the Head of the Payment Department, the heads of units under the State Bank; the Governor of the State Bank Branches in provinces and centrally-administered cities; the Chairman of the Board of Directors, the Chairman of the Board of Members, and the General Manager (Director) of banks and foreign bank branches are responsible for organizing the implementation of this Circular.