Decision No. 353/1997/QD-NHNN2 promulgates the Rules on Electronic Fund Transfers

Pursuant to …;

ISSUING THE "ELECTRONIC FUNDS TRANSFER REGULATIONS"
__________

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the State Bank of Vietnam Ordinance, the Banking Ordinance, Credit Cooperative and Financial Company Ordinance dated May 23, 1990;

Pursuant to the Government Decree No. 15/CP dated March 2, 1993 on the tasks, powers, and responsibilities for state management of Ministries and agencies at the ministerial level;

Pursuant to Decision No. 196/TTg dated April 1, 1997 of the Prime Minister on the use of data information on carriers for accounting vouchers and payment transactions of banks and credit organizations.

At the proposal of the Director of the Accounting and Finance Department of the State Bank,

Pursuant to …;

Article 1:The "Electronic Funds Transfer Regulations" are hereby promulgated along with this Decision.

Article 2: This Decision shall take effect fifteen days from the date of signature. All previous regulations that conflict with this Decision shall be terminated.

Article 3: The Director of the Governor's Office, Heads of Units under the Central Bank of Vietnam, Branch Governors of the People's Bank of Provinces and Cities, General Directors (Directors) of Credit Organizations, and General Directors of the National Treasury are responsible for implementing this Decision.

REGULATIONS

ELECTRONIC FUNDS TRANSFER
(Pursuant to Decision No. 353/1997/QĐ-NHNN2 dated October 22, 1997 of the Governor of the State Bank of Vietnam)

Chapter 1:

GENERAL PROVISIONS

Article 1:In these regulations, electronic funds transfer refers to the entire process of processing a fund transfer through a computer network from receiving an Electronic Funds Transfer Order from the issuer until the completion of payment to the beneficiary (for credit transfers) or the collection of debt from the recipient (for debit transfers).

Article 2:In these regulations, the following terms are understood as follows:

1. Parties involved in electronic funds transfer:

- Issuer: An organization or individual sending an Electronic Funds Transfer Order to a bank or the State Treasury to execute the electronic funds transfer. - Recipient: An organization or individual benefiting from the transferred amount (if it is a credit transfer) or an organization or individual required to pay (if it is a debit transfer with authorization); also known as the payer.

- Bank A: The bank directly receiving the Electronic Funds Transfer Order from the issuer to execute the order.

- Bank B: The bank specified on the Electronic Funds Transfer Order that will pay the beneficiary (if it is a credit transfer) or collect the debt from the recipient (if it is a debit transfer).

- Intermediary bank: The bank acting as an intermediary between Bank A and Bank B for the electronic funds transfer. Depending on each transaction, there may be one or several intermediary banks participating in the execution. - Sending bank: Bank A or an intermediary bank issuing an Electronic Funds Transfer Order to another bank to execute the order of the issuer.

- Receiving bank: An intermediary bank or Bank B receiving the Electronic Funds Transfer Order from the sending bank to execute the order of the issuer.

2. Other terms:

- Electronic Funds Transfer Order: A directive from the issuer to Bank A in the form of an accounting voucher to execute the electronic funds transfer. The order can specify the time of execution but does not include any other payment conditions. An Electronic Funds Transfer Order can be either a Debit Order or a Credit Order.

- Debit Order: An Electronic Funds Transfer Order issued by the issuer to debit the account of the recipient at Bank B for a specific amount and credit the account of the issuer at Bank A for that amount.

- Credit Order: An Electronic Funds Transfer Order issued by the issuer to debit the account of the issuer at Bank A for a specific amount and credit the account of the recipient (beneficiary) at Bank B for that amount.

- High-value Electronic Funds Transfer Order: An Electronic Funds Transfer Order with an amount equal to or greater than the level set by the Governor of the State Bank of Vietnam for each period.

- Low-value Electronic Funds Transfer Order: An Electronic Funds Transfer Order with an amount below the level set by the Governor of the State Bank of Vietnam.

- Message: The form of representation of the content of an Electronic Funds Transfer Order or notification about an electronic funds transfer transmitted via a computer network between banks, replacing the transfer of related accounting vouchers or notifications regarding the electronic funds transfer.

- Message confirmation: A procedure previously defined among banks to confirm that the Electronic Funds Transfer Order or notification has been correctly transmitted to Bank B and that the information has not been altered during transmission.

- Execution of an Electronic Funds Transfer Order: The process of completing an Electronic Funds Transfer Order from Bank A to Bank B, including the execution of relevant accounting entries by the involved banks.

- Execution time: Includes prescribed execution time and actual execution time.

+ Prescribed execution time: The time stipulated according to the regime for executing an Electronic Funds Transfer Order, starting from when Bank A receives the Electronic Funds Transfer Order until Bank B completes the execution of that order.

+ Actual execution time: The actual time used to execute the Electronic Funds Transfer Order.

- Acceptance of an Electronic Funds Transfer Order: An Electronic Funds Transfer Order is considered accepted in the following cases:

+ When the receiving bank (except Bank B) accepts the Electronic Funds Transfer Order for execution, forwarding, or within the acceptance period without querying or returning the order to the sending bank.

+ When Bank B accepts the Electronic Funds Transfer Order upon posting to the recipient's account or notifying the recipient without a rejection notice, or within the acceptance period without Bank B rejecting or querying back the sending bank.

Article 3:The scope of electronic funds transfer under these regulations includes credit and authorized debit transfers in Vietnamese dong or foreign currency between units within the same banking system, State Treasury, or between domestic banking systems and the State Treasury. Foreign currency transfers must comply with state regulations on foreign exchange management and the State Bank of Vietnam.

- Settlement transactions, international payments through the SWIFT network, and other electronic payment methods with separate regulations are not covered by these regulations.

Article 4:The participants in electronic fund transfers are banks and State Treasury that meet the conditions and standards set forth in Decision No. 83/QĐ-NH2 dated April 9, 1996, issued by the Governor of the State Bank of Vietnam on the "Regulations on Member Banks Participating in Interbank Electronic Payment," and have been approved in writing by the State Bank of Vietnam.

- Specifically, for electronic fund transfers between units within a banking system, the conditions and standards must be ensured as prescribed by the General Director or the Director of that bank.

Chapter 2:

SPECIFIC PROVISIONS ON ELECTRONIC FUND TRANSFERS

Article 5: Order to transfer funds:

1. The order to transfer funds must be established on a uniform form issued by the State Bank of Vietnam.

2. The establishment, processing, control, circulation, and preservation of the Order to Transfer Funds and the Order to Cancel must be carried out strictly in accordance with the accounting voucher regime stipulated by the bank and the State Bank of Vietnam.

3. Banks shall bear full responsibility for the accuracy and honesty of the data and content of the Order to Transfer Funds and the handling of electronic fund transfers conducted by themselves.

Article 6:An Order to Transfer Funds can be represented in the form of paper vouchers or electronic vouchers. Therefore, it must be managed, monitored, and controlled strictly to prevent confusion, embezzlement, and abuse leading to multiple payments for a single Order to Transfer Funds, causing errors.

1. When an Order to Transfer Funds is converted from a paper voucher to an electronic voucher, the electronic voucher will have the value to transfer funds, while the paper voucher will only retain its value for record-keeping and review purposes and will not be effective for payment.

2. When an Order to Transfer Funds is converted from an electronic voucher to a paper voucher, the paper voucher will have the value to transfer funds, while the electronic voucher will only retain its value for record-keeping and review purposes and will not be effective for payment.

3. The conversion of Orders to Transfer Funds from paper vouchers to electronic vouchers or vice versa must be carried out in accordance with the regulations on the issuance, use, control, processing, preservation, and storage of electronic vouchers as prescribed by the Governor of the State Bank of Vietnam.

Article 7: Execution and completion of an Order to Transfer Funds:

1. An Order to Credit may only be executed when:

a. Bank A receives a valid Order to Transfer Funds submitted by the issuer and the issuer has paid the amount stated on the Order to Transfer Funds to Bank A.

b. The receiving bank will only accept a valid incoming Order to Transfer Funds if the sending bank has settled the amount according to the Order to Transfer Funds.

2. An Order to Debit may only be executed when:

a. Bank A will only accept a valid Order to Transfer Funds submitted by the issuer accompanied by a debit transfer authorization contract from the recipient, and the recipient must necessarily have a deposit account at Bank B.

b. The receiving bank will only transfer funds for a valid Order to Debit received from the sending bank.

3. An Order to Transfer Funds is considered completed when:

a. An Order to Credit is considered completed when Bank B has fully paid to the recipient or has returned the Order to Credit to Bank A for any reason.

b. An Order to Debit is considered completed when the recipient has fully paid the amount on the Order to Debit and any late payment penalties (if applicable), or the Order to Debit has been returned to Bank A by Bank B for any reason.

c. An Order to Transfer Funds (debit or credit) is considered completed if it is canceled by a valid Order to Cancel.

Article 8:Sending banks and receiving banks must verify the validity of the Order to Transfer Funds. In case of suspicion or discovery of errors or contradictions in the Order to Transfer Funds, the receiving bank must act as prescribed in Article 15 of this Regulation. For high-value Orders to Transfer Funds, the receiving bank must recheck and request confirmation from the sending bank via telephone before accepting the Order to Transfer Funds.

Article 9: Processing and recording of Orders to Transfer Funds:

1. Banks must process and record Orders to Transfer Funds honestly, completely, promptly, accurately, and clearly. Any bank that causes errors, confusion, or delays shall be responsible for compensating the party suffering losses.

2. The sending bank must record before transmitting the Order to Transfer Funds to the next bank. Upon receipt, the receiving bank must carefully check; if correct, it must immediately accept and record the Order to Transfer Funds for further processing.

3. For authorized debit transfer orders, Bank A credits the account for debits to be paid only after these debits have been accepted by Bank B; then Bank A may credit the issuer's (beneficiary's) account.

4. Corrections to errors in the recording of electronic fund transfers can only be made after they have been controlled and there is sufficient basis for processing, and must comply with current regulations on correcting accounting errors; automatic correction of recorded accounting figures under any form or arbitrary correction is strictly prohibited. Any bank or person who adjusts contrary to regulations resulting in loss of assets must compensate for the damage.

Article 10: High-value Orders to Transfer Funds and urgent Orders to Transfer Funds are handled as follows:

1. Banks must prioritize the processing of high-value or urgent Orders to Transfer Funds and must complete them within the specified time frame from the moment the bank receives the Order to Transfer Funds until it is processed and transmitted to the next bank. If there are multiple high-value or urgent Orders to Transfer Funds simultaneously, the priority order will be based on the time of receipt, with the earlier Order to Transfer Funds being prioritized for processing.

2. All high-value or urgent Orders to Transfer Funds, banks must handle them immediately without batching and not wait for settlement through netting.

Article 11: Data transmission methods in electronic fund transfers:

1. The Order to Transfer Funds established and submitted to Bank A by the issuer can be in the form of a paper voucher or an electronic voucher. Bank A is responsible for converting paper vouchers into electronic vouchers in accordance with Article 6 of this Regulation and the electronic voucher regime issued by the State Bank of Vietnam.

2. All Payment Orders before being transmitted over computer networks or telecommunications must be encrypted and security measures must be implemented to ensure the authenticity and accuracy of electronic documents.

3. The transmission or receipt of high-value Payment Orders between banks must be guaranteed through continuous and online (online) means of communication.

4. After executing a Payment Order, Bank B must send a notice or electronic notification to the recipient based on the Payment Order transmitted from Bank A or an intermediary bank.

Article 12:Equipment and computer programs used in electronic fund transfers:

1. For equipment and computer programs serving electronic fund transfer activities, banks must have strict regulations for storage and use. Unauthorized persons are strictly prohibited from accessing, exploiting, using, or modifying the database, equipment, and electronic fund transfer programs.

2. Banks participating in electronic fund transfers must have backup systems for their electronic fund transfer systems and must regularly store backup data to avoid risks of losing databases or causing delays in information transmission and reception.

Article 13:Timeframes for execution and acceptance of documents:

1. In cases where Payment Orders do not specify an execution time: a. Based on their own capabilities for electronic fund transfer, banks must set appropriate times for executing a Payment Order without causing delays and ensuring the security of the Payment Order.

b. The cut-off time for receiving Payment Orders by commercial banks shall be determined by the General Director or the Director of the respective banking system. For payments through the State Bank, banks must take into account the cut-off time of the State Bank when implementing accordingly.

c. Payment Orders submitted before the specified time are valid and banks must transmit them immediately on the same day. If submitted after this time, the payment orders will be executed (including accounting entries) on the next working day.

2. In cases where Payment Orders specify an execution time (at a specific date and hour after sending the Payment Order), Bank A must execute according to the specified time. If the designated date falls on a holiday, it will be executed on the next working day.

3. If a high-value or urgent Payment Order is submitted to Bank A after the time specified in Clause 1 of Article 13, it will be executed during the defined period at the beginning of the next working day. The level of urgency and specific execution time are agreed upon by Bank A and the issuer.

4. The execution time for cases where the issuer submits paper documents is longer, and the cut-off time for submitting paper documents is earlier compared to cases where the issuer submits electronic documents.

Article 14:The acceptance timeframe for the receiving bank when making payments to another banking system must fall within the prescribed timeframe (except in cases of force majeure):

1. For normal transfers: up to 2 hours from the time of receiving the Payment Order from the sending bank or 1 hour from the time of receiving the reply to a query from the receiving bank if the receiving bank queries the sending bank.

2. For high-value transfers: up to 1 hour from the time of receiving the confirmation of the Payment Order from the sending bank.

3. For low-value but urgent transfers: up to 1 hour from the time of receiving the Payment Order from the sending bank.

Article 15:Errors and error handling:

When discovering errors in received Payment Orders, the receiving banks must immediately contact the sending bank via telephone to verify and only execute the Payment Order after receiving a correct response and confirming the accuracy of the transfer. Receiving banks are strictly prohibited from correcting elements of the Payment Order.

Error handling principles are as follows:

1. At Bank A:

a. In cases where the issuer's document is incorrectly prepared, return it to the issuer and request that they prepare it again.

b. In cases where the accounting department initially prepares an incorrect document (on paper or on electronic media such as magnetic tapes, floppy disks, or files transmitted over a network), upon discovery, the accounting department must issue a cancellation order to cancel the incorrectly prepared Payment Order and prepare a new one to replace it.

c. In cases where the paper document is correctly prepared, but there is an error in converting it to an electronic document (data entry errors), correct the erroneous element with a confirmation message or a reply to a query.

d. If the transmission security factors are incorrect or the message is damaged due to transmission errors, resend the correct message.

2. At Bank B:

a. In cases where errors are discovered before executing the Payment Order, the bank must verify with the sending bank and wait for a confirmation or cancellation order to proceed.

b. In cases where errors are discovered after executing the Payment Order, Bank B must take measures to prevent potential losses and simultaneously verify with the sending bank.

3. At an intermediary bank (if relevant):

a. In cases where a transfer is received and errors are discovered before executing the Payment Order, the receiving intermediary bank must verify with the sending bank and wait for a correct confirmation or cancellation order to proceed.

b. In cases where errors are discovered after transmitting the Payment Order further, immediately notify the subsequent receiving bank to stop executing the Payment Order; simultaneously verify and inform the sending bank of the situation.

Article 16:Cancellation of Payment Orders:

1. In principle, the issuer has the right to request the cancellation of a Payment Order in the following cases:

a. For Debit Payment Orders: cancellation is only allowed if the issuer has returned the amount received to Bank A.

b. For Credit Payment Orders: cancellation is only allowed if the credit has not been posted to the recipient's account or if the credit has been posted but Bank B has recovered the funds.

2. Banks can only cancel Payment Orders that they themselves have incorrectly issued and:

a. The Order to Transfer Debt shall only be cancelled when Bank A has not yet paid the person issuing the order according to the erroneous Order, or has paid but can recover the payment.

b. The Order to Transfer Credit shall only be cancelled when Bank B has not yet paid the recipient according to the erroneous Order, or has paid but can recover the payment.

3. When processing and implementing the Cancellation Order, the Banks must comply with the regulations applicable to urgent money transfer Orders.

Article 17: Insolvency:

1. In cases where the customer is insolvent.

a. For the Order to Transfer Credit: Bank A must notify the issuer to deposit sufficient funds to execute the Money Transfer Order. If, after the specified period (as agreed between Bank A and the issuer), the issuer still fails to deposit sufficient funds for payment, Bank A has the right to return the Money Transfer Order to the issuer.

b. For the Order to Transfer Debt with authorization: Bank B must inform the recipient to deposit sufficient funds to execute the Order to Transfer Debt and notify the sending bank. If, after the specified period (as agreed between Bank B and the recipient), the recipient still lacks sufficient funds for payment, Bank B must return the Money Transfer Order to the sending bank and clearly state the reason.

2. In cases where the Bank does not have sufficient funds to execute the Money Transfer Order issued by the issuer: the Banks must ensure they have adequate capital to execute the Money Transfer Order in accordance with their commitment to guarantee liquidity. Any Bank violating this provision will be subject to the provisions set forth in Chapter IV of the Regulations on Member Banks Participating in Interbank Electronic Payment Transactions issued together with Decision No. 83/QĐ-NH2 dated April 9, 1996 by the Governor of the State Bank.

Article 18: Technical Issues in Electronic Fund Transfers:

1. In cases of technical issues, the Banks are responsible for transferring information to the next Bank using all available means while ensuring absolute safety of assets and confidentiality of documents. In cases of force majeure (natural disasters, large technical failures due to external factors, etc.), the sending banks may extend the execution deadline by the duration of the force majeure event.

2. In cases where data transmission cannot be carried out for any reason, if direct exchange is possible, the affected Bank must send magnetic disks or tapes containing the Money Transfer Order to the next Bank in accordance with current regulations.

Article 19: Verification and Reconciliation in Electronic Fund Transfers:

1. Verification and reconciliation between the issuer and Bank A:

a. Upon receiving an electronic fund transfer Order or a cancellation Order via electronic documents, Bank A must carefully check and control the elements of the electronic document, particularly the encryption symbols, digital signatures, and security codes on the electronic document to ensure its validity. If the issuer submits a paper document, Bank A must verify the validity of the document; if errors are found, Bank A must return the document to the issuer.

b. For the Order to Transfer Credit, Bank A must also verify the solvency of the issuer when executing credit transfer Orders. For the Order to Transfer Debt, Bank A must verify the acceptance contract for debt transfer; if these requirements are not met, Bank A must return the Money Transfer Order.

c. When Bank A notifies that it has executed the Money Transfer Order, the issuer must verify whether the Bank's notification matches their Money Transfer Order. If there are discrepancies, the issuer must immediately inform Bank A. Additionally, the issuer should regularly urge customers to reconcile account balances and executed transfer Orders to confirm the accuracy of the account balance.

2. Verification and reconciliation between the recipient and Bank B:

a. Upon receiving a Money Transfer Order or a cancellation Order, Bank B must notify the recipient.

b. Regularly report and reconcile account balances and received Money Transfer Orders with the recipient.

3. For transactions between banks in different systems.

a- At the Sending Bank:

- The Sending Bank must be responsible for confirming or responding to inquiries from the Receiving Bank.

- At the end of the day, the Sending Bank must report all Money Transfer Orders and cancellation Orders sent during the day to each Receiving Bank, then forward them to the Receiving Bank for reconciliation. Only after receiving confirmation from all Receiving Banks that there are no errors can the electronic fund transfer reconciliation process be concluded.

- If the Sending Bank has transmitted a Money Transfer Order or cancellation Order but the Receiving Bank has not received it, the Sending Bank must reconfirm the accuracy and resend the Money Transfer Order. On this Money Transfer Order or cancellation Order, it must clearly indicate that it is the nth transmission to avoid multiple executions.

- If counterfeit or altered Money Transfer Orders or cancellation Orders are discovered, the Sending Bank must cooperate with the Receiving Bank to handle these counterfeit Orders and take measures to recover lost assets. Review the electronic fund transfer process, identify the cause, and promptly address such cases. Additionally, change security measures to ensure asset safety.

- If errors are detected, they shall be handled in accordance with Article 15 of this Regulation.

- Regularly reconcile figures with Receiving Banks regarding executed Money Transfer Orders.

b. At the Receiving Bank:

- Recheck the encryption symbols, digital signatures, security codes for electronic fund transfers, and other elements on the Money Transfer Order or cancellation Order received from the Sending Bank. If errors or suspected errors are found, immediately inquire with the Sending Bank.

- For high-value transfers, the Receiving Bank must request the Sending Bank to confirm again.

- At the end of the day, upon receiving the notification from the Issuing Bank regarding the Money Transfer Orders and Cancellation Orders (if any) sent during the day, the Receiving Bank must compare this notification with the Money Transfer Orders and Cancellation Orders (if any) received from the Issuing Bank to recheck them. If they match correctly, notify the Issuing Bank accordingly. In case of discrepancy, cooperate with the Issuing Bank to verify and handle the situation.

- In case of discovering counterfeit Money Transfer Orders or Cancellation Orders that have been tampered with, cooperate with the Issuing Bank to handle the counterfeit Money Transfer Orders, take measures to recover lost assets if any, and find the cause. Simultaneously, change security measures to ensure asset safety.

- If errors are found on the Money Transfer Order, handle it according to Article 15 of this Regulation.

- Regularly reconcile settlement accounts with the Issuing Bank regarding executed Money Transfer Orders.

4. The control, reconciliation, and settlement within each banking system shall be regulated by the General Director or the Director of that banking system.

5. The issuance, use, and management of secret codes, electronic signatures, and encryption keys in electronic money transfers must ensure asset safety.

a. The issuance, use, and management of secret codes, electronic signatures, and encryption keys in electronic money transfers between commercial banks and the State Bank shall be regulated by the State Bank.

b. The issuance, use, and management of secret codes, electronic signatures, and encryption keys in electronic money transfers among units within the same banking system shall be regulated by the General Director or the Director of the banking system.

c. For two different banking systems involved in electronic money transfer settlements, there must be an agreement between the two banks regarding the issuance, use, and management of secret codes, electronic signatures, and encryption keys in electronic money transfers.

d. In all cases of staff changes, secret codes, electronic signatures, and encryption keys managed and used by the departing staff must be changed. The issuance, use, and management of secret codes, electronic signatures, and encryption keys must be strictly controlled.

e. The person responsible for managing, using secret codes, electronic signatures, and encryption keys must ensure confidentiality and bear full legal responsibility if they are disclosed, leading to criminal exploitation causing asset losses.

Article 20:Banks providing electronic money transfer services are permitted to charge service fees for payment transactions in accordance with the regulations of the Governor of the State Bank. The General Director or the Director of the Bank shall specify the service fee level within the framework set by the Governor of the State Bank.

Chapter 3:

RIGHTS AND OBLIGATIONS OF THE PARTIES INVOLVED IN ELECTRONIC MONEY TRANSFERS

Article 21:Rights and obligations of the Ordering Party:

1. The Ordering Party has the right:

- To request Bank A (the bank serving the Ordering Party) to confirm receipt of the Money Transfer Order submitted by the Ordering Party and provide relevant information about the execution of that Money Transfer Order.

- To request Bank A to cancel the Money Transfer Order in accordance with Article 16.

- To demand a refund in case the money is not transferred to the designated recipient as specified in the Money Transfer Order.

- To lodge a direct complaint against the bank causing errors or delays in the execution of the Money Transfer Order, with compensation limited to the amount to be transferred and late payment penalties under current regulations.

- To request the Receiving Party to compensate for delays in processing authorized debt transfers. Compensation is limited to the amount to be paid and late payment penalties under current regulations.

2. The Ordering Party has the obligation:

- To have sufficient funds at Bank A to execute the Credit Money Transfer Order.

- To comply with the bank's regulations on issuing and sending a Money Transfer Order through the bank's electronic money transfer system and to be responsible for the accuracy of the data and content on the Money Transfer Order.

- In case the Ordering Party violates the regulations on issuing and sending a Money Transfer Order or incorrectly records data and content on the Money Transfer Order, leading to delayed payments, loss of money, and other material losses, the Ordering Party shall bear all damages.

- In case of discrepancies between the bank's notification and the Money Transfer Order issued by the Ordering Party, but the Ordering Party does not discover these discrepancies within three days from the date the bank executes the Money Transfer Order, or discovers them but fails to report to Bank A, the Ordering Party will not be entitled to late payment penalties caused by Bank A's fault.

- To pay the full service fee for electronic money transfers to Bank A.

Article 22:Rights and obligations of the Issuing Bank:

1. Bank A has the right:

- To require the Ordering Party to issue and submit Money Transfer Orders or Cancellation Orders in compliance with regulations, ensuring the validity of the documents to prevent embezzlement and fraudulent activities that may harm the bank and customers.

- To return the Money Transfer Order to the Ordering Party if, after a specified period, there are insufficient funds in the Ordering Party's account to execute the Credit Money Transfer Order as stipulated in Clause 1 of Article 17 of this Regulation.

- To request the Receiving Bank to confirm receipt of the Money Transfer Order sent by itself and related information about the Money Transfer Order.

- To collect electronic money transfer service fees from the Ordering Party within the prescribed limits.

2. Bank A has the obligation:

- To convert paper Money Transfer Orders and Cancellation Orders submitted by the Ordering Party into electronic documents and store the paper Money Transfer Orders and Cancellation Orders, while closely monitoring to avoid multiple transmissions.

- To maintain its ability to settle inter-bank transactions to execute Credit Money Transfer Orders and fulfill its responsibilities as stipulated in Clause 2 of Article 17 of this Regulation.

- To execute valid Money Transfer Orders within the time frame requested by the Ordering Party, except in cases of force majeure.

- To notify the Ordering Party about the execution of the Money Transfer Order. To respond to requests for information about the Money Transfer Order from the Ordering Party.

- Shall be responsible for confirming and responding to inquiries regarding the Money Transfer Order at the request of the receiving bank.

- Regularly reconcile account balances with the issuer and the subsequent receiving bank regarding executed Money Transfer Orders.

- In cases of receiving debt transfer orders, Bank A must determine whether there is a new debt acceptance contract before executing the transfer. During the time that Bank B has not accepted the debt transfer amounts, Bank A shall not credit the issuer's (beneficiary's) account.

- Cancel the Money Transfer Order upon request of the issuer or cancel erroneous Money Transfer Orders by a valid cancellation order, and replace them with correct Money Transfer Orders.

- Refund the amount to the issuer (in case of credit transfer) when the amount recorded in the Money Transfer Order is returned by Bank B for any reason.

- Compensate for damages caused by its own errors to the relevant parties. The compensation limit is within the amount to be transferred and the late payment penalty as stipulated.

Article 23: Rights and obligations of the intermediary bank

For electronic transfers conducted through intermediary banks, intermediary banks have rights and obligations:

1. The intermediary bank has the right:

- To refuse to forward invalid Money Transfer Orders or cancellation orders (incorrect bank code, incorrect password symbol, mismatch between written and numerical amount, incorrect address).

- To refuse a credit transfer order from the issuing bank if this bank does not have sufficient payment capacity.

- To request the receiving bank to confirm receipt of the Money Transfer Order or cancellation order transmitted by it and information about such Money Transfer Order or cancellation order.

- To charge service fees for inter-bank electronic transfers within the scope prescribed by the Governor of the State Bank.

2. The intermediary bank has the obligation:

- To confirm incoming telegrams according to the prescribed regulations. Respond to requests for information on Money Transfer Orders or cancellation orders from the issuing bank.

- To proceed with procedures as prescribed to forward Money Transfer Orders or cancellation orders to the subsequent receiving bank, except in cases of force majeure events.

- To inquire the issuing bank if there is suspicion or discovery of errors in Money Transfer Orders or cancellation orders as stipulated in Article 15 of this Regulation.

- To cancel telegrams upon request by a valid cancellation order from the issuing bank as stipulated in the above Article 16.

- To refund the amount recorded in the Money Transfer Order if such amount is not transferred to Bank B or when the amount recorded in the Money Transfer Order is returned by Bank B for any reason.

- To compensate for damages caused by its own errors to the relevant parties. The compensation limit is within the amount to be transferred and the late payment penalty as stipulated.

- To reconcile account balances with the issuing bank and the subsequent receiving bank regarding executed payment orders.

Article 24:Rights and obligations of Bank B

1. Bank B has the right:

- To refuse to execute invalid Money Transfer Orders, those with incorrect addresses, or debt transfers without a debt acceptance contract.

- To refuse a credit transfer order from the issuing bank if this bank does not have sufficient payment capacity for the Money Transfer Order. To refuse cancellation orders for credit transfers that cannot be recovered from the recipient.

- To apply penalties as prescribed against the recipient when there is insufficient balance in their account to cover legitimate debt transfers.

2. Bank B has the obligation:

- To verify the validity of the Money Transfer Order, accurately identify the recipient (name, account number...), before executing the Money Transfer Order. For debt transfer orders, it must determine whether there is authorization; if not, it must immediately inform the recipient to decide whether to accept or reject the payment and simultaneously notify Bank A.

- To confirm received Money Transfer Orders and respond to requests for information on Money Transfer Orders from the issuing bank.

- To inquire the issuing bank in case of suspicion, discovery of errors, or contradictions in received Money Transfer Orders.

- To complete the Money Transfer Order within the prescribed execution period, except in cases of force majeure. To execute cancellation of the Money Transfer Order according to the cancellation order from the issuing bank (Bank A or intermediary bank) as stipulated in Article 16 of this Regulation.

- To maintain its payment capacity for debt transfers as specified in Clause 2 of the aforementioned Article 17.

- To notify the recipient about the received Money Transfer Order and the result of processing or executing the Money Transfer Order. To be responsible for payment to the recipient from the moment of accepting the Money Transfer Order.

- To return Bank A the amount recorded in the credit transfer order if there is no designated recipient, or upon receipt of a cancellation order for accepted credit transfer orders.

- To reconcile accounts with the recipient and the issuing bank regarding executed Money Transfer Orders.

- To compensate for damages caused by its own errors in electronic transfers to the relevant parties. The compensation limit is within the amount to be transferred and the late payment penalty as stipulated.

Article 25:Rights and obligations of the recipient:

1. The recipient has the right:

- To request Bank B to investigate issues of doubt, unclear matters, or errors in the Money Transfer Order.

- To refuse to accept an unauthorized debt transfer order and request Bank B to implement its decision. Has the right to complain to Bank B about accepting an unauthorized debt transfer order. The maximum complaint period is three months from the date of receiving the account statement from the serving bank.

- To directly complain to the bank causing errors or delays in the execution of the Money Transfer Order, with the claim for compensation limited to the amount to be transferred and the late payment penalty as stipulated.

- To request Bank B to credit the amount within the prescribed timeframe.

- To refuse to accept money (for credit transfers) if they do not wish to receive it.

2. The recipient has the obligation:

- In cases where funds are directly received at Bank B (without going through an account), the recipient must have the obligation to self-prove that they are indeed the designated beneficiary in the Transfer Order.

- Accept and settle fully and promptly all authorized debt transfers; Must compensate the beneficiary for losses due to non-payment within the stipulated time frame. The amount of compensation is limited to the amount payable and late payment penalties as prescribed by current regulations.

- Confirm with the issuer when the high-value transfers have been received if the issuer requests.

- Refund any mistakenly transferred funds to oneself which one is not the designated beneficiary in the Transfer Order or any surplus amount due to errors in overpayment.

Chapter 4:

DISPUTES AND RESOLUTION OF DISPUTES

Article 26:When disputes arise due to errors and delays in electronic fund transfers, the aggrieved party shall submit a direct claim (specifying the reasons) to the person or Bank causing the damage (may authorize their serving Bank to act on their behalf). The maximum complaint period is three months from the date the order receiver receives the Transfer Order.

Within ten days of receiving the aggrieved party's compensation claim, the person or Bank receiving the claim must provide a detailed explanation of the reasons for the errors and delays. If it is due to the fault of the person or Bank receiving the claim, then that person or Bank must be responsible for compensating the aggrieved party and must complete their compensation responsibility within one month from the date of receipt of the claim.

Article 27:In case of disagreement with the resolution decision of a branch within any banking system, the aggrieved party has the right to submit a compensation claim to the General Director, Director of that Bank. Within one month from the date of receipt of the aggrieved party's claim, the General Director, Director of the complained Bank must issue a response letter to the complainant.

In case of still disagreeing with the resolution decision of the General Director, Director of the Bank, the aggrieved party has the right to request the Governor of the State Bank to resolve. The Governor of the State Bank will review and make a decision to handle within the scope of their authority and within fifteen days after the Governor's decision, the relevant parties must implement this decision.

Article 28:Violations of these Regulations may be subject to administrative sanctions or criminal liability depending on the nature and severity as provided by law.

Chapter 5:

IMPLEMENTING PROVISIONS

Article 29:The General Directors of commercial banks are responsible for guiding and organizing implementation within their systems in accordance with the provisions of these Regulations.

Heads of Departments, Bureaus, and units under the State Bank, Branch Directors of the State Bank in provinces and cities within their functional and duty scope, are responsible for guiding and supervising the implementation of these Regulations.

For the National Treasury, if participating in electronic fund transfers through Banks, must also comply with the provisions of these Regulations.

Article 30: Amendments and supplements to this Regulation shall be decided by the Governor of the State Bank.