Circular No. 41/2024/TT-NHNN stipulates on supervision and implementation of supervision of important payment systems and provision of payment intermediary services.

CIRCULAR

Regulations on supervision and implementation of supervision of important payment systems, provision of payment intermediary services

activities of providing payment intermediary services   

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

Pursuant to the Law on Credit Institutions dated January 18, 2024;

Pursuant to Decree No. 102/2022/NĐ-CP dated December 12, 2022 of the Government on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Based on Decree No. 52/2024/NĐ-CP dated May 15, 2024, of the Government on non-cash payments;

At the proposal of the Payment Department Director;

The Governor of the State Bank of Vietnam issues this Circular on supervision and implementation of supervision of important payment systems and provision of payment intermediary services.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates regulations on supervision and implementation of supervision of important payment systems; supervision and implementation of supervision of activities of organizations providing payment intermediary services that have been granted operating licenses for payment intermediary services by the State Bank of Vietnam (hereinafter referred to as payment intermediary service providers).

Article 2. Applicability

1. Supervisory unit.

2. Unit operating the National Interbank Electronic Payment System (hereinafter referred to as the National Interbank Payment System).

3. Organizations operating important payment systems.

4. Organizations providing payment intermediary services.

5. Banks cooperating in providing payment intermediary services (hereinafter referred to as cooperative banks).

6. Organizations and individuals related to supervision of important payment systems and supervision of activities of payment intermediary service providers.

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

1. Important payment systems include the National Interbank Payment System; foreign currency payment system; securities transaction payment system; financial transaction settlement and switching systems included in the list of important payment systems attached as Appendix II to this Circular.

2. The supervisory unit is a unit within the organizational structure of the State Bank of Vietnam (hereinafter referred to as the State Bank) assigned the task of supervising important payment systems and activities of payment intermediary service providers.

3. The unit operating the National Interbank Payment System is the direct operator of the National Interbank Payment System.

4. An organization operating an important payment system (hereinafter referred to as the operating organization) is an organization directly operating the foreign currency payment system; securities transaction payment system; financial transaction settlement and switching systems.

Supervision of important payment systems involves monitoring the operation of important payment systems; inspecting and evaluating important payment systems and issuing warnings and recommendations (if necessary) to contribute to enhancing the stability and security of important payment systems in the economy.

Supervision of activities of payment intermediary service providers involves monitoring the provision of payment intermediary services; inspecting and evaluating the provision of payment intermediary services and issuing warnings and recommendations (if necessary).

Article 4. Supervisory Measures

The supervisory unit implements supervision of important payment systems and activities of payment intermediary service providers through the following measures:

1. Monitoring the operation of important payment systems and activities of payment intermediary service providers.

2. On-site inspection of important payment systems and activities of payment intermediary service providers.

3. Evaluation of important payment systems and activities of payment intermediary service providers.

4. Issuing warnings and recommendations during supervision of important payment systems and activities of payment intermediary service providers.

Chapter II

ofSUPERVISION OF IMPORTANT PAYMENT SYSTEMS

Article 5. Content of supervision of important payment systems

1. The operational situation of important payment systems includes information on operating time, member participation status, and transaction volume through the system.

2. Risk management activities for important payment systems include establishing risk management policies and procedures and implementing such activities.

3. Compliance with legal regulations related to the management and operation of important payment systems.

4. Changes in the operations of important payment systems including changes in business processes and membership rules of the system.

Article 6. Monitoring the operation of important payment systems

The supervisory unit monitors the operation of important payment systems through the following activities:

1. Collecting documents, information, and data on the operation of important payment systems from sources:

a) Operational data of the National Payment System according to Appendix III issued together with this Circular, collected and extracted from relevant information systems of the State Bank;

b) Reports in accordance with the reporting regulations stipulated by the Governor of the State Bank regarding statistical reporting;

c) Reports and information provided by the operator in accordance with Article 16 of this Circular;

d) Documents, information, and data collected through on-site inspection activities as stipulated in Article 7 of this Circular;

đ) Documents, information, and data collected through online monitoring systems for the operation of important payment systems based on actual supervision requirements;

e) Information reflecting the views of members participating in important payment systems, customers using payment services; information reflected in mass media;

g) Information related to important payment systems provided and reflected by competent authorities;

h) Other information serving the supervision of important payment systems.

2. Processing and compiling documents, information, and data

a) Comparing and cross-referencing collected documents, information, and data with historical data to identify unusual fluctuations;

b) Comparing and cross-referencing collected documents, information, and data from different sources;

c) Assessing the reasonableness of collected documents, information, and data; in cases where missing, erroneous, or inconsistent data is discovered, the supervisory unit requests the operator or the National Payment System Operator to report and explain promptly and resubmit accurate information;

d) Compiling and analyzing collected documents, information, and data after comparison and cross-referencing.

Article 7. On-site Inspection of Important Payment Systems

1. The supervisory unit submits to the Governor of the State Bank to establish an inspection team to conduct on-site inspections at the workplace of the operator when the supervisory unit discovers that the documents, information, and data provided by the operator are incomplete, erroneous, or inconsistent and have not been corrected, or when issues related to risks requiring additional collection of documents, information, and data are identified.

2. The Governor of the State Bank issues an inspection decision. The inspection decision includes the following contents: name of the operator, inspection content, time, and location; composition of the inspection team; documents, information, and data required to be reported and provided by the operator to the inspection team (if necessary) and sent to the operator at least five working days before the planned inspection date.

3. The operator has the responsibility to prepare all content necessary for the inspection; report, provide documents, information, and data and access to information technology systems to serve the inspection; clarify issues related to the inspection content upon request.

4. The inspection team conducts the inspection, records the results in a working record signed by representatives of the inspection team and authorized representatives of the operator, including the following contents: name of the operator, inspection content and results; recommendations for measures to address the inspection results (if applicable); deadline for rectification and reporting on the implementation of recommendations (if applicable). The working record is made in two copies, with the operator retaining one copy to implement the inspection team's recommendations.

5. The operator has the responsibility to promptly and fully implement the inspection team's recommendations and report on the implementation of the recommendations within the requested timeframe.

6. The inspection team reports the inspection results to the Governor of the State Bank within thirty working days from the end of the inspection.

7. The supervisory unit has the responsibility to monitor and urge the implementation of the operator's recommendations.

Article 8. Evaluation of Important Payment Systems

1. Based on materials, information, and data collected in accordance with Article 6 of this Circular, the Supervisory Unit shall prepare supervisory reports to submit to the Governor of the State Bank of Vietnam:

a) Quarterly reports for the first six months of the year and annual reports for important payment systems;

b) Ad hoc reports on risks and incidents occurring in important payment systems.

2. The Supervisory Unit shall evaluate the National Payment System according to Model No. 04 attached as Appendix I of this Circular every three years and submit the evaluation results to the Governor of the State Bank of Vietnam.

Article 9. Warning and Recommendations in Supervising Important Payment Systems

1. In cases where the Supervisory Unit identifies potential risks that may affect the stability and safety of operations of important payment systems or lead to non-compliance with laws governing important payment systems, the Supervisory Unit shall report and propose the Governor of the State Bank of Vietnam to issue warning and recommendation documents to the operating organizations.

2. Operating organizations are responsible for promptly and fully implementing recommendations from the Supervisory Unit and reporting on the implementation of such recommendations within the required timeframe.

Chapter III

SUPERVISION OF PAYMENT INTERMEDIARY SERVICES ACTIVITIES

PAYMENT INTERMEDIARY SERVICES

Article 10. Contents of Supervision of Payment Intermediary Services Activities

1. Compliance with laws governing the provision of payment intermediary services activities.

2. Risk management activities in providing payment intermediary services including the establishment of risk management policies and procedures and their implementation.

Article 11. Monitoring Payment Intermediary Services Activities

The Supervisory Unit monitors payment intermediary services activities through the following methods:

1. Collecting materials, information, and data on payment intermediary services activities from the following sources:

a) Reports in accordance with the Governor of the State Bank of Vietnam's regulations on statistical reporting systems;

b) Reports and information provided by payment intermediary service providers in accordance with Article 17 of this Circular;

c) Reports and information provided by cooperating banks in accordance with Article 18 of this Circular;

d) Materials, information, and data collected through inspection and audit activities in accordance with the law;

e) Materials, information, and data collected through the online supervision information system built by the State Bank of Vietnam (hereinafter referred to as the online supervision information system) as stipulated in Clause 3, Article 20 of this Circular;

f) Information reflecting customer feedback on payment intermediary services; information reflected in mass media;

g) Information related to payment intermediary services activities provided by competent authorities;

h) Other information necessary for monitoring payment intermediary services activities requested by the Supervisory Unit from payment intermediary service providers and cooperating banks.

2. Processing and compiling documents, information, and data

a) Comparing and cross-referencing collected documents, information, and data with historical data to identify unusual fluctuations;

b) Comparing and cross-referencing collected documents, information, and data from different sources;

c) Assessments and evaluations of the appropriateness of collected materials, information, and data; in cases where missing, erroneous, or inappropriate materials, information, and data are identified, the Supervisory Unit shall request payment intermediary service providers to promptly report and explain and resubmit accurate information.

d) Compiling and analyzing collected documents, information, and data after comparison and cross-referencing.

Article 12. On-site inspection of payment intermediary service provision activities

1. The supervisory unit shall conduct on-site inspections at the premises of the organization providing payment intermediary services according to the annual inspection plan of the State Bank; carry out surprise inspections based on management requirements and actual situations, or upon requests, proposals, or reflections from competent authorities, organizations, individuals, or when instructed by the Governor of the State Bank.

2. The procedures, formalities for inspection, and handling of inspection results and post-inspection recommendations shall be carried out in accordance with the Governor of the State Bank's regulations on inspecting compliance with monetary and banking policies and laws.

3. The organization providing payment intermediary services shall be responsible for preparing all contents necessary for the inspection; reporting, providing documents, information, data, and access to the information technology system to serve the inspection; explaining and clarifying issues related to the inspection content when requested, and performing other responsibilities as prescribed by the Governor of the State Bank regarding the inspection of compliance with monetary and banking policies and laws.

Article 13. Evaluation of Payment Intermediary Service Provision Activities

Based on the materials, information, and data collected in accordance with Articles 11 and 12 of this Circular, the supervisory unit evaluates the payment intermediary service provision activities and prepares a supervision report to submit to the Governor of the State Bank:

1. A periodic report every six months and annually for payment intermediary service provision activities.

2. An urgent report on risks and incidents arising in connection with payment intermediary service provision activities.

Article 14. Warning and Recommendations in Supervising Payment Intermediary Service Provision Activities

1. In cases where the supervisory unit discovers risk issues that may affect the safety of payment intermediary service provision activities or lead to non-compliance with laws governing payment intermediary service provision activities, the supervisory unit shall report and propose to the Governor of the State Bank to issue warning and recommendation documents to the organization providing payment intermediary services and cooperating banks.

2. The organization providing payment intermediary services shall promptly and fully implement the supervisory unit’s recommendations and report on the implementation of these recommendations within the required deadlines.

Chapter IV

REPORTING AND PROVIDING INFORMATION

Article 15. Methods, Periodicity, and Deadlines for Reporting

1. Reporting methods

Electronic reports shall be presented in the form of electronic data files or electronic messages transmitted through computer networks or sent via physical carriers, bearing the electronic signature of the authorized representative of the reporting organization in accordance with the designated symbols, transmission codes, and file structures specified by the State Bank. Reports shall be submitted to the State Bank using one of the following methods:

a) Through the State Bank's reporting information system (hereinafter referred to as the reporting information system);

b) Through the online monitoring information system;

c) Other electronic methods as directed by the State Bank.

2. Periodicity and deadlines for reporting

a) Daily reporting period is determined from 00:00 to 24:00 of one day, with the latest deadline for submitting the report being 14:00 on the next working day immediately following the reporting period;

b) Monthly reporting period runs from the first day to the last day of the month, with the latest deadline for submitting the report being the 12th day of the following month immediately following the reporting period;

c) Quarterly reporting period runs from the first day of the first month of the quarter to the last day of the last month of the quarter, with the latest deadline for submitting the report being the 15th day of the first month of the following quarter immediately following the reporting period;

d) Six-month reporting period runs from January 1st to June 30th, with the latest deadline for submitting the report being the 20th day of the following month immediately following the reporting period;

e) Annual reporting period runs from January 1st to December 31st, with the latest deadline for submitting the report being the 20th day of the first month of the following year immediately following the reporting period;

f) If the last day of the reporting submission deadline coincides with a public holiday, Tet holiday, or weekend, then the submission date shall be the next working day immediately following the holiday or weekend.

Article 16. Reporting and Providing Information by Payment System Operators

1. Payment system operators shall be responsible for reporting to the State Bank of Vietnam on payment systems operated by them as follows:

a) Submitting operational data of important payment systems according to Appendix IV issued together with this Circular through the reporting information system;

b) Submitting semi-annual reports and annual reports on the operation status of important payment systems according to Model No. 01 of Appendix I issued together with this Circular through the reporting information system;

c) Submitting evaluations of important payment systems according to Model No. 04 of Appendix I issued together with this Circular. This report shall be conducted every three years following the guidelines of the State Bank of Vietnam regarding implementation methods, applicable standards, and submission procedures and deadlines.

2. Payment system operators shall be responsible for providing information to the Supervisory Unit immediately upon discovering incidents causing interruptions exceeding 30 minutes in the operation of important payment systems, including information about the time of incident discovery and a brief description of the incident via the email address [email protected] to monitor and track the handling of the incident. Within three working days from the completion of the incident resolution, the payment system operator shall submit an incident report according to Model No. 03 of Appendix I issued together with this Circular through the reporting information system. [email protected] to grasp and monitor the situation of handling the incident. Within three working days from the completion of the incident resolution, the payment system operator shall submit an incident report according to Model No. 03 of Appendix I issued together with this Circular through the reporting information system.

3. Payment system operators shall be responsible for providing information and related documents concerning changes in business processes; risk management policies and procedures; and membership regulations of payment systems via the email address [email protected] within fifteen working days from the date of change.

Article 17. Reporting and Providing Information by Payment Intermediary Service Providers

1. Payment intermediary service providers shall be responsible for submitting periodic quarterly reports (quarterly reports I, II, and III) and annual reports on the provision of payment intermediary services according to Model No. 02 of Appendix I and Appendix VI issued together with this Circular through the reporting information system.

3. Electronic wallet service providers shall provide the Supervisory Unit with copies of contracts or agreements with cooperating banks regarding the provision of electronic wallet services and any amendments or supplements to these contracts or agreements within three working days from the effective date of the contracts or agreements between the electronic wallet service provider and the cooperating bank.

4. Payment intermediary service providers shall be responsible for developing online monitoring tools for the State Bank of Vietnam to monitor the provision of payment intermediary services. The online monitoring tool developed by the payment intermediary service provider shall be connected to the online monitoring information system to report the following information:

a) Total number and total balance of electronic wallets by type (issued wallets; closed wallets; activated wallets and active wallets) categorized by customer type (non-payment acceptance organization customers; individual non-payment acceptance organization customers; individual payment acceptance organizations and organizational payment acceptance organizations) as guided by the State Bank of Vietnam;

b) Information on the guarantee account balance for electronic wallet services including the total guarantee account balance for electronic wallet services; information on each guarantee account for electronic wallet services opened at cooperating banks including account name, account number, and balance as guided by the State Bank of Vietnam.

5. Payment intermediary service providers shall be responsible for providing the information as stipulated in point h, Clause 1, Article 11 of this Circular.

Article 18. Reporting and Providing Information by Cooperative Banks

Cooperative banks shall be responsible for reporting and providing information to the State Bank as follows:

1. Reporting on cooperation with organizations providing payment intermediary services according to Appendix V issued together with this Circular. This reporting shall be carried out in accordance with the regulations of the Governor of the State Bank regarding the reporting system.

2. Reporting on guarantee accounts for electronic wallet services opened by organizations providing payment intermediary services at cooperative banks, including account numbers, account balances, organizations that open and use accounts at the time of querying through the online monitoring information system.

3. Providing information as prescribed in point h, Clause 1, Article 11 of this Circular.

Chapter V

RESPONSIBILITIES OF THE RELATED PARTIES

Article 19. Responsibilities of the Payment Department

1. Implementing the supervisory unit's tasks as stipulated in this Circular.

2. Cooperating with the Information Technology Department to build a reporting information system to receive, aggregate, exploit, and store data, figures, and reports as prescribed in Articles 16, 17, and 18 of this Circular.

3. Cooperating with the Information Technology Department to build an online monitoring information system for important payment systems' operations and payment intermediary service provision activities based on actual supervision requirements.

4. Providing information to banking inspection agencies, State Bank branches, provincial-level cities under the central government, and competent authorities when signs of violations of laws on important payment systems and payment intermediary service provision activities are detected.

5. Recommending inspections of payment intermediary service providers when signs of violations of laws on payment intermediary service provision activities are found (if necessary).

Article 20. Responsibilities of the Information Technology Department

1. Fulfilling the responsibilities of the National Payment System Operation Unit.

2. Being the lead in building and maintaining an online monitoring information system to allow the supervisory unit to remotely access the National Payment System to monitor its operations in real-time based on ensuring information security and not disrupting the processing speed of the National Payment System, including:

a) Allowing full access to the list and basic information of participants in the National Payment System;

b) Allowing monitoring of the operational status and transactions of the National Payment System;

c) Allowing access to warning information about abnormal activities of the National Payment System;

d) Allowing access to liquidity situation information of each participant, including information on settlement account balances, net overdraft limits, overdraft limits, participants showing liquidity difficulties (transactions not processed due to insufficient payment capacity; insufficient payment capacity in low-value clearing settlements, processing net clearing results from other systems; transactions canceled at the end of the day due to insufficient payment capacity), participants generating payment settlement loans.

3. Being the lead, cooperating with the supervisory unit, payment intermediary service providers, and cooperative banks to build, maintain, and provide technical guidance for connecting the online monitoring information system for payment intermediary service provision activities, including:

a) Allowing connection to the online monitoring tool built by payment intermediary service providers to query information as prescribed in Clause 4, Article 17 of this Circular;

b) Allowing querying information on guarantee accounts for electronic wallet services opened by payment intermediary service providers at cooperative banks as prescribed in Clause 2, Article 18 of this Circular.

4. Being the lead, cooperating with the supervisory unit to build, maintain, and provide technical guidance for connecting the online monitoring information system for foreign currency payment systems; securities transaction payment systems; financial transaction settlement and switching systems based on actual supervision requirements.

5. Being the lead, cooperating with the supervisory unit to build and maintain the operation of the reporting information system and the online monitoring information system to receive, aggregate, exploit, and store data, figures, and reports as prescribed in Articles 16, 17, and 18 of this Circular.

6. Notifying the supervisory unit of the results in cases where inspections related to the operation of important payment systems by operators and payment intermediary service provision activities by payment intermediary service providers are conducted.

7. Cooperating with the supervisory unit to conduct on-site inspections of operators and payment intermediary service providers.

8. Cooperating with the supervisory unit and relevant units within the State Bank to build evaluation reports on the National Payment System as prescribed in Clause 2, Article 8 of this Circular.

Article 21. Responsibilities of the Banking Inspection and Supervision Authority

1. Provide to the Supervisory Unit a list of credit organizations and foreign bank branches participating in important payment systems that are subject to early intervention or special control.

2. Examine and handle according to its authority upon receiving information or recommendations from the Supervisory Unit as stipulated in Clause 4, Article 19 and Clause 5, Article 19 of this Circular.

3. Provide to the Supervisory Unit the inspection conclusions regarding payment intermediary service providers conducted by the Banking Inspection and Supervision Authority.

Article 22. Responsibilities of the State Bank of Vietnam Branches in Provinces and Central Cities

1. Examine and handle according to its authority upon receiving information or recommendations from the Supervisory Unit as stipulated in Clause 4, Article 19 and Clause 5, Article 19 of this Circular.

2. Provide to the Supervisory Unit the inspection conclusions regarding payment intermediary service providers conducted by the State Bank of Vietnam Branches in Provinces and Central Cities.

Article 23. Responsibilities of the Operating Organization

1. Fulfill the responsibilities of the operating organization as prescribed in this Circular.

2. Cooperate with the State Bank of Vietnam to establish an online monitoring system based on actual supervision requirements of the State Bank of Vietnam.

Article 24. Responsibilities of Payment Intermediary Service Providers

1. Fulfill the responsibilities of payment intermediary service providers as prescribed in this Circular.

2. Develop an online monitoring tool for the Supervisory Unit to monitor payment intermediary service provision activities as stipulated in Clause 4, Article 17 of this Circular, and connect the online monitoring tool with the online monitoring system in accordance with the guidance of the State Bank of Vietnam.

Chapter VI

IMPLEMENTING PROVISIONS

Article 25. Effective Date

1. This Circular takes effect from July 17, 2024, except for the provisions in Clause 2 of this Article.

2. Clause 4, Article 17 of this Circular takes effect from October 1, 2024.

3. Circular No. 20/2018/TT-NHNN dated August 30, 2018, issued by the Governor of the State Bank of Vietnam on supervising payment systems, amended and supplemented by Circular No. 14/2019/TT-NHNN dated August 30, 2019, issued by the Governor of the State Bank of Vietnam amending and supplementing certain articles in the Circulars concerning the regular reporting regime of the State Bank of Vietnam, shall cease to be effective from the date this Circular takes effect.

Article 26. Implementation

The Director of the Office, the Head of the Payment Department, the Heads of relevant units under the State Bank of Vietnam, the operating organizations of important payment systems, payment intermediary service providers, and cooperating banks are responsible for implementing this Circular.