Decree No. 43/2019/ND-CP amends and supplements some articles of Decree No. 26/2014/ND-CP dated April 7, 2014 of the Government on the organization and operation of Inspection and Supervision of the Banking Industry.

DECREE

Amending and supplementing some articles of Decree No. 26/2014/ND-CP

dated April 7, 2014 of the Government on the organization and operation of banking inspection and supervision

of the Banking Inspection and Supervision

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

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

Pursuant to the Law on Credit Institutions dated June 16, 2010, and the Law amending and supplementing certain articles of the Law on Credit Institutions dated November 20, 2017; supplementing some articles of the Law on Credit Institutions dated November 20, 2017;

Based on the Inspection Law dated November 15, 2010;

Based on the Anti-Money Laundering Law dated June 18, 2012;

Based on the Deposit Insurance Law dated June 18, 2012;

Based on the Administrative Violation Handling Law dated June 20, 2012;

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

The Government promulgates this Decree amending and supplementing some articles of Decree No. 26/2014/ND-CP dated April 7, 2014 of the Government on the organization and operation of banking inspection and supervision.

Article 1. Amending and supplementing some articles of Decree No. 26/2014/ND-CP dated April 7, 2014 of the Government on the organization and operation of banking inspection and supervision

1. Amending and supplementing Clause 8 of Article 4 as follows:

"8. The Governor of the State Bank shall stipulate the procedures and formalities for banking inspections and supervision; and delegate authority in implementing banking supervision activities."

2. Amending Clause 2 of Article 6 as follows:

"2. Banking inspection and supervision under the State Bank branch at provincial and centrally-administered city level (hereinafter referred to as the State Bank branch) shall be conducted."

3. Amending and supplementing Clause 1 and Clause 2 of Article 7 as follows:

"1. The banking inspection and supervision agency is a unit equivalent to a General Department, directly under the State Bank, performing the function of advising and assisting the Governor of the State Bank in state management over credit institutions, foreign bank branches, state management over banking inspection and supervision work, handling complaints and grievances, preventing corruption, money laundering, deposit insurance; conducting administrative inspections, specialized inspections, and banking supervision in areas within the scope of state management of the State Bank; implementing anti-money laundering and counter-terrorism financing according to the provisions of the law and the assignment of the Governor of the State Bank.

2. The organizational structure of the banking inspection and supervision agency includes Departments, Bureaus, and Office (hereinafter collectively referred to as units under the banking inspection and supervision agency).

The Director of the Bureau of Banking Inspection and Supervision may issue decisions on inspection, establish inspection teams for banking inspection objects assigned (except for inspections decided and established by the Chief Inspector of Banking Inspection and Supervision according to Clause 3 of Article 8 of this Decree), perform the duties and powers of the decision-making inspector and administrative penalty according to the law."

4. Amending and supplementing Clause 3 and Clause 5 of Article 8 as follows:

"3. Issuing decisions on inspection and establishing inspection teams for banking inspection objects under the management of the State Bank according to the assignment of the Governor of the State Bank or upon request of the Governor of the State Bank, including administrative inspections, inspections to resolve complaints and grievances, inspections of anti-corruption work, large and complex specialized inspections, re-inspections, or when deemed necessary; performing the duties and powers of the decision-making inspector; requesting the Governor of the State Bank branch to assign banking inspectors and other civil servants to join the inspection team; summoning civil servants and staff from related agencies and units to join the inspection team.

5. When signs of law violations or risks threatening the safety of operations of credit institutions and foreign bank branches are detected, requiring the Governor of the State Bank branch to conduct inspections on banking inspection objects assigned by the Governor of the State Bank; if the Governor of the State Bank branch disagrees, having the right to issue inspection decisions, report, and bear responsibility before the Governor of the State Bank for their decisions."

5. Amending and supplementing Clause 1 of Article 9 as follows:

"1. Banking inspection and supervision under the State Bank branch is a unit in the organizational structure of the State Bank branch, assisting the Governor of the State Bank branch in state management, conducting administrative inspections, banking inspections and supervision, resolving complaints and grievances, preventing corruption, money laundering, and terrorism financing against managed, inspected, and supervised objects on the territory according to the assignment, delegation, and authorization of the Governor of the State Bank and according to the law. Specifically, the banking inspection and supervision under the State Bank branch in Hanoi City and Ho Chi Minh City is a unit equivalent to a Sub-department under the State Bank branch in Hanoi City and Ho Chi Minh City.

Banking inspection and supervision under the State Bank branch is subject to direct management and direction by the Governor of the State Bank branch and guidance and direction by the banking inspection and supervision agency on inspection and supervision work, complaint resolution, anti-corruption, anti-money laundering, and counter-terrorism financing."

6. Amending Article 18 as follows:

"1. The Chief Inspector of Banking Inspection and Supervision, the Director of the Bureau of Banking Inspection and Supervision, and the Chief Inspector of Banking Inspection and Supervision under the State Bank branch issue inspection decisions and establish inspection teams. When deemed necessary, the Governor of the State Bank and the Governor of the State Bank branch issue inspection decisions and establish inspection teams.

2. The Chief Inspector of Banking Inspection and Supervision decides to re-inspect cases concluded by the Chief Inspector of Banking Inspection and Supervision under the State Bank branch but found signs of law violations; cases concluded by the Chairman of the People's Committee of the province and the Governor of the State Bank branch but found signs of law violations when assigned by the Governor of the State Bank."

7. Amending and supplementing Point b and Point c of Clause 1 of Article 23 as follows:

“b) Review and monitor the implementation of regulations on the safety of banking operations and other relevant laws; the execution of conclusions, recommendations, and decisions on inspection; the implementation of warnings and measures to address early intervention as prescribed in Clause 25, Article 1 of the Law amending and supplementing certain provisions of the Law on Credit Institutions;

c) Regularly analyze and assess the financial situation, activities, management, operation, and risk level of credit institutions and foreign bank branches, systemic risks; annually rank credit institutions and foreign bank branches according to their safety levels;

8. Amend and supplement Clause 1 of Article 25 as follows:

“1. Recommend the Governor of the State Bank of Vietnam or the person authorized by the Governor of the State Bank of Vietnam to apply the handling measures prescribed in Article 59 of the Law on the State Bank of Vietnam and early intervention measures as prescribed in Clause 25, Article 1 of the Law amending and supplementing certain provisions of the Law on Credit Institutions.”

9. Amend and supplement Clause 1 of Article 30 as follows:

“1. The banking supervision agency assists and advises the Governor of the State Bank of Vietnam; the banking supervision branch assists and advises the Director of the State Bank of Vietnam branch (in cases where the Director of the State Bank of Vietnam branch is delegated authority by the Governor of the State Bank of Vietnam):

a) Issue, amend, supplement, and revoke licenses for the establishment and operation of credit institutions, foreign bank branches, representative offices of foreign credit institutions, and other organizations engaged in banking activities, and other types of banking licenses;

b) Issue and revoke licenses for providing credit information services to organizations;

c) Issue and revoke Certificates of Registration for microfinance programs and projects;

d) Approve the purchase, sale, division, merger, consolidation, change in legal form, dissolution of credit institutions and foreign bank branches; approve the list of candidates for election or appointment as members of the Board of Members, Board of Directors, Supervisory Board, and General Manager (Director) of credit institutions, except personnel appointed or recommended by the state owner holding 100% of the charter capital of commercial banks, and personnel appointed or recommended by the state owner holding more than 50% of the charter capital of joint-stock commercial banks; approve the appointment of the General Manager (Director) of foreign bank branches; approve the establishment, termination, and dissolution of domestic branches, representative offices, and non-profit units, and foreign branches, representative offices, and other forms of commercial presence of credit institutions; approve the establishment and acquisition of subsidiaries and associated companies of credit institutions; approve capital contributions and share purchases by credit institutions; approve other issues concerning governance, organization, finance, and activities that must be approved or permitted by the State Bank of Vietnam according to the law;

đ) Handle issues related to the organization, management, and operation of credit institutions and foreign bank branches to ensure that these institutions operate soundly, safely, and in accordance with the law;

e) Carry out certain responsibilities of the state-owned equity representative body at credit institutions, financial organizations, and enterprises managed by the State Bank of Vietnam as prescribed by law and assigned by the Governor of the State Bank of Vietnam;

g) Develop and organize the implementation and monitoring of plans and schemes to consolidate, rectify, restructure, and specially supervise credit institutions and foreign bank branches.”

10. Amend Clause 1 of Article 31 as follows:

“1. Specify the relationship between agencies and units:

a) The banking inspection and supervision agency with the State Bank of Vietnam branch's inspection and supervision agency;

b) Between the banking supervision agency and the State Bank of Vietnam branches;

c) Among the State Bank of Vietnam branch supervisory agencies.”

11. Amend Article 32 as follows:

“Article 32. Responsibilities of the Governor of the State Bank Branch

1. Leading and directing the activities of the State Bank of Vietnam branch's inspection and supervision within the management scope of the State Bank of Vietnam branch.

2. Approve the annual inspection plan of the Inspection and Supervision Department of the State Bank Branch.

3. Timely handling of conclusions and recommendations of the State Bank of Vietnam branch's inspection and supervision.

4. Organizing, directing, ensuring funding, equipping material infrastructure, technical equipment, uniforms, and other necessary conditions for the State Bank of Vietnam branch's inspection and supervision.

5. Other responsibilities as prescribed by law and by the State Bank.

Article 2. Implementation clause

1. This Decree takes effect from the date of issuance.

2. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under the central government, and the Chief Inspector of the Banking Supervision Department shall be responsible for implementing this Decree./.