Decision No. 499/2000/QĐ-NHNN Regarding the amendment and supplementation of certain provisions of the Regulation on the organization and implementation of independent auditing for credit institutions issued together with Decision No. 322/1999/QĐ-NHNN dated September 14, 1999, of the Governor of the State Bank of Vietnam.

DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

Regarding amendments and supplements to certain Articles of the Regulation on the Organization and Implementation of Independent Audits for Credit Institutions issued together with Decision No. 322/1999/QĐ-NHNN5 dated September 14, 1999 of the Governor of the State Bank of Vietnam

GOVERNOR OF THE STATE BANK OF VIETNAM

The mandatory reserves in VND of credit institutions that are members participating in inter-bank electronic payment systems shall be deposited into two accounts as follows:

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

Pursuant to Decree No. 91/1999/NĐ-CP dated September 4, 1999 of the Government on the organization and operation of the Banking Inspection;

Pursuant to Decree No. 30/2000/NĐ-CP dated August 11, 2000 of the Government on the abolition of some Licenses and the conversion of some Licenses into business conditions;

Issued herewith are the Regulations on Loan Classification, Provisioning, and Utilization for Credit Risk Management in Banking Activities of Credit Institutions.

DECISION:

Article 1. Amending and supplementing certain Articles and attached Appendices of the Regulation on the Organization and Implementation of Independent Audits for Credit Institutions issued together with Decision No. 322/1999/QĐ-NHNN5 dated September 14, 1999 of the Governor of the State Bank of Vietnam as follows:

1. Repeal Clause 1 of Article 6.

2. Repeal Point c of Clause 1 of Article 8.

3. Point d of Clause 1 of Article 8 shall be amended as follows:

"d. A list of Auditors participating in the audit (with full names) confirmed by the General Director (Director) of the Audit Organization or a person authorized by the General Director (Director) that the Auditors listed meet the conditions to participate in auditing Credit Institutions and signed, stamped according to the provisions of Article 6 of this Regulation."

4. Clause 1 of Article 9 shall be amended as follows:

"1. The Branch of the State Bank of Vietnam in provinces and cities shall examine and approve the Audit Organizations and Auditors to conduct audits of joint-stock Credit Institutions headquartered within their jurisdiction. After signing the approval letter for the Audit Organization to audit a Credit Institution, the Branch of the State Bank of Vietnam in provinces and cities must send one copy to the State Bank of Vietnam (Banking Inspection Department) within five working days to report."

5. Clause 2 of Article 9 shall be amended as follows:

"2. The Banking Inspection Department shall examine and approve or disapprove the Audit Organizations and Auditors to conduct audits of State Credit Institutions, foreign Credit Institutions, and Central People's Credit Funds."

6. Clause 3 of Article 10 shall be amended as follows:

"3. The approval letters for Audit Organizations to audit Credit Institutions issued by the State Bank of Vietnam (Banking Inspection Department) and its Branches shall be uniformly prepared according to the attached model (Appendix 1 and 2)."

7. Clause 1 of Article 14 shall be amended as follows:

"1. Audit Organizations wishing to conduct audits of Credit Institutions must submit a request to the State Bank of Vietnam (Banking Inspection Department) before June 30 each year for examination and approval to conduct audits of Credit Institutions. The request should clearly state the organizational structure, operations, and auditing experience of the unit, and other necessary documents to prove and commit to complying with the provisions of Article 5 of this Regulation; and attach the legal documentation of the audit organization and a list of qualified auditors participating in the audit according to the provisions of Article 6 of this Regulation (if it is the first registration). From the second registration onwards, the audit organization only needs to register changes compared to the previous registration for the State Bank of Vietnam (Banking Inspection Department) to inform Credit Institutions."

8. The model of the approval letter for Audit Organizations to audit Credit Institutions issued by the State Bank of Vietnam and its provincial branches sent to Credit Institutions shall be replaced by Appendix 1 and Appendix 2 attached to this Decision.

Article 2. This Decision takes effect fifteen days from the date of signature.

Article 3. The Head of the Office, the Head of the Banking Inspection Department, the Director of the Department of Banks and Non-Bank Financial Institutions, the Heads of units under the State Bank of Vietnam, the Directors of provincial branches of the State Bank of Vietnam directly under the central government, the Chairmen and members of the Board of Directors, Supervisory Boards, and General Directors (Directors) of Credit Institutions are responsible for implementing this Decision./.