Decree No. 80/2019/ND-CP amends and supplements certain Articles of Decree No. 73/2016/ND-CP dated July 1, 2016 of the Government detailing the implementation of the Insurance Business Law and the Law Amending and Supplementing Certain Provisions of the Insurance Business Law; and Decree No. 98/2013/ND-CP dated August 28, 2013 of the Government on administrative penalties for violations in the insurance business and lottery business, which has been amended and supplemented by certain provisions according to Decree No. 48/2018/ND-CP dated March 21, 2018 of the Government.

DECREE
Amending and supplementing some articles of Decree No. 73/2016/NĐ-CP dated July 1, 2016 of the Government guiding the implementation of the Law on Insurance Business and the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business; Decree No. 98/2013/NĐ-CP dated August 28, 2013 of the Government stipulating administrative penalties for violations in the insurance business and lottery business which have been amended and supplemented certain provisions according to Decree No. 48/2018/NĐ-CP dated March 21, 2018 of the Government

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        On the basis of the Law on Government Organization on June 19, 2015;
        On the basis of the Law on Insurance Business on December 9, 2000;
        On the basis of the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business on November 24, 2010;
        On the basis of the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business and the Intellectual Property Law on June 14, 2019;
        On the basis of the Law on Anti-Money Laundering on June 18, 2012;
        On the basis of the Law on Combating Terrorism on June 12, 2013;
        On the basis of the Law on Handling Administrative Violations on June 20, 2012;
        Pursuant to the proposal of the Minister of Finance;
        The Government promulgates this Decree amending and supplementing some articles of Decree No. 73/2016/NĐ-CP dated July 1, 2016 of the Government guiding the implementation of the Law on Insurance Business and the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business; Decree No. 98/2013/NĐ-CP dated August 28, 2013 of the Government stipulating administrative penalties for violations in the insurance business and lottery business which have been amended and supplemented certain provisions according to Decree No. 48/2018/NĐ-CP dated March 21, 2018 of the Government.

Article 1. Amending and supplementing some articles of Decree No. 73/2016/NĐ-CP dated July 1, 2016 of the Government guiding the implementation of the Law on Insurance Business and the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business

1. Amend and supplement Article 1 as follows:

"1. This Decree provides detailed regulations and guidance on implementing certain provisions of the Law on Insurance Business, the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business, and the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business and the Intellectual Property Law, including:

a) Establishment and operation of life insurance companies, non-life insurance companies, health insurance companies, reinsurance companies (hereinafter referred to as insurance companies), branches of foreign non-life insurance companies (hereinafter referred to as foreign branches), insurance brokers, insurance agents, cross-border insurance service provision, representative offices of insurance companies, foreign insurance brokers, and the insurance policyholder protection fund;

b) Financial management systems for insurance companies, foreign branches, insurance brokers;

c) Conditions for individuals directly performing auxiliary insurance activities in organizations providing auxiliary insurance services; standards in the auxiliary insurance field; professional liability insurance for auxiliary insurance service provision; cross-border auxiliary insurance service provision; supervision of auxiliary insurance service provision activities.

2. This Decree applies to:

a) Insurance companies;

b) Foreign branches;

c) Insurance brokers, insurance agents;

d) Individuals, organizations providing auxiliary insurance services;

đ) Other individuals, organizations related."

2. Supplement Clause 3a following Clause 3 of Article 21 as follows:

"3a. Documents for requesting changes to auxiliary insurance service content include the documents specified in Points a, b, and đ of Clause 3 of this Article."

3. Amending and supplementing Point b of Clause 2 of Article 32 as follows:

"b) Hiring organizations providing insurance calculation services that meet the conditions stipulated in Clause 2 of Article 93b added in Clause 4 of Article 1 of the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business and the Intellectual Property Law and Clause 3 of Article 89a of this Decree to perform the tasks of insurance calculation specialist and solvency assessment as prescribed by the Minister of Finance.

In the case of hiring an organization providing insurance calculation services, non-life insurance companies, reinsurance companies, and foreign branches must notify the Ministry of Finance about the organization providing insurance calculation services, the individual directly performing insurance calculation activities within the organization, and the duration of the insurance calculation service provision contract."

4. Supplement Clause 1a following Clause 1 of Article 68 as follows:

"1a. Revenue from auxiliary insurance service provision: Income from providing auxiliary insurance services stipulated in Point b of Clause 2 of Article 93a added in Clause 4 of Article 1 of the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business and the Intellectual Property Law."

5. Amending and supplementing Point a of Clause 1, supplementing Clause 1a following Clause 1 of Article 69 as follows:

a) Amending and supplementing Point a of Clause 1 of Article 69 as follows:

"1. Insurance business operating costs: The amount of money to be spent and set aside during the period after deducting receivables to reduce expenses incurred during the period. 

a) The amount of money to be spent and set aside during the period includes:

- Original insurance claims payment for non-life insurance; insurance benefit payment for life insurance;

- Reinsurance claims payment;

- Setting up business reserve;

- Insurance commission expense;

- Expense for insurance brokers including: Brokerage commission and other expenses as prescribed;

- Loss adjustment expense;

- Third-party recovery expense;

- Full claim processing expense;

- Contract management fee (leading fee) of the lead insurer in a syndicate (if all parties agree on this expense);

- Insurance agent management expense including: Initial training and certification examination expense for agents, advanced knowledge training expense for agents, recruitment expense for agents, agent reward expense, and agent support expense;

- Risk prevention and loss limitation expense;

- Risk assessment expense of insured objects;

- Expenses for auxiliary insurance services include: insurance advisory fees, risk assessment fees, insurance calculation fees, loss appraisal fees, and claim settlement support fees.

- Other expenses and provisions as prescribed by law.

b) Supplement Clause 1a following Clause 1 of Article 69 as follows:

"1a. Expenses for providing auxiliary insurance services."

6. Amend and supplement Clause 1, and add Clause 1a following Clause 1 of Article 71 as follows:

a) Amend and supplement Clause 1 of Article 71 as follows:

"1. Insurance brokerage revenue:

Commission from insurance premiums collected for activities stipulated in Article 90 of the Law on Insurance Business."

b) Add Clause 1a following Clause 1 of Article 71 as follows:

"1a. Revenue from providing auxiliary insurance services: Income from providing auxiliary insurance services as specified in Point b, Clause 2 of Article 93a added by Clause 4 of Article 1 of the Law amending and supplementing certain articles of the Law on Insurance Business and the Intellectual Property Law."

7. Amend and supplement Clause 1, and add Clause 1a following Clause 1 of Article 72 as follows:

a) Amend and supplement Clause 1 of Article 72 as follows:

"1. Insurance brokerage operation expenses:

a) Brokerage operation expenses;

b) Premiums for professional liability insurance;

c) Auxiliary insurance service expenses including: insurance advisory fees, risk assessment fees, insurance calculation fees, loss appraisal fees, and claim settlement support fees;

d) Other expenses and provisions as prescribed by law."

b) Add Clause 1a following Clause 1 of Article 72 as follows:

"1a. Expenses for providing auxiliary insurance services."

8. Amend and supplement Clause 1 of Article 80 as follows:

"1. Insurance enterprises, foreign branches, and insurance brokerage enterprises shall be responsible for preparing and submitting financial reports, statistical reports, business reports, and periodic and extraordinary auxiliary insurance service usage reports; organizations providing auxiliary insurance services shall be responsible for preparing and submitting reports on the provision of auxiliary insurance services and lists of individuals directly performing each type of auxiliary insurance activity within their organization periodically and extraordinarily as prescribed by current laws and guidelines issued by the Ministry of Finance."

9. Add Chapter V-a following Chapter V as follows:

"Chapter V-a

AUXILIARY INSURANCE SERVICES

Article 89a. Qualifications, Certificates, and Standards for Individuals Directly Engaging in Auxiliary Insurance Activities in Organizations Providing Auxiliary Insurance Services

1. Individuals directly engaging in insurance advisory activities must meet one of the following qualifications and certificates:

a) Hold a bachelor's degree or higher in insurance.

b) Hold a bachelor's degree or higher in another field and a certificate in insurance advisory.

2. Individuals directly engaging in insurance risk assessment activities must meet one of the following qualifications and certificates:

a) Hold a bachelor's degree or higher in insurance.

b) Hold a bachelor's degree or higher in another field and a certificate in insurance risk assessment.

3. Conditions and standards for individuals directly engaging in insurance calculation activities are as follows:

a) Individuals directly engaging in insurance calculation activities for life insurance companies, health insurance companies must meet the conditions and standards prescribed in Clauses 2 and 3 of Article 31 of this Decree.

b) Individuals directly engaging in insurance calculation activities for non-life insurance companies, reinsurance companies, and foreign branches must meet the conditions and standards at Points b and d of Clause 1 of Article 32 of this Decree.

4. Individuals directly engaging in insurance loss appraisal activities must meet the following qualifications, certificates, and standards:

a) Hold a college degree or higher relevant to the appraisal field;

b) Hold a certificate in insurance loss appraisal;

c) Have at least three years of work experience in the appraisal field.

5. Individuals directly engaging in insurance claim settlement support activities must meet the following qualifications and certificates:

a) Hold a college degree or higher;

b) Hold a certificate in insurance claim settlement support.

Article 89b. Professional Liability Insurance for Ancillary Insurance Services

Individuals and organizations providing ancillary insurance services must purchase professional liability insurance for the provision of ancillary insurance services. The level of professional liability insurance coverage shall be determined by agreement in the contract for the provision of ancillary insurance services for each type of ancillary insurance service provided.

Article 89c. Standards in the Ancillary Insurance Sector

1. Organizations providing ancillary insurance services must establish, implement, and supervise the implementation of standards for providing ancillary insurance services.

2. Insurance companies, foreign branches, and insurance brokerage firms using ancillary insurance services must establish, implement, and supervise the implementation of standards for selecting and using ancillary insurance services.

Insurance companies, foreign branches, and insurance brokerage firms that use foreign organizations to provide cross-border ancillary insurance services in Vietnam must meet the following standards:

a) Being permitted to provide cross-border ancillary insurance services according to the laws of the country or territory where the organization has its principal office;

b) Legally operating for at least 10 years as of the date of providing cross-border ancillary insurance services in Vietnam;

c) Not violating the laws on providing ancillary insurance services in the location of the organization's principal office within the three consecutive years immediately preceding the year of providing cross-border ancillary insurance services in Vietnam;

d) Operating profitably in the three consecutive fiscal years immediately preceding the year of providing cross-border ancillary insurance services in Vietnam."

10. Amend and supplement the name of Chapter VI as follows:

"Chapter VI

CROSS-BORDER PROVISION AND USE OF INSURANCE, INSURANCE BROKERAGE, AND ANCILLARY INSURANCE SERVICES"

11. Amend and supplement Clause 1 and Clause 3 of Article 90 as follows:

a) Amend and supplement Clause 1 of Article 90 as follows:

"1. The subject providing cross-border insurance and insurance brokerage services (hereinafter referred to as cross-border insurance service provision) is a foreign insurance company and foreign insurance brokerage firm with its principal office in a country with which Vietnam has signed international treaties on trade including agreements on the provision of cross-border insurance services in Vietnam.

The subject providing cross-border ancillary insurance services is a foreign individual providing cross-border insurance advisory services, and a foreign organization providing cross-border ancillary insurance services (insurance companies, insurance brokerage firms, and other entities with legal personality) as stipulated in international treaties to which the Socialist Republic of Vietnam is a member, including agreements on the provision of cross-border ancillary insurance services."

b) Amend and supplement Clause 3 of Article 90 as follows:

"3. Reinsurance services, international marine insurance, international aviation insurance, and international reinsurance brokerage services shall be carried out in accordance with current laws and best practices."

12. Add Article 91a after Article 91 as follows:

"Article 91a. Conditions for Providing Cross-Border Ancillary Insurance Services

1. Foreign individuals providing cross-border insurance advisory services in Vietnam must meet the conditions prescribed in Clause 1 of Article 93b, supplemented in Clause 4 of Article 1 of the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business and the Law on Intellectual Property.

2. Foreign organizations providing cross-border ancillary insurance services in Vietnam must meet the conditions prescribed in Clause 2 of Article 93b, supplemented in Clause 4 of Article 1 of the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business and the Law on Intellectual Property."

13. Amend and supplement Article 92 as follows:

"Article 92. Methods for Providing Cross-Border Insurance Services and Cross-Border Insurance Ancillary Services in Vietnam

1. Foreign insurance companies providing cross-border insurance services in Vietnam must do so through insurance brokers licensed to operate in Vietnam.

2. Foreign insurance brokers providing cross-border insurance services in Vietnam must broker for foreign non-life insurance companies or their branches that have been granted licenses to operate in Vietnam.

3. Individuals and organizations from abroad are permitted to provide cross-border insurance ancillary services to insurance companies, foreign branches, and insurance brokers in Vietnam. If individuals and organizations from abroad provide cross-border insurance ancillary services to entities other than insurance companies, foreign branches, and insurance brokers in Vietnam, they must cooperate with domestic organizations legally established and operating in Vietnam to provide such services.

14. Amend and supplement Article 93 as follows:

"Article 93. Responsibilities of Entities Providing Cross-Border Insurance Services and Cross-Border Insurance Ancillary Services

1. Provide insurance companies, foreign branches, and insurance brokers licensed to operate in Vietnam, which participate in the provision of cross-border insurance services as stipulated in Article 92 of this Decree, with documentation proving compliance with the conditions for providing cross-border insurance services as specified in Article 91 of this Decree.

Provide insurance companies, foreign branches, and insurance brokers in Vietnam using cross-border insurance ancillary services, and domestic organizations participating in the provision of cross-border insurance ancillary services, with documentation proving that individuals and organizations from abroad comply with the conditions set forth in Article 91a of this Decree.

2. Individuals and organizations from abroad providing cross-border insurance ancillary services in Vietnam shall be responsible for complying with the regulations on providing insurance ancillary services as stipulated in Article 93a, added under Clause 4 of Article 1 of the Law Amending and Supplementing Certain Provisions of the Insurance Business Law and the Intellectual Property Law.

3. Within 120 days from the end of the fiscal year, insurance companies and foreign insurance brokers providing cross-border insurance services shall submit financial reports of the preceding fiscal year, certified by independent auditing organizations, and comments from foreign insurance regulatory authorities where the company's headquarters are located regarding the company's compliance with legal provisions, to the Ministry of Finance.

4. Insurance companies and foreign insurance brokers providing cross-border insurance services; individuals and organizations from abroad providing cross-border insurance ancillary services shall be responsible for paying taxes and fulfilling other financial obligations related to the provision of cross-border insurance services and cross-border insurance ancillary services in Vietnam in accordance with tax laws.

15. Amend and supplement Article 94 as follows:

"Article 94. Responsibilities of entities related to the provision of cross-border insurance services and cross-border auxiliary insurance services

Insurance companies, foreign branches, insurance brokers licensed in Vietnam, organizations providing auxiliary insurance services participating in the provision of cross-border insurance services as stipulated in Article 92 of this Decree shall have the following responsibilities:

1. Retain documents proving that the entities providing cross-border insurance services in Vietnam with which they participate in providing insurance meet the conditions as prescribed in Article 91 of this Decree; retain documents proving that individuals and organizations from foreign countries providing cross-border auxiliary insurance services in Vietnam meet the conditions as prescribed in Article 91a of this Decree and provide them to competent authorities upon request.

2. Quarterly, report to the Ministry of Finance on their participation in providing cross-border insurance services, the use and provision of cross-border auxiliary insurance services carried out in Vietnam during the quarter within thirty days from the end of the quarter. The form of the report shall be prescribed by the Minister of Finance.

3. Use or participate in providing auxiliary insurance services with individuals and organizations from foreign countries that meet the conditions as prescribed in Article 91a of this Decree."

16. Amend and supplement Clause 1, and add Clause 14 of Article 110 as follows:

a) Amend and supplement Clause 1 of Article 110 as follows:

"1. Guide the implementation of legal documents on insurance business and auxiliary insurance services; develop policies and systems related to insurance activities, strategies, planning, and development policies for the Vietnamese insurance market."

b) Add Clause 14 of Article 110 as follows:

"14. Manage and supervise auxiliary insurance activities as follows:

a) Manage and supervise the provision and use of auxiliary insurance services by insurance companies, foreign branches, and insurance brokerage firms.

b) Supervise the provision of auxiliary insurance services by individuals and organizations providing auxiliary insurance services through compliance with technical standards, responsibilities, and conditions for providing auxiliary insurance services.

c) Supervise the provision of cross-border auxiliary insurance services by individuals and organizations from foreign countries providing auxiliary insurance services in Vietnam through organizations established and legally operating in Vietnam."

Article 2. Amend and supplement some articles of Decree No. 98/2013/ND-CP dated August 28, 2013 of the Government on administrative penalties in the field of insurance business and lottery business, which has been amended and supplemented by Decree No. 48/2018/ND-CP dated March 21, 2018 of the Government

1. Amend and supplement Clause 1 of Article 2 as follows:

"1. Individuals and organizations of Vietnam, individuals and organizations from foreign countries committing administrative violations in the field of insurance business and lottery business as prescribed in this Decree.

Organizations subject to administrative penalties in the field of insurance business and lottery business according to this Decree include: Life insurance companies, non-life insurance companies, health insurance companies, reinsurance companies, insurance brokerage firms, foreign non-life insurance company branches, representative offices of foreign insurance companies, representative offices of foreign reinsurance companies, representative offices of foreign insurance brokerage firms, insurance agents as organizations, organizations providing auxiliary insurance services (insurance companies, insurance brokerage firms, and other legal entities), lottery business enterprises, lottery agents as organizations, and other relevant organizations as prescribed in this Decree."

2. Amend and supplement Point b Clause 1, add Point c Clause 1, amend and supplement Point a Clause 2 of Article 3 as follows:

a) Amend and supplement Point b Clause 1 of Article 3 as follows:

"b) Fine;

The amount of fine for administrative violations prescribed in this Decree for individuals, except in cases provided for in Article 13, Clause 4 of Article 18, Article 21, Point b Clause 1 of Article 21a, Article 22, Clause 3 and Clause 4 of Article 24, Points b and c Clause 1 and Point c Clause 2 of Article 25a, Article 32a, Article 34, Clause 1, Clause 2 and Clause 3 of Article 36, Clause 2 of Article 40, Clause 2 of Article 41, Article 42, Article 43, Article 44, Article 45, Clause 3 of Article 46, Article 48, Article 49, Article 50, and Clause 2 of Article 51 of this Decree, shall only apply to organizations.

The amount of fine for organizations for the same violation is twice the amount of the fine for individuals.

The maximum fine for individuals committing administrative violations in the field of insurance business and lottery business is 100,000,000 VND, and for organizations, it is 200,000,000 VND."

b) Add Point c Clause 1 of Article 3 as follows:

"c) Temporarily suspend the provision of auxiliary insurance services."

c) Amend and supplement Point a Clause 2 of Article 3 as follows:

"a) For the field of insurance business:

Temporarily revoke the Insurance Agent Certificate for a period; temporarily revoke the Auxiliary Insurance Service Certificate for a period;

Temporarily suspend part of the contents and scope directly related to the violation in the License for Establishment and Operation of insurance companies, reinsurance companies, insurance brokerage firms, and foreign non-life insurance company branches;

Temporarily suspend insurance agency activities for a period;

Temporarily suspend the provision of auxiliary insurance services for a period;

Confiscate objects and means used to commit administrative violations."

3. Add Article 21a after Article 21 as follows:

"Article 21a. Sanctions for violations of cross-border insurance auxiliary service provision regulations by foreign individuals and organizations

1. Imposing fines on foreign individuals and organizations committing any of the following violations:

a) Imposing a fine of from VND 90,000,000 to VND 100,000,000 on foreign individuals providing cross-border insurance advisory services in Vietnam but not being citizens of countries or territories that Vietnam has committed to opening its market to for cross-border insurance advisory services.

b) Imposing a fine of from VND 180,000,000 to VND 200,000,000 on foreign organizations providing cross-border insurance auxiliary services in Vietnam without their main office located in countries or territories that Vietnam has committed to opening its market to for cross-border insurance auxiliary services.

2. Suspending foreign individuals and organizations from providing insurance auxiliary services for a period of three to six months for any of the following violations:

a) Providing cross-border insurance auxiliary services in Vietnam without meeting the conditions stipulated in Clause 1 and Clause 2, Article 93b, added at Clause 4, Article 1 of the Law Amending and Supplementing Certain Provisions of the Insurance Business Law and the Intellectual Property Law.

b) Providing insurance auxiliary services not in accordance with the permitted types of insurance auxiliary services as prescribed by law. During the suspension period for providing insurance auxiliary services pursuant to the Administrative Violation Penalty Decision under Clause 2 of this Article, if foreign individuals and organizations continue to commit violations as stipulated in Clause 2 of this Article, they will be suspended from providing cross-border insurance advisory services in Vietnam for a period of six to twelve months.

4. Amend and supplement the name of Section 4 Chapter II as follows:

"Section 4

VIOLATIONS OF ADMINISTRATIVE LAW, FORMS OF SANCTIONS AND REMEDIAL MEASURES FOR THE CONSEQUENCES OF ACTIVITIES IN INSURANCE INTERMEDIATION, AGENCY, AUXILIARY SERVICES AND REPRESENTATIVE OFFICES

5. Add Article 25a after Article 25 as follows:

"Article 25a. Sanctions for violations of insurance auxiliary service provision by individuals and organizations providing insurance auxiliary services

1. Imposing a fine of from VND 20,000,000 to VND 30,000,000 for any of the following violations when providing insurance auxiliary services:

a) Failing to keep customer information confidential or using customer information for purposes other than those intended or providing customer information to third parties without the customer's consent, except where provided for by law;

b) An organization providing insurance auxiliary services providing loss assessment and claim settlement assistance services for insurance contracts where the organization is simultaneously the policyholder or insured party or beneficiary;

c) An insurance brokerage firm providing loss assessment services for insurance contracts where the firm arranges the conclusion of such insurance contracts;

d) Not complying with technical standards in the field of insurance auxiliary services;

đ) An insurance auxiliary service provision contract not being established in writing.

2. Imposing a fine of from VND 60,000,000 to VND 70,000,000 for any of the following violations when providing insurance auxiliary services:

a) Providing insurance auxiliary services not in accordance with the permitted types of insurance auxiliary services;

b) Providing insurance auxiliary services without meeting the conditions for providing insurance auxiliary services as prescribed by law;

c) An organization without legal person status providing one of the following insurance auxiliary services: risk assessment, insurance calculation, loss assessment, claim settlement assistance.

3. Additional forms of punishment:

a) Revoking the Insurance Advisory Certificate for a period of one to three months for individuals committing violations as specified in point a, Clause 2 of this Article;

b) Suspending the activity of providing insurance auxiliary services for a period of one to three months for individuals committing violations as specified in point b, Clause 2 of this Article;

Suspending the activity of providing insurance auxiliary services for a period of one to three months for organizations providing insurance auxiliary services committing violations as specified in points a and b, Clause 2 of this Article.

6. Add Section 7a after Section 7 as follows:

"Section 7a

VIOLATIONS OF PROVISIONS ON MONEY LAUNDERING PREVENTION AND TERRORIST FINANCING PREVENTION IN THE LIFE INSURANCE BUSINESS FIELD

Article 32a. Sanctions for violations of anti-money laundering and counter-terrorism financing regulations in the life insurance business sector

1. Life insurance enterprises that commit violations related to customer due diligence and information updating shall be subject to the following sanctions:

a) A fine of VND 20,000,000 to VND 30,000,000 for failing to update customer identification information as prescribed in Articles 8 and 10 of the Anti-Money Laundering Law;

b) A fine of VND 50,000,000 to VND 100,000,000 for failing to establish procedures for managing risks associated with new technologies as prescribed in Article 15 of the Anti-Money Laundering Law;

c) A fine of VND 30,000,000 to VND 50,000,000 for failing to apply customer due diligence measures and enhanced due diligence measures as prescribed in Clauses 2, 3, and 4 of Article 12 of the Anti-Money Laundering Law;

d) A fine of VND 50,000,000 to VND 100,000,000 for failing to establish customer classification regulations and classify customers according to money laundering risk levels as prescribed by law;

đ) A fine of VND 40,000,000 to VND 80,000,000 for failing to issue and comply with internal regulations on anti-money laundering and failing to conduct internal audits on anti-money laundering activities;

e) A fine of VND 90,000,000 to VND 100,000,000 for failing to have a risk management system to identify foreign politically exposed persons as prescribed in Clauses 2 and 3 of Article 13 of the Anti-Money Laundering Law.

2. Life insurance enterprises that commit violations related to prohibited acts in anti-money laundering shall be subject to the following sanctions:

a) A fine of VND 30,000,000 to VND 60,000,000 for obstructing the provision of information for anti-money laundering purposes and a fine of VND 50,000,000 to VND 100,000,000 for failing to provide information for anti-money laundering purposes upon request from competent state agencies as prescribed in Clause 1 of Article 28 of the Anti-Money Laundering Law;

b) A fine of VND 90,000,000 to VND 100,000,000 for organizing or facilitating money laundering activities that do not reach the threshold for criminal prosecution.

3. Life insurance enterprises that commit violations related to counter-terrorism financing shall be subject to the following sanctions:

a) A fine of VND 20,000,000 to VND 30,000,000 for failing to apply customer due diligence and information updating measures as prescribed in Article 34 of the Counter-Terrorism Financing Law;

b) A fine of VND 90,000,000 to VND 100,000,000 for failing to report terrorism financing.

Article 3. Implementation Provisions

1. This Decree takes effect from November 1, 2019.

2. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial people's committees under central city administrations are responsible for implementing this Decree./.