Decree No. 81/2005/ND-CP on the organization and operation of Financial Inspection

DECREE

Regarding the organization and operation of Financial Inspection

________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Inspection Law dated June 15, 2004;

Based on the Administrative Offense Sanction Ordinance dated July 2, 2002;

Considering the proposal of the Minister of Finance,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Position and Functions

Financial Inspection is organized according to administrative levels, at the central level there is the Ministry of Finance's Inspectorate under the Ministry of Finance (hereinafter referred to as the Ministry Inspectorate) and the Inspectorates of the General Department of Taxation, the General Department of Customs, and the State Securities Commission (hereinafter collectively referred to as the General Department Inspectorates); at provincial and centrally-administered city levels, there are the Inspectorates of the Department of Finance under the Department of Finance (hereinafter referred to as the Department Inspectorate), performing administrative inspection and specialized inspection functions within the scope of state management of the Ministry of Finance and the Department of Finance (collectively referred to as the financial sector) in accordance with the provisions of the law.

Article 2. Inspection Objects

1. Organizations and individuals under the management authority of the Ministry of Finance and the Provincial Department of Finance.

2. Vietnamese organizations and individuals and foreign organizations and individuals in Vietnam have the obligation to comply with the provisions of the law regarding sectors under the scope of state management of the Ministry of Finance and the Provincial Department of Finance.

In case international treaties to which the Socialist Republic of Vietnam has signed or acceded provide different provisions from this Decree, such international treaties shall be applied.

Article 3. Content of activities

1. Inspect and examine the objects specified in Clause 1, Article 2 of this Decree on the implementation of policies, laws, and tasks assigned by competent authorities.

2. Inspect and examine the implementation of policies and laws related to the financial sector by the objects specified in Clause 2, Article 2 of this Decree.

3. Handle according to their authority or propose competent state agencies to handle violations of laws in the financial sector.

4. Detect, record in minutes, take measures to prevent, decide according to their authority or propose competent agencies to decide on administrative sanctions.

5. Develop inspection programs and plans, guide inspection organizations of financial agencies to develop inspection programs and plans; organize the implementation and urge subordinate inspection organizations of financial agencies to implement approved inspection programs and plans.

6. Resolve complaints and denunciations in accordance with the law on complaints and denunciations; prevent and combat corruption in accordance with the law.

7. Guide training on inspection business content, supervise subordinate financial agency inspections in conducting inspections and post-inspection handling; establish procedural guidelines for inspection work, organize the implementation and supervise the implementation of these procedural guidelines.

8. Propose competent state agencies to amend, supplement, or promulgate regulatory legal documents in line with the provisions of laws and ordinances and the requirements of state management over the financial sector.

9. Summarize and report on the results of inspection work, complaint resolution, prevention and combating corruption; organize the summary of experiences in financial inspection work.

10. Perform other tasks and powers as prescribed by law.

Article 4. Principles of Operation

1. The operation of Financial Inspection must comply with the law; ensuring accuracy, objectivity, honesty, transparency, democracy, and timeliness; not hindering the normal operations of inspected agencies, organizations, and individuals.

2. When conducting inspections, the person issuing the inspection decision, the head of the inspection agency, the leader of the inspection team, and the inspector must comply with the legal regulations on inspection and bear responsibility for their actions and decisions.

Article 5. Work relationship

1. Financial Inspection agencies operate under the direct management and guidance of the heads of state management agencies at the same level and the guidance on work, organization, and inspection business from higher-level inspection agencies.

2. The Ministry Inspectorate is subject to the guidance on work, organization, and inspection business from the Government Inspectorate in accordance with the law.

3. The Ministry Inspectorate guides specialized inspection business for the Department Inspectorate; manages and directs the organizational work and operational activities of the General Department Inspectorates under the Ministry of Finance.

4. The Department Inspectorate is subject to the guidance on work and administrative inspection business from the provincial-level Inspectorate.

5. Financial Inspection coordinates with the Inspectorates of Ministries, ministerial-level agencies, and government agencies and other local agencies during the inspection process to avoid overlap and enhance the effectiveness of inspection and examination, prevention, and curtailment of illegal acts.

Chapter II

ORGANIZATION, DUTIES, AND LIMITS OF FINANCIAL INSPECTION

Article 6. Financial Inspection Organizations

1. In the Ministry of Finance, there are the Ministry of Finance Inspectorate, the Tax General Department Inspectorate, the Customs General Department Inspectorate, and the State Securities Commission Inspectorate.

2. In the provincial and centrally-administered city finance departments, there are the Provincial Finance Department Inspectorates.

The Ministry Inspectorate, General Department Inspectorate, and Provincial Finance Department Inspectorate have their own seals and separate accounts.

Article 7. Organization of the Ministry Inspectorate

1. The Ministry Inspectorate is an agency under the Ministry of Finance; it performs administrative inspection and specialized inspection tasks and powers.

2. The Ministry Inspectorate has the Chief Inspector, Deputy Chief Inspectors, and Inspectors.

The appointment and removal of the Chief Inspector, Deputy Chief Inspectors, and Inspectors shall be carried out in accordance with the provisions of the law.

3. The Ministry Inspectorate may organize various departments; the Minister of Finance shall specify in detail the tasks, powers, staffing, and organizational structure of the Ministry Inspectorate.

Article 8. Tasks and Powers of the Ministry Inspectorate

1. Implement the tasks and powers as stipulated in Article 25 of the Inspection Law.

2. Participate in drafting draft normative legal documents on inspection work; take the lead or participate in drafting draft normative legal documents related to the organization and activities of financial inspection for submission to competent authorities for issuance.

3. Guide subordinate financial agencies' inspection organizations in building inspection programs and plans; supervise and urge these organizations to implement approved inspection programs and plans.

4. Handle within its authority or recommend competent state agencies to handle violations of laws in the field of finance.

Recommend competent state agencies to suspend the implementation or revoke regulations that contravene normative legal documents discovered through inspection activities.

5. Monitor, inspect, and urge the implementation of conclusions, recommendations, and decisions made by the Ministry Inspectorate; inspect the implementation of inspections and post-inspection handling by subordinate financial agencies' inspection organizations.

6. Guide financial inspection business for the General Department Inspectorate and Provincial Finance Department Inspectorate; guide and inspect units and organizations under the Ministry in implementing legal provisions on inspection work.

7. Summarize and report results on inspection work, complaints and grievances resolution, anti-corruption within the scope of the Ministry of Finance's state management; summarize experiences and inspection business.

8. Summon officers and civil servants from subordinate financial agencies' inspectorates; request relevant agencies, units, and organizations to assign officers and civil servants to join inspection teams.

9. Perform other tasks and powers as prescribed by law or assigned by the Minister of Finance.

Article 9. Tasks and Powers of the Chief Inspector of the Ministry

1. Perform the tasks and powers as stipulated in Article 26 of the Inspection Law.

2. Direct inspection business for the Ministry Inspectorate, General Department Inspectorate, and Provincial Finance Department Inspectorate.

3. Recommend the Minister to resolve overlaps in content and time between inspection and audit teams within the scope of the Ministry's state management.

4. Monitor, inspect, and urge the implementation of conclusions and recommendations on inspection and audit work within the responsibility of heads of units and organizations under the Ministry's management.

5. Guide and urge heads of units and organizations under the Ministry's management to implement regulations on inspection.

6. Report to the Chief Inspector about inspection work within his/her responsibility.

7. Inspect the responsibility of heads of units and organizations under the Ministry's management in implementing laws on inspection.

8. Participate in opinions with heads of units and organizations within the scope of the Ministry's management regarding the appointment and removal of inspection positions.

Article 10. Organization of the General Inspectorate

1. The General Inspectorate is an organ of the General Department, performing administrative inspection and specialized inspection functions within the scope of state management of the General Department.

2. The General Inspectorate has the Chief Inspector, Deputy Chief Inspector, and Inspectors.

The Chief Inspector of the General Inspectorate is appointed, relieved, or dismissed by the Minister of Finance upon the proposal of the General Department Director after reaching consensus with the Chief Inspector of the Ministry.

The Deputy Chief Inspector of the General Inspectorate is appointed, relieved, or dismissed by the General Department Director in accordance with the provisions of law and the分级管理干部的权限。

Inspectors are appointed or relieved in accordance with the law.

3. The Minister of Finance shall stipulate the tasks, powers, and organizational structure of the General Inspectorate.

Article 11. Tasks and Powers of the General Inspectorate

1. Inspect the implementation of policies, laws, and assigned tasks by organizations and individuals under the management authority of the General Department Director.

2. Inspect compliance with laws within the scope of specialized state management of the General Department.

3. Administer administrative penalties in accordance with the provisions of law.

4. Assist the General Department Director in guiding, directing, and implementing tasks to resolve complaints and reports within the authority of the General Department Director in accordance with the law on complaints and reports.

5. Assist the General Department Director in guiding, directing, and implementing tasks for prevention and struggle against corruption within the scope of state management of the General Department Director in accordance with the law on anti-corruption.

6. Monitor, inspect, and urge the implementation of conclusions, recommendations, and decisions on inspections made by the General Inspectorate.

7. Recommend to competent state management agencies to suspend enforcement or revoke regulations found to be contrary to normative legal documents through the activities of the General Inspectorate.

8. Summarize, report the results of inspections, complaint resolution, anti-corruption efforts within the scope of management of the General Department.

9. Guide and inspect subordinate units and organizations in implementing legal provisions on inspection work.

10. Summarize experiences and inspection business in areas under the management scope of the General Inspectorate.

11. Request relevant agencies and organizations to assign officials and civil servants to participate in the inspection team of the General Department.

12. Inspect other cases assigned by the General Department Director; perform other tasks and powers as prescribed by law.

Article 12. Tasks and Powers of the Chief Inspector of the General Inspectorate

1. Lead and direct inspection work within the management scope of the General Inspectorate.

2. Develop inspection programs and plans to submit to the competent authority for approval and organize their implementation.

3. Submit to the General Department Director for decision-making on inspections when signs of law violations in areas managed by the General Department are discovered.

4. Recommend the General Department Director to temporarily suspend the execution of decisions made by organizations under the management authority of the General Department Director when signs of law violations are discovered.

5. Administering administrative penalties according to the provisions of law.

6. Recommend the General Department Director to consider responsibility and handle persons who have committed violations within the management authority of the General Department Director.

7. Lead the General Inspectorate in performing tasks and powers as prescribed by law.

8. Report to the Chief Inspector of the Ministry about inspection work within their scope and responsibilities.

Article 13. Organization of the Inspectorate of the Department

1. The Inspectorate of the Department is an organ under the Department of Finance, performing inspection tasks and powers within the scope of duties and powers of the Department of Finance Director.

2. The Inspectorate of the Department has the Chief Inspector, Deputy Chief Inspector, and Inspectors. The appointment, relief, or dismissal of the Chief Inspector, Deputy Chief Inspector, and Inspectors shall be carried out in accordance with the provisions of law.

Article 14. Duties and Authorities of the Department Inspector

1. Perform duties and authorities as prescribed in Article 28 of the Inspection Law.

2. Recommend to competent state agencies to suspend the implementation or revoke regulations that contravene national regulatory legal documents discovered through financial inspection work.

3. Monitor, inspect, and urge the implementation of conclusions, recommendations, and decisions on inspection issued by the Department Inspector.

4. Guide and inspect units and organizations under the Department of Finance in implementing legal provisions on inspection work; coordinate with the Heads of organizations and units under the Department of Finance to direct and guide on organizing and operating internal inspections within those organizations and units.

5. Request relevant organizations to assign officials and civil servants to participate in inspection teams.

6. Perform other duties and authorities as prescribed by law and assigned by the Director of the Department of Finance.

Article 15. Duties and Authorities of the Chief Inspector of the Department

1. Perform duties and authorities as prescribed in Article 29 of the Inspection Law.

2. Lead and direct inspection work, guide and inspect the activities of inspections conducted by organizations and units under the management scope of the Director of the Department of Finance.

3. Monitor, inspect, and urge the implementation of conclusions, recommendations, and decisions on inspections within the responsibility scope of the Heads of organizations and units under the management of the Department of Finance.

4. Guide and urge the Heads of organizations and units under the management of the Department of Finance to implement legal provisions on inspections.

5. Report to the Director of the Department of Finance, the Chief Inspector of the provincial inspectorate, and the Chief Inspector of the Ministry of Finance on inspection work within their responsibility scope.

6. Inspect and check the responsibility of the Heads of organizations and units under the management of the Department of Finance in implementing laws on inspections.

Chapter III

INSPECTORS AND INSPECTION COLLABORATORS

Article 16. Financial Inspectors

1. A Financial Inspector (hereinafter referred to as Inspector) is a state civil servant appointed to inspection ranks to perform financial inspection tasks.

2. Inspectors have the following duties and powers:

a) Perform duties and authorities as prescribed by laws on inspection and financial laws;

b) Impose penalties or recommend competent agencies or organizations to impose administrative penalties according to the law;

c) Have the right to use the Inspector card to handle cases without a decision from the competent authority in urgent situations to promptly prevent violations of financial laws, while immediately reporting the incident to the Head of the same-level inspection agency after handling.

3. Inspectors receive salaries according to civil service ranks and allowances for inspectors as prescribed by law.

4. In addition to general conditions and standards for inspection ranks, Financial Inspectors must meet specific conditions and standards suitable for their industry and field as prescribed by the Minister of Finance.

5. Inspectors are responsible before the law and the person issuing the inspection decision for their decisions and measures taken.

6. When handling violations, Financial Inspectors must fully comply with procedures and formalities as prescribed by law and this Decree.

Article 17. Inspectors' Collaborators

1. An Inspector's Collaborator is a person not included in the establishment of the Financial Inspection agency, assigned to perform inspection tasks at the request of the Inspection agency or competent authority. The Inspector's Collaborator works under the assignment of the Inspection organization or Financial Inspector.

2. An Inspector's Collaborator must have good political qualities; sense of responsibility, honesty, objectivity, fairness; appropriate professional qualifications for the assigned inspection tasks.

3. Financial Inspection organizations shall employ collaborators in accordance with the provisions of the law.

4. The duties, rights, and responsibilities of Financial Inspection Collaborators shall be stipulated by law.

Chapter IV

ATTIRE, BADGES, INSIGNIA, EQUIPMENT AND OPERATING EXPENSES

Article 18. Attire, Badges, Insignia

1. Financial Inspection has its own attire, badges, insignia.

Strictly prohibited are organizations and individuals from using attire, badges, insignia similar to those of Financial Inspection, causing confusion.

2. The Minister of Finance shall prescribe the attire, badges, and insignia of Financial Inspection after consultation with the General Inspector.

Article 19. Ensuring Working Conditions

1. Financial Inspection agencies have offices and are equipped with means of service for inspection work.

Depending on each specialty, state management agencies in finance equip suitable means of service for the activities of inspection organizations and inspectors.

2. The Minister of Finance shall stipulate the means and equipment for Financial Inspection agencies at all levels in accordance with the law.

Article 20. Operating Expenses

1. Operating expenses of Financial Inspection are funded from the state budget and other sources as prescribed by law.

2. The allocation and management of operating expenses shall be carried out in accordance with the State Budget Law and related legal documents.

Chapter V

REWARD AND DISCIPLINARY ACTION FOR VIOLATIONS

Article 21. Reward System

Organizations and individuals who achieve success in financial inspection activities shall be rewarded according to the regulations of the State.

Article 22. Handling of Violations

Organizations and individuals who abuse their positions and powers to violate laws and this Decree regarding inspection, infringe upon the legitimate rights and interests of organizations and individuals operating in the field of finance, obstruct financial inspection activities, bribe, retaliate against persons performing inspection tasks, or retaliate against complainants and accusers shall be subject to disciplinary, administrative, or criminal liability depending on the severity of the violation, and if damage is caused, they must compensate according to the law.

Chapter VI

EFFECTIVENESS AND RESPONSIBILITY FOR IMPLEMENTATION

Article 23. Effectiveness of Implementation

This Decree takes effect fifteen days after its publication in the Official Gazette, replacing Government Decree No. 174/ND-CP dated September 10, 1970 on the organization and operation of Financial Inspection and Government Decree No. 17/2000/ND-CP dated May 26, 2000 on the organization and operation of Securities Inspection, and previous regulations on Financial Inspection that conflict with this Decree.

Article 24. Responsibility for Implementation

1. The Minister of Finance shall take the lead and coordinate with the Ministers and Heads of Ministries equivalent to ministries concerned to guide the implementation of this Decree.

2. Ministers, Heads of Ministries equivalent to ministries, Heads of government agencies, Chairpersons of People's Committees of provinces and centrally governed cities shall be responsible for implementing this Decree.