Decision No. 83/2009/QD-TTg on the functions, tasks, powers, and organizational structure of the Banking Inspection and Supervision Agency under the State Bank of Vietnam

Pursuant to …;

Regulations on the functions, tasks, powers, and organizational structure of the Banking Inspection Agency,

under the State Bank of Vietnam,

______________________

PRIME MINISTER

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

Based on the Law on the State Bank of Vietnam dated December 12, 1997; the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam dated June 17, 2003;

Based on the Law on Inspection dated June 15, 2004;

Based on Decree No. 178/2007/NĐ-CP dated December 3, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Considering the proposal of the Governor of the State Bank of Vietnam,

DECISION:

Article 1. Position and Functions

1. The Banking Inspection Agency is an agency directly under the State Bank of Vietnam (hereinafter referred to as the State Bank) performing administrative inspection and specialized banking supervision functions within the scope of state management of the State Bank; advising and assisting the Governor of the State Bank in managing credit organizations, small-scale financial organizations, and other entities' banking activities; implementing anti-money laundering measures in accordance with the law.

2. The Banking Inspection Agency has legal personality, its own seal, separate accounts as prescribed by law, and its headquarters located in Hanoi City.

b) Draft five-year and annual socio-economic development plans for the province; major economic and social balances for the province; draft five-year and annual plans, programs, projects, measures to organize and implement tasks related to socio-economic development, finance-budget, planning-investment, and other tasks within the scope of state management of the Department of Finance as prescribed by law;

The Banking Inspection Agency shall perform the following tasks and powers:

1. Submitting to the Governor of the State Bank for submission to the Government, Prime Minister:

a) Draft laws, draft resolutions of the National Assembly, draft ordinances, draft resolutions of the Standing Committee of the National Assembly; draft decrees of the Government, draft decisions of the Prime Minister regarding the organization and operation of credit organizations, small-scale financial organizations, other entities' banking activities, banking inspection and supervision, and anti-money laundering as assigned by the Governor of the State Bank;

b) Strategies, plans, national target programs, action programs, projects, and important initiatives concerning the development of credit organizations, small-scale financial organizations, other entities' banking activities, banking inspection and supervision, and anti-money laundering.

2. Submitting to the Governor of the State Bank for decision-making or issuance:

a) Long-term, five-year, and annual plans for the development of credit organizations, small-scale financial organizations, other entities' banking activities, banking inspection and supervision, and anti-money laundering;

b) Draft circulars on the organization and operation of credit organizations, small-scale financial organizations, other entities' banking activities, banking inspection and supervision, and anti-money laundering;

c) Rules and regulations on safe banking operations; guidelines on standards and conditions for banking operations, establishment, restructuring, and dissolution of credit organizations, small-scale financial organizations, and other entities engaged in banking activities; guidelines on procedures, formalities, and documentation for issuing and revoking licenses for the establishment and operation of credit organizations, small-scale financial organizations, and other types of banking licenses;

d) Issuing and revoking licenses for the establishment and operation of small-scale financial organizations, credit organizations, except where decided by the Prime Minister; issuing and revoking licenses for foreign credit organizations to open branches and representative offices in Vietnam and other types of banking licenses as assigned by the Governor of the State Bank;

đ) Approving the dissolution, division, separation, merger, and acquisition of credit organizations, small-scale financial organizations as assigned by the Governor of the State Bank;

e) Approving the opening and termination of domestic and foreign branch and representative office operations, establishing subordinate public service units of Vietnamese credit organizations, small-scale financial organizations; allowing Vietnamese credit organizations to establish independent accounting subsidiaries and joint venture credit organizations abroad; approving changes in credit organizations, small-scale financial organizations that must be approved by the State Bank before implementation as assigned by the Governor of the State Bank;

g) Approving the charters of credit organizations, small-scale financial organizations, approving the Chairman and other members of the Board of Directors, the Head and other members of the Supervisory Board, and the General Director (Director) of credit organizations, except where appointed by the Prime Minister as assigned by the Governor of the State Bank;

h) Proposing restructuring plans for credit organizations, small-scale financial organizations, and other entities' banking activities as assigned by the Governor of the State Bank

3. Promulgating, disseminating, and organizing the implementation of regulatory legal documents, policies, strategies, plans, programs, projects, and proposals after they have been issued or approved by competent state authorities.

4. Conducting specialized banking inspections in accordance with the law and assignments from the Governor of the State Bank:

a) Inspecting compliance with laws on currency and banking activities, implementation of provisions in licenses for the establishment and operation of credit organizations, small-scale financial organizations, and other entities' banking licenses;

b) Inspecting other cases assigned by the Governor of the State Bank;

c) Evaluating risk levels, risk management capabilities, financial status, and activities of inspected banking entities;

d) Proposing the Governor of the State Bank to apply measures to deal with banking entities that violate the law or engage in unsafe activities; placing or terminating special supervision and control over credit organizations, small-scale financial organizations; suspending one or more banking activities of credit organizations, small-scale financial organizations, and other entities engaged in banking activities; revoking licenses for the establishment and operation of credit organizations, small-scale financial organizations, and other types of banking licenses; other measures as prescribed by law.

d) Recommend competent state agencies to apply measures to ensure compliance with laws, prevent, stop and handle risks, deal with agencies, organizations, and individuals violating monetary and banking laws, suspend or revoke regulations found to be contrary to the law through banking inspection work;

e) Monitor, inspect, urge the implementation of conclusions, recommendations, and decisions on handling inspections and supervision by the Governor of the State Bank of Vietnam and the Banking Inspection and Supervision Agency;

g) Summon officials and civil servants from related agencies and organizations to participate in the inspection team.

5. Specialized supervision of banking in accordance with the provisions of the law and the assignment of the Governor of the State Bank of Vietnam;

a) Supervise supervised entities in implementing legal provisions concerning the safety of banking operations, monetary matters, and banking activities, licensing conditions, provisions in establishment and operation permits, and banking operation permits;

b) Analyze and assess the financial situation, activities, management, operation, and risk levels of supervised entities; identify and warn about risks that may cause unsafe banking operations and lead to violations of monetary and banking laws;

c) Inspect, verify, and conduct direct contact with supervised entities;

d) Collect, compile, process relevant documents and information, and build databases for banking supervision;

đ) Require supervised entities to report and provide periodic or necessary documents and information;

e) Require supervised entities to conduct independent audits when necessary to serve inspection and supervision of banking activities;

g) Recommend the Governor of the State Bank of Vietnam and competent state agencies to apply preventive, stopping measures to handle risks and violations of the law, amend and supplement, suspend the implementation, or revoke regulations found to be contrary to the law or affecting the safety of banking operations;

h) Apply preventive measures to ensure the safety of banking operations in emergency situations.

6. Administer administrative penalties according to the law on administrative violation handling.

7. Assist the Governor of the State Bank of Vietnam in performing tasks and powers regarding anti-money laundering;

a) Negotiate and sign international agreements on exchanging information about suspicious transactions related to money laundering; organize, guide, and inspect the implementation of these international agreements in accordance with the law;

b) Coordinate with relevant agencies, organizations, and individuals in implementing anti-money laundering measures as prescribed by the law;

c) Guide the implementation of international cooperation requirements for agencies and organizations participating in international cooperation on anti-money laundering;

d) Receive, compile, analyze, process, store, and provide information and documents about transactions; issue warnings or recommendations to individuals, organizations, and competent state agencies about issues arising from reported transactions; transfer documents and case files potentially related to money laundering to competent state agencies for inspection, investigation, and handling according to the law;

đ) Require relevant agencies, organizations, and individuals to provide documents and information about transactions in accordance with the law on anti-money laundering;

8. Handle complaints and denunciations, prevent and combat corruption, promote thrift, and prevent waste in accordance with the law;

9. Guide and inspect units within the banking sector in implementing legal provisions on banking inspection and supervision, complaints and denunciations, prevention and combating corruption, and anti-money laundering within the State Bank of Vietnam's administrative jurisdiction;

10. Compile and report results of banking inspection and supervision work, complaint and denunciation resolution, prevention and combating corruption, and anti-money laundering within the State Bank of Vietnam's administrative jurisdiction;

11. Guide and inspect the activities of associations and non-governmental organizations in areas under the State Bank of Vietnam's administrative jurisdiction according to the Governor's classification and authorization;

12. Organize research and application of scientific and technological progress in banking inspection and supervision, anti-money laundering; modernize technical infrastructure of the banking inspection and supervision system, and anti-money laundering;

13. International cooperation in the field of banking inspection and supervision, and anti-money laundering according to the Governor's classification;

14. Coordinate with relevant agencies and organizations to train and enhance professional skills for officials, civil servants, and employees engaged in banking inspection and supervision, complaints and denunciations, prevention and combating corruption, and anti-money laundering;

15. Implement administrative reform in the fields of activity of the Banking Inspection and Supervision Agency according to the State Bank of Vietnam's administrative reform plan;

16. Manage organizational structure and staffing; implement salary systems and incentive policies, recruitment, employment, appointment, dismissal, retirement, resignation, rewards, and disciplinary actions for officials, civil servants, and employees of the Banking Inspection and Supervision Agency according to the Governor's classification;

17. Manage and use allocated finance and assets according to the Governor's classification and legal provisions;

18. Perform other tasks and powers as prescribed by law and assigned by the Governor of the State Bank of Vietnam;

Article 3. Organizational Structure

1. The Department of Domestic Credit Institutions Inspection (referred to as Department I);

2. The Department of Foreign Credit Institutions Inspection (referred to as Department II);

3. The Department of Administrative Inspection, Complaint Resolution, and Anti-Corruption (referred to as Department III).

4. The Department of Banking Supervision (referred to as Department IV);

5. The Department of Banking Operation Safety Policy (referred to as Department V).

6. The Department of Licensing and Management of Credit Institutions and Banking Activities (referred to as Department VI).

7. Office.

8. The Anti-Money Laundering Bureau;

Organizations specified from Clause 1 to Clause 8 of this Article shall establish offices;

The Governor of the State Bank of Vietnam shall stipulate the functions, tasks, powers, and organizational structure of the Banking Inspection and Supervision Agency;

Article 4. Leadership of the Banking Inspection and Supervision Agency

1. The Banking Inspection and Supervision Agency has a Chief Inspector and not more than three Deputy Chief Inspectors.

2. The Chief Inspector of Banking Supervision shall be appointed, relieved, or dismissed by the Governor of the State Bank after consultation with the General Inspector.

The Governor of the State Bank of Vietnam appoints, relieves, or dismisses Deputy Chief Inspectors and Supervisors of Banking upon the proposal of the Chief Inspector and Supervisor of Banking and in accordance with the law.

3. The Chief Inspector of Banking Supervision shall be accountable to the Governor of the State Bank and to the law for all activities of the Banking Inspection and Supervision Authority; the Deputy Chief Inspector of Banking Supervision shall be accountable to the Chief Inspector of Banking Supervision and to the law for the areas of work assigned to him/her.

4. The Chief Inspector of Banking Supervision shall perform the duties and powers of the Chief Inspector of Ministries and equivalent agencies in accordance with the laws on inspection and other relevant laws.

Article 5. Effectiveness and Responsibility for Implementation

1. This Decision shall take effect from August 1, 2009.

2. The Governor of the State Bank, Ministers, Heads of ministries equivalent to ministries, Heads of government agencies, Chairpersons of provincial People's Committees under central governance, and the Chief Inspector of Banking Supervision shall be responsible for implementing this Decision./.