Decree No. 95/2011/ND-CP amending and supplementing certain articles of Decree No. 202/2004/ND-CP dated December 10, 2004 of the Government on administrative penalties for violations in the field of currency and banking activities.

 DECREE

Amending and supplementing some articles of Decree No. 202/2004/NĐ-CP dated December 10, 2004 of the Government on administrative penalties for violations in the field of currency and banking activities

concerning administrative penalties for violations in the field of currency and banking activities

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THE GOVERNMENT

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

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

Pursuant to the Law on Credit Organizations dated June 16, 2010;

Pursuant to the Foreign Exchange Decree dated December 13, 2005;

Pursuant to the Administrative Violation Handling Law dated July 2, 2002; the Ordinance amending and supplementing some articles of the Administrative Violation Handling Law dated April 2, 2008;

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

DECREE

Article 1. Amending and supplementing some articles of Decree No. 202/2004/NĐ-CP dated December 10, 2004 of the Government on administrative penalties for violations in the field of currency and banking activities as follows:

1. Amending and supplementing Clause 3, Clause 5, Clause 7 Article 18 as follows:

“3. A fine of VND 50,000,000 to VND 100,000,000 shall be imposed for any of the following acts:

a) Lending, leasing finance, or repaying domestic debts in foreign currency not in accordance with the provisions of the law;

b) Transferring or carrying foreign currency out of the country and into Vietnam not in accordance with the provisions of the law, except as provided for in Clause 6 of this Article;

c) Paying for goods and services in foreign currency to foreigners not in accordance with the provisions of the law;

d) Buying, selling, or paying for foreign currency not in accordance with the provisions of the law;

đ) Paying for goods and services in gold not in accordance with the provisions of the law;

e) Engaging in business, buying, or selling gold not in accordance with the provisions of the law.”

“5. A fine of VND 300,000,000 to VND 500,000,000 shall be imposed for any of the following acts:

a) Conducting foreign exchange transactions without authorization from competent authorities or with expired or suspended foreign exchange operation permits;

b) Providing remittance services without authorization from competent authorities;

c) Exporting or importing foreign currency, gold without a permit from the State Bank;

d) Listing prices or advertising goods, services, land use rights in foreign currency or gold not in accordance with the provisions of the law.”

“7. Applying additional administrative sanctions:

a) Confiscating the contraband items which are foreign currency, Vietnamese dong (VND), or gold for violations stipulated at point b, point d, point đ, point e Clause 3 of this Article;

b) Revoking the Certificate of Registration for Currency Exchange Agents for a period of twelve months upon first violation and indefinitely upon repeat violation for Currency Exchange Agents violating the provisions at point d Clause 3;

c) Revoking the Gold Business Operation Permit for a period of twelve months upon first violation and indefinitely upon repeat violation for organizations violating the provisions at point e Clause 3 of this Article.”

2. Repealing point đ Clause 4 Article 18.

3. ||| Supplement Article 18a as follows:

“Article 18a. Management and use of fines for administrative violations

1. Fines collected from administrative penalties in the field of gold and foreign currency trading must be deposited into the state budget through accounts opened at the National Treasury.

2. The management and use of fines for administrative violations in the field of gold and foreign currency trading to support funding for agencies and organizations implementing according to the provisions of the Administrative Violation Handling Ordinance, Decree No. 124/2005/NĐ-CP dated October 6, 2005 of the Government on receipts for fines and the management and use of penalty payments, and current laws on administrative penalties.”

4. Amend and supplement Article 37 as follows:

“Article 37. Authority to impose administrative penalties

1. Banking inspectors performing their duties have the right:

a) To issue warnings;

b) Impose a fine up to 500,000 VND;

c) To confiscate contraband items and means of transportation used for administrative violations up to VND 2,000,000 in value;

d) To apply measures to remedy consequences as prescribed in Clause 3 Article 7 of this Decree.

2. Heads of Banking Inspection and Supervision Departments of the State Bank of Vietnam branches in provinces and centrally-administered cities have the right:

a) To issue warnings;

b) Impose fines up to thirty million dong;

c) To apply additional administrative sanctions and measures to remedy consequences as prescribed in point a Clause 2 and Clause 3 Article 7 of this Decree;

d) To propose the Governor of the State Bank of Vietnam branches in provinces and centrally-administered cities to suspend temporarily or indefinitely the implementation of one or more business operations related to administrative violations according to the provisions of the Law on the State Bank of Vietnam and the Law on Credit Institutions.

3. Heads of Banking Inspection and Supervision Departments of the State Bank of Vietnam have the right:

a) To issue warnings;

b) To impose a maximum fine of VND 500,000,000;

c) To apply additional administrative sanctions and measures to remedy consequences as prescribed in point a Clause 2 and Clause 3 Article 7 of this Decree;

d) To propose the Governor of the State Bank of Vietnam to suspend temporarily or indefinitely the implementation of one or more business operations related to administrative violations according to the provisions of the Law on the State Bank of Vietnam and the Law on Credit Institutions.

4. Chairmen of provincial People's Committees; Directors of the Economic Order Crime Investigation Bureau, the Social Order Crime Investigation Bureau, the Drug Crime Investigation Bureau, and the Exit and Entry Administration Bureau as stipulated in Article 30 and Clause 7, Clause 8 Article 31 of the Administrative Violation Handling Ordinance, when discovering individuals or organizations that are not credit institutions engaging in violations of foreign exchange management regulations as specified in points b, d, đ, e Clause 3, points a, c, d, e, g Clause 4, and Clause 5 Article 18 of this Decree, have the authority to issue decisions on administrative penalties according to this Decree, while also being required to notify the State Bank of Vietnam.

5. Market Management Agencies as stipulated in Article 37 of the Administrative Violation Handling Ordinance, when discovering individuals or organizations that are not credit institutions engaging in violations as specified in point d Clause 5 Article 18 of this Decree, have the responsibility to prepare records and transfer them to the entities specified in Clause 3 and Clause 4 of this Decree for handling according to this Decree.”

Article 2. Effective date

This Decree takes effect from the date of issuance.

Article 3. Responsibility for Implementation

The Governor of the State Bank of Vietnam, Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of provincial and centrally-administered city People's Committees are responsible for enforcing this Decree./.