Decree No. 98/2013/NĐ-CP on administrative penalties for violations in the insurance and lottery business sectors.

DECREE

Provisions on administrative penalties for violations

in the insurance business and lottery sales sector

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

Pursuant to the Law on Handling Administrative Offenses dated June 20, 2012;

Pursuant to the Law on Insurance Business dated December 9, 2000 and the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business dated November 24, 2010;

At the proposal of the Minister of Finance;

The Government promulgates this Decree to stipulate administrative penalties in the insurance business and lottery sales sector,

Article 1. Scope of Regulation

2. Acts of administrative violations in other related sectors concerning the insurance business and lottery sales sector shall be subject to penalties according to the provisions of those documents.

Article 2. Applicability

2. Persons authorized to impose administrative penalties as prescribed in this Decree.

1. Main forms of penalty in the insurance business and lottery sales sector include:

a) Warning;

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

The monetary penalties for administrative violations prescribed in this Decree apply to individuals except where specified in Article 13, Clause 4 of Article 18, Article 21, Article 22, Clause 3 and Clause 4 of Article 24, 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, which only apply to organizations.

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

Suspension of the use of Insurance Agent Certificate for a period of time;

Suspension of part of the content and scope directly related to the violation in the License for Establishment and Operation of insurance companies, reinsurance companies, insurance brokerage companies, or foreign non-life insurance company branches;

Suspension of insurance agency operations for a period of time;

Confiscation of objects and means used to commit administrative violations;

Suspension of the use of Lottery Business Qualification Certificate for a period of time;

Confiscation of objects and means used to commit administrative violations;

Clause 1. The measures to remedy consequences as stipulated at Points a, b, c, d, đ, e, g, h, and i of Clause 1 of Article 28 of the Law on Handling Administrative Violations.

In addition to the forms of penalty stipulated in Article 3 of this Decree, depending on the nature and degree of violation, violators may also be subject to one or more remedial measures as follows:

1. Measures to remedy consequences in the insurance business:

a) Compel restoration to the original condition.

b) Compel correction of false or misleading information;

c) Compelling the return of unlawful profits obtained through the commission of administrative violations;

d) Compel destruction of fraudulent or forged documents;

đ) Compel removal from office of positions appointed by insurance companies, reinsurance companies, insurance brokerage companies, or foreign non-life insurance company branches;

e) Compel removal of management, operation, or actuarial positions approved by the Ministry of Finance; compel cessation of agent training activities; compel invalidation of agent training results.

2. Measures to remedy consequences in the lottery sales sector:

a) Compel compliance with legally prescribed types of lottery products;

b) Compel compliance with legally prescribed geographical areas for lottery sales;

c) Compel cancellation or correction of lottery winning results that deviate from the confirmation records of the Lottery Supervision Board;

d) Compel supplementation or correction of incomplete or inaccurate reported data;

đ) Compel destruction of altered, erased, fraudulent, or forged documents, and lottery drawing equipment not meeting legal management requirements;

e) Compel return of unlawful profits obtained through administrative violations.

Section 1
ACTS OF ADMINISTRATIVE VIOLATIONS, FORMS OF PENALTY AND MEASURES TO REMEDY CONSEQUENCES REGARDING ESTABLISHMENT AND OPERATIONS

Article 5. Sanctions for violations concerning licensed documents

1. A fine of from twenty million to thirty million dong shall be imposed for one of the following violations:

a) Altering, falsifying, or forging documents related to the license for establishment and operation;

b) Altering, falsifying, or forging documents related to the branch establishment license.

2. Additional forms of punishment:

To suspend part of the content and scope directly related to the administrative violation in the License for Establishment and Operation for a period of two to three months in cases where the provisions of Clause 1 of this Article are violated.

3. Measures to remedy consequences:

a) Order the destruction of false or forged documents;

b) Order the removal of the title of management or executive personnel approved by the Ministry of Finance.

Article 6. Sanctions for violations concerning the placement of representative offices of insurance companies, reinsurance companies, foreign insurance brokerage companies in Vietnam

1. A fine of from twenty million to thirty million dong shall be imposed for altering, falsifying, or forging documents related to the representative office placement license.

2. Measures to remedy consequences:

To compel the destruction of fraudulent or forged documents.

Article 7. Sanctions for violations concerning the license for establishment and operation, and the representative office placement license

a) Not to publish on three consecutive daily newspapers of central and local levels where the insurance company, reinsurance company, insurance brokerage company, or branch of foreign non-life insurance company is headquartered about the contents as prescribed by law;

b) To fail to announce within the prescribed time limit one of the contents in the License for Establishment and Operation as prescribed by law;

c) Not to announce the contents at the Representative Office License as prescribed by law.

2. A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed for one of the following violations:

a) Failure to announce or announce falsely one of the contents of activities and changes approved by the Ministry of Finance in accordance with the law;

b) Opening or ceasing operations of branches or representative offices without written approval from the Ministry of Finance;

c) Altering the license for establishment and operation or the representative office placement license.

3. A fine of from forty million to fifty million dong shall be imposed for changing the charter capital, authorized capital, content, scope, and duration of operations without written approval from the Ministry of Finance.

a) Conducting insurance business, reinsurance business, or insurance brokerage business without a License for Establishment and Operation;

b) Operating or conducting business when the License for Establishment and Operation has been suspended;

c) Operating when the License for Establishment and Operation or the Representative Office License has expired.

5. Measures to remedy consequences:

a) Order the correction of misleading information in cases of violation under Point a Clause 2 of this Article;

b) Order restoration to the original state in cases of violation under Clause 3 of this Article;

c) Order the return of illegal gains obtained through administrative violations in cases of violation under Clause 3 and Clause 4 of this Article.

Article 8. Sanctions for violations concerning division, separation, merger, consolidation, acquisition, conversion, and dissolution of enterprises

1. A fine of from fifty million to sixty million dong shall be imposed for dissolving insurance companies, reinsurance companies, insurance brokerage companies, and non-life insurance company branches of foreign countries not in accordance with the law.

2. A fine of from sixty million to seventy million dong shall be imposed for dividing, separating, merging, consolidating, or converting insurance companies, reinsurance companies, insurance brokerage companies, and non-life insurance company branches of foreign countries not in accordance with the law.

3. Additional forms of punishment:

To suspend part of the content and scope directly related to the administrative violation in the License for Establishment and Operation for a period of two to three months in cases where the provisions of Clause 2 of this Article are violated.

4. Measures to remedy consequences:

a) Order restoration to the original state in cases of violation under Clause 1 and Clause 2 of this Article;

b) Order the return of illegal gains obtained through administrative violations in cases of violation under Clause 2 of this Article.

Section 2

ADMINISTRATIVE VIOLATIONS, FORMS OF SANCTIONS AND REMEDIAL MEASURES FOR MANAGEMENT AND OPERATIONAL ISSUES

Article 9. Sanctions for violations concerning management, operation, and supervision

2. A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed for one of the following violations:

a) Appointing General Directors (Directors) or Deputy General Directors (Deputy Directors) of insurance companies, reinsurance companies, insurance brokerage companies, and non-life insurance company branches of foreign countries to concurrently work for other insurance companies, reinsurance companies, insurance brokerage companies, and non-life insurance company branches of foreign countries operating in the same field in Vietnam;

b) Appointing General Directors (Directors) of insurance companies, reinsurance companies, and insurance brokerage companies as members of the Board of Management or the Board of Members of other insurance companies, reinsurance companies, and insurance brokerage companies operating in the same field in Vietnam;

c) Appointing members of the Board of Management or the Board of Members of insurance companies, reinsurance companies, and insurance brokerage companies to concurrently serve as members of the Board of Management or the Board of Members of other companies operating in the same field in Vietnam;

3. A fine of from forty million to fifty million dong shall be imposed for one of the following violations:

b) Failure to establish internal inspection and control procedures and other procedures as required by law;

c) Internal inspection and control procedures that do not meet the requirements set forth by law.

4. A fine of from sixty million to seventy million dong shall be imposed for one of the following violations:

c) Changing the Chairman of the Board of Management (Chairman of the Board of Members, Chairman of the Company) or the General Director (Director) without written approval from the Ministry of Finance.

5. Additional forms of punishment:

To suspend part of the content and scope directly related to the administrative violation in the License for Establishment and Operation for a period of two to three months in cases where the provisions of Clause 4 of this Article are violated.

6. Measures to remedy consequences:

a) Order restoration to the original state in cases of violation under Clause 2, Point a Clause 3, Points a and c Clause 4 of this Article;

b) Order the removal of the title of management or executive personnel approved by the Ministry of Finance in cases of violation under Clause 2 of this Article;

c) Order suspension of appointments made by insurance companies, reinsurance companies, insurance brokerage companies, and non-life insurance company branches of foreign countries in cases of violation under Clause 2 and Point a Clause 3 of this Article.

Article 10. Penalties for violations concerning the appointed actuary, risk management actuary, and solvency

1. Warning penalty for changing the appointed actuary, risk management actuary, and solvency without complying with the provisions of the law.

a) Establishing rules, terms, and calculating premiums for insurance products;

b) Annually assessing the difference between assumptions used for premium calculation and actual implementation for each product;

c) Evaluating reinsurance programs, reinsurance contracts, and other tasks to ensure financial safety for the insurance company.

a) Establishing rules, terms, and premium schedules for insurance products;

b) Assessing claims payment situations;

c) Evaluating reinsurance programs and reinsurance contracts before submitting them to the Board of Directors, Board of Management (Board of Members, Chairman of the Company) for approval.

a) Setting aside reserves for life insurance contracts;

b) Separating funds and distributing annual surpluses of the policyholder fund.

a) Establishing business reserves in accordance with the provisions of the law;

b) Failing to perform solvency calculations and confirm them in the solvency report as prescribed by law.

6. Measures to remedy consequences:

The actuarial title of life insurance companies' actuarials shall be revoked in cases of violation of the provisions of Clause 4 of this Article; the actuarial title of business reserve and solvency calculation specialists registered with non-life insurance companies and branches of foreign non-life insurance companies shall be revoked in cases of violation of the provisions of Clause 5 of this Article.

Article 11. Penalties for violations concerning changes in business content

1. Warning penalty for any of the following acts:

a) Changing the name, main office location, Branch, Representative Office without the written approval of the Ministry of Finance;

b) The Branch of a foreign non-life insurance company not reporting in writing to the Ministry of Finance the changes of the foreign non-life insurance company as prescribed by law.

2. Fine from VND 60,000,000 to VND 70,000,000 for transferring shares or capital contributions to shareholders holding 10% or more of the charter capital or transferring shares or capital contributions to increase the shareholding of shareholders holding 10% or more of the charter capital without the written approval of the Ministry of Finance.

3. Additional forms of punishment:

To suspend part of the content and scope directly related to the administrative violation in the License for Establishment and Operation for a period of two to three months in cases where the provisions of Clause 2 of this Article are violated.

4. Measures to remedy consequences:

a) Order to restore the original status in cases of violation as stipulated in Clause 2 of this Article;

b) Order the return of illegal gains obtained through administrative violations in cases of violation under Clause 2 of this Article.

Article 12. Penalties for violations concerning reinsurance regulations

1. Fine from VND 40,000,000 to VND 50,000,000 for any of the following violations:

a) Not issuing or issuing internal procedures and guidelines on reinsurance activities that do not comply with the provisions of the law;

b) Not conducting reinsurance according to the reinsurance program and internal procedures and guidelines on reinsurance activities;

c) Not submitting to the Ministry of Finance the confirmation document issued by the foreign insurance regulatory authority where the reinsurer is headquartered as required by law;

d) Not reporting to the Ministry of Finance when implementing restricted reinsurance as prescribed by law.

2. Fine from VND 90,000,000 to VND 100,000,000 for any of the following violations:

a) Ceding reinsurance contrary to the provisions of the law;

c) Accepting reinsurance for the same risks that have been ceded; ceding the entire liability under an insurance contract to another insurance company, reinsurance company, or Branch of a foreign non-life insurance company;

d) Ceding reinsurance to a reinsurer outside Vietnam that has not been rated at least "BBB" by Standard & Poor's, "B++" by A.M. Best, "Baa" by Moody’s, or equivalent ratings in the most recent fiscal year compared to the time of entering into the reinsurance contract;

đ) An insurance company, reinsurance company, or Branch of a foreign non-life insurance company ceding the entire liability under an insurance contract to another insurance company, reinsurance company, or Branch of a foreign non-life insurance company.

3. Additional forms of punishment:

To suspend part of the content and scope directly related to the administrative violation in the License for Establishment and Operation for a period of two to three months in cases where the provisions of Clause 2 of this Article are violated.

4. Measures to remedy consequences:

The title of management and operation personnel approved by the Ministry of Finance shall be revoked in cases of violation of the provisions of Clause 2 of this Article.

Article 13. Penalties for violations concerning the transfer of insurance contracts

1. Fine from VND 90,000,000 to VND 100,000,000 for a foreign non-life insurance company branch that is at risk of losing its solvency; failing to transfer insurance contracts as required by law when merging, splitting, consolidating, or dissolving.

2. Additional forms of punishment:

To suspend part of the content and scope directly related to the administrative violation in the License for Establishment and Operation for a period of two to three months in cases where the provisions of Clause 1 of this Article are violated.

3. Measures to remedy consequences:

Restoration to the original state shall be ordered in cases of violation of the provisions of Clause 1 of this Article.

Article 14. Penalties for violations concerning insurance compensation and payment

1. A fine of from twenty million to thirty million Vietnamese dong shall be imposed on the act of delaying compensation to customers in violation of the law.

2. A fine of from sixty million to seventy million Vietnamese dong shall be imposed on any of the following violations:

a) Requesting beneficiaries to pay remuneration or other material benefits illegally during the process of indemnification or insurance payment;

4. Measures to remedy consequences:

a) Compelling the removal of the title of management or executive position that has been approved by the Ministry of Finance in cases of violation as stipulated in Clause 2 and Clause 3 of this Article;

b) Suspending the titles that have been appointed by the non-life insurance company or its branch in violation of Clause 2 and Clause 3 of this Article;

c) Compelling the return of illegal profits obtained through the implementation of administrative violations as stipulated in Clause 2 and Clause 3 of this Article.

Section 3
ADMINISTRATIVE VIOLATIONS, FORMS OF PENALTIES AND MEASURES TO REMEDY THE CONSEQUENCES OF INSURANCE EXPLOITATION

Article 15. Penalties for violations concerning competition

1. Fine from VND 40,000,000 to VND 50,000,000 for any of the following violations:

a) Illegally interfering with the selection of insurance companies or branches of foreign non-life insurance companies;

b) Taking advantage of official positions or powers to designate, require, compel, or obstruct organizations or individuals from participating in insurance;

c) Providing false information or advertising about the content, scope of activities, or conditions of insurance, thereby harming the legitimate rights and interests of the policy buyers.

2. A fine of from sixty million to seventy million Vietnamese dong shall be imposed on any of the following violations:

a) Colluding among insurance companies or between branches of foreign non-life insurance companies and policy buyers to divide the insurance market or close off insurance services;

b) Competing for clients through methods such as obstructing, enticing, bribing, or threatening employees or clients of other insurance companies, insurance agents, or insurance brokers.

3. Additional forms of punishment:

To suspend part of the content and scope directly related to the administrative violation in the License for Establishment and Operation for a period of two to three months in cases where the provisions of Clause 1 of this Article are violated.

4. Measures to remedy consequences:

Correcting false or misleading information shall be ordered in cases of violation of the provisions of Clause 1 of this Article.

Article 16. Penalties for violations concerning the exploitation of non-life insurance

1. A warning shall be issued for one of the following violations:

a) Not being transparent and clear in sales, leading customers to misunderstand the products and services provided by insurance companies or branches of foreign non-life insurance companies;

b) Discriminating in insurance conditions and premium rates between insured objects with the same level of risk.

2. A fine of from forty million to fifty million Vietnamese dong shall be imposed on the project investor using state capital at a rate of thirty percent or more, the owner or user of state-owned assets and state-owned enterprises when participating in property insurance and liability insurance without conducting a tender to select insurance companies or branches of foreign non-life insurance companies as prescribed by law.

3. Measures to remedy consequences: Compelling restoration to the original condition in cases of violation as stipulated in Clause 2 of this Article.

Article 17. Penalties for violations concerning the implementation of life insurance and health insurance

1. A warning shall be issued for one of the following violations:

a) Product and service introduction materials of insurance companies are unclear, difficult to understand, and contain misleading information;

b) Sales illustration materials are unclear, incomplete, and inaccurate, failing to assist customers in making appropriate choices;

c) Not reviewing annually the assumptions used in sales illustrations; not updating sales illustrations if the assumptions no longer match reality;

d) Product and service introduction materials, sales illustration materials contain information about insurance benefits that contradict the rules, terms, and premium schedules approved by the Ministry of Finance.

2. A fine of from forty million to fifty million Vietnamese dong shall be imposed on any of the following violations:

a) Failing to provide complete information related to insurance contracts, failing to explain insurance conditions and terms to the policy buyer when concluding insurance contracts;

b) Failing to notify the policy buyer about the status of insurance contracts as prescribed by law;

c) Compelling the conclusion of supplementary insurance contracts along with main insurance contracts.

3. Additional forms of punishment:

To suspend part of the content and scope directly related to the administrative violation in the License for Establishment and Operation for a period of two to three months in cases where the provisions of Clause 2 of this Article are violated.

4. Measures to remedy consequences:

Restoration to the original state shall be ordered in cases of violation of the provisions of Point c Clause 2 of this Article.

Article 18. Sanctions for violations concerning insurance products and insurance commissions

1. Warning sanction shall be imposed on the act of reporting the list of newly launched products in the previous month not in accordance with the provisions of the law.

a) Failing to report the list of new products launched in the previous month;

b) Launching life insurance and health insurance products before approval by the Ministry of Finance.

a) Failing to comply with rules, terms, and premium schedules approved by the Ministry of Finance;

b) Amending or supplementing rules, terms, and premium schedules without written consent from the Ministry of Finance;

c) Failing to report to the Ministry of Finance non-life insurance products that do not ensure financial safety as prescribed by law.

4. A fine of from 90,000,000 VND to 100,000,000 VND shall be imposed on non-life insurance companies and branches of foreign non-life insurance companies paying insurance commissions higher than the prescribed ratio, paying insurance commissions to incorrect objects, or conducting business activities not in accordance with the provisions of the law.

5. Additional forms of punishment:

Suspension of operations for two to three months of part of the content and scope directly related to administrative violations in the License for Establishment and Operation shall be imposed in cases of violation of the provisions of Clause 3 and Clause 4 of this Article.

6. Measures to remedy consequences:

a) Order to restore the initial status in cases of violation stipulated in Clause 3 and Clause 4 of this Article;

b) Order to return illegal profits obtained from implementing administrative violations stipulated in Clause 4 of this Article.

Article 19. Sanctions for violations concerning mandatory insurance by non-life insurance companies

1. Fine from VND 40,000,000 to VND 50,000,000 for any of the following violations:

a) Refusing to sell mandatory insurance to individuals and organizations except where otherwise provided by law;

c) Not separately listing the mandatory fire and explosion insurance portion in a comprehensive insurance contract as prescribed.

2. Additional forms of punishment:

To suspend part of the content and scope directly related to the administrative violation in the License for Establishment and Operation for a period of two to three months in cases where the provisions of Clause 1 of this Article are violated.

3. Measures to remedy consequences:

Restoration to the original state shall be ordered in cases of violation of the provisions of Points b and c Clause 1 of this Article;

Article 20. Sanctions for violations concerning the establishment of the Fund for Protecting Insured Persons

1. Warning sanction shall be imposed on the act of failing to remit the Fund for Protecting Insured Persons within the time limit prescribed by law.

2. A fine of from 20,000,000 VND to 30,000,000 VND shall be imposed on the act of not remitting the required amount of the Fund for Protecting Insured Persons as prescribed by law.

3. A fine of from 60,000,000 VND to 70,000,000 VND shall be imposed on the act of failing to remit the Fund for Protecting Insured Persons as prescribed by law.

1. A fine of VND 20,000,000 to VND 30,000,000 shall be imposed on insurance companies, insurance brokerage companies, and branches of foreign non-life insurance companies that commit any of the following violations:

a) Failing to retain and provide documents proving that the entities providing cross-border insurance services in Vietnam meet the conditions stipulated by law;

b) Failing to submit or submitting financial reports of the previous year to the Ministry of Finance in accordance with the provisions of the law.

2. A fine of VND 50,000,000 to VND 60,000,000 shall be imposed on foreign insurance companies and insurance brokers providing cross-border insurance services in Vietnam who fail to provide documents proving compliance with the conditions for providing cross-border insurance services as prescribed by law.

3. A fine of VND 180,000,000 to VND 200,000,000 shall be imposed on organizations committing any of the following violations:

a) Foreign insurance companies and insurance brokers providing cross-border insurance services in Vietnam failing to meet the conditions for providing cross-border insurance services as prescribed by law;

b) Organizations providing cross-border insurance services without a headquarters in a country with which Vietnam has concluded international treaties on trade, including agreements on providing cross-border insurance services in Vietnam;

c) Organizations providing cross-border insurance services not through insurance brokers licensed to operate in Vietnam;

d) Enterprises established in Vietnam with more than 49% of the charter capital owned by foreign investors and foreigners working in Vietnam participating in insurance outside Vietnam not through insurance brokers licensed to operate in Vietnam.

4. Additional forms of administrative punishment:

To suspend part of the content and scope directly related to the administrative violation in the License for Establishment and Operation for a period of two to three months in cases where the provisions of Clause 1 of this Article are violated.

5. Measures to remedy consequences:

Restoration to the original state shall be ordered in cases of violation of the provisions of Clause 2 and Clause 3 of this Article.

Section 4
ADMINISTRATIVE VIOLATIONS, FORMS OF SANCTIONS AND REMEDIAL MEASURES FOR THE CONSEQUENCES OF ACTIVITIES IN INSURANCE INTERMEDIATION, AGENCY, AND REPRESENTATIVE OFFICES

Article 22. Sanctions for violations concerning the purchase of professional liability insurance by insurance intermediaries

A fine of VND 20,000,000 to VND 30,000,000 shall be imposed on insurance brokers who fail to fulfill the obligation to purchase professional liability insurance for their brokerage activities at insurance companies operating in Vietnam.

Article 23. Sanctions for violations concerning insurance intermediation

1. A fine of from 20,000,000 VND to 30,000,000 VND shall be imposed on the act of obstructing the insured or the policyholder from providing information related to the insurance contract or inciting the insured or the policyholder not to declare details related to the insurance contract.

2. A fine of from forty million to fifty million Vietnamese dong shall be imposed on any of the following violations:

a) Advising customers to purchase insurance at a non-life insurance company or branch of a foreign non-life insurance company under less competitive conditions and terms compared to other non-life insurance companies or branches of foreign non-life insurance companies in order to obtain higher brokerage commissions;

b) Advising or introducing to the insured rules, terms, and rates of life insurance, health insurance, and mandatory insurance that do not comply with the provisions of the law;

c) Insurance intermediary companies not agreeing in writing with the insured or agreeing in writing but such agreement does not clearly specify the content of insurance intermediary activities as prescribed by law.

3. A fine of from 50,000,000 VND to 60,000,000 VND shall be imposed on one of the following violations:

b) Using employees who have not obtained training certificates for insurance or insurance intermediation as prescribed by law.

4. Additional forms of administrative punishment:

Suspension of operations for two to three months of part of the content and scope directly related to administrative violations in the License for Establishment and Operation shall be imposed in cases of violation of the provisions of Clause 2 and Clause 3 of this Article.

5. Measures to remedy consequences:

The illegal gains obtained from the implementation of administrative violations stipulated in Point a and Point b Clause 2 of this Article shall be ordered to be returned.

Article 24. Penalties for violations concerning insurance agency regulations

1. A fine of from twenty million to thirty million dong shall be imposed for one of the following violations:

a) Engaging in agency activities for another insurance company or branch of a foreign non-life insurance company without the written consent of the insurance company or branch of a foreign non-life insurance company for which the organization or individual is currently acting as an agent;

b) Obstructing the insured party from providing information related to the insurance contract or inciting the insured party or beneficiary not to disclose details related to the insurance contract;

c) Engaging in agency activities before signing an agency agreement or when the insurance agency agreement has expired.

2. A fine of from sixty million to seventy million Vietnamese dong shall be imposed on any of the following violations:

a) Engaging in agency activities without meeting the conditions stipulated by law;

b) Performing tasks outside the scope of agency activities as prescribed by law;

c) Performing tasks outside the scope of authority granted in the insurance agency agreement;

d) Acting on behalf of the insured party to negotiate an insurance contract with the same insurance company or branch of a foreign non-life insurance company for which the organization or individual is currently acting as an agent.

3. A fine of VND 70,000,000 to VND 80,000,000 shall be imposed on training institutions that commit any of the following violations:

a) Training agents without meeting the required conditions as stipulated by law;

b) Not adhering to the approved training content and program for agents regarding the duration of training, trainers, and facilities;

c) Issuing agent certificates in violation of the law.

4. A fine of VND 90,000,000 to VND 100,000,000 shall be imposed on insurance companies or branches of foreign non-life insurance companies that use organizations or individuals to conduct insurance agency activities without ensuring the conditions and principles of insurance agency operations as prescribed by law.

The insurance agency certificate of individuals shall be revoked for two to three months, and the operation of insurance agencies shall be suspended for two to three months in cases of violation of the provisions of Clause 2 of this Article.

6. Measures to remedy consequences:

a) Order restoration to the original state in cases of violations as specified in Points b and c, Clause 3 of this Article;

b) Order the return of illegal gains obtained through administrative violations as specified in Clause 2 and Clause 3 of this Article;

c) Order the cancellation of the results of agent training in cases of violations as specified in Points b and c, Clause 3 of this Article;

A fine of from 40,000,000 VND to 50,000,000 VND shall be imposed for any of the following violations:

1. Changing the name, nationality, or address of the foreign insurance company, reinsurance company, or foreign insurance brokerage firm, or the name of the representative office without complying with the provisions of the law;

2. Changing the location of the representative office headquarters; changing the chief representative; increasing or decreasing the number of employees at the representative office without notifying the Ministry of Finance in writing.

Section 5
ADMINISTRATIVE VIOLATIONS, PENALTIES AND REMEDIAL MEASURES FOR MANAGEMENT AND USE OF CAPITAL AND ASSETS

Article 26. Penalties for violations concerning capital

1. A fine of VND 90,000,000 to VND 100,000,000 shall be imposed on any of the following violations:

e) Founding shareholders holding less than 50% of the ordinary shares available for public offering of the insurance company within three years from the date the insurance company was granted a license to operate.

2. Additional forms of punishment:

To suspend part of the content and scope directly related to the administrative violation in the License for Establishment and Operation for a period of two to three months in cases where the provisions of Clause 1 of this Article are violated.

3. Measures to remedy consequences:

Compelling the removal of the title of management or operation personnel of the insurance company or the branch of a foreign non-life insurance company that has been approved by the Ministry of Finance in cases of violation of Points a and b of Clause 1 of this Article.

Article 27. Penalties for violations concerning deposit guarantees

Warning penalty shall be imposed for any of the following violations:

1. Depositing guarantee funds in violation of the law;

2. Using guarantee funds in violation of the law.

Article 28. Penalties for violations concerning the establishment, management, and use of business reserves and mandatory reserves

1. Warning penalty for failing to establish the mandatory reserve fund as prescribed by law.

2. Fine from VND 10,000,000 to VND 20,000,000 for one of the following violations:

a) Failing to register the method of establishing business reserves with the Ministry of Finance;

b) Failing to establish the mandatory reserve fund as prescribed by law;

c) Using the mandatory reserve fund in violation of the law.

3. A fine of VND 60,000,000 to VND 70,000,000 shall be imposed on any of the following violations:

a) Establishing business reserves in violation of the law;

b) Using the business reserve fund in violation of the law;

c) Establishing non-life insurance business reserves without confirmation from a business reserve calculation specialist and solvency analyst;

d) Failing to comply with the established method and basis for business reserve establishment registered with the Ministry of Finance.

4. A fine of VND 90,000,000 to VND 100,000,000 shall be imposed on the failure to establish business reserves as prescribed by law.

5. Additional forms of punishment:

Suspension of activities for a period of two to three months in part of the content and scope directly related to the administrative violation in the License for Establishment and Operation in cases of violation of Clauses 3 and 4 of this Article.

6. Measures to remedy consequences:

a) Order restoration to the original state in cases of violations as specified in Clause 2 and Clause 3 of this Article;

b) Order the return of illegal gains obtained through administrative violations as specified in Point c, Clause 2 and Point b, Clause 3 of this Article;

c) Order the removal of the title of director, manager, or business reserve calculation specialist approved by the Ministry of Finance in cases of violations as specified in Clause 3 and Clause 4 of this Article;

d) Order suspension of titles appointed by the insurance company, reinsurance company, or branch of a foreign non-life insurance company in cases of violations as specified in Clause 3 and Clause 4 of this Article.

Article 29. Sanctions for violations of provisions on capital investment

1. A fine of from twenty million to thirty million dong shall be imposed for one of the following violations:

a) Not accounting separately the amounts of capital investment from own capital and investment from business reserves;

b) A reinsurance enterprise simultaneously conducting life reinsurance, non-life reinsurance, and health reinsurance without accounting separately idle capital investment sources from business reserves of each type of reinsurance.

a) Investing outside the permitted sources of funds as stipulated by law;

b) Investing idle funds from reserve accounts beyond the permissible ratio for investment in various fields as stipulated by law;

c) The reinsurance company investing idle funds from insurance reserve accounts not in accordance with the provisions of the law.

3. Imposing a fine of between 90,000,000 VND and 100,000,000 VND for one of the following violations:

a) Borrowing to directly invest or entrust investment in securities, real estate, or contribute capital to another enterprise;

b) Reinvesting in any form to shareholders (members) who have contributed capital or related parties as prescribed by law, except deposits at shareholders (members) that are credit organizations;

c) Using business reserve funds to invest abroad in any form;

d) Investing abroad not in accordance with the provisions of law.

4. Additional forms of administrative punishment:

Suspension of activities for a period of two to three months in part of the content and scope directly related to the administrative violation in the License for Establishment and Operation in cases of violation of Clause 3 of this Article.

5. Measures to remedy consequences:

a) Ordering the return of illegal profits obtained through the implementation of administrative violations stipulated in Clause 2 and Clause 3 of this Article;

b) Ordering the removal of the position of management or executive personnel approved by the Ministry of Finance for violations stipulated in Clause 3 of this Article;

c) Ordering the suspension of positions appointed by insurance enterprises, reinsurance enterprises, and branches of foreign non-life insurance enterprises for violations stipulated in Clause 3 of this Article.

Chapter 6
ADMINISTRATIVE VIOLATIONS, FORMS OF SANCTIONS AND MEASURES TO MITIGATE THE CONSEQUENCES ON PAYMENT CAPABILITY

Article 30. Sanctions for violations of provisions on financial safety in the operation of enterprises

1. Fine from VND 40,000,000 to VND 50,000,000 for any of the following violations:

a) Not implementing internal auditing as prescribed by law;

b) Not reporting promptly on the current financial status and reasons leading to the risk of losing payment capability.

2. Fine from VND 90,000,000 to VND 100,000,000 for any of the following violations:

a) Not taking measures to restore payment capability when there is a risk of losing payment capability;

b) Not complying with requirements to restore payment capability as prescribed by law;

c) Not implementing the plan to restore payment capability, consolidate organizational structure and operations of insurance enterprises as approved by the Ministry of Finance.

3. Additional forms of punishment:

To suspend part of the content and scope directly related to the administrative violation in the License for Establishment and Operation for a period of two to three months in cases where the provisions of Clause 2 of this Article are violated.

4. Measures to remedy consequences:

a) Ordering the removal of the position of management, executive, or actuarial specialist approved by the Ministry of Finance for violations stipulated in Clause 2 of this Article;

b) Ordering the suspension of positions appointed by insurance enterprises, reinsurance enterprises, and branches of foreign non-life insurance enterprises for violations stipulated in Clause 2 of this Article.

4. Additional forms of administrative punishment:

Suspension of activities for a period of two to three months in part of the content and scope directly related to the administrative violation in the License for Establishment and Operation in cases of violation of Clause 3 of this Article.

5. Measures to remedy consequences:

a) Compelling restoration to the original state in cases of violation of Clause 3 of this Article;

b) Compelling removal of the title of management, operation, or actuarial specialist that has been approved by the Ministry of Finance in cases of violation of Clause 3 of this Article;

c) Compelling suspension of titles that have been appointed by the insurance company in cases of violation of Clause 3 of this Article.

Article 32. Sanctions for violations of reporting regulations

1. A warning shall be issued for one of the following violations:

a) Submitting reports not within the time limit prescribed by law;

b) Submitting incomplete reports as prescribed by law.

2. Imposing a fine of between 10,000,000 VND and 20,000,000 VND for providing incomplete or inaccurate information or data in reports as prescribed by law.

3. Imposing a fine of between 20,000,000 VND and 30,000,000 VND for failing to submit reports as prescribed by law.

1. The person assigned to perform specialized inspection tasks under the Insurance Management and Supervision Department of the Ministry of Finance shall have the authority:

a) To issue warnings;

c) To apply remedial measures prescribed at Point a and Point d Clause 1 Article 4 of this Decree.

2. The head of the specialized inspection team under the Insurance Management and Supervision Department of the Ministry of Finance shall have the authority:

a) To issue warnings;

b) To impose fines up to VND 50,000,000;

c) To suspend part of the content and scope of operations specified in the License for Establishment and Operation for a limited period; to revoke the right to use insurance agency certificates for a limited period or to suspend operations for a limited period;

đ) To apply remedial measures prescribed at Clause 1 Article 4 of this Decree.

3. The Director of the Insurance Management and Supervision Department shall have the authority:

a) To issue warnings;

b) Impose a fine up to VND 100,000,000.

c) To suspend part of the content and scope of operations specified in the License for Establishment and Operation for a limited period; to revoke the right to use insurance agency certificates for a limited period or to suspend operations for a limited period;

đ) To apply remedial measures prescribed at Clause 1 Article 4 of this Decree.

4. The competence to impose fines provided for in this Article applies to individuals, and the fines imposed on organizations shall be twice those imposed on individuals.

Chapter III
VIOLATIONS, FORMS OF PENALTIES, AND AMOUNTS OF PENALTIES IN THE LOTTERY BUSINESS SECTOR

Section 1
VIOLATIONS OF PROVISIONS ON THE ISSUE AND USE OF LICENSES TO OPERATE LOTTERY BUSINESS

Article 34. Acts violating regulations on files that have been issued with a Certificate of Eligibility for Lottery Business

1. A fine of from five million dong to ten million dong shall be imposed on acts of arbitrarily altering, erasing, falsifying, or forging documents in files that have been issued with a Certificate of Eligibility for Lottery Business.

2. Measures to remedy consequences:

Documents that have been altered, erased, falsified, or forged shall be ordered destroyed in cases of administrative violations stipulated in this Article.

Article 35. Acts violating management and use of Certificates of Eligibility for Lottery Business

1. A fine of from forty million dong to sixty million dong shall be imposed on acts of erasing or altering Certificates of Eligibility for Lottery Business.

2. A fine of from sixty million dong to eighty million dong shall be imposed on acts of lending, renting, or transferring Certificates of Eligibility for Lottery Business.

3. A fine of from eighty million dong to one hundred million dong shall be imposed on acts of conducting lottery business without a Certificate of Eligibility for Lottery Business issued by competent state agencies.

4. Additional forms of administrative punishment:

The right to use the Certificate of Eligibility for Lottery Business shall be revoked for a period of from one month to three months for administrative violations stipulated in Clause 1 and Clause 2 of this Article.

5. Measures to remedy consequences:

Proceeds from illegal gains obtained from implementing administrative violations stipulated in this Article shall be ordered returned.

Section 2
VIOLATIONS REGARDING PRINTING, ISSUANCE, AND DISTRIBUTION OF LOTTERY TICKETS

Article 36. Acts violating regulations on printing lottery tickets and issuing lottery tickets

1. A fine of from five million dong to ten million dong shall be imposed on the following violations:

a) Printing lottery tickets without all required contents as prescribed by law;

b) Contracting with printing establishments that do not meet conditions for printing lottery tickets.

2. A fine of from ten million dong to twenty million dong shall be imposed on the following violations:

a) Issuing lottery ticket denominations not in accordance with legal provisions;

b) Issuing more lottery tickets than the limit set by legal provisions;

c) Issuing lottery tickets not in accordance with the draw schedule prescribed by law;

d) Issuing electronic lottery tickets not in accordance with the time prescribed by law.

3. A fine of from twenty million dong to thirty million dong shall be imposed on the act of printing insufficient quantities of lottery tickets according to each type of lottery ticket code and prize structure announced for issuance.

4. A fine of from thirty million dong to fifty million dong shall be imposed on the act of organizing alterations, erasures of lottery tickets in any form to participate in draws and claim prizes.

5. A fine of from fifty million dong to seventy million dong shall be imposed on the act of organizing counterfeit lottery tickets in any form to participate in draws and claim prizes.

6. Additional forms of punishment:

b) Revocation of the right to use the Certificate of Eligibility for Lottery Business for a period of from one month to two months for administrative violations stipulated in Clause 2 and Clause 3 of this Article.

7. Measures to remedy consequences:

Proceeds from illegal gains obtained from implementing administrative violations stipulated in Clause 2, Clause 3, Clause 4, and Clause 5 of this Article shall be ordered returned.

Article 37. Acts violating regulations on distribution of lottery tickets

1. A warning shall be issued for one of the following violations:

a) Selling lottery tickets to individuals who do not meet eligibility requirements for participating in lottery draws as prescribed by law;

b) Selling lottery tickets at prices other than those specified on the lottery ticket.

2. A fine of from ten million dong to twenty million dong shall be imposed on acts of distributing lottery tickets not in accordance with permitted methods.

3. Measures to remedy consequences:

Proceeds from illegal gains obtained from implementing administrative violations stipulated in Clause 2 of this Article shall be ordered returned.

Article 38. Acts violating provisions on lottery sales territory

1. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed for conducting lottery sales outside the designated territory.

2. Additional forms of punishment:

Seize all quantities of lottery tickets sold outside the designated territory.

3. Measures to remedy consequences:

a) Order to conduct lottery sales in accordance with the territory prescribed by law for administrative violations stipulated in this Article.

b) Order to return the unlawful profits obtained from the implementation of the administrative violation prescribed in this Article.

Article 39. Acts violating provisions on participation in lottery draws

1. Warning shall be imposed on individuals who intentionally purchase lottery tickets to participate in draws despite not meeting the required conditions.

2. A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed for using state capital and assets to participate in purchasing lottery tickets.

3. Measures to remedy consequences:

Order to return the unlawful profits obtained from the implementation of the administrative violation prescribed in this Article.

Article 40. Acts violating provisions on recovery, storage, and destruction of unsold lottery tickets

1. A warning shall be issued for one of the following violations:

a) Failure to establish and promulgate detailed regulations on procedures for recovering unsold lottery tickets.

b) Delegating the task of recovering unsold lottery tickets to another lottery sales enterprise without a written delegation.

2. Fine from VND 10,000,000 to VND 20,000,000 for one of the following violations:

a) Organizing the destruction of unsold lottery tickets, lottery ticket stubs, or stored lottery ticket coupons that have been recovered but not stored for the required period.

b) Not establishing a Lottery Ticket Destruction Committee or establishing such a committee but not having the required number of members as prescribed by law.

c) Not preparing a record after destroying unsold lottery tickets.

Article 41. Acts violating provisions on lottery agents

1. Warning shall be imposed for arbitrarily altering, erasing, falsifying, or forging documents in the agent registration file.

2. A fine of from VND 10,000,000 to VND 30,000,000 shall be imposed for one of the following violations:

a) Signing an agency contract with individuals or organizations that do not meet the conditions to become lottery agents as prescribed by law.

b) Failing to ensure the minimum ratio of financial guarantees for lottery agents as prescribed by law.

c) Allowing lottery agents to carry overdue debts beyond the prescribed payment period.

3. Additional forms of punishment:

Seize altered, erased, falsified, or forged documents for administrative violations prescribed in Clause 1 of this Article.

Section 3
VIOLATIONS CONCERNING LOTTERY PRODUCT FORMS, PARTICIPATION RULES, AND PRIZE STRUCTURES

Article 42. Acts violating provisions on product forms

1. A fine of from VND 20,000,000 to VND 40,000,000 shall be imposed for conducting business in prohibited product forms as prescribed by law.

2. Additional forms of punishment:

a) Seize all quantities of lottery tickets that are not permitted to be sold according to the law.

b) Suspend the right to use the Certificate of Eligibility for Business Operations for a period of from one to two months for administrative violations prescribed in this Article.

3. Measures to remedy consequences:

Proceeds from illegal gains obtained from implementing administrative violations stipulated in this Article shall be ordered returned.

Article 43. Acts violating provisions on prize payout ratios, prize structures, and participation rules

1. A fine of from VND 5,000,000 to VND 10,000,000 shall be imposed for one of the following violations:

a) Establishing prize payout ratios for each issuance period exceeding the maximum prescribed ratio for each type of lottery.

b) Establishing prize structures for each type of lottery not in accordance with the law.

2. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed for failing to establish participation rules and publicly announce them as prescribed by law.

3. Measures to remedy consequences:

Order to return the unlawful profits obtained from the implementation of the administrative violation prescribed in Clause 1 of this Article.

Section 4
VIOLATIONS CONCERNING ORGANIZATION OF DRAWING AND DRAWING NUMBER GENERATING EQUIPMENT

Article 44. Acts violating the provisions on organizing lottery draws

1. A fine of from VND 10,000,000 to VND 20,000,000 shall be imposed for any of the following violations:

a) Organizing lottery draws not in accordance with the scheduled draw time;

b) Organizing lottery draws not at the prescribed location;

c) Not establishing and publicly announcing the rules for the lottery draw.

2. A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed for one of the following violations:

a) Selecting lottery draw number spinners who do not meet the conditions stipulated by law;

b) Not having the required number of lottery draw number spinners as stipulated by law;

c) The time for spinning numbers for the lottery draw not complying with the regulations set forth by law;

d) Implementing the lottery draw number spinning process not in accordance with the prescribed procedures.

3. A fine of from thirty million to fifty million dong for intentionally distorting the winning results.

4. Measures to remedy consequences:

a) Compel the return of illegal profits obtained from the implementation of administrative violations stipulated in Clause 3 of this Article;

b) Compel the cancellation or correction of distorted winning results for administrative violations stipulated in Clause 3 of this Article.

Article 45. Acts violating the provisions on lottery draw number spinning equipment

1. A fine of from twenty million to thirty million dong shall be imposed for one of the following violations:

a) Not equipping all the required lottery draw number spinning devices as stipulated by law;

b) Using lottery draw number spinning cages that do not meet management requirements as stipulated by law;

c) Balls used for lottery draw number spinning that do not meet management requirements as stipulated by law;

d) Using electronic scales and size-checking devices for balls used in lottery draw number spinning that do not meet management requirements as stipulated by law;

đ) Camera systems and screens placed in positions that do not ensure full monitoring of the entire lottery draw number spinning process as prescribed and do not store images for the minimum required period.

2. Additional forms of punishment:

Seize lottery draw number spinning equipment that does not meet management requirements as stipulated in this Article.

Section 5
VIOLATIONS OF INFORMATION DISCLOSURE AND PROMOTION REGULATIONS

Article 46. Acts violating the provisions on using lottery results and information on winning results

1. A fine of from thirty million to fifty million dong for using lottery results of lottery business enterprises to organize prize prediction programs not in accordance with the law.

2. A fine of from eighty million to one hundred million dong for providing information predicting lottery results in advance;

3. A fine of from one hundred eighty million to two hundred million dong for intentionally disseminating false or inaccurate winning result information inconsistent with the confirmation records of the Lottery Supervisory Council.

4. Additional forms of administrative punishment:

Suspension of the right to use the Certificate of Eligibility for Lottery Business from one month to three months for administrative violations stipulated in Clause 3 of this Article.

5. Measures to remedy consequences:

a) Compel the cancellation or correction of false or inaccurate winning results inconsistent with the confirmation records of the Lottery Supervisory Council for administrative violations stipulated in Clause 3 of this Article;

b) Order to return the unlawful profits obtained from the implementation of the administrative violation prescribed in this Article.

Article 47. Acts violating the provisions on promotions in the lottery business sector

1. A fine of from ten million to twenty million dong for promotional activities in lottery business operations;

2. A fine of from twenty million to forty million dong for taking advantage of promotional forms involving chance to illegally conduct lottery business with the aim of profiting through customer payments.

3. Additional forms of punishment:

a) Seize all means and objects used for promotion;

b) Suspension of the right to use the Certificate of Eligibility for Lottery Business from one month to two months for administrative violations stipulated in this Article.

4. Measures to remedy consequences:

Proceeds from illegal gains obtained from implementing administrative violations stipulated in this Article shall be ordered returned.

Chapter 6
VIOLATIONS OF PRIZE PAYMENTS, STORAGE OF WINNING LOTTERY TICKETS, AND CONDITIONS FOR CONDUCTING ONLINE LOTTERY BUSINESS

Article 48. Violations concerning prize payment regulations

1. A fine of from five million to ten million Vietnamese dong shall be imposed on the act of paying prizes to lottery tickets that do not meet the conditions for prize payment as prescribed by law.

2. Fine from VND 10,000,000 to VND 20,000,000 for one of the following violations:

a) Deliberately prolonging the time to pay prizes to winning customers;

b) Organizing the destruction of winning lottery tickets that have been paid but have not been stored for the required period.

3. A fine of from twenty million to thirty million Vietnamese dong shall be imposed on the act of violating the confidentiality of prize information of winning customers.

4. A fine of from thirty million to fifty million Vietnamese dong shall be imposed on the act of authorizing prize payments to agents beyond the permitted value of the prize.

5. Measures to remedy consequences:

Compel the return of illegal profits obtained from administrative violations stipulated in Clause 1 and Clause 4 of this Article.

Article 49. Violations concerning business conditions for electronic lottery systems

1. A fine of from twenty million to forty million Vietnamese dong shall be imposed on the act of operating electronic lottery types without promulgating management and exploitation regulations for server data, and without storing electronic lottery business data for the prescribed period.

2. A fine of from forty million to sixty million Vietnamese dong shall be imposed on the act of operating electronic lottery types without meeting the legal requirements for server equipment and lottery ticket selling machines.

3. A fine of from sixty million to eighty million Vietnamese dong shall be imposed on the act of operating electronic lottery types without meeting the legal requirements for software.

4. Additional forms of administrative punishment:

Suspension of the right to use the Certificate of Eligibility for Lottery Business for a period of one to three months for administrative violations stipulated in this Article.

5. Measures to remedy consequences:

Proceeds from illegal gains obtained from implementing administrative violations stipulated in this Article shall be ordered returned.

Section 7
VIOLATIONS CONCERNING AGENT COMMISSIONS, ESTABLISHING PRIZE PAYMENT RESERVE FUNDS, FINANCIAL FUNDS, USING SUCH FUNDS AND REPORTING REGIMES

Article 50. Administrative violations concerning agent commissions, establishing prize payment reserve funds, financial funds, and using such funds

1. A fine of from thirty million to fifty million Vietnamese dong shall be imposed on the act of paying agent commissions higher than the prescribed ratio under the law.

2. A fine of from fifty million to seventy million Vietnamese dong shall be imposed on the act of intentionally establishing and using the prize payment risk reserve fund and financial fund contrary to the provisions of the law.

1. A warning shall be issued to lottery businesses that commit one of the following violations:

a) Not submitting or submitting incomplete reports to competent state agencies as prescribed by law;

b) Submitting reports to competent state agencies beyond the prescribed deadline.

2. A fine of from five million to ten million Vietnamese dong shall be imposed on the act of providing incomplete or inaccurate information in reports submitted to competent state agencies.

3. Measures to remedy consequences:

Compel lottery businesses to supplement and correct report data for administrative violations stipulated in Clause 2 of this Article.

Section 8
AUTHORITY TO IMPOSE ADMINISTRATIVE SANCTIONS IN THE LOTTERY BUSINESS SECTOR

Article 52. Authority to impose administrative sanctions in the lottery business sector

1. Financial inspectors at all levels performing their duties have the authority:

a) To issue warnings;

c) To apply remedial measures as prescribed in Points a, b, and d of Clause 2 of Article 4 of this Decree.

2. The Director of the Department of Finance Inspectorate has the authority:

a) To issue warnings;

b) To impose fines up to VND 50,000,000;

d) To apply remedial measures as prescribed in Clause 2 of Article 4 of this Decree.

3. The Director of the Ministry of Finance Inspectorate has the authority:

a) To issue warnings;

b) Impose a fine up to VND 100,000,000.

c) To suspend the right to use the Certificate of Eligibility for Lottery Business within the scope of authority as prescribed by law;

d) To apply remedial measures as prescribed in Clause 2 of Article 4 of this Decree.

4. The competence to impose fines provided for in this Article applies to individuals, and the fines imposed on organizations shall be twice those imposed on individuals.

5. In addition to those authorized to impose administrative sanctions as stipulated in Clauses 1, 2, and 3 of this Article, other persons authorized to impose administrative sanctions of other agencies according to the Law on Handling Administrative Violations, within the scope of their functions and tasks assigned, who discover administrative violations within their area of management may apply the provisions of this Decree to impose sanctions.

Chapter IV
IMPLEMENTING PROVISIONS

Article 53. Effective Date

1. This Decree takes effect from October 15, 2013, and replaces Government Decree No. 41/2009/NĐ-CP dated May 5, 2009, on handling administrative violations in the insurance business sector and Government Decree No. 105/2010/NĐ-CP dated October 27, 2010, on handling administrative violations in the lottery business sector.

2. For administrative violations in the insurance and lottery business sectors occurring before the effective date of this Decree but discovered or being examined and resolved thereafter, if the provisions on handling administrative violations in this Decree are more favorable to the violators, then these provisions shall be applied for handling.

3. For decisions on administrative sanctions already issued or fully executed before the effective date of the Law on Handling Administrative Violations and this Decree, if individuals or organizations subject to administrative sanctions still lodge complaints, then the provisions of the Administrative Violation Handling Ordinance, Government Decree No. 41/2009/NĐ-CP dated May 5, 2009, and Government Decree No. 105/2010/NĐ-CP dated October 27, 2010, shall be applied.

Article 54. Implementation Organization

1. The Minister of Finance is responsible for guiding, inspecting, and supervising the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of People's Committees of provinces and centrally administered cities are responsible for implementing this Decree./.