DECISION

ON FUNCTIONS, DUTIES, POWERS AND ORGANIZATIONAL STRUCTURE OF THE BANKING INSPECTION AND SUPERVISION AGENCY UNDER DIRECT MANAGEMENT OF THE STATE BANK OF VIETNAM

Pursuant to the Law on Government organization dated June 19, 2015;

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

Pursuant to the Law on credit institutions dated June 16, 2010, Amendments to some regulations of the Law on credit institutions dated November 20, 2017;

Pursuant to the Law on inspection dated November 15, 2010;

Pursuant to the Government’s Decree No. 123/2016/ND-CP dated September 01, 2016 on functions, duties, powers and organizational structure of Ministries, Ministry-level agencies;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 on functions, duties, powers and organizational structure of the State Bank of Vietnam;

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Considering the suggestion of the Governor of the State Bank of Vietnam;

The Prime Minister promulgates the functions, duties, powers and organizational structure of the Banking inspection and supervision agency under direct management of the State Bank of Vietnam.

Article 1. Position and functions

1. The Banking inspection and supervision agency is a General department-level unit under direct management of the State Bank of Vietnam (hereinafter referred to as the State Bank). Its functions include advising and assisting the Governor of the State Bank in the state management of credit institutions and foreign bank branches, state management of banking inspection and supervision, complaint and denunciation settlement, anti-corruption, anti-money laundering, deposit insurance; conducting financial inspection, specialized inspection and banking supervision in areas under state management of the State Bank; acting against money laundering, terrorism financing as prescribed by law and assigned by the Governor of the State Bank.

2. The Banking inspection and supervision agency has a legal status, a seal bearing the national emblem, a separate account as prescribed by law, and headquarters in Hanoi.

Article 2. Duties and powers

1. The following documents shall be submitted to the Governor of the State Bank in order to be considered and decided by the Government and the Prime Minister:

Law projects, draft resolutions of the National Assembly, order projects, draft resolutions of the Standing Committee of the National Assembly; draft decrees of the Government, draft decisions of the Prime Minister on the organization and operation of credit institutions, foreign bank branches, representative offices of foreign credit institutions, other foreign banking institutions and on the inspection and supervision of banks, anti-money laundering and deposit insurance.

b) Strategies, programs, projects that are important to the reforming and developing of systems of credit institutions, foreign bank branches, representative offices of foreign credit institutions, other foreign banking institutions and to the inspection and supervision of banks, anti-money laundering and deposit insurance.

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a) Long-term, 5-year and annual plans on the developing of systems of credit institutions, foreign bank branches, representative offices of foreign credit institutions, other foreign banking institutions and on the inspection and supervision of banks, anti-money laundering, anti-terrorism financing;

b) Circulars on the organization and operation, operational safety of credit institutions, foreign bank branches; on the establishment, reorganization, dissolution, bankruptcy, liquidation of credit institutions, foreign bank branches, representative offices of foreign credit institutions, other foreign banking institutions; and on the inspection and supervision of banks, deposit insurance, anti-money laundering, anti-terrorism financing;

c) Grant, amend, revoke establishment and operation licenses of credit institutions, establishment licenses of foreign bank branches, establishment licenses of representative offices of foreign credit institutions and other foreign banking institutions, and other banking operation licenses as assigned by the Governor of the State Bank;

d) Grant, revoke operation licenses of service provision of credit information to institutions;

dd) Grant, revoke registration certificates of micro-finance programs, projects as prescribed by law and assigned by the Governor of the State Bank;

e) Approve the selling, buying, full division, partial division, consolidation, acquisition/merger, company conversion, dissolution of credit institutions, foreign bank branches; approve provisional lists of personnel elected, appointed to be members of the Members’ Council, Board of Directors, Board of Supervisors and to be the General Directors (Directors) of credit institutions, except for personnel of commercial banks with 100% state-owned charter capital, personnel appointed or recommended by owners of state capital in commercial banks where the state holds more than 50% charter capital; approve provisional personnel appointed to be the General Directors (Directors) of foreign bank branches; approve the establishment, closure, dissolution of domestic branches, representative offices, service providers, overseas branches, representative offices and other commercial presence forms of credit institutions; approve the establishment, acquisition of subsidiaries, affiliated companies of credit institutions; approve capital contributions, share purchase of credit institutions; approval of other matters related to the management, organization, finance and operation as prescribed by law must be authorized by the State Bank or approved per the assignment of the Governor of the State Bank;

g) Resolve issues related to the organization, management, operation of credit institutions, foreign bank branches in order to ensure that credit institutions, foreign bank branches operate safely with integrity and in compliance with the law as assigned by the Governor of the State Bank;

h) Implement a number of contents related to the rights, responsibilities of state owner’s representatives in credit institutions, financial institutions, enterprises under the management of the State Bank as prescribed by law and assigned by the Governor of the State Bank;

Formulate and organize, monitor the implementation of projects, plans for the strengthening, correcting, restructuring, special control of credit institutions, foreign bank branches as assigned by the Governor of the State Bank.

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4. Disseminate, organize the implementation of legislative documents, policies, strategies, plans, programs, projects prescribed in clause 1, clause 2 of this Article after promulgated or approved by a competent governmental agency.

5. Formulate and submit the annual inspection plan of Banking inspectors, supervisors to the Governor of the State Bank for approval; organize the implementation of the inspection plan of Banking inspectors, supervisors; instruct, monitor, expedite, review the implementation of the inspection plan of inspectors, supervisors assigned to the State Bank's branches (hereinafter referred to as inspectors, supervisors of the State Bank's branches).

6. Implement administrative inspection, banking inspection, anti-money laundering inspection, deposit insurance and inspection of other areas under the state management of the State Bank towards banking inspected entities as prescribed in clause 1 Article 2 of the Government’s Decree No. 26/2014/ND-CP dated April 07, 2014 on organization and operation of Banking inspectors, supervisors as prescribed by law and assigned by the Governor of the State Bank; case inspection as assigned by the Governor of the State Bank.

7. Implement the duties of complaint, denunciation settlement, anti-corruption, wastage prevention as prescribed by law and assigned by the Governor of the State Bank.

8. Monitor, expedite, review the implementation of the inspection and supervision conclusions, recommendations, handling decisions of the Governor of the State Bank and the Banking inspection and supervision agency.

9. Review the accuracy, legality of the inspection conclusions and post-inspection handling decisions of the chief inspector, supervisor of the State Bank’s branches, Directors of the State Bank’s branches, Chairwomen/Chairmen of the People’s Committees of provinces regarding cases under the management of the State Bank (if necessary).

10. Implement banking supervision on banking supervised entities as prescribed in clause 2 Article 2 of Decree No. 26/2014/ND-CP as prescribed by law and assigned by the Governor of the State Bank.

11. Apply authorized handling measures or submit recommendations to authorized agencies, organizations, individuals regarding measures to ensure safety and handle misconduct of banking inspected entities, banking supervised entities as prescribed by law.

12. Advise, assist the Governor of the State Bank in fulfilling the State Bank’s anti-money laundering, anti-terrorism financing duties as prescribed by the law on anti-money laundering, anti-terrorism.

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14. Direct, review and organize the implementation of inspection, supervision work; instruct administrative inspection, banking inspection, supervision operations to inspectors, supervisors of the State Bank’s branches. Instruct, examine banking units on the implementation of provisions regarding banking inspection, supervision, complaining, denunciation, anti-corruption and anti-money laundering, anti-terrorism financing under the state management of the State Bank.

15. Request banking inspected entities, banking supervised entities and relevant agencies, organizations, individuals to report and provide information, materials for banking inspection, supervision work, anti-money laundering, anti-terrorism financing.

16. Review and draw experience from inspection, supervision work under the state management of the State Bank.

17. Request inspectors, supervisors of the State Bank’s branches to report on inspection and supervision work, complaint and denunciation settlement, anti-corruption and anti-money laundering, anti-terrorism; review and report the results of inspection and supervision work, complaint and denunciation settlement, anti-corruption and anti-money laundering, anti-terrorism financing under the state management of the State Bank.

18. Fulfill some duties, exercise some powers towards Non-governmental organizations under the state management of the State Bank as prescribed by law and assigned, authorized by the Governor of the State Bank.

19. Research, apply modern science and technology to the management, inspection, supervision of banks, anti-money laundering, anti-terrorism financing; modernize the technical infrastructure of the inspecting and supervising system of banks, anti-money laundering, anti-terrorism financing; organize training on inspecting, supervising operations for banking inspectors, other banking inspecting, supervising public employees; increase professional knowledge of public employees who inspect, supervise banks, settle complaints, denunciation, act against corruption, money laundering, terrorism financing.

20. Implement international cooperation in managing, inspecting, supervising banks, acting against money laundering, terrorism financing.

21. Conduct administrative reform within the scope of work of the Banking inspection and supervision agency following the administrative reform plan of the State Bank.

22. Manage the organization, payroll; implement salary and entitlement policies, policies on benefits, recruitment, employment, appointment, dismissal, removal, retirement, resignation, reward, discipline of public employees, labor workers of the Banking inspection and supervision agency as classified by the Governor of the State Bank; give recommendations on reward consideration for banking groups, individuals as prescribed by law.

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24. Fulfill other duties, exercise other powers as prescribed by law and assigned by the Governor of the State Bank.

Article 3. Organizational structure

1. Department for administrative inspection, appeals, accusations, and corruption preventing and fighting (Department I).

2. Department for banking operation safety policies (Department II).

3. Office.

4. Department for banking supervision I (Office I).

5. Department for banking supervision II (Office II).

6. Department for banking supervision III (Office III).

7. Department for banking system safety supervision (Department IV).

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The director of the Office for banking supervision is authorized to order inspections, establish inspectorates for banking inspected entities as assigned (except for inspections resulting from the chief inspector’s decision to perform inspections and establish inspectorates as prescribed in clause 4 Article 1 of Decree No. 43/2019/ND-CP), perform the duties and exercise the powers that entail an inspection order and enforce penalties for administrative violations as prescribed by law. The director of the Office for preventing and fighting money laundering is responsible for receiving, collecting information, reporting on anti-money laundering and anti-terrorism financing; is authorized to request the provision and transfer of anti-money laundering and anti-terrorism financing information; cooperate, exchange information on anti-money laundering and anti-terrorism financing work with foreign agencies authorized in anti-money laundering, anti-terrorism financing operations as prescribed by law and assigned, authorized by the Governor of the State Bank.

The office has 6 departments, the Office for banking supervision I has 6 divisions, the Office for banking supervision II has 6 divisions, the Office for banking supervision III has 4 divisions, the Department for banking system safety supervision has 4 divisions, the Office for preventing and fighting money laundering has 4 divisions.

The Governor of the State Bank shall be responsible for defining the functions, duties, powers and organizational structure of units of the Banking inspection and supervision agency.

Article 4. Head of the Banking inspection and supervision agency

1. The Banking inspection and supervision agency consists of the chief banking inspector and no more than 04 deputy chief banking inspectors.

2. The chief banking inspector shall be appointed, dismissed, removed by the Governor of the State Bank under the agreement with the Government Inspector General.

The deputy chief banking inspectors shall be appointed, dismissed, removed by the Governor of the State Bank under the request of the chief inspector and in accordance with the lawsoft.

3. The chief banking inspector shall be answerable to the Governor of the State Bank and to the law for the entirety of the operation of the Banking inspection and supervision agency; the deputy chief banking inspectors shall be answerable to the chief banking inspector and to the law for their assigned tasks

4. The chief banking inspector shall perform the duties and exercise the powers prescribed in Article 8 of Decree No. 26/2014/ND-CP and clause 4 Article 1 of Decree No. 43/2019/ND-CP; duties, powers of ministry and ministry-level chief inspector as prescribed in the law on inspection and other relevant regulations.

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Department for inspection and supervision of domestic credit institutions, Department for inspection and supervision of foreign credit institutions, Department for banking system safety supervision, Department for management of credit institution and banking operation licensing, Department of human resources, Office for banking supervision of Hanoi city, Office for banking supervision of Ho Chi Minh City shall continue to exercise the functions, duties, powers in accordance with applicable regulations until the Governor of the State Bank promulgates a Decision on the new functions, duties, powers and organizational structure of the Office for banking supervision I, Office for banking supervision II, Office for banking supervision III, Department for banking system safety supervision, Office subordinated to the Banking inspection and supervision agency, the Hanoi branch of the State Bank, the Ho Chi Minh branch of the State Bank.

Article 6. Effect and implementation responsibility

1. This Decision comes into force from the day on which it is signed and supersedes the Prime Minister’s Decision No.35/2014/QD-TTg dated June 12, 2014 on functions, duties, powers and organizational structure of the Banking inspection and supervision agency under the management of the State bank of Vietnam.

2. The Governor of the State Bank, Ministers, Heads of ministry-level agencies, Heads of Governmental agencies, Chairwomen/Chairmen of the People’s Committees of provinces, central-affiliated cities and Chief banking inspector are responsible for the implementation of this Decision./.

THE PRIME MINISTER




Nguyen Xuan Phuc