Tiếng Việt| THE GOVERNMENT | SOCIALIST REPUBLIC OF VIET NAM |
| No: 20/2000/ND-CP | Hanoi, June 15, 2000 |
ON SANCTIONING ADMINISTRATIVE VIOLATIONS IN THE MONETARY FIELD AND BANKING OPERATIONS
THE GOVERNMENT
Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to Vietnam State Bank Law No.01/1997/QH10 of December 12, 1997;
Pursuant to Credit Institutions Law No.02/1997/QH10 of December 12, 1997;
Pursuant to the Ordinance on Handling Administrative Violations of July 6, 1995;
At the proposal of the Vietnam State Bank Governor,
DECREES:
Article 1.- Scope of regulation and objects of application
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2. Organizations and individuals committing acts of administrative violation in the monetary field and banking operations under the provisions of this Decree shall be administratively sanctioned.
Foreign organizations and individuals that conduct activities related to the monetary field and banking operations on the territory of the Socialist Republic of Vietnam and commit acts of administrative violation shall also be sanctioned according to the provisions of this Decree, except otherwise provided for by the international treaties which Vietnam has signed or acceded to.
Article 2.- Principles for sanctioning administrative violations
The principles for sanctioning administrative violations in the monetary field and banking operations shall comply with the provisions in Article 3 of the Ordinance on Handling Administrative Violations.
Article 3.- Statute of limitations for sanctioning administrative violations
The statute of limitations for sanctioning an administrative violation in the monetary field and banking operations shall be 2 years counting from the date the act of administrative violation is committed.
Past the above-said time limit, no sanction shall be imposed but the measures prescribed at Point b, Clause 3, Article 9 of this Decree shall be applied.
Article 4.- Time limit for being considered not having been sanctioned for administrative violations
Organizations and individuals already sanctioned for administrative violations shall be considered as having not been sanctioned for administrative violations if one year after their execution of the sanctioning decisions or after the expiry of the implementation effect of the sanctioning decisions they do not relapse into such violations.
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The procedures for sanctioning administrative violations in the monetary field and banking operations shall comply with the provisions in Chapter VI of the Ordinance on Handling Administrative Violations.
The coercion and statute of limitations for execution of decisions on sanctioning administrative violations shall comply with the provisions in Articles 55 and 56 of the Ordinance on Handling Administrative Violations.
Article 7.- Execution of decisions on sanctioning administrative violations
The execution of administrative violation-sanctioning decisions against organizations and individuals that have committed acts of administrative violations in the monetary field and banking operations shall comply with the provisions in Article 54 of the Ordinance on Handling Administrative Violations.
Article 8.- Extenuating circumstances, aggravating circumstances
When sanctions are imposed on administrative violations in the monetary field and banking operations, the following are considered extenuating or aggravating circumstances:
1. Extenuating circumstances:
The administrative violators have warded off or reduced the harms done by acts of violation or volunteered to overcome the consequences and compensate the damage.
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a) Committing the violations in an organized manner;
b) Committing violations more than once or relapsing into violations;
c) Abusing one’s positions and/or powers;
d) Taking advantage of war conditions, natural disasters or other particularly difficult circumstances of the society to commit the violations;
e) Committing the violations while serving administrative violation- sanctioning decisions;
f) Committing violations while serving criminal sentences;
g) Committing acts of escape or concealment after having committed violations.
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1. For each administrative violation, the violating organizations and/or individuals shall be subject to one of the following sanctioning forms:
a) Warning;
b) Fine.
2. Depending on the nature and seriousness of their violations, organizations and individuals committing acts of administrative violations shall also be subject to one or several of the following forms of additional sanction:
a) The confiscation of material evidences, means used for the commission of administrative violations;
b) The definite or indefinite deprivation of the right to use license for the performance of one or several professional operations related to the acts of administrative violation in the monetary field and banking operations.
3. Besides the sanctioning forms prescribed in Clauses 1 and 2 of this Article, the violating organizations and individuals shall also be subject to one of the following handling measures:
a) Forcible compensation for damage caused by their administrative violations under the provisions of law;
b) Forcible restoration of the initial state which has been altered due to their administrative violations.
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1. The State Bank�s Inspector General shall have the power to:
a) Serve warning;
b) Impose a fine of up to 20,000,000 VND;
c) Apply forms of additional sanction and other handling measures as prescribed at Point a, Clause 2 and Clause 3, Article 9 of this Decree;
d) To propose the Vietnam State Bank Governor to definitely or indefinitely deprive the right to use licenses for the performance of one or several professional operations related to acts of administrative violation in the monetary field and banking operations.
2. The chief inspectors of the State Bank branches shall have the power to:
a) Serve warning;
b) Impose a fine of up to 10,000,000 VND;
c) Apply forms of additional sanction and other handling measures as prescribed at Point a, Clauses 2 and 3 of Article 9 of this Decree.
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3. The bank inspectors performing the official duty shall have the power to:
a) Serve warning;
b) Impose a fine of up to 200,000 VND.
Article 11.- Authorization to sanction administrative violations
Where the people with competence to sanction administrative violations as provided for in Clauses 1 and 2 of Article 10 of this Decree authorize their deputies or are absent, the deputies may impose sanctions according to jurisdiction prescribed in Article 10 of this Decree.
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a) Lending, leasing or assigning licenses to other organizations or individuals;
b) Conducting activities in contravention of the Charter or conducting activities when the Charter has not yet been approved by competent authorities (except otherwise provided for by law);
c) Erasing, rubbing, modifying licenses.
2. A fine of between 15,000,000 and 20,000,000 VND for act of continuing the banking operations when the licenses therefor have expired or have not been extended (for cases where the extension is required).
1. A fine of between 2,000,000 and 10,000,000 VND for act of relocating head offices, transaction bureaus, branches, affiliate companies or representative offices without permission of the competent authorities;
2. A fine of between 15,000,000 and 20,000,000 VND for one of the following acts:
a) Dividing, splitting, consolidating, merging, re-buying or dissolving credit institutions without the written approval of the competent authorities;
b) Opening transaction bureaus, branches, affiliate companies or representative offices in various localities at home and abroad, including the head-offices, without the written approval of the competent authorities;
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Article 14.- Sanctioning violations regarding administration, management, control
1. A fine of between 1,000,000 and 5,000,000 VND for one of the following acts:
a) The chairmen of the Management Boards concurrently hold the position of General Directors (Directors) of Deputy-General Directors (Deputy-Directors) of credit institutions (except otherwise provided for by law);
b) The chairman or other members of the Management Board authorize persons not being members of the Management Board to perform their own tasks;
c) The chairman of the Management Board joins the Management Board of or participate in administering another credit institution (except where the latter is a company of the former);
d) The General Director (Director), Deputy-General Director (Deputy Directors) do not reside in Vietnam while they are incumbent;
e) Employing persons being fathers, mothers, wives, husbands, children, brothers, sisters of Management Board members, General Directors (Directors) to work as members of the Control Boards or chief accountants in the same credit institutions;
f) Control Board members either appointed or elected by the share-holders’ congress fail to properly perform their tasks and exercise their rights as prescribed by law.
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a) Who are being examined for penal liability;
b) Who have been sentenced for crimes of infringing upon the national security, upon the socialist ownership or citizen�s ownership, serious economic crimes; have been sentenced for other crimes but not yet entitled to criminal record remission;
c) Who were once members of the Management Board or General Director (Director) of a bankrupt company or the representatives at law of a company suspended from operation due to its serious violation of law, except for cases provided for at Clause 2, Article 50 of the Law on Enterprise Bankruptcy.
3. A fine of between 15,000,000 and 20,000,000 VND for the following act: the Management Board acted in the name of the credit institution to decide matters related to the purposes and interests of the credit institution, in contravention of the Operation Charter of the credit institution or other law provisions.
1. A fine of between 1,000,000 and 5,000,000 VND for acts of making one of the following changes without obtaining the written approval of competent authorities:
a) Names of credit institutions;
b) Members of the Management Board, General Director (Director), members of the Control Board.
2. A fine of between 3,000,000 and 15,000,000 VND for act of changing one of the following contents without the written approval of the competent authority:
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b) The operation contents and scope;
c) The rate of shares of individuals or organizations owning more than 10% of the charter capital or holding more than 10% of the share capital.
3. Application of additional sanction form:
Stripping of the right to use license for between 3 and 6 months for the violation of provisions in Clause 1 and 2 of this Article.
Article 16.- Violation of regulations on inspection and internal audit
1. Warning shall be imposed on acts of:
a) Failing to work out programs for inspection and internal audit as prescribed by law;
b) Organizing the inspection and internal audit apparatuses attached to the management apparatus in contravention of law provisions.
2. A fine of between over 2,000,000 and 10,000,000 VND for one of the following acts:
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b) Failing to audit the professional operations of credit institutions according to the provisions of law.
Section 3. ADMINISTRATIVE VIOLATIONS REGARDING CAPITAL MOBILIZATION
Article 17.- Violations regarding the reception of deposits
1. Warning shall be imposed on credit institutions which have participated in compulsory deposit insurance but failed to remit the insurance premiums on schedule according to the provisions of law.
2. A fine of between 10,000,000 and 20,000,000 VND shall be imposed on non-bank credit institutions which fail to strictly abide by the regulations on receiving deposits of organizations and individuals as provided for in Article 45 of the Law on Credit Institutions.
Article 18.- Violations regarding the issuance of valuable papers
A fine of between 15,000,000 and 20,000,000 VND shall be imposed on credit institutions for act of issuing the deposit certificates, bonds and other valuable papers in order to mobilize capital from organizations and individuals inside and outside the country without written approval of the competent authorities.
Article 19.- Violations regarding loan provision
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a) Failing to fully archive credit dossiers as prescribed in Article 55 of the Law on Credit Institutions;
b) Failing to publicize lending interest rates to customers;
c) Forms of documents on credit contracts and documents on exposition, accompanied vouchers are made not in accordance with the provisions of law.
2. A fine of between over 500,000 and 2,000,000 VND for one of the following acts:
a) Making credit contracts in contravention of the provisions of law;
b) Failing to inspect and supervise the process of borrowing capital, using loan capital and repaying debts by customers during the effective time limit of the credit contracts.
3. A fine of between over 2,000,000 and 10,000,000 VND for one of the following acts:
a) Providing loans to organizations and/or individuals that fail to fully meet the capital borrowing conditions prescribed by law;
b) Applying interest rates; exempting and/or reducing loan interests; collecting loan commission; rescheduling debts; adjusting debt repayment schedule; rolling over debts in contravention of law provisions.
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5. Application of other measures
Forcible restoration of the initial state within one month for the violation of the provisions in Clause 3 of this Article.
A fine of between 5,000,000 and 20,000,000 VND for acts of providing credits in forms of discounting, re-discounting or pledging commercial bills and other short-term valuable papers in contravention of the provisions of law.
1. A fine of between 200,000 and 500,000 VND for acts of failing to fully archive guarantee dossiers as prescribed by law.
2. A fine of between 2,000,000 and 10,000,000 VND for one of the following acts:
a) Providing guarantee for organizations and/or individuals that fail to fully meet the conditions prescribed by law;
b) Applying the guaranteeing charge rates in contravention of law provisions.
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a) Guaranteeing beyond the levels prescribed by law;
b) Taking mortgaged guarantee properties and implementing other regulations on guarantee in contravention of law.
4. A fine of between 15,000,000 and 20,000,000 VND on credit institutions which have not yet been permitted by the competent authorities to perform the international payment but committed acts of guaranteeing loans, guaranteeing payments and applying other forms of bank guarantee for the guaranteed being foreign organizations or individuals.
5. Application of additional sanction form:
Stripping of the right to use license for the performance of guarantee operations for a period of three months, with regard to the violation of the provisions in Clause 2 of this Article.
Article 22.- Violations regarding financial leasing activities
1. A fine of between 200,000 and 500,000 VND for acts of failing to fully keep the financial leasing dossiers as prescribed by law.
2. A fine of between 1,000,000 and 10,000,000 VND for act of making financial leasing contracts in contravention of the provisions of law.
3. A fine of between 3,000,000 and 15,000,000 VND for one of the following acts:
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b) Providing financial leasing to organizations and/or individuals that fail to fully meet the conditions prescribed by law;
c) The total value of the asset leased to a customer as compared to the own capital exceeds the percentage prescribed by law.
4. A fine of between 15,000,000 and 20,000,000 VND on credit institutions for performing the financial leasing operations without licenses.
5. Application of additional sanction form:
Stripping of the right to use license for financial leasing operations for 3 to 6 months, for the violation of provisions in Clauses 2 and 3 of this Article.
Article 23.- Violations of regulations on foreign exchange management, gold business management
1. A fine of between 200,000 and 500,000 VND for one of the following acts:
a) Failing to publicly post up the foreign currency buying and selling rates as well as the gold buying and selling prices at transaction bureaus as provided for by the competent authorities;
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2. A fine of between over 500,000 and 2,000,000 VND for one of the following acts:
a) Committing fraudulence in gold trading; not using invoices and vouchers issued by the Finance Ministry;
b) Trading or settling in foreign currency(ies) with customers or making payment in foreign currencies sent home by Vietnamese overseas not according to the posted-up rates and other provisions of law.
3. A fine of between over 2,000,000 and 10,000,000 VND for act of lending in foreign currency(ies) not in accordance with the provisions of law.
4. A fine of between 10,000,000 and 15,000,000 VND for one of the following acts:
a) Opening or using foreign currency accounts overseas without permission or in contravention of regulations in the permits granted by the competent authorities;
b) Transferring foreign exchanges or gold out of or into Vietnam in contravention of law provisions;
c) Failing by credit institutions to abide by the law provisions on foreign exchange status or VND status;
d) Failing by organizations with revenues in foreign currency(ies) to abide by law provisions on the sale of collected foreign currency(ies) to credit institutions;
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f) Buying, selling and/or using international-standard gold in contravention of law provisions by organizations and/or individuals;
g) Covering up or conniving by organizations and/or individuals at acts of violating the legislation on foreign exchange activities or gold trading activities.
5. A fine of between 15,000,000 and 20,000,000 VND for one of the following acts:
a) Organizing foreign exchange business or gold trading without licenses granted by the competent authorities;
b) Organizing foreign exchange or gold trading activities when being suspended therefrom or upon the expiry of foreign exchange or gold trading licenses;
c) Conducting foreign exchange or gold trading activities, issuing or acting as agents to issue assorted deposit certificates, bonds and other valuable papers in foreign currency(ies) or gold by credit institutions in order to mobilize capital from domestic or foreign organizations and/or individuals without licenses granted by the State Bank.
6. Application of forms of additional sanctions and other measures:
a) Confiscation of the volume of foreign exchange or gold prescribed at Point b or Point f, Clause 4 of this Article;
b) Deprivation of the right to use licenses for foreign exchange or gold trading activities for a period of 3 months if repeating the violations prescribed at Point c, Clause 5 of this Article;
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Article 24.- Violations regarding accountancy and statistics
The competent authorities as prescribed in Article 10 of this Decree are entitled to sanction administrative violations regarding accountancy and statistics in the monetary field and banking operations according to the Government’s regulations on sanctioning administrative violations in the fields of accountancy and statistics.
Article 25.- Violations regarding treasury safety
A fine of between 200,000 and 2,000,000 VND for any act of violating the treasury safety regime as prescribed by the State Bank.
1. Warning for acts of opening deposit accounts at the State Bank but maintaining the average balance lower than the compulsory reserve levels prescribed by law.
2. Application of other measures:
Forcible implementation of the compulsory reserve level as prescribed by law.
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A fine of between 5,000,000 and 15,000,000 VND for one of the following acts:
1. Making deductions for setting up funds in contravention of law provisions.
2. Using the charter capital- supplementing reserve funds set up with the annual deduction of 5% of after-tax profits and other funds to pay dividends.
3. Transferring the charter capital- supplementing reserve funds and other funds abroad in contravention of law provisions.
Article 28.- Violations regarding purchasing and/or investing in fixed assets
A fine of between 5,000,000 and 20,000,000 VND for acts of buying and/or investing in fixed assets in excess of 50% of own capital.
Article 29.- Handling of violations regarding real estate business
1. A fine of between 15,000,000 and 20,000,000 VND on credit institutions for acts of directly conducting real estate business.
2. Application of other measures:
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Article 30.- Violations of regulations on safety in lending and guaranteeing activities
1. A fine of between 1,000,000 and 5,000,000 VND for acts of providing loans to the following subjects with the total loan balance of the credit institution exceeding 5% of its own capital:
a) Auditing organizations and/or auditors conducting auditing at credit institutions, chief accountants, inspectors;
b) Organizations and individuals that own more than 10% of the charter capital or hold more than 10% of the share capital of the credit institution;
2. A fine of between 2,000,000 and 10,000,000 VND for one of the following acts:
a) Lending capital in contravention of law provisions;
b) Maintaining the guarantee level for one customer and the total guarantee level exceeds the percentage of the credit institution�s own capital, set by the competent authorities.
3. A fine of between 5,000,000 and 15,000,000 VND on credit institutions for one of the following acts:
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b) Providing loans to persons who assess or approve loans;
c) Providing loans to parents, wives, husbands or offspring of members of the Management Boards, members of the Control Boards, General Directors (Directors), Deputy- General Directors (Deputy Directors) of credit institutions;
d) Accepting by credit institutions the guarantee of subjects defined at Points a, b and c, Clause 3 of this Article as basis for providing credits to customers;
e) Providing credits without security or providing credits with preferential terms to the following subjects:
- Auditing organizations and/or auditors that are conducting the auditing at the credit institutions, chief accountants, inspectors;
- Individuals and organizations that own more than 10% of the charter capital or hold more than 10% of the share capital of the credit institution;
- Enterprises which have one of the subjects defined in Clause 1 of this Article owning more than 10% of the charter capital of such enterprises.
4. A fine of between 10,000,000 and 20,000,000 VND for act of:
Providing the total loan to a customer in excess of 15% of the credit institution�s own capital, except for loans provided under the Government’s regulations, provided from entrusted capital sources of the Government, organizations or individuals or to borrowing customers being other credit institutions.
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Forcible restoration of the initial state within 1 month for acts of violation specified in this Article.
Article 31.- Violations of the regulations on percentage to ensure safety in banks operations
1. A fine of between 3,000,000 and 15,000,000 VND on credit institutions for failing to strictly abide by the law provisions on maintaining one of the following rates:
a) The payment capability rate;
b) The minimum capital safety rate;
c) The maximum rate of short-term capital sources for the provision of medium- and long-term loans;
d) The maximum rate between loan balance against the deposit balance.
2. Application of other measures:
Forcible restoration of the initial state within 1 month for acts of violation specified in this Article.
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1. A fine of between 10,000,000 and 20,000,000 VND on credit institutions which commit one of the following acts:
a) Contributing capital to or buying shares from an enterprise or contributing a total of capital to or buying a total share of all enterprises in excess of the maximum level prescribed by law;
b) Assigning shares in contravention of law provisions.
2. Application of other measures:
Forcible restoration of the initial state within 1 month for acts of violation specifiied in this Article.
Article 33.- Violations of regulations on risk reserves
1. A fine of between 1,000,000 and 10,000,000 VND on credit institutions which commit acts of classification of properties involved in banking operations not in accordance with the regulations of the competent authorities.
2. A fine of between 5,000,000 and 15,000,000 VND on credit institutions which commit acts of:
a) Setting up risk reserves in contravention of the law provisions;
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3. Application of other measures:
Forcible restoration of the initial state within 1 month for acts of violation specifiied in Clause 2 of this Article.
Section 8. ADMINISTRATIVE VIOLATIONS REGARDING BANKING OPERATION INFORMATION AND SECRETS
Article 34.- Violations of regulations on management of banking operation information and reports
1. Warning for acts of forwarding reports not according to the time schedules set by the competent authorities.
2. A fine of between over 200,000 and 2,000,000 VND for acts of failing to send reports or sending reports not according to forms prescribed by the competent authorities.
3. A fine of between over 2,000,000 and 5,000,000 VND for one of the following acts:
a) Reporting untruthfully on activities of credit institutions;
b) Providing organizations and/or individuals with information relating to the activities of the State Bank and/or credit institutions without permission of the competent authorities as prescribed by law or without the consent of customers, except for cases prescribed in Article 102, Article 103 and Clause 2 of Article 104 of the Law on Credit Institutions.
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Article 35.- Violations of regulations on banking operation confidentiality
Fines shall be imposed on acts of unintentionally disclosing secrets or losing documents and/or data on the list of State secrets in the banking service, which, however, have not yet caused serious consequences:
1. A fine of between 100,000 and 500,000 VND for acts of disclosing secrets of documents and/or data on the list of State secrets in the banking service, which are classified as "confidential".
2. A fine of between over 500,000 and 2,000,000 VND for acts of disclosing secrets of documents and/or data on the list of State secrets in the banking service, which are classified as "top secret".
3. A fine of between over 2,000,000 and 10,000,000 for acts of disclosing secrets of documents and/or data on the list of State secrets in the banking service, which are classified as "strictly confidential".
Warning shall be imposed on one of the following acts:
1. Compelling credit institutions to provide credits or contribute capital, buy shares or conduct foreign exchange activities in contravention of regulations;
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1. Warning shall be imposed on one of the following acts:
a) Delaying, shirking or failing to supply documents, materials, vouchers and/or data at the requests of the inspectorate, inspection teams or employing tricks to cope with inspectors performing their duties;
b) Hiding and/or modifying vouchers and/or books, or replacing material evidences while being under inspection;
c) Dismantling, removing without permission or committing other acts of altering the current sealing status of warehouses, treasury, safes, gems, books, accounting vouchers, credit dossiers, guarantee dossiers or material evidences being sealed or under custody.
2. A fine of between over 500,000 and 2,000,000 VND for one of the following acts:
a) Failing to abide by the handling decisions of banks� inspectorate;
b) Intervening in the handling by the banks� inspectorate.
Article 38.- Sanctioning acts of unlawful competition
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1. The lodging of complaints and constitution of lawsuits and the settlement of complaints and lawsuits about decisions to sanction administrative violations in the monetary field and banking operations shall comply with the provisions in Article 128 of the Law on Credit Institutions, the Law on Complaints and Denunciations and other law provisions.
2. The denunciation and settlement of denunciations about unlawful acts of persons competent to sanction administrative violations in the monetary field and banking operations shall comply with the provisions in Article 90 of the Ordinance on Handling Administrative Violations and other law provisions.
Persons competent to sanction administrative violations in the monetary field and banking operations, who commit acts of tolerating or covering up violating organizations or individuals, failing to sanction or sanction violations in contravention of law provisions, sanctioning beyond their prescribed jurisdiction, shall, depending on the nature and seriousness of their violations, be administratively disciplined or examined for penal liability; if causing material losses, they must make compensation therefor according to law.
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Article 42.- The Vietnam State Bank Governor shall have to guide the implementation of this Decree.
ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Phan Van Khai
- 1 Decree of Government No. 202/2004/ND-CP of December 10, 2004, on the punishment of administrative violations in the monetary area and banking activity
- 2 Decree of Government No. 202/2004/ND-CP of December 10, 2004, on the punishment of administrative violations in the monetary area and banking activity
- 1 Decree No. 96/2014/ND-CP dated October 17, 2014, penalties for administrative violations against currency and banking legal regulations
- 2 Circular No. 01/2005/TT-NHNN of March 10, 2005, guiding the implementation of the Decree no. 202/2004/ND-CP of the Government dated 10 December 2004 on the punishment of administrative violations in the monetary area and banking activity
- 3 Circular No.09/2000/TT-NHNN3 of August 29, 2000 guiding the implementation of The Government’s Decree No. 20/2000/ND-CP of June 15, 2000 on sanctioning administrative violations in the monetary field and banking operations
- 4 Law No. 06/1997/QH10 of December 12, 1997 on The State Bank of Vietnam
- 5 Law No. 07/1997/QH10 of December 12, 1997 on credit institutions
- 6 Ordinance No. 41-L/CTN of July 06, 1995, on the handling of violations of administrative regulations
- 1 Decree No. 96/2014/ND-CP dated October 17, 2014, penalties for administrative violations against currency and banking legal regulations
- 2 Circular No. 01/2005/TT-NHNN of March 10, 2005, guiding the implementation of the Decree no. 202/2004/ND-CP of the Government dated 10 December 2004 on the punishment of administrative violations in the monetary area and banking activity