Can a Request be Made for the Bank to Freeze the Recipient's Account When Money is Mistakenly Transferred Starting from July 1, 2024?
Can One Request a Bank to Freeze the Recipient's Account When Money is Transferred by Mistake from July 1, 2024?
Based on the regulations stipulated in Clause 1, Article 11 Decree 52/2024/ND-CP, it is specified as follows:
Freezing Payment Accounts
1. A payment account shall be partially or fully frozen under the following circumstances:
a) As per a prior agreement between the account holder and the payment service provider or upon the account holder’s request;
b) When there is a decision or written request from a competent authority in accordance with the law;
c) When the payment service provider detects a mistake or error in credit entries to the customer’s payment account or to fulfill the refund request from the payment service provider due to errors or mistakes compared to the payer’s payment order after crediting the customer’s payment account. The amount frozen on the payment account shall not exceed the erroneous or mistaken amount;
d) When there is a freeze request from one of the joint payment account holders unless a prior written agreement exists between the payment service provider and the joint account holders.
...
According to these regulations, the partial or full freezing of funds in a bank account is only carried out when the transferring bank makes an error or mistake compared to the payer’s payment order. That is, the bank transmits incorrect information relative to the customer's payment order, meaning the fault lies entirely with the transferring bank.
Moreover, the request for a refund of the mistakenly transferred funds must also come from the transferring bank.
Thus, individuals who mistakenly transfer funds do not have the right to request the payment service provider to freeze the recipient's account.
Can One Request a Bank to Freeze the Recipient's Account When Money is Transferred by Mistake from July 1, 2024?
How is the Freezing of a Payment Account Terminated?
Clause 2, Article 11 of Decree 52/2024/ND-CP stipulates the termination of the freezing of a payment account as follows:
- According to a written agreement between the payment account holder and the payment service provider.- When there is a decision to terminate the freeze from a competent authority as per legal regulations.- When the error or mistake in the payment transaction mentioned at Point c, Clause 1, Article 11 of Decree 52/2024/ND-CP has been resolved.- When there is a request to terminate the freeze from all joint payment account holders or per a prior written agreement between the payment service provider and the joint account holders.
What Actions are Prohibited in Non-Cash Payment Transactions?
According to the regulations in Article 8 of Decree 52/2024/ND-CP, the following actions are prohibited in non-cash payment transactions:
- Altering, erasing payment means, payment documents unlawfully; forging payment means, payment documents; storing, circulating, transferring, using counterfeit payment means.- Unauthorized access or attempted access, data theft, destruction, unauthorized alteration of software programs, electronic data used in payment; exploiting network system errors for profit.- Providing dishonest information related to the provision or use of payment services, intermediary payment services.- Unauthorized disclosure or provision of information about account balances, bank card balances, e-wallet balances, and payment transactions of customers at payment service providers, intermediary payment service providers as per relevant legal regulations.- Opening or maintaining anonymous, pseudonymous payment accounts, e-wallets; buying, selling, renting, lending payment accounts, e-wallets; renting, leasing, buying, selling, or opening bank cards on behalf of others (except for anonymous prepaid cards); stealing, conspiring to steal, buying, selling payment account information, bank card information, e-wallet information.- Issuing, providing, and using unlawful payment means.- Providing intermediary payment services without obtaining operating licenses from the State Bank. Providing payment services without being a payment service provider.- Performing, organizing, or facilitating actions such as using or exploiting payment accounts, payment means, payment services, intermediary payment services for gambling, organizing gambling, fraud, cheating, illegal business activities, and other illegal acts.- Erasing, altering content, buying, selling, transferring, leasing, lending, counterfeiting operating licenses for providing intermediary payment services.- Entrusting or delegating agents to perform permitted activities as per the intermediary payment service provision operating licenses.- Committing fraud, forgery of documents proving eligibility to obtain operating licenses for providing intermediary payment services in the application dossier.- Operating inconsistently with the content stipulated in the operating licenses for providing intermediary payment services.- The payment account holder having accounts at payment service providers providing false information or commitments about not having an account at payment service providers to parties with rightful obligations as per legal regulations on loan disbursement of credit institutions, foreign bank branches.
Decree 52/2024/ND-CP takes effect from July 1, 2024.
LawNet