What are the safety guarantee measures in providing intermediary payment services in Vietnam applied from July 17, 2024?
What are the details of Circular on provision of intermediary payment services which comes into force in Vietnam from July 17, 2024?
On July 17, 2024, the Governor of the State Bank of Vietnam issued the Circular on provision of intermediary payment services.
Circular 40/2024/TT-NHNN stipulates regulations on the provision of intermediary payment services in Vietnam.
The entities to which Circular 40/2024/TT-NHNN applies include:
- Organizations providing intermediary payment services.
- Banks, branches of foreign banks.
- Relevant organizations and individuals involved in the provision of intermediary payment services.
Circular 40/2024/TT-NHNN consists of 5 Chapters and 54 Articles.
What are the safety guarantee measures in providing intermediary payment services in Vietnam applied from July 17, 2024?(Internet image)
What are regulations on the currency used in electronic transactions in Vietnam according to Circular 40/2024/TT-NHNN?
Article 7 of Circular 40/2024/TT-NHNN stipulates the currency used in transactions in Vietnam as follows:
- Non-cash payment transactions conducted through intermediary payment services on the territory of Vietnam must be carried out in Vietnamese Dong, except for cases where foreign exchange is permitted on the territory of Vietnam in accordance with the regulations of the law on foreign exchange management.
- Where foreign organizations provide intermediary payment services to customers who are non-residents and foreign residents in Vietnam to conduct payment transactions for goods and services in Vietnam, the payment acceptance units in Vietnam only receive payments in Vietnamese Dong, except for cases where the payment acceptance units in Vietnam are allowed to receive payments in foreign currencies in accordance with the regulations of the law on foreign exchange management.
- In cases where organizations providing intermediary payment services (except for financial switching service providers) provide intermediary payment services to customers to conduct payment transactions for foreign goods and services, the currency used by customers to make payments through one or more intermediary payment services is Vietnamese Dong.
- The conversion from foreign currency to Vietnamese Dong (or from Vietnamese Dong to foreign currency), the exchange rate between Vietnamese Dong and foreign currency is agreed upon by the parties in accordance with the regulations of the law.
What are the safety guarantee measures in providing intermediary payment services in Vietnam applied from July 17, 2024?
Article 9 of Circular 40/2024/TT-NHNN stipulates the safety guarantee measures in the provision of intermediary payment services in Vietnam as follows:
(1) Before providing services to customers, organizations offering intermediary payment services must issue internal procedures related to intermediary payment services, including at least the following procedures:
- Technical business procedures for intermediary payment services, including at least the following contents: service name; scope of provision; customer object; usage conditions; diagram and explanation of the steps in the business process; cash flow process from transaction initiation to settlement of obligations among relevant parties for e-wallet services and supporting collection and payment services.
- Internal inspection and control procedures, including the following contents: purpose; requirements; implementation steps; responsibilities of the relevant departments.
- Risk management, safety, and security procedures, including:
+ Contents to ensure compliance with risk management, safety, and security regulations in accordance with the State Bank's regulations on electronic banking activities;
+ Contents to ensure compliance with the regulations on the establishment, use, preservation, and storage of electronic documents in accordance with the law on electronic transactions in banking activities;
+ Assessment of potential risks and corresponding risk management measures in the provision of intermediary payment services;
+ Development of internal policies and measures for specific risk handling;
- General principles and internal regulations on anti-money laundering, combating the financing of terrorism, and the proliferation of weapons of mass destruction, including:
+ General principles for anti-money laundering, combating the financing of terrorism, and the proliferation of weapons of mass destruction;
+ Internal regulations on anti-money laundering, combating the financing of terrorism, and the proliferation of weapons of mass destruction in accordance with the law on anti-money laundering, combating the financing of terrorism, and the proliferation of weapons of mass destruction;
- Procedures and processes for handling inquiries, complaints, and disputes in accordance with the State Bank's regulations on the provision of non-cash payment services and must clearly delineate the following contents:
+ Regulations on handling or responding to customers' complaints and inquiries, clearly showing: the receiving channels, the receiving department, the steps to guide customers in making complaints, the handling of complaints within the intermediary payment service provider organization, and cooperating with relevant units;
+ Specific processes, procedures, and responsibilities of each involved party, the time for each step, and the results returned to the complaining customers;
- For international financial switching services: internal regulations on criteria for selecting international payment systems to connect for executing international financial switching transactions; internal regulations on business processes with risk management measures for international financial switching services.
(2) Organizations providing intermediary payment services must regularly review and update the internal procedures mentioned in Clause 1 of this Article to ensure compliance with the practical provision of intermediary payment services and the existing legal regulations.
(3) Organizations providing intermediary payment services must comply with technical safety requirements for equipment serving bank card payments; safety requirements for information systems in banking activities; safety and security requirements for providing online services in the banking sector; implement safety and security solutions in online and card payments.
(4) Before providing services to customers, organizations already licensed by the State Bank must publicly announce on their official websites the following contents: intermediary payment services licensed by the State Bank; the method of providing intermediary payment services of the organization; the names/brands of the intermediary payment services of the organization.
(5) Organizations providing intermediary payment services must ensure the accounting and tracking of income/expenses related to the provision of intermediary payment services are separate from other business activities (if any) of the intermediary payment service provider organization; ensure separate accounting and tracking for each intermediary payment service licensed by the State Bank.
(6) In cases where organizations providing intermediary payment services directly enter into contracts or agreements with payment acceptance units (contracts or agreements without the collaboration of partner banks), organizations providing intermediary payment services must undertake responsibilities towards the payment acceptance units as payment service providers’ responsibilities toward payment acceptance units in accordance with the State Bank's regulations on non-cash payment services.
(7) In cases where organizations providing intermediary payment services collaborate with other organizations that provide products or services (referred to as partners), organizations providing intermediary payment services must have contracts or agreements with the partners, which include at least the following contents:
- The partner collaborating with the organization providing intermediary payment services;
- The delineation of responsibilities between the intermediary payment service provider and the partner in providing products, services, and handling risks arising in the process of using products and services;
- The department/unit responsible for handling customers' difficulties and issues during the usage of services and products;
- The compliance with specific business investment conditions for each product and service (for products and services under conditional business sectors);
- Risk warnings for customers (if any);
- Notification and public disclosure to customers before using the products and services of the information stipulated in points a, b, c, d, e, Clause 7 Article 9 of Circular 40/2024/TT-NHNN.
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