Who are not allowed to act as a Chief Accountant of the credit institutions in Vietnam?

Who are not allowed to act as a Chief Accountant of the credit institutions in Vietnam?

Pursuant to Clause 2 Article 42 of the Law on Credit Institutions in 2024 stipulating entities not allowed to act as a Chief Accountant of the credit institutions in Vietnam:

- Minor or a person who is legally incapacitated, a person with limited cognition and behavior control, and a person with limited legal capacity;

- Person who is facing criminal prosecution or serving imprisonment sentence; serving an administrative penalty in a correctional institution or rehabilitation center;

- Person who is prohibited by the court from holding certain positions or doing certain works;

- Person who has been sentenced for any serious crime or worse;

- Person who has been sentenced for possession charge without having their criminal record expunged;

- Official, public employee or manager of division or higher level of an enterprise in which the State holds 50% or more of the charter capital, except for any person appointed to act as the representative of the State's stakes or stakes of the enterprise in which the State holds 50% or more of the charter capital in the credit institution or appointed or assigned to participate in management, administration or control of the credit institution according to task requirements;

- Officer, non-commissioned officer, professional army man or defense worker/public employee of an agency or unit under the Vietnam People's Army; officer, professional non-commissioned officer, worker/police officer of an agency and unit under the Vietnam People's Police, except for any person appointed to act as the representative of the State's stakes or stakes of the enterprise in which the State holds 50% or more of the charter capital in the credit institution;

- Father/mother, spouse, child or sibling of each member of the Board of Directors and the Board of Members, General Director (Director) of the credit institution and his/her spouse;

- Another person defined in the Charter of the credit institution.

Compared to the Law on Credit Institutions in 2010, the Law on Credit Institutions in 2024 has added entities not allowed to act as a Chief Accountant of the credit institutions in Vietnam:

- A person with limited cognition and behavior control;

- A person serving an administrative penalty in a correctional institution or rehabilitation center;

- Person who is prohibited by the court from holding certain positions or doing certain works;

In addition, the Law on Credit Institutions in 2024 also allows official, public employee or manager of division or higher level of an enterprise in which the State holds 50% or more of the charter capital to act as a Chief Accountant if they are appointed or assigned to participate in management, administration or control of the credit institution according to task requirements.

Who are not allowed to act as a Chief Accountant of the credit institutions in Vietnam? - image from internet

What are requirements applicable to Chief Accountants of the credit institutions in Vietnam?

Pursuant to Clause 5 Article 41 of the Law on Credit Institutions in 2024 stipulating Chief Accountants of the credit institutions in Vietnam:

Criteria and requirements applicable to mangers, executives and holders of some other positions of a credit institution

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5. A Deputy Director General (Deputy Director), Chief Account, Director of a branch or Director General (Director) of a subsidiary or any holder of an equivalent position under regulations of the Charter of the credit institution shall fully meet the following criteria and requirements:

a) Not falling within the case where he/she is prohibited from holding a certain position specified in Clause 2 Article 42 of this Law; in case of the Deputy Director General (Deputy Director), not falling within the case where he/she is prohibited from holding a certain position specified in Clause 1 Article 42 of this Law;

b) Having at least a bachelor’s degree in finance, banking, economics, business administration, law, accounting or audit field or another discipline under the field which he/she will undertake; or having a bachelor’s degree in a discipline other than one of the above-mentioned fields and having at least 3 years’ experience of working directly in banking or finance field or the field which he/she will undertake;

c) Residing in Vietnam during his/her term of office;

d) The Chief Account shall also meet criteria and requirements according to regulations of the law on accounting.

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Pursuant to Clause 1 Article 51 of the Law on Accounting in 2015 stipulating standards of accountants:

Standards, rights and obligations of accountants

1. Every accountant must meet the standards below:

a) Comply with professional ethics, be truthful, integrated, and abide by law.

b) Have professional accounting knowledge and skills.

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Pursuant to Article 54 of the Law on Accounting in 2015 stipulating standards and conditions for chief accountants:

Standards and conditions for chief accountants

1. A chief accountant must meet the standards below:

a) Meet the standards specified in Clause 1 Article 51 of this Law;

b) Have at least an associate degree in accounting;

c) Have a certificate of training in chief accountant’s techniques;

d) The holder of a bachelor’s degree in accounting must have at least 02 years’ experience of accounting works; the holder of an associate degree in accounting must have at least 03 years’ experience of accounting works.

2. The Government shall specify standards and conditions for chief accountants that suit each type of accounting units.

As regulated above, Chief Accountants of the credit institutions in Vietnam must meet the following requirements:

- Must not be banned from holding the position of Chief Accountant;

- Have at least a bachelor’s degree in accounting or relevant fields; or have a bachelor’s degree in other fields and have at least 3 years’ experience of working directly in accounting fields;

- Have at least 02 years’ experience of accounting works;

- Reside in Vietnam during his/her term of office;

- Comply with professional ethics, be truthful, integrated, and abide by law;

- Have a certificate of training in chief accountant’s techniques.

What are obligations of chief accountants in Vietnam?

Pursuant to Clause 1 Article 55 of the Law on Accounting in 2015 stipulating obligations of chief accountants in Vietnam:

Rights and obligations of chief accountants

1. A chief accountant has the responsibility to:

a) Comply with regulations of law on accounting and finance of accounting units;

b) Organize the operation of the accounting apparatus in accordance with this Law;

c) Make financial statements in accordance with accounting regimes and accounting standards.

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As regulated above, a chief accountant has the responsibility to comply with regulations of law on accounting and finance of accounting units, organize the operation of the accounting apparatus in accordance with this Law. In addition, the chief accountant must also make financial statements in accordance with accounting regimes and accounting standards.

Note: The Law on Credit Institutions in 2024 will be effective from July 1, 2024, except for Clause 3 of Article 200 and Clause 15 of Article 210, which will be effective from January 1, 2025.

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