In Vietnam, is it permissible for bank employees to disclose customer information?

In Vietnam, is it permissible for bank employees to disclose customer information?

Pursuant to Article 4 of the Decree 117/2018/ND-CP stipulating principles of protection of confidentiality and provision of client information in Vietnam as follows: 

1. Client’s information of credit institutions and foreign banks’ branches shall be kept confidential and shall be only provided in accordance with regulations of the Law on Credit Institutions 2010 amended in 2017, this Decree and relevant regulations of law.

2. Credit institutions and foreign banks’ branches must not provide client’s authentication information upon access to banking services, including client’s secret key, biometric data, access password and client’s authentication information to any entity, organization or individual unless such provision is authorized in writing by that client or in any other form as agreed upon.

3. Regulatory authorities, other organizations or individuals may request credit institutions and foreign banks’ branches to provide client information for right purposes, within the scope and power only if required by laws or accepted by clients and must be responsible for that request.

4. Regulatory authorities, other organizations or individuals must protect confidentiality of client information and use client information to serve the predetermined purposes upon request and must not provide such information to the third party without the client's consent unless otherwise prescribed by law.

5. Organizations and individuals must, according to regulations of law on storage and preservation of documents, store and preserve client information, applications for provision of client information, delivery and receipt of client information.

Pursuant to Article 11 of the Decree 117/2018/ND-CP stipulating cases in which it is eligible to provide client information in Vietnam as follows: 

1. A credit institution or foreign bank’s branch shall only provide client information to other organizations or individuals in one of the following cases:

a) Other organizations or individuals having the right to request the credit institution or foreign bank’s branch to provide client information are specified in codes, laws and resolutions of the National Assembly.

b) The client’s consent granted in writing or other forms under the agreement with the client is available.

2. The credit institution or foreign bank’s branch shall provide client information for the client or the legal representative of that client.

As regulations above, keeping customer information confidential in banking is important. Therefore, the act of disclosure of customer information is against the law. The bank is only allowed to provide customer information to the customer himself or must have the customer's consent in writing. If it doesn't fall in any cases mentioned above, it is not permissible to disclose customer information.

In Vietnam, what are the fines imposed to bank employees for disclosing customer information?

Pursuant to Clause 4, Article 47 of the Decree 88/2019/ND-CP (amended by Clause 32.a, Article 1 of the Decree 143/2021/ND-CP) stipulating violations against regulations on reporting, and information management and provision in Vietnam as follows:

4. A fine ranging from VND 30,000,000 to VND 40,000,000 shall be imposed for committing one of the following violations:

a) Reporting in a dishonest manner, except for cases prescribed in Point h Clause 4 Article 27 of this Decree;

b) providing information about operations of the SBV, credit institutions or foreign bank branches or information about their customers against law regulations;

c) failing to provide information and/or documents as prescribed by law;

d) disclosing or using information about customers of a credit institution or foreign bank branch for the unlawful purposes.

As regulations above, if the bank employees illegally disclose customer information shall be fined from VND 30,000,000 to VND 40,000,000.

Best regards!