In Vietnam: Is it permissible to receive the refund when mistakenly transferring money to someone else's account?

In Vietnam: Is it permissible to receive the refund when mistakenly transferring money to someone else's account?

Pursuant to Clause 2 Article 5 of the Circular 23/2014/TT-NHNN (amended by Clause 3 Article 1 of the Circular 02/2019/TT-NHNN) stipulating obligations of payment account holder as follows:

a) To maintain available balance on the payment account to service the set up payment orders. In case where there exists an overdraft agreement with the payment service supplier where the payment account is opened, related obligations must be fulfilled upon paying in excess of the Credit balance on the account;

b) To implement regulations on opening and use of payment accounts as provided for in this Circular;

c) To timely notify the payment service supplier, where his payment account is opened, upon finding out any errors, mistakes on his account or having a doubt that his account is misused;

d) To refund or coordinate with the payment service supplier in refunding the amounts which were credited to his account by virtue of errors, mistakes;

dd) To provide sufficient, clear and accurate information concerning the opening and use of current account. Any changes in information provided in the application for current account opening must be notified to the payment service provider where the current account is opened in a timely manner and supported by relevant documents. Changing information concerning the current account opened at the State Bank of Vietnam shall be made according to the Appendix 03 enclosed herewith;

e) To maintain a minimum balance on the payment account as stipulated by the payment service supplier;

g) To take responsibility for any damage caused by the mistakes or being misused, defrauded upon using payment service via account at his fault;

h) Not to lease, lend his payment account;

i) Not to use the payment account for transactions in relation to money laundering, terrorism financing, swindling, fraud or any other illegal acts.

As regulations above, the person who was mistakenly received the money must have the obligation to refund and coordinate with the Bank to refund the mistakenly credited amount to his/her current account.

If the wrong recipient's bank has confirmed that the transaction information is mistaken, the Bank will contact the representative of the bank branch you are using and request a refund. If the wrong transferee does not cooperate, the bank will ask the investigating agency to solve it.

In Vietnam: Is it permissible for the bank to provide transfer information of the wrong recipient's account?

Pursuant to Article 10 of the Law on Credit Institutions in 2010 stipulating protection of client interests as follows:

Credit institutions and foreign bank branches shall:

1. Preserve and insure deposits at relevant institutions under law and publicize their deposit preservation and insurance in their head offices and branches;

2. Create favorable conditions for clients to deposit and withdraw money and guarantee the full and due payment of principals and interests of deposits;

3. Refuse the investigation, blocking, seizure or transfer of deposits of clients, unless it is so requested by competent state agencies under law or so consented by clients;

4. Publicize deposit interest rates, service charges and rights and obligations of clients for each product and service provided;

5. Publicize official transaction time and may not halt transactions during this time. When halting transactions during official transaction time, a credit institution or foreign bank branch shall post up notices of such halt at transaction places at least 24 hours before the halt. Credit institutions and foreign bank branches may not halt transactions for more than one working day, except the case defined at Point f. Clause 1, Article 29 of this Law.

As regulations above, Mr. A's bank can refuse to provide money transfer information in Mr. A's account. The bank shall only provide such information when the competent state agency requests or receives Mr. A's approval.

In Vietnam: Will the account holder, who receives the wrong money and denies to pay back, be liable to criminal prosecution?

Pursuant to Article 176 of the Criminal Code in 2015 (amended by Clause 1.d Article 2 of the Law on amendments to the Criminal Code in 2017) stipulating illegal impoundment of property as follows:

1. Any person who finds or mistakenly receives a piece of property which is assessed at from VND 10,000,000 to under VND 200,000,000, a relic or an antique which is assessed at under VND 10,000,000 but deliberately fails to return it to its legitimate owner or fails to submit it a competent authority after the owner or the competent authority requests the return or submission of such property as prescribed by law shall be liable to a fine of from VND 10,000,000 to VND 50,000,000 or face a penalty of up to 02 years' community sentence or 03 - 24 months' imprisonment.

2. If the property obtained is assessed at ≥ VND 200,000,000 or national treasure, the offender shall face a penalty of 01 - 05 years' imprisonment.

As regulations above, when Mr. A deliberately fails to pay you the amount of VND 70,000,000, he may be subject to a fine of from VND 10,000,000 to VND 50,000,000, or a penalty of 02 years' community sentence or 03 - 24 months' imprisonment.

Best regards!