The Law on Credit Institutions in 2024 in Vietnam has been officially issued
Has the Law on Credit Institutions in 2024 in Vietnam been officially issued yet? Thank you!
The Law on Credit Institutions in 2024 in Vietnam has been officially issued
At the order of the President, the representative of the President's Office announced the full text of the President's order on the promulgation of the Law on Land in 2024 and the Law on Credit Institutions in 2024.
On the morning of February 19th, 2024, at the Presidential Palace, the President's Office organized a press conference to announce the order of the President of the Socialist Republic of Vietnam on the laws that were passed by the 15th National Assembly at the 5th extraordinary session.
The press conference was chaired by the Deputy Head of the President's Office, the Deputy Minister of Natural Resources and Environment, the Deputy Governor of the State Bank, the Deputy Head of the National Assembly Office, and representatives of several agencies of the National Assembly, ministries, and the President's Office.
At the press conference, following the President's order, the representative of the President's Office announced the full text of the Presidential Decree on the promulgation of the Law on Land in 2024 and the Law on Credit Institutions in 2024 2024.
Prior to that, the Law on Credit Institutions in 2024 had been passed by the 15th National Assembly of the Socialist Republic of Vietnam at the 5th extraordinary session on January 18th, 2024.
The Law on Credit Institutions in 2024 in Vietnam has been officially issued - image from internet
When will the Law on Credit Institutions in 2024 in Vietnam take effect?
According to Article 209 of the Law on Credit Institutions in 2024, the provisions regarding enforcement are as follows:
Enforcement
1. This law shall come into effect on July 1st, 2024, except for the provisions in Clause 2 of this Article.
2. Clause 3, Article 200 and Clause 15, Article 210 of this law shall come into effect on January 1st, 2025.
3. The Credit Institutions Law No. 47/2010/QH12, which was amended and supplemented by the Law No. 17/2017/QH14, shall cease to be effective from the date this law comes into effect, except for the provisions in clauses 1, 2, 3, 4, 8, 9, 12, and 14, Article 210 of this law.
Therefore, the Law on Credit Institutions in 2024 will be applicable from July 1st, 2024, except for the following cases, which will take effect from January 1st, 2025:
- Clause 3, Article 200 of the Law on Credit Institutions in 2024 regarding the transfer of collateral assets, specifically:
Credit institutions, foreign bank branches, debt management and asset exploitation companies of credit institutions, asset management companies of Vietnamese credit institutions established and operating in accordance with the provisions of the law on credit institutions have the right to transfer all or part of real estate projects as collateral assets for debt recovery in accordance with the provisions on the transfer of all or part of real estate projects in the Real Estate Business Law and other relevant laws, but without applying the provisions on real estate business entity conditions to the transferee of real estate projects.
- Clause 15, Article 210 of the Credit Institutions Law 2024 regarding the provision on assignment, specifically:
Credit institutions, foreign bank branches, debt management and asset exploitation companies of credit institutions, asset management companies of Vietnamese credit institutions established and operating in accordance with the provisions of the law on credit institutions, which have received the assignment of all or part of real estate projects as collateral assets before the effective date of this law, for debt recovery, are not required to meet the provisions on real estate business entity conditions for the transferee of real estate projects under the law on real estate business, but must meet the following conditions:
a) The assigned real estate project must meet the conditions prescribed in points a, d, dd, g, and h, Clause 1, Article 40 of the Real Estate Business Law No. 29/2023/QH15 and must have a decision to allocate land or lease land from the competent state authority;
b) The transferee must meet the conditions prescribed in clauses 2, 4, and 5, Article 40 of the Real Estate Business Law No. 29/2023/QH15.
Furthermore, the Law on Credit Institutions in 2010 (amended and supplemented by the Law on amendments to the Law on Credit Institutions in 2017) will cease to be effective from July 1st, 2024.
From July 1st, 2024: What shall be done by credit institutions in Vietnam to ensure information security?
According to Article 13 of the Law on Credit Institutions in 2024, the provisions regarding information security are as follows:
- Managers, executives, and employees of credit institutions and foreign bank branches are prohibited from disclosing customer information and the business secrets of credit institutions and foreign bank branches.
- Credit institutions and foreign bank branches must ensure the confidentiality of customer information in accordance with the regulations of the Government.
- Credit institutions and foreign bank branches are not allowed to provide customer information of credit institutions and foreign bank branches to other organizations or individuals, except when required by competent state authorities in accordance with the law or with the consent of the customer.
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