What are cases in which payment accounts in Vietnam shall have their balances frozen?

What are cases in which payment accounts in Vietnam shall have their balances frozen?

Pursuant to Clause 1 Article 11 of the Decree 52/2024/ND-CP stipulating payment account freeze:

Payment account freeze

1. Payment accounts shall have their balances partly or wholly frozen in the following cases:

a) When there are prior agreements between owners of payment accounts and payment service providers or requests from owners of payment accounts;

b) When there are decisions or written requests from competent authorities as prescribed by the law;

c) When payment service providers detect mistakes or errors when writing “Yes” into payment accounts of clients or carry out refund orders of money transfer service providers due to mistakes and errors compared to payment orders of transferring parties after writing “Yes” into payment accounts of clients. The frozen amount on a payment account shall not exceed the mistaken or erroneous amount;

d) When there are requests for the freeze from one of the owners of a general payment account, excluding cases where there are prior written agreements between the payment service provider and the owners of such a general payment account.

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As regulated above, payment accounts shall have their balances partly or wholly frozen in the following cases:

- When there are prior agreements between owners of payment accounts and payment service providers or requests from owners of payment accounts;

- When there are decisions or written requests from competent authorities as prescribed by the law;

- When payment service providers detect mistakes or errors when writing “Yes” into payment accounts of clients or carry out refund orders of money transfer service providers due to mistakes and errors compared to payment orders of transferring parties after writing “Yes” into payment accounts of clients. The frozen amount on a payment account shall not exceed the mistaken or erroneous amount;

- When there are requests for the freeze from one of the owners of a general payment account, excluding cases where there are prior written agreements between the payment service provider and the owners of such a general payment account.

What are cases in which payment accounts in Vietnam shall have their balances frozen? - image from internet

When shall a payment account be closed according to the law in Vietnam?

Pursuant to Article 12 of the Decree 52/2024/ND-CP, payment account closing shall be carried out when:

- Owners of payment accounts submit requests and have adequately fulfilled obligations concerning payment accounts;

- Owners of payments accounts have died or are announced to be dead;

- Organizations with payment accounts terminate their operations as prescribed by the law;

- Owners of payment accounts commit prohibited acts concerning payment accounts.

- There are prior written agreements between owners of payment accounts and payment service providers;

- Other cases as prescribed by the law.

What are prohibited acts regarding cashless payments in Vietnam?

Pursuant to Article 8 of the Decree 52/2024/ND-CP stipulating prohibited acts regarding cashless payments in Vietnam:

- Altering and erasing payment instruments and payment documents contrary to the law; forging payment instruments and payment documents; storing, selling, transferring, and using counterfeit payment instruments.

- Infiltrating or attempting to infiltrate, steal data, sabotage, or make illegal changes to software programs or databases used in payment; taking advantage of computer network errors for profiteering purposes.

- Providing untruthful information related to the provision or use of payment services and payment intermediary services.

- Disclosing or providing information on the balances of payment accounts, bank cards, or e-wallets and payment transactions of clients at payment service providers or payment intermediary service providers contrary to relevant laws.

- Opening or maintaining anonymous or impersonating payment accounts or e-wallets; purchasing, selling, hiring, leasing, borrowing, and lending payment accounts or e-wallets; hiring, leasing, purchasing, and selling bank cards or opening bank cards on behalf of others (excluding cases of anonymous prepaid cards); stealing or colluding with others to steal, purchase, or sell information on payment accounts, bank cards, or e-wallets.

- Issuing, providing, and using illegal payment instruments.

- Providing payment intermediary services without licenses to provide payment intermediary services issued by SBV. Providing payment services without being payment service providers.

- Performing, organizing, or enabling the following acts: using or taking advantage of payment accounts, payment instruments, payment services, or payment intermediary services to commit gambling, organize gambling, rig, deceive, and commit illegal trading and other illegal acts.

- Erasing and altering contents of licenses to provide payment intermediary services and purchasing, selling, transferring, leasing, lending, and forging such licenses.

- Authorizing or assigning other organizations or individuals to carry out licensed operations of agents according to licenses to provide payment intermediary services.

- Falsifying or forging documents proving eligibility for the issuance of licenses to provide payment intermediary services in applications for licenses.

- Operating contrary to contents prescribed in licenses to provide payment intermediary services.

- An owner of a payment account at a specific payment service provider that provides information for or commits to not having a payment account at another provider of payment services for parties with relevant rights and obligations according to the law on the disbursement of loans of credit institutions and foreign bank branches.

Best regards!