What is the limit of bank guarantee in Vietnam in case customer identification and verification are made electronically?

What are requirements to be satisfied by customers regarding bank guarantee in Vietnam?

Pursuant to Article 11 of the Circular 11/2022/TT-NHNN (effective from 01/04/2023) stipulating requirements to be satisfied by customers regarding bank guarantee in Vietnam as follows:

Requirements to be satisfied by customers

1. Credit institutions and FBBs shall consider and decide issuance of the guarantee, counter guarantee or guarantee confirmation to customers as long as customers meet the following requirements:

a) The customer has the full legal personality and legal capacity in accordance with regulations of law;

b) The guaranteed financial obligations must be lawful;

c) The customer has been assessed by the credit institution or FBB issuing the guarantee to be capable of repaying sums that the credit institution or FBB has paid to fulfill the guaranteed obligations in favor of them.

2. Credit institutions and FBBs shall not issue guarantee to fulfill payment obligations for bonds issued for the purposes of restructuring of the issuer’s debts, contribution of capital to or purchase of shares of another enterprise, or increase of working capital.

As regulations above, requirements to be satisfied by customers regarding bank guarantee in Vietnam are:

+) The customer has the full legal personality and legal capacity in accordance with regulations of law;

+) The guaranteed financial obligations must be lawful;

+) The customer has been assessed by the credit institution or FBB issuing the guarantee to be capable of repaying sums that the credit institution or FBB has paid to fulfill the guaranteed obligations in favor of them.

What is the limit of bank guarantee in Vietnam in case customer identification and verification are made electronically?

Pursuant to Clause 4 Article 9 of the Circular 11/2022/TT-NHNN (effective from 01/04/2023) stipulating as follows:

Electronic guarantee

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4. In case customer identification and verification are made electronically, the value of each guarantee commitment issued to an individual shall not exceed VND 4.000.000.000 (four billion), and the value of each guarantee commitment issued to an organization shall not exceed VND 45.000.000.000 (forty five), except the following cases:

a) Customer identification information is certified by competent authorities or electronically certified by electronic certification service providers in accordance with regulations of law on electronic certification and identification;

b) The customer sends a request for issuance of e-guarantee through SWIFT system;

c) Customer information and guaranteed obligations are verified and certified to be true through the customs e-payment portal or the national bidding system;

d) The customer uses digital signature as prescribed by law when applying for guarantee or entering into the guarantee issuance agreement with the credit institution or FBB;

dd) The customer is a credit institution or FBB.

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In Vietnam: What are requirements for collection and verification of information and data of customers in case customer identification and verification are made electronically?

Pursuant to Clause 2 and 3, Article 9 of the Circular 11/2022/TT-NHNN (effective from 01/04/2023) stipulating requirements for collection and verification of information and data of customers in case customer identification and verification are made electronically as follows:

- Each credit institutions or FBB shall decide methods, forms and technologies employed to provide e-guarantee in respect of the entire or each stage of the guarantee process, incur all risks and meet the following requirements:

+) It has adopted solutions and technologies for ensuring the accuracy, confidentiality and safety during the collection, use and verification of information and data;

+) It has adopted measures for examining, checking, updating and verifying information and data; measures for preventing acts of forging, intervening and falsifying information and data;

+) It has adopted measures for risk assessment, management and control; it has assigned responsibilities to each division and each individual involved in the provision of e-guarantee and risk management and supervision.

- If customer identification and verification are made electronically when the customer establishes the relationship with the credit institution or FBB (except the cases specified in Points b and d Clause 4 of this Article) for the first time, the credit institution or FBB shall be required to adopt solutions and technologies for collecting, examining and checking information, and meet the following requirements:

+) In case the customer is an individual: the customer’s identity and biometric data (including biological factor/characteristics that are specifically used to identify a person, cannot be forged, and are rarely matched with those of another person such as fingerprints, face, iris, voice and other biometric factors) must match corresponding information and biometric data on documents necessary to identify the customer in accordance with regulations of law on anti-money laundering and as requested by the credit institution or FBB, or personal identity data certified by competent authorities or electronic certification service providers in accordance with regulations of law on electronic certification and identification;

+) In case the customer is an organization:

++) Information about the organization: Information used for identifying the organization as defined in the law on anti-money laundering and the organization’s legal status (lawfully established and operating as prescribed by law) must match the information/data on the National Enterprise Registration Database or the information/data certified by competent authorities or electronic certification service providers in accordance with regulations of law on electronic certification and identification;

++) Information about legal representative of the organization: Information about the individual conducting the transaction shall be identified and verified in accordance with regulations on identification and verification of individual customers laid down in Point a of this Clause to ensure that it matches the information about the legal representative or authorized representative of the organization provided in the enterprise registration certificate and the power of attorney (in case of authorized representative).

Best regards!