When two companies sue in court, will the company's account be blocked in Vietnam?

When two companies sue in court, will their company's account be blocked in Vietnam?

In Article 12 of Decree 101/2012/ND-CP as amended by Article 1 of Decree 80/2016/ND-CP stipulating on suspending and blocking payment accounts, specifically as follows:

1. A payment account shall be partly or totally suspended when the at the request of the account owner or as agreed by the account owners and the provider of payment services.

2. A payment account shall be partly or totally blocked in the following cases:

a) Competent agencies requests in writing as prescribed by law;

b) The provider of non-cash payment intermediary services finds mistakes during the money transfer. The sum of money that is blocked on the payment account may not exceed the mistaken sum of money.

d) There are disputes over shared payment account owners.

3. The payment account is blocked upon the decision of the competent agency as prescribed by law, or the disputes prescribed in Clause 2 this Article are settled.

4. If the payment account is illegally blocked and cause damage to the account owner, the party that make the order to block such account must pay compensation as prescribed by law.

According to Clause 1, Article 111 of the 2015 Civil Procedure Code, right to petition the application of provisional emergency measures is as follows:

1. During the resolution of civil lawsuits, the involved parties or their lawful representatives or agencies, organizations or individuals instituting the cases defined in Article 187 of this Code may petition the Courts handling such cases to apply one or more provisional emergency measures provided for in Article 114 of this Code to provisionally deal with the urgent petitions of the involved parties, to protect lives, health, properties, gather and protect evidences, preserving their current conditions in order to avoid irrecoverable damage and to ensure the lawsuit settlement or judgment execution.

Clause 10, Article 114 of the 2015 Civil Procedure Code provides as follows:

10. Freezing accounts at banks or other credit institutions, State treasury; freezing properties at places of their deposit.

According to this Article, with the information you provide, the two companies have a dispute about the common payment account, so in this case the Court may apply the blockade of the accounts of these two companies to serve the dispute settlement in Vietnam. 

How much is fine for lending 05 checking accounts in Vietnam?

According to Point c Clause 15 Article 1 Decree 143/2021/ND-CP has the following provisions:

5. A fine ranging from 40.000.000 VND to 50.000.000 VND for the following violations:

a) Renting, leasing, borrowing, lending checking accounts or purchasing and selling information of 1 to less than 10 checking accounts, if not liable to criminal prosecution;

b) Forging receipts when providing or using payment services, if not liable to criminal prosecution.

In Clause 3, Article 3 of Decree No. 88/2019/ND-CP stipulating penalties, fines, power to impose penalties and remedial measures, as follows:

3. Fines and power to impose fines:

a) The maximum fine for an administrative violation in the monetary and banking sector imposed on an organization is VND 2.000.000.000 and that imposed on an individual is VND 1.000.000.000;

b) The fine for every administrative violation prescribed in Chapter II hereof is imposed on an individual. The fine imposed on an organization is twice as much as the one imposed on an individual for the same administrative violation;

c) The fine imposed for an administrative violation committed by a person working at a people’s credit fund or a microfinance institution shall be 10% of the corresponding fine prescribed in Chapter II hereof; The fine imposed on the people’s credit fund or the microfinance institution or their affiliate shall be twice as much as the fine imposed on the person working there;

d) The fines imposed by each competent person prescribed in Chapter III hereof are incurred by individuals. The fines each competent person may impose upon organizations are twice as much as the fines incurred by individuals.

At Point g, Clause 15, Article 1 Decree 143/2021/ND-CP stipulating remedial measures:

10. Remedial measures:

a) Enforced transfer of illegal profits obtained from the administrative violation prescribed in Clauses 1, 4, 5, 6, 7, and 8 of this Article to state budget;

b) Prohibition from expanding of the operating scope, scale and areas until remedial measures against the violation are completed regarding violations prescribed in Points a, c ,d Clause 6, Point c Clause 7, and Point a Clause 8 of this Article;

c) Proposed revocation of the written approval on provision of payment services that are not through customers’ checking accounts regarding violations prescribed in Point dd Clause 6 of this Article.

Thus, when the bank lends 05 payment accounts, they will be fined from VND 80,000,000 to VND 100,000,000 and forced to pay into the state budget the illegal profits obtained from committing violations in Vietnam. 

When is closing payment accounts done in Vietnam? 

Pursuant to Clause 1, Article 13 of Decree 101/2012/ND-CP stipulating closing payment accounts when:

1. A payment account is closed when:

a) The account owner requests, and has fulfilled the obligations related to the payment account;

b) The account owner being an individual is dead, lost, or incapable of civil acts;

c) The organization that has the payment account is shut down as prescribed by law;

d) The account owner violates the contract to open and use the payment account signed with the providers of payment services;

dd) The account owner or the provider of payment services violates Article 6 of this Decree and other laws on payment;

e) Other cases as prescribed by law.

With this provision in Vietnam, the closing of the payment account is done when the above cases occur. 

Best regards!