Who is not eligible to serve as chief accountant of a credit institution in Vietnam?

Who is not eligible to serve as chief accountant of a credit institution in Vietnam?

Based on Clause 2, Article 42 of the Law on Credit Institutions 2024, the following individuals are not permitted to serve as the chief accountant of a credit institution in Vietnam:

- Minor individuals; individuals with difficulties in cognition and behavior control; individuals restricted or deprived of civil act capacity

- Individuals currently under criminal investigation, serving a prison sentence; undergoing administrative handling measures at mandatory rehabilitation centers or mandatory education centers; or prohibited by the court from holding a position, practicing a profession, or doing certain jobs

- Individuals who have been convicted of serious crimes or higher

- Individuals who have been convicted of property-related crimes and have not had their criminal records expunged

- Officials and public employees, managers from the department level upwards in enterprises where the State holds 50% or more of charter capital

Except for individuals assigned to represent the capital contribution of the State, or of enterprises where the State holds 50% or more of charter capital in a credit institution, or assigned, designated, appointed to participate in the management, operation, and control of the credit institution as required by duty

- Officers, non-commissioned officers, professional soldiers, workers, and public employees in defense agencies and units under the People's Army of Vietnam; professional officers, non-commissioned officers, and workers in police agencies and units under the People's Public Security of Vietnam

Except for individuals assigned to represent the capital contribution of the State, or of enterprises where the State holds 50% or more of charter capital in a credit institution

- Other cases stipulated in the charter of the credit institution

In addition, the spouse, parents, children, siblings of members of the Board of Directors, members of the Member Council, and the General Director (Director) of the credit institution and their spouses are not allowed to be the chief accountant of that credit institution.

Who is not eligible to serve as chief accountant of a credit institution in Vietnam? (Image from Internet)

What standards and conditions must the chief accountant in Vietnam meet?

Based on Clause 5, Article 41 of the Law on Credit Institutions 2024, the criteria and requirements applicable to mangers, executives and holders of some other positions of a credit institution in Vietnam are as follows:

Article 41. Criteria and requirements applicable to mangers, executives and holders of some other positions of a credit institution

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5. Deputy General Directors (Deputy Directors), Chief Accountants, Branch Directors, General Directors (Directors) of subsidiaries, and equivalent positions as stipulated in the charter of the credit institution must meet the following standards and conditions:

a) Not be in circumstances that prohibit holding positions as specified in Clause 2, Article 42 of this Law; for Deputy General Directors (Deputy Directors) they must not be in circumstances that prohibit holding positions as specified in Clause 1, Article 42 of this Law;

b) Possess one of the following: a university degree or higher in finance, banking, economics, business administration, law, accounting, auditing, or another relevant specialty; a university degree or higher in another field and at least 3 years of direct work experience in finance, banking, or the relevant specialty;

c) Reside in Vietnam during the tenure;

d) The chief accountant must also meet the standards and conditions as stipulated by the accounting legislation.

[...]

Thus, the chief accountant of a credit institution must meet the following standards and conditions:

- Not be prohibited from holding positions

- Possess one of the following:

+ A university degree or higher in finance, banking, economics, business administration, law, accounting, auditing, or another relevant specialty

+ A university degree or higher in another field and at least 3 years of direct work experience in finance, banking, or the relevant specialty

- Reside in Vietnam during the tenure

- The chief accountant must also meet the standards and conditions as stipulated by the accounting legislation.

What are the responsibilities of the chief accountant in Vietnam?

Based on Article 55 of the Accounting Law 2015 which stipulates the responsibilities and rights of the chief accountant in Vietnam:

Article 55. Responsibilities and rights of the chief accountant

1. The chief accountant has the following responsibilities:

a) Implement legal provisions on accounting and finance within the accounting unit;

b) Organize and operate the accounting system as stipulated by this Law;

c) Prepare financial statements in compliance with accounting policies and accounting standards.

2. The chief accountant has the right to be independent in accounting expertise and operations.

3. The chief accountants of state agencies, organizations, public service providers using the state budget, and enterprises in which the State holds more than 50% of charter capital, in addition to the rights stipulated in Clause 2 of this Article, have the following rights:

[...]

Thus, the chief accountant has the following responsibilities:

- Implement legal provisions on accounting and finance within the accounting unit

- Organize and operate the accounting system according to regulations

- Prepare financial statements in compliance with accounting policies and accounting standards