Will expiration of foreigners' temporary residence cards cause their payment accounts to be closed in Vietnam?

Will expiration of foreigners' temporary residence cards cause their payment accounts to be closed in Vietnam?

Pursuant to Clause 1, Article 18 of Circular 23/2014/TT-NHNN as amended by Clause 13, Article 1 of Circular 02/2019/TT-NHNN stipulating the payment service supplier shall close the customer’s payment account in following cases:

1. The payment service provider shall carry out procedures for closing a customer's current account in the following circumstances:

a) The account holder submits a written request for closure of current account and has discharged all relevant obligations. In case the account holder is under the age of 15, has restricted capacity for civil acts, is incapable of civil acts, or has limited cognition and behavioral control, his/her guardian or legal representative shall carry out procedures for closure of current account;

b) Holder of a personal payment account is deceased, declared as dead, missing or loses civil act capacity;

c) The entity holding the payment account terminates its operation in accordance with applicable laws and regulations;

d) The account holder breaks the commitment or agreements at the contract of opening and use of payment account signed with the payment service supplier;

dd) Other cases as provided for by the laws.

According to this Article, the closing a customer's current account is not based on that individual's temporary residence card in Vienam. Therefore, the fact that an individual has an expired temporary residence card does not affect the bank account so the bank account is not closed.

What is handling of remaining balance after the payment account is closed in Vietnam?

Pursuant to Clause 4, Article 18 of Circular 23/2014/TT-NHNN as amended by Clause 13, Article 1 of Circular 02/2019/TT-NHNN stipulating the remaining balance after the payment account is closed shall be treated as follows:

4. The remaining balance after the closure of a current account shall be settled as follows:

a) The balance shall be used to make payments at the request of the account holder or his/her guardian or legal representative if the account holder is under the age of 15, has restricted capacity for civil acts, is incapable of civil acts, or has limited cognition and behavioral control or the heir/ representative of the heirs if the account holder died or is declared dead or missing;

b) Making payment under the decision of the court;

c) The payment service supplier shall handle in accordance with applicable laws and regulations in the event where the legal beneficiary to the balance on the account has already been notified but failed to come up to receive or as per a prior written agreement with the account holder in conformity with applicable laws and regulations.

Best Regards!