07 Sectors in which persons holding managerial titles in banking sectors must not establish enterprises after being discharged from holding their positions in Vietnam

07 Sectors in which persons holding managerial titles in banking sectors must not establish enterprises after being discharged from holding their positions in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On December 29, 2023, the Governor of the State Bank of Vietnam issued Circular 20/2023/TT-NHNN, which regulates the list of sectors under the management of the State Bank of Vietnam and the periods during which persons with certain positions and powers must not establish or hold managerial titles or positions in enterprises, cooperatives, and credit institutions after being discharged from holding their positions.

07 Sectors in which persons holding managerial titles in banking sectors must not establish enterprises after being discharged from holding their positions in Vietnam

The 07 sectors in which persons holding managerial titles in banking sectors must not establish enterprises after being discharged from holding their positions include:

(1) Granting, reissuing, changing the content, and revoking licenses for providing credit information services to credit information organizations; inspection and examination of credit information activities.

(2) Granting or suspending payment activities of credit institutions and other organizations; granting, amending, supplementing, and revoking licenses for providing non-banking intermediary payment services; inspection and examination of payment activities.

(3) Granting, revoking approval documents for conducting foreign exchange business and providing foreign exchange services to credit institutions and other organizations as prescribed by law; inspection and examination of foreign exchange activities.

(4) Granting, revoking certificates of eligibility for producing jewelry, handicrafts, and licenses for gold business activities; inspection and examination of gold business activities.

(5) Granting, amending, supplementing, and revoking licenses for the establishment and operation of credit institutions; approving the purchase, sale, division, separation, merger, and dissolution of credit institutions as prescribed by law; approving the list of expected persons to be elected or appointed as members of the Board of Directors, Members' Council, members of the Supervisory Board, and General Director (Director) of credit institutions; approving other changes as prescribed by the Law on Credit Institutions, except for cases stipulated in (3).

(6) Establishing a warning list of organizations with high risks of money laundering; inspection and examination of anti-money laundering activities.

(7) Inspection, examination, and supervision of banks.

Periods over which persons holding managerial titles in backing sectors must not establish enterprises after being discharged from holding their positions in Vietnam

The periods over which persons holding managerial titles in backing sectors must not establish enterprises after being discharged from holding their positions are as follows:

- Within 12 months from the date of ceasing to hold the position according to the decision or approval of the competent authority for persons with certain positions and powers in the sector specified in (1).

- Within 18 months from the date of ceasing to hold the position according to the decision or approval of the competent authority for persons with certain positions and powers in the sectors specified in (2), (3), and (4).

- Within 24 months from the date of ceasing to hold the position according to the decision or approval of the competent authority for persons with certain positions and powers in the sectors specified in (5), (6), and (7).

Circular 20/2023/TT-NHNN takes effect on February 12, 2024.

Note: Circular 20/2023/TT-NHNN does not apply to cases where persons with certain positions and powers are appointed, reassigned, or appointed as representatives of state capital at credit institutions or state-owned enterprises; participating in management, control, and operation at weak credit institutions; or exercising special control according to the decision of the competent authority.

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