3 Cases of Applying Measures to Freeze Commercial Legal Entity Accounts

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Article 11 of Decree 44/2020/ND-CP stipulates that the measure to block accounts of commercial legal entities may be applied in the following cases:

1. Enforcement of coercive measures regarding the execution of the penalty of temporary suspension of activities (in the case of suspension of all fields).

2. Enforcement of coercive measures regarding the execution of the penalty of banning business, banning activities in certain fields (in the case of banning business, banning activities in all fields); banning capital mobilization.

3. Enforcement of coercive measures to comply with judicial measures.

At the same time, the Head of the criminal judgment execution agency issues a Decision and sends the Decision to block the account in the following order:

- Within 03 working days from the date of completion of the verification of information about the commercial legal entity's account, the competent Head of the criminal judgment execution agency issues a Decision to block the account.

For the cases specified in Clauses 1 and 2 of Article 11 of this Decree, a decision is issued to block the entire account; for the case specified in Clause 3 of Article 11 of this Decree, a decision is issued to block the amount of money or securities in the account corresponding to the amount for executing the judicial measure and the costs for organizing the execution of the coercive measure.

- The Decision to block the account includes the following basic contents: decision number; date, month, year of issuing the decision; full name, position, unit of the decision maker; name, address, enterprise code, tax code of the commercial legal entity whose account is blocked; blocked account number, blocking purpose, blocked account name, blocking scope, blocked amount of money or securities, blocking start time, blocking duration, responsibility for implementation of the credit institution, State Treasury, securities company, Vietnam Securities Depository Center, and other information (if any); signature of the decision maker and the seal of the competent criminal judgment execution agency.

- The sending and notification of the Decision to block the account is carried out according to the provisions of Articles 6 and 7 of this Decree.

More details can be found in: Decree 44/2020/ND-CP effective from June 1, 2020.

Le Hai

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