Coordination to Prevent the Buying/Selling of Student Payment Accounts in Vietnam

Coordination to Prevent the Buying/Selling of Student Payment Accounts in Vietnam​ (Image from the internet)

On June 13, 2024, the State Bank of Vietnam issued Official Dispatch 4932/NHNN-TT regarding coordination to Prevent the Buying/Selling of Student Payment Accounts in Vietnam.

Coordination to Prevent the Buying/Selling of Student Payment Accounts in Vietnam

Recently, criminal subjects have been inciting and luring students who have been issued Citizen Identification Cards to open payment accounts and paying the students for opening such accounts. The targets provide the students with phones that have pre-registered SIM cards to open payment accounts and register for Internet Banking and SMS Banking services. Afterward, the targets require the students to return the phones, provide information such as names, login passwords, authentication passwords (OTP)... These targets also collect biometric data (facial recognition) of students (Face ID) to serve in customer identity verification upon request. These accounts are then often exploited for illegal purposes such as money laundering, tax evasion, fraud, asset misappropriation, and terrorist financing...

Currently, the law stipulates the prohibited acts in opening and using payment accounts as follows:

- Article 6 of Decree 101/2012/ND-CP dated November 22, 2012, states the prohibited acts include:

+ Providing untruthful information during the supply and use of payment services, intermediary payment services;

+ Opening or maintaining anonymous or pseudonymous payment accounts.

- On May 15, 2024, the Government of Vietnam issued Decree 52/2024/ND-CP, which replaces Decree 101/2012/ND-CP (effective from July 1, 2024), adding more prohibited acts in Clauses 3, 5 of Article 8 including:

+ Providing untruthful information related to the supply or use of payment services, intermediary payment services;...

+ Opening or maintaining anonymous or pseudonymous payment accounts, e-wallets; buying, selling, renting, leasing, borrowing, or lending payment accounts, e-wallets; renting, leasing, buying, selling, or opening bank cards on behalf of others (except for anonymous prepaid cards); stealing, colluding to steal, buying, or selling payment account information, bank card information, e-wallet information.

- Point h, Clause 2, Article 5 of Circular 23/2014/TT-NHNN (amended and supplemented) stipulates that account holders: shall not rent or lend their payment accounts.

The administrative penalties for violations in opening and using payment accounts are as follows:

Clauses 5, 6 of Article 26 Decree 88/2019/ND-CP dated November 14, 2019 (amended and supplemented) stipulates:

- A fine ranging from VND 40,000,000 to VND 50,000,000 shall be imposed for one of the following acts: Renting, leasing, borrowing, or lending payment accounts; buying and selling payment account information with a quantity from 01 to less than 10 payment accounts that are not subject to criminal prosecution;

+ A fine ranging from VND 50,000,000 to VND 100,000,000 shall be imposed for one of the following acts: Renting, leasing, borrowing, or lending payment accounts; buying and selling payment account information with a quantity of 10 or more payment accounts that are not subject to criminal prosecution.

Moreover, to contribute to resolving the aforementioned issue, ensuring compliance with laws in opening and using payment accounts, the State Bank of Vietnam recommends that the People's Committees of provinces and cities cooperate:

- Direct the Department of Information and Communications, media agencies, press agencies in the area to strengthen propaganda work, warn people, organizations, and individuals in the area, especially students and minors, about the methods and tricks of criminal targets, related legal regulations, enhance awareness of legal compliance, and implement effective prevention measures to avoid being exploited for illegal purposes.

- Direct schools, educational institutions in the area to promptly disseminate information to all students and parents about the methods, tricks of criminal targets, prohibited acts in opening and using payment accounts, and administrative penalty regulations to enhance awareness of legal compliance and prevent exploitation for illegal purposes.

Nguyen Ngoc Que Anh

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