Decree 88 on administrative fines in the field of currency and banking in Vietnam will be replaced soon

Decree 88 on administrative fines in the field of currency and banking in Vietnam will be replaced soon

Decree 88/2019/ND-CP was researched and developed based on the Law on Credit Institutions 2010, Amended Law on Credit Institutions 2017, Law on Anti-Money Laundering 2012. However, these documents have been replaced. Thus, it is necessary to conduct a review, amendment, and supplementation of the Decree to align with current regulations.

The draft of the new Decree (replacing Decree 88) is developed based on the following orientations:

- Amend regulations to conform with the Law on Credit Institutions 2024, Law on Anti-Money Laundering 2022 and guiding documents;

- Amend and supplement sanctioning measures appropriate to obligations, responsibilities, and prohibitions stipulated in current legal documents in the monetary and banking sector to ensure deterrent and strict enforcement of penalties;

- Resolve certain difficulties and obstacles for units executing administrative sanction functions, facilitating the process of inspection and sanctioning.

The Decree consists of 04 Chapters. To be specific:

- Chapter I: General Provisions

- Chapter II: Administrative Violations, Forms of Sanctions, and Levels of Fines

- Chapter III: Authority to Sanction Administrative Violations and Authority to Record Administrative Violations

- Chapter IV: Implementation Provisions

Decree 88 on administrative fines in the field of currency and banking in Vietnam will be replaced soon (Image from Internet)

Objectives for building policies

- Contribute to completing the system of legal documents on administrative sanctions in the monetary and banking sector, creating a legal basis for effective implementation of administrative penalties; ensure consistency and synchronization in the legal system.

- Ensure comprehensive regulations on administrative violations without omissions; clearly specify administrative violations; fix administrative sanctions appropriate to the nature and level of danger of the violations.

- Ensure deterrence and prevention, suppression of administrative violations in the monetary and banking sector; contribute to enhancing the effectiveness and efficiency of state management in this field.

Assessment of impact of policies

Regarding administrative violations, forms of sanctions, levels of fines, remedial measures, authority to record and sanction administrative violations in the monetary and banking sector are specifically evaluated in the following policies:

- Policy 1: Amend, supplement, or repeal sanctioning regulations for certain violations under the Law on Credit Institutions, conforming to the Law on Credit Institutions 2024 for prohibited acts in Article 15, regulations on notifying SBV on appointing legal representatives in Article 11, requirements for branch operation inauguration in domestic banks, independent re-auditing in case of qualified opinions from the independent auditing organization.

- Policy 2: Amend, supplement sanctioning regulations for certain violations under the Law on Anti-Money Laundering in accordance with the Law on Anti-Money Laundering 2022 on building risk management procedures in Article 16, regulations concerning foreign customers with political influence in Article 17, regulations on new products and services, existing services applying innovative technology, special monitoring of transactions in Articles 18, 19, 20.

- Policy 3: Modify and supplement principles and remedial measures suitable for administrative violations.

- Policy 4: Add regulations on the scope of adjustment for violations concerning anti-money laundering; anti-terrorist financing; anti-proliferation financing of weapons of mass destruction.

More details can be found in Draft Decree.

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