Hanoi, Vietnam: Amendments to procedures for approving the list of personnel to be elected or appointed of credit institutions, foreign bank branches in Vietnam

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Amendments to procedures for approving the list of personnel to be elected or appointed of credit institutions, foreign bank branches in Vietnam (Internet image)

Amendments to procedures for approving the list of personnel to be elected or appointed of credit institutions, foreign bank branches under Circular 10/2024/TT-NHNN

According to Clause 9, Article 1, Circular 10/2024/TT-NHNN, which amends and supplements Article 8 of Circular 22/2018/TT-NHNN on the procedures for approving the list of personnel to be elected or appointed of credit institutions, foreign bank branches in Vietnam as follows:

• Credit institutions and foreign bank branches shall prepare 01 set of documents as stipulated in Article 6 and Article 7 of Circular 22/2018/TT-NHNN and send it to the State Bank for the subjects referred to in Clause 1 and 2 of Article 4 or to the State Bank branch for the subjects referred to in Clause 3 of Article 4 of Circular 22/2018/TT-NHNN. In cases where the documentation is incomplete or invalid, within 07 working days from the date of receipt of the documentation, the State Bank, Banking Supervision and Inspection Agency, or the State Bank branch shall issue a written request for the credit institution, the foreign bank branch to supplement the documentation.

• Credit institutions and foreign bank branches shall supplement and complete the documentation according to the request of the State Bank, Banking Supervision and Inspection Agency, or the State Bank branch within a maximum of 45 working days from the date the State Bank, Banking Supervision and Inspection Agency, or the State Bank branch issues a written request for additional documentation. Beyond this time limit, credit institutions and foreign bank branches must re-submit the set of documentation as stipulated in this Circular for the State Bank, Banking Supervision and Inspection Agency, or the State Bank branch to consider and approve.

• Within 30 working days from the receipt of the complete set of documentation as stipulated in Article 6 and Article 7 of Circular 22/2018/TT-NHNN, the State Bank, Banking Supervision and Inspection Agency, or the State Bank branch shall issue a written approval or disapproval of the proposed personnel of the credit institution, foreign bank branch. In cases of disapproval, the written response to the credit institution, foreign bank branch from the State Bank, Banking Supervision and Inspection Agency, or the State Bank branch must clearly state the reasons.

Amendments to the regulations on the review of personnel standards and conditions in Vietnam

In addition, at Clause 10, Article 1 Circular 10/2024/TT-NHNN, also amends and supplements Article 9 of Circular 22/2018/TT-NHNN on the implementation of the review of personnel standards and conditions in Vietnam as follows:

• Credit institutions and foreign bank branches must review and evaluate the proposed personnel meeting all legal standards and conditions and bear legal responsibility for the completeness, accuracy, and truthfulness of the dossiers and documents provided to the State Bank of Vietnam.

• Credit institutions and foreign bank branches where the proposed personnel have previously worked are responsible for assessing compliance with the "professional ethics" requirement according to the template in Appendix No. 04 issued with Circular 22/2018/TT-NHNN.

For cases where the proposed personnel have worked at foreign credit institutions that do not provide evaluation documents or commitments regarding compliance with "professional ethics," the owner (for wholly foreign-owned banks), the parent bank (for foreign bank branches), and foreign capital contributors (for credit institutions which are limited liability companies with two or more members) applying to the State Bank of Vietnam for approval of the proposed personnel must provide a declaration of commitment regarding compliance with "professional ethics" according to the template in Appendix No. 05 issued with Circular 22/2018/TT-NHNN.

More details can be found in Circular 10/2024/TT-NHNN effective in Vietnam from July 1, 2024.

Le Nguyen Anh Hao

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