Hanoi, Vietnam: Cases of revoking documents for approval of providing payment services not via customers’ payment accounts in Vietnam from July 1, 2024

Cases of revoking documents for approval of providing payment services not via customers’ payment accounts in Vietnam  from July 1, 2024 (Internet image)

On May 15, 2024, Hanoi issued Decree 52/2024/ND-CP regulating cashless payments in Vietnam.

Conditions for providing payment services not via customers’ payment accounts by enterprises provide public postal services in Vietnam from July 1, 2024

According to Article 19 of Decree 52/2024/ND-CP, a public postal enterprise can provide customer payment services without a payment account if they meet and maintain the following conditions during the provision of such services:

• Have an information system to serve the provision of customer payment services without a payment account, ensuring the safety requirements of information systems at level 3 as prescribed by law.

• Personnel conditions: The legal representative, General Director (Director), and the person in charge of providing customer payment services without a payment account of the public postal enterprise must have a university degree or higher in one of the fields of economics, business administration, law, or information technology.

Key personnel directly involved in providing customer payment services without a payment account (including department heads or their equivalents and technical staff) must have at least a college degree in one of the fields of economics, business administration, law, information technology or the specific field they are responsible for.

• Have technical business processes for each type of service; have measures to ensure payment ability, maintain the balance of the payment account at the bank and cash more than the amount to be paid to customers at the payment time; internal inspection and control processes; risk management mechanisms; general principles and internal regulations on anti-money laundering, anti-terrorism financing, and anti-proliferation of weapons of mass destruction; processes and procedures for resolving disputes, complaints, and inquiries; defined rights and responsibilities of the parties involved.

• Have a plan for collecting and transporting cash, ensuring it is deposited into the payment account at the bank by the end of the day, ensuring security and safety regarding cash circulation; equipped devices ensuring the receipt, preservation of cash, regulating money transfer limits, receipt limits, and balance limits at service points; ensuring fire prevention and fighting work according to legal regulations.

Latest regulatitons on application for approval for providing payment services not via customers’ payment accounts in Vietnam

According to Clause 1, Article 20 of Decree 52/2024/ND-CP, the application for approval for providing payment services not via customers’ payment accounts includes:

• A request form for providing customer payment services without a payment account according to Form No. 03 issued in conjunction with Decree 52/2024/ND-CP;

Form No. 03

• A resolution of the Members' Council, or a document of the authorized representative of the owner consistent with the authority specified in the company's charter regarding the approval of the Conditions Explanation for providing customer payment services without a payment account;

• Conditions Explanation for providing customer payment services without a payment account as prescribed in Article 19 of Decree 52/2024/ND-CP;

• Personnel documentation: Curriculum vitae, certified copies or original copies for comparison of documents proving the capacity and professional qualifications of legal representatives, General Director (Director), person in charge, and key personnel providing these services;

• Establishment license or enterprise registration certificate or equivalent documents issued by a competent state agency, the company's charter (certified copy or original copy for comparison).

Cases of revoking documents for approval of providing payment services not via customers’ payment accounts in Vietnam from July 1, 2024

According to Clause 4, Article 20 of Decree 52/2024/ND-CP, the cases of revoking documents for approval of providing payment services not via customers’ payment accounts from July 1, 2024 include:

• Enterprises approved by the State Bank to provide customer payment services without a payment account are dissolved or go bankrupt according to legal regulations;

• Enterprises approved by the State Bank to provide customer payment services without a payment account request the revocation of the approval document due to the termination of such services according to Form No. 05 issued in conjunction with Decree 52/2024/ND-CP;

Form No. 05

• When there is a judgment, enforcement decision, administrative penalty decision by a competent state agency or criminal enforcement agency containing the content requesting the revocation of the approval document of the public postal enterprise, or there is a written request from a competent state agency or criminal enforcement agency requesting the revocation of the approval document of the public postal enterprise;

• Enterprises approved by the State Bank to provide customer payment services without a payment account violate prohibitions specified in Clause 8, Article 8 of Decree 52/2024/ND-CP;

• After 03 months from the date the State Bank issues a written notice to the organization violating one of the conditions in the service provision process specified in Article 19 of Decree 52/2024/ND-CP and must implement remedial measures but the enterprise fails to do so;

• Acting outside the approved contents of the State Bank for providing customer payment services without a payment account;

• During inspection, supervision, and monitoring of the provision of customer payment services without a payment account, it is found that in the continuous 06 months, the enterprise does not implement providing these services.

More details can be found in Decree 52/2024/ND-CP, effective in Vietnam from July 1, 2024.

Decree 52/2024/ND-CP replaces Decree 101/2012/ND-CP on non-cash payments; Decree 80/2016/ND-CP amends and supplements a number of articles of Decree 101/2012/ND-CP on non-cash payments and repeals Article 3 of Decree 16/2019/ND-CP amending and supplementing a number of articles of the decrees regulating business conditions under the state management of the State Bank.

To Quoc Trinh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE