Hanoi, Vietnam: Regulations on bank transfer services in Vietnam as of July 1, 2024

Regulations on bank transfer services in Vietnam as of July 1, 2024 (Internet image)

On June 28, 2024, the Governor of the State Bank of Vietnam issued Circular 15/2024/TT-NHNN regulating the provision of non-cash payment services.

Regulations on bank transfer servicesin Vietnam as of July 1, 2024

According to Article 12 of Circular 15/2024/TT-NHNN, regulations on bank transfer services are as follows:

* The process of performing bank transfer services via the customer's payment Clause is carried out following the payment order service process.

* The process of performing bank transfer services not via the customer's payment Clause is as follows:

Banks performing bank transfer services ensure quick, rigorous, accurate, safe, and confidential handling in accordance with the law; issuing internal procedures, which must include at least the following contents:

 - Preparing and controlling documents:

• When a customer needs to deposit cash to request the bank to transfer money to the beneficiary, the bank guides the customer to fill out a transfer form according to the bank's regulations, ensuring all necessary information of the sender and the beneficiary, including: full name, identification document number, phone number, signature (of the sender), and other information.

• If the sender is an individual, when transferring, the customer must present identification documents. In the case of an authorized person, the customer must present a written authorization according to legal regulations. If the sender is a representative of an organization, besides presenting identification documents, they must also provide documents proving their legal representative status. The bank has measures to check, verify, and validate the identification information and data of the customer and store it as required by law.

• Upon receiving the customer's deposit slip, the bank checks, verifies the documents, and counts the cash deposited by the customer to proceed with the transfer accordingly.

- Processing documents and accounting:

• At the bank servicing the sender: After verifying legal and valid documents:

In cases where the beneficiary has an account at the bank servicing the sender: within 1 working day from the completion of the customer's deposit procedures, the bank accounts for the appropriate account for the sender and credits the beneficiary.

In cases where the beneficiary has an account at another bank; within 1 working day from the completion of the customer's deposit procedures, the bank accounts for the appropriate account and generates a transfer order to send to the bank servicing the beneficiary according to the appropriate payment system.

• At the bank servicing the beneficiary:

After receiving the transfer order, the bank servicing the beneficiary processes and verifies the documents:

If the transfer order is legal and valid, within 1 working day from receiving the transfer order, the bank servicing the beneficiary must account for the payment account of the beneficiary and credit the beneficiary.

If there are errors in the transfer order, within 1 working day from receiving the transfer order, the bank servicing the beneficiary coordinates with the bank servicing the sender to perform the investigation according to regulations. Upon receiving the investigation response, within a maximum of 1 working day, the bank servicing the beneficiary carries out the transfer order or returns the transfer order to the bank servicing the sender.

If the beneficiary's account is closed, within 1 working day from receiving the transfer order, the bank servicing the beneficiary returns the transfer order to the bank servicing the sender and specifies the reason for returning the transfer order.

In cases where the beneficiary does not have a payment account at the bank: upon receiving the transfer order, within 1 working day from receiving the transfer order, the bank processes the documents, accounts for the appropriate account and notifies the beneficiary according to the contact information provided by the sender.

In cases where the beneficiary receives cash: If the beneficiary is an individual, when receiving the money, they must present identification documents. If the recipient is an authorized person, the authorized person must present a written authorization according to the law. If the beneficiary is an organization, the representative of the organization, besides presenting their identification documents, must also present documents proving their legal representative status. The bank has measures to check, verify and validate the identification information and data of the customer and store it as required by law.

Within a maximum of 30 days from the date of crediting the customer's account as specified in point c of this Clause, if the beneficiary has been notified by the bank but does not come to receive the money or the bank cannot contact the beneficiary, the bank must issue a money return order to the bank servicing the sender.

- The bank promptly credits customers with accounts at its unit following the notification method and timing agreed upon between the bank and the customer in accordance with the law.

More details can be found in  Circular 15/2024/TT-NHNN which is effective in Vietnam from July 1, 2024, except for the regulations in Clause 6, Article 6 Circular 15/2024/TT-NHNN which take effect from January 1, 2025.

To Quoc Trinh

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