On-site Inspection for provision of payment intermediary services in Vietnam

On-site Inspection for provision of payment intermediary services in Vietnam (Image from the internet)

On July 17, 2024, the Governor of the State Bank of Vietnam issued Circular 41/2024/TT-NHNN stipulating the supervision and implementation of supervision of important payment systems and provision of payment intermediary services in Vietnam.

On-site Inspection for provision of payment intermediary services in Vietnam

According to Article 12 of Circular 41/2024/TT-NHNN, on-site inspection for provision of payment intermediary services in Vietnam is regulated as follows:

- The supervisory unit conducts inspections at the headquarters of the payment intermediary service provider according to the annual inspection plan of the State Bank; unscheduled inspections based on management requirements and actual situations, or based on requests, suggestions, and reflections of competent authorities, organizations, individuals, or instructions from the Governor of the State Bank.

- The sequence, procedures for inspection, and handling of inspection results and recommendations after inspections are carried out according to the regulations of the Governor of the State Bank on the inspection activities for compliance with monetary and banking policies and laws.

- Payment intermediary service providers are responsible for adequately preparing the content for the inspection; reporting, providing documents, information, data, and access rights to the information technology system for inspection; explaining and clarifying related issues upon request and fulfilling other responsibilities as prescribed by the Governor of the State Bank on the inspection activities for compliance with monetary and banking policies and laws.

Assessment of provision of payment intermediary services in Vietnam

Based on the documents, information, and data collected under Regulations in Article 11 and Article 12 of Circular 41/2024/TT-NHNN, the supervisory unit assesses the activities of provision of payment intermediary services and prepares a supervisory report submitted to the Governor of the State Bank:

- Semi-annual report and annual report on provision of payment intermediary services in Vietnam.

- Urgent reports on risks and incidents related to provision of payment intermediary services in Vietnam.

(Article 13 of Circular 41/2024/TT-NHNN)

Warnings and recommendations in supervising provision of payment intermediary services in Vietnam

- In cases where the supervisory unit discovers risks that may threaten the safety of provision of payment intermediary services in Vietnam or lead to non-compliance with relevant legal regulations, the supervisory unit reports and proposes to the Governor of the State Bank to issue warning documents and recommendations to the payment intermediary service provider and cooperating banks.

- Payment intermediary service providers are responsible for promptly and fully implementing the recommendations of the supervisory unit and reporting the implementation of those recommendations within the required timeframe.

(Article 14 of Circular 41/2024/TT-NHNN)

More details can be found in Circular 41/2024/TT-NHNN which comes into force in Vietnam from July 17, 2024, except for Clause 4, Article 17 of Circular 41/2024/TT-NHNN which takes effect in Vietnam from October 1, 2024.

Le Nguyen Anh Hao

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