Prohibited Acts in Opening and Using Payment Accounts for students in Vietnam

Prohibited Acts in Opening and Using Payment Accounts for students in Vietnam (Image from the Internet)

On June 13, 2024, the State Bank of Vietnam issued Official Dispatch 4932/NHNN-TT to coordinate in preventing the trading of bank accounts for students.

Plots and tricks to lure students to open payment accounts in Vietnam

Criminals lure students who have citizen identification cards to open bank accounts and pay them for the opening. They provide students with phones containing SIM cards to register to open bank accounts and Internet Banking, SMS Banking services. Afterward, they ask the students to return the phones and provide login names, passwords, OTP authentication codes... These criminals also collect biometric data (facial features) of the students (Face ID) to verify the customers' identities when required. These accounts are often exploited for illegal purposes such as money laundering, tax evasion, fraud, financing terrorism...

Prohibited Acts in Opening and Using Payment Accounts for students in Vietnam

* Regulations on prohibited acts

- Article 6 of Decree 101/2012/ND-CP dated November 22, 2012, specifies the prohibited acts, including: 3. Providing untruthful information during the provision and use of payment services, intermediary payment services; 5. Opening or maintaining anonymous, fictitious payment accounts.

- On May 15, 2024, the Government of Vietnam issued Decree 52/2024/ND-CP replacing Decree 101/2012/ND-CP (effective from July 01, 2024), which supplements the prohibited acts in Clause 3, 5 of Article 8, including: 3. Providing untruthful information related to the provision or use of payment services, intermediary payment services;... 5. Opening or maintaining anonymous, fictitious payment accounts, e-wallets; buying, selling, renting, leasing, borrowing, lending payment accounts, e-wallets; renting, leasing, buying, selling banking cards (except for anonymous prepaid cards); stealing, conspiring to steal, buying, selling payment account information, banking card information, e-wallet information.

- Point h, Clause 2, Article 5 of Circular 23/2014/TT-NHNN (amended and supplemented) stipulates that the payment account holders must not rent or lend their payment accounts.

* Regulations on administrative sanctions

- Clauses 5, 6 of Article 26 of Decree 88/2019/ND-CP dated November 14, 2019 (amended and supplemented) stipulates:

+ 5. A fine of between 40,000,000 VND and 50,000,000 VND for any of the following violations: a) Renting, renting out, borrowing, lending payment accounts, buying, selling payment account information with the number of payment accounts from 01 to fewer than 10 which do not yet reach the level of criminal prosecution;

+ 6. A fine of between 50,000,000 VND and 100,000,000 VND for any of the following violations: Renting, renting out, borrowing, lending payment accounts, buying, selling payment account information with the number of payment accounts from 10 or more which do not yet reach the level of criminal prosecution.

(3) To help resolve the aforementioned issue and ensure the lawful opening and use of payment accounts, SBV recommends that the People's Committees of provinces and cities coordinate:

- Direct the Department of Information and Communications, media agencies, and press in the locality to enhance propaganda efforts, warning residents and organizations, especially students and minors, about the methods and tricks of criminals, related legal regulations, raising awareness about legal compliance, and effectively preventing and not letting themselves be exploited for illegal purposes.

- Direct schools and educational institutions in the locality to promptly inform all students and parents about the methods and tricks of criminals, prohibited acts in the activity of opening and using payment accounts, and administrative sanctions to raise awareness about legal compliance and not let themselves be exploited for illegal purposes.

More details can be found in Official Dispatch 4932/NHNN-TT issued on June 13, 2024.

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