Regulations on supervising intermediary payment service provision in Vietnam from July 17, 2024

Regulations on supervising intermediary payment service provision in Vietnam from July 17, 2024 (Image from the internet)

On July 17, 2024, the Governor of the State Bank off Vietnam issued Circular 41/2024/TT-NHNN, which sets regulations on supervising and executing supervision over important payment systems and intermediary payment service provision.

1. Scope of supervision of intermediary payment service provision in Vietnam

The supervision content of activities providing intermediary payment services includes:

- Compliance with legal regulations on activities providing intermediary payment services.- Risk management activities in providing intermediary payment services including policy formulation, risk management processes, and implementation activities.

(Article 10 Circular 41/2024/TT-NHNN)

2. Supervision of intermediary payment service provision in Vietnam

The supervisory unit monitors intermediary payment service provision through:

(1) Collecting documents, information, and data on activities providing intermediary payment services from sources:

- Reports according to the regulations of the Governor of the State Bank on statistical reporting policies;- Reports and information provided by the organization providing intermediary payment services as stipulated in Article 17 Circular 41/2024/TT-NHNN;- Reports and information provided by the cooperating bank as stipulated in Article 18 Circular 41/2024/TT-NHNN;- Documents, information, and data collected through inspection and examination activities according to legal regulations;- Documents, information, and data collected through the online supervisory information system established by the State Bank (hereinafter referred to as the online supervisory information system) as stipulated in Section 3, Article 20 Circular 41/2024/TT-NHNN;- Feedback from customers using intermediary payment services; feedback on mass media;- Information related to activities providing intermediary payment services provided and reflected by competent authorities;- Other information serving the supervision of activities providing intermediary payment services as requested by the Supervisory Unit to the organization providing intermediary payment services and cooperating banks.

(2) Processing and summarizing documents, information, and data

- Comparing and cross-checking collected documents, information, and data with historical data to detect any unusual fluctuations;- Comparing and cross-checking documents, information, and data collected from different sources;- Assessing and evaluating the reasonableness of the collected documents, information, and data; in case of detecting missing, defective, erroneous, or inappropriate documents, information, or data, the Supervisory Unit requests the organization providing intermediary payment services to promptly report, clarify, and submit accurate information;- Summarizing and analyzing the collected documents, information, and data, comparing and cross-checking.

(Article 11 Circular 41/2024/TT-NHNN)

3. On-site inspection of intermediary payment service provision in Vietnam

- The supervisory unit conducts inspections at the offices of the organization providing intermediary payment services according to the annual inspection plan of the State Bank; unexpected inspections based on management requirements and actual conditions or based on requests, petitions, reflections from competent authorities, organizations, individuals, or upon the requests and directions of the Governor of the State Bank.- The inspection procedures and handling of inspection results, post-inspection recommendations are implemented according to the regulations of the Governor of the State Bank on inspecting the compliance with monetary and banking policies and laws.- The organization providing intermediary payment services is responsible for fully preparing the content serving the inspection; reporting, providing documents, information, data, and granting access to the information technology system to serve the inspection; clarifying issues related to the inspection content when requested and performing other responsibilities according to the regulations of the Governor of the State Bank on inspecting the compliance with monetary and banking policies and laws.

(Article 12 Circular 41/2024/TT-NHNN)

4. Evaluating intermediary payment service provision in Vietnam

Based on the documents, information, and data collected according to Articles 11 and 12 of Circular 41/2024/TT-NHNN, the Supervisory Unit assesses the intermediary payment service provision and prepares supervision reports to be submitted to the Governor of the State Bank:

- Semi-annual and annual periodic reports on activities providing intermediary payment services.- Ad-hoc reports on arising risks and incidents related to activities providing intermediary payment services.

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

Nguyen Ngoc Que Anh

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