Vietnam: A fine of between VND 30 million and 120 million shall be imposed on violations of regulations on registration of depository operation

Specifically, according to Article 30 of Decree No. 108/2013/NĐ-CP of Vietnam’s Government, a fine of between VND 30,000,000 and 120,000,000 shall be imposed on violations of regulations on registration of depository operation. To be specific:

- A fine of between VND 30,000,000 and 50,000,000 shall be imposed on a securities company or commercial bank which fails to carry out registration of a depository member or a depository member's branch and securities depository operation within the prescribed time limit.

- A fine of between VND 50,000,000 and 70,000,000 shall be imposed on a securities company or commercial bank which conducts securities depository operation without fully meeting the specified conditions or obtaining a securities depository operation registration certificate or an approval of the State Securities Commission.

- A fine of between VND 100,000,000 and 120,000,000 shall be imposed on a securities company or commercial bank who makes dossier of registration for securities depository operation, branch operating depository containing untrue information or hiding the truth or being seriously falsified.

Concurrently, suspension of securities depository operation for duration of 01-03 months for a securities company or commercial bank who makes dossier of registration for securities depository operation, branch operating depository containing untrue information or hiding the truth or being seriously falsified.

Moreover, Decree No. 108/2013/NĐ-CP also stipulates remedial measures as follows:

- Forcible remittance of illicit earnings from the commission of violations of a securities company or commercial bank which conducts securities depository operation without fully meeting the specified conditions or obtaining a securities depository operation registration certificate or an approval of the State Securities Commission.

- Forcibly canceling information, correcting information for violations of a securities company or commercial bank who makes dossier of registration for securities depository operation, branch operating depository containing untrue information or hiding the truth or being seriously falsified.

View more details at Decree No. 108/2013/NĐ-CP of Vietnam’s Government, effective from November 15, 2013.

Ty Na

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