Vietnam: Cases of which the inspection is extended beyond 70 days

According to Clause 1 Article 19 of the Decree No. 26/2014/NĐ-CP of Vietnam’s Government, an inspection carried out by the banking inspection and supervision authority shall last for a maximum of 45 days. If the case is complicated, the inspection may last for a maximum of 70 days.

According to Article 7 of the Circular No. 03/2015/TT-NHNN of the State Bank of Vietnam, procedures for extending an inspection beyond 70 days are conducted as follows:

- The head of the inspectorate shall submit a written request for the person who issues the inspection decision to extend the duration of inspection. The written request must specify reasons and length of the extension.

- In the event the inspection decision is issued by the Governor of the State Bank or the Chief Inspector, the Governor of the State Bank, at the request of the Chief Inspector, shall request the Prime Minister to decide.

- In the event the inspection decision is issued by the Director General of the Provincial Department of Banking Inspection and Supervision, he/she shall submit a report to the Chief Inspector. The Governor of the State Bank, in consideration of the report submitted by the Chief Inspector, shall request the Prime Minister to decide.

- In the event inspection decision is issued by the Director of the branch of the State Bank, the Director of the branch of the State Bank shall submit a report to the Governor of the State Bank through Central Banking Inspection and Supervision Authority. The Governor of the State Bank, in consideration of the report submitted by the Director of the State Bank, shall request the Prime Minister to decide.

- In the event the inspection decision is issued by the Chief Inspector of the provincial banking inspection and supervision authority, he/she shall submit a report to the Director of the branch of the State Bank who shall submit the report to the Governor of the State Bank through the Central Banking Inspection and Supervision Authority. The Governor of the State Bank, in consideration of the report submitted by the Director of the State Bank, shall request the Prime Minister to decide.

- The head of the inspectorate shall submit a written request for the person who issues the inspection decision to extend the duration of inspection. The written request must specify reasons and length of the extension.

+  In the event the inspection decision is issued by the Governor of the State Bank or the Chief Inspector, the Governor of the State Bank, at the request of the Chief Inspector, shall request the Prime Minister to decide.

+ In the event the inspection decision is issued by the Director General of the Provincial Department of Banking Inspection and Supervision, he/she shall submit a report to the Chief Inspector. The Governor of the State Bank, in consideration of the report submitted by the Chief Inspector, shall request the Prime Minister to decide.

+ In the event the inspection decision is issued by the Director of the branch of the State Bank, the Director of the branch of the State Bank shall submit a report to the Governor of the State Bank through Central Banking Inspection and Supervision Authority. The Governor of the State Bank, in consideration of the report submitted by the Director of the State Bank, shall request the Prime Minister to decide.

+ In the event the inspection decision is issued by the Chief Inspector of the provincial banking inspection and supervision authority, he/she shall submit a report to the Director of the branch of the State Bank who shall submit the report to the Governor of the State Bank through the Central Banking Inspection and Supervision Authority. The Governor of the State Bank, in consideration of the report submitted by the Director of the State Bank, shall request the Prime Minister to decide.

- The proposed results may have the following cases:

+ When the Prime Minister has decided the extension of duration of inspection, the inspectorate shall continue the inspection at the place where it is carried out. According to the decision made by the Prime Minister, the person who issues the inspection decision shall issue a decision on extension of duration of inspection.

+ In case the Prime Minister disagrees with the extension of duration of inspection, the inspectorate shall end the inspection at the place where it is carried out and perform the necessary tasks to end the inspection under the procedures for carrying out an inspection as prescribed by law.

+ In the event the Prime Minister is yet to decide the extension of duration of inspection while the duration of inspection has passed, the inspectorate must suspend the inspection at the place where it is carried out. The duration of suspension of inspection shall be added to the length of the extension.

View more details at the Circular No. 03/2015/TT-NHNN of the State Bank of Vietnam, effective from May 07, 2015.

Thuy Tram

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