Vietnam: Entities eligible to open checking accounts at banks from July 01, 2024

Entities eligible to open checking accounts at banks from July 01, 2024 (Image from the internet)

On June 28, 2024, the Governor of the State Bank of Vietnam issued Circular 17/2024/TT-NHNN on opening and use of checking accounts at payment service providers.

Entities eligible to open checking accounts at banks from July 01, 2024

According to Article 11 Circular 17/2024/TT-NHNN of the State Bank of Vietnam (SBV), individuals eligible to open checking accounts at banks and FBBs include:

- Individuals at 15 years of age or older that do not have limited legal capacity or are not incapacitated in accordance with Vietnamese laws;

- Individuals below 15 years of age, individuals having limited legal capacity, and incapacitated individuals who will open checking accounts via legal representatives;

- Individuals having limited cognitive, behavioral control capability according to Vietnamese laws who will open checking accounts via guardians.

In addition, organizations legally established and operating in accordance with Vietnamese laws include: organizations that are juridical persons (Vietnamese juridical persons, foreign juridical persons), sole proprietorships, household businesses, and other organizations which are allowed to open checking accounts at banks, FBBs as per the law.

Regulations on use of checking accounts opened at SBV

(1) Checking accounts opened at SBV to deposit cash, withdraw cash, issue cheques, record transactions, monitor and execute payment orders via payment system organized and operated by SBV, pay in installments via checking accounts, and use other payment services provided by SBV.

(2) Checking accounts of credit institutions, FBBs opened at Central Banking Department of SBV are used to make payments in participation of open market operation, trading of negotiable instruments, Governmental bonds, Treasury bills, SBV treasury bills, and other activities as per the law.

(3) Central Banking Department of SBV and SBV branches have the rights and responsibilities to:

- debit an amount from checking accounts of customers when:

+ Due debts, overdue debts, interest, and fees that arise in management of checking accounts and provision of payment services according to regulations of SBV are collected;

+ Entries that have been incorrectly recorded or do not match purpose of the checking accounts as per the law are corrected;

+ Checking accounts of customers are found to have been mistakenly credited or credit transaction order cancellation/reversal request is made by payment service providers affiliated with the transacting parties after the transacting payment service providers discover discrepancies in payment orders of transacting persons;

+ Competent authority issues written request to enforce implementation of decision on administrative penalties, decision on judgment implementation, decision on tax collection or performance of other payment duties as per the law.

- reject payment order of account holders when:

+ Payment order is illegal or illegitimate;

+ Account holders fail to adequately adhere to payment procedures or details of payment orders do not match elements registered in application for account opening at SBV;

+ Account balance is insufficient;

+ Competent authority makes such request in writing as per the law;

- adequately and promptly preserve and update documents, information, and data in application for account opening including specimen signature, seal templates (if any) of applying organizations for examination and comparison throughout the use of checking accounts;

- provide information on transactions and balance of checking accounts to organizations opening checking accounts at SBV.

(4) State Treasury, credit institutions, FBBs opening checking accounts at SBV have the rights and responsibilities to:

- execute legal and legitimate payment orders using their account balance;

- choose payment facilities, services, and utilities provided by SBV;

- request Central Banking Department of SBV, SBV branches where the accounts are opened to execute legal, legitimate payment orders and receive information on payment transactions and account balance.

- adequately, accurately, and promptly provide documents, information, and data in application for account opening and other information at request of Central Banking Department of SBV, SBV branches where the accounts are opened;

- send notice on account information changes using form under Appendix 1 attached hereto to Central Banking Department of SBV, SBV branches where the accounts are opened;

- assume responsibilities for potential risks in the event of failure to adequately, accurately, promptly provide or update information and for damage caused as a result of their fault.

(Article 9 Circular 17/2024/TT-NHNN)

Nguyen Ngoc Que Anh

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