Vietnam: It is necessary to collect information before making a decision on bank inspection

According to Circular No. 36/2016/TT-NHNN of the State Bank of Vietnam, before issuing an inspection decision, when necessary, the person who has the power to issue the inspection decision (hereinafter referred to as “inspection decider”), according to the operation of the credit institution and branch of a foreign bank, and requirements of the inspection, shall direct the collection of information and documents in service of the issuance of inspection decision. To be specific:

- The information provider is the credit institution or branch of a foreign bank that is expected to undergo inspection according to the approved annual inspection plan and other entities supervised and inspected by the banking inspection and supervision authority (if any).

The inspected entity shall provide information and documents at the request of the inspection decider and officials or working group responsible for collecting information and documents (hereinafter referred to as “information collector”) as prescribed by law.

- The appointment of an information collector and the scope of collection of information shall be confirmed in writing by the inspection decider. Information shall be collected within 15 working days.

When necessary, the information collector shall submit a report on the collection of information and documents at the working place of the inspected entity or at the authorities performing the state management of relevant fields in connection with inspection to the inspection decider; or shall directly work with relevant persons.

- Upon performance of his/her tasks, the information collector shall produce: the assignment order specifying working duration and contents, and information that needs to be collected from the inspected entity; officials card or inspection card.

- The information collector must not harass or cause troubles to the inspected entity; must not request information that is beyond the scope of the assigned tasks.

- The information collector shall study, analyze and consolidate the collected information and documents; within 05 working days from the day on which the collection of information is completed, official or the working group leader shall submit a report on the results of the collection of information and documents to the inspection decider.

View more details at Circular No. 36/2016/TT-NHNN of the State Bank of Vietnam, effective from February 18, 2017.

-Thao Uyen-

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