Vietnam: When shall financial companies issue credit cards?

According to Decree No. 39/2014/NĐ-CP of Vietnam’s Government, financial companies may issue credit cards if meeting all the following conditions:

- Its banking operations are indicated in its establishment and operation license granted by the State Bank (below referred to as the license).

- It has a contingent of professionally qualified employees, physical facilities, technologies, means, equipment and internal regulations in accordance with law for conducting banking operations indicated in the license.

- For banking operations related to foreign exchange activities, it shall comply with the law on foreign exchange management.

- It satisfies all professional conditions for banking operations prescribed by the State Bank.

- They have internal regulations on process, procedures and principles of client identification to strictly supervise and prevent the abuse of financial companies for money laundering, terrorism financing and other criminal activities.

Besides, financial companies established and operating before the effective date of this Decree may add the issuance of credit cards if meeting all the conditions prescribed in Clause 1 of this Article and the following conditions:

- The conditions prescribed at Points c, d and dd, Clause 2, Article 11 of this Decree;

- Having profitable business operation for at least two consecutive years preceding the year of requesting the operation addition;

- Having a minimum operation duration and a credit card issuance operation plan prescribed by the State Bank.

View more details at Decree No. 39/2014/NĐ-CP of Vietnam’s Government, effective from June 25, 2014.

Le Hai

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