Vietnam: Regulations on forced asset seizure against commercial juridical persons in the execution of criminal judgments

According to Decree No. 44/2020/ND-CP of Vietnam's Government, an account freeze measure may be applied in the following cases:

Note: Only applicable to an account opened by the convicted corporation at a credit institution, state treasury, securities company or Vietnam Securities Depository.

Procedures for implementing account freezing measures against commercial juridical persons are as follows:

Step 1: Verifying information about corporation’s account

- Within 03 working days from the date on which the record is made, the competent criminal judgment enforcement agency issuing the account freeze decision shall request the credit institution, state treasury, securities company or Vietnam Securities Depository to provide information about the corporation's account.

- The corporation against which the coercive enforcement measure is taken shall notify the competent criminal judgment enforcement agency issuing the account freeze decision of name of the credit institution, state treasury, securities company or Vietnam Securities Depository where its account is opened, corporation’s account number and other information about the account upon request.

Step 2: Issuing account freeze decisions

- Within 03 working days from the verification of information about the corporation’s account is done, the head of the competent criminal judgment enforcement agency shall issue the account freeze decision.

Note: Depending on the specific case, a decision to freeze the entire account or part of the account may be made. To be specific:

Step 3: Sending account freeze decisions

- Within 03 working days from the date on which the coercive enforcement decision is issued, the competent criminal judgment enforcement agency shall send it to the Court that issued the judgment enforcement decision, procuracy at the same level, relevant regulatory agency supervising the corporation, corporation, corporation’s legal representative, National Business Registration Portal and other relevant organizations and individuals.

- Within 03 working days from the date on which the coercive judgment enforcement decision is issued, the competent criminal judgment enforcement agency shall summon the corporation’s legal representative to the agency to notify the enforcement decision.

Step 4: Implementing the asset freezing

- Within 03 working days from the receipt of the account freezing decision from the competent criminal enforcement agency, the account managing agency is responsible for implementing the account freezing according to the account freezing decision.

- Within 03 working days from the date of freezing, the account managing agency must notify the account holder about the account freezing.

- Within 03 working days from the date of the account freezing notification to the commercial legal entity, the account managing agency must inform the competent criminal enforcement agency of the results in writing.

Step 5: Deduction of balance in accounts and settlement of securities in securities accounts (only applicable to coercive enforcement of judicial measures)

- The deducted balance shall not exceed the amount used for enforcing judicial measures and coercive enforcement cost.

- After receiving the decision to deduct balance in the account of the corporation that has to enforce the judicial measure, the credit institution or state treasury that manages such account or securities company where the corporation opens its securities account shall deduct account balance and transfer it to the competent criminal judgment enforcement agency to organize coercive enforcement of the judicial measure.

Step 6: Unfreezing accounts

- Within 03 working days from the date on which the corporation completely serves with the Court judgment or decision or after the organization has completely complies with the competent criminal judgment enforcement agency’s request for deduction of balance or settlement of securities in the corporation’s account, the competent criminal judgment enforcement agency shall terminates the account freeze.

- After issuing the account unfreeze decision, the competent criminal judgment enforcement agency shall send it to the credit institution, state treasury, securities company or Vietnam Securities Depository managing the corporation's account for execution purpose.

- The account freezing termination decision must be implemented immediately, and within 03 working days from the date of account freezing termination, the account managing agency must send a notification in writing to the enforcement agency and the account holder.

Lan Anh

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