In practice, using mistakenly transferred money from the banking accounts of others can arise from either unintended or intentional errors in Vietnam. In the case of intentional error, if the account holder is fully aware that the mistakenly transferred money from the banking accounts of others is not of them but still uses it, he/she can face a penalty of up to 07 years' imprisonment.
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Vietnam: Using mistakenly transferred money from the banking accounts of others can result in a penalty of up to 07 years' imprisonment (Illustrative image)
With the development of modern technology, financial transactions conducted via Internet Banking are increasing in frequency. Occasionally, due to system errors or the owner's negligence, money is mistakenly transferred into someone else's account. The issue arises as to what the account holder should do when they discover money mistakenly transferred to their account. What are the penalties imposed on account holders failing to return this money/using it this money?
1. Upon discovering money mistakenly transferred, the account holder in Vietnam must return it to the owner
According to Article 579 of the Civil Code 2015,
A person possessing or using property of another unlawfully must return the property to its owners and holders of other property-related rights. If the lawful owners and holders of other property-related rights of such property are not able to be found, the property must be delivered to a competent authority, except in the case provided in article 236 of this Code.
Under this provision, if the account holder receives money mistakenly transferred by someone else, the money does not belong to the account holder, and their possession of the money is without legal basis. Therefore, the account holder must return the money to the owner. Where the owner cannot be found, the account holder must hand the money over to a competent state authority. Practically, the account holder can also contact the bank to trace the transaction's origin and promptly resolve it.
Regarding the obligation to return property, the Civil Code 2015 specifies an exception as follows:
A person unlawfully but in good faith possessing, or deriving benefits from, property continuously and in an overt manner for ten (10) years with respect to moveable property, and for thirty (30) years with respect to immoveable property, shall become the owner of such property from the moment of commencement of possession, unless otherwise prescribed by this Code and relevant laws.
2. An account holder who uses money mistakenly transferred, in addition to administrative fines, may face a penalty of up to 07 years' imprisonment
Administrative penalties:
According to point d, clause 1, Article 15 of Decree 167/2013/ND-CP, a person illicitly using someone else's property can be fined from 1,000,000 VND to 2,000,000 VND. Additionally, the account holder failing to return mistakenly transferred money may face administrative fines ranging from 2,000,000 VND to 5,000,000 VND for unlawfully holding someone else's property.
Criminal penalties:
According to Article 176 of the Law on Amendments to Criminal Code 2017 on the illegal impoundment of property in Vietnam:
- Any person who finds or mistakenly receives a piece of property which is assessed at from VND 10,000,000 to under VND 200,000,000, a relic, an antique or an item of historical or cultural value but deliberately fails to return it to its legitimate owner or fails to submit it a competent authority after the owner or the competent authority requests the return or submission of such property as prescribed by law shall be liable to a fine of from VND 10,000,000 to VND 50,000,000 or face a penalty of up to 02 years' community sentence or 03 - 24 months' imprisonment.
- If the property obtained is assessed at ≥ VND 200,000,000 or national treasure, the offender shall face a penalty of 01 - 05 years' imprisonment.
=> The account holder failing to return the money mistakenly transferred may be liable for criminal prosecution for illegal impoundment of property with a penlaty of up to 5 years' imprisonment if the unlawfully appropriated amount is from 200,000,000 VND or more.
In cases where the account holder has withdrawn and used the mistakenly transferred money, under Article 177 on illegal use of property:
- Any person who, for self-seeking purposes, illegally uses a piece of property of another person which is assessed at from VND 100,000,000 to under VND 500,000,000 despite the fact that he/she has incurred a disciplinary or administrative penalty for the same offence or has an unspent conviction for the same offence; illegally uses a property which is a relic, an antique or an item of historical or cultural value, except in the circumstances specified in Article 220 hereof, shall be liable to a fine of from VND 10,000,000 to VND 50,000,000, face a penalty of up to 02 years' community sentence or 03 - 24 months' imprisonment.
- This offence committed in any of the following circumstances carries a fine of from VND 50,000,000 to VND 100,000,000 or a penalty of 01 - 05 years' imprisonment:
+ The property illegally used is assessed at from VND 500,000,000 to under VND 1,500,000,000;
+ The property illegally used is national treasure;
+ The offence has been committed more than once;
+ The offence involves abuse of the offender's position or power;
+ Dangerous recidivism.
- If the property obtained is assessed at ≥ VND 1,500,000,000, the offender shall face a penalty of 03 - 07 years' imprisonment.
Thus, the principle of “finding lost property and returning it to the owner” is no longer solely dependent on individual awareness and voluntariness but has become a legal mandate. To ensure compliance, Vietnamese law stipulates severe penalties for violations. Specifically, unlawful use of mistakenly transferred money can result in a penalty of up to 7 years' imprisonment if the value of the unlawfully used property is from 1,500,000,000 VND or more.
Thuy Tram
