​Bank guarantee through the use of electronic means in Vietnam

Bank guarantee through the use of electronic means in Vietnam (Source: internet)

On September 30, 2022, the Governor of the State Bank of Vietnam issued Circular 11/2022/TT-NHNN, regulating bank guarantees.

Bank guarantee through the use of electronic means in Vietnam.

- Credit institutions, foreign bank branches, and selected customers may carry out bank guarantee activities through the use of electronic means (hereinafter referred to as "electronic guarantee activities").

The implementation of e-guarantee activities must ensure security, safety, protection of data messages and confidentiality of information in accordance with the provisions of the law on prevention of money laundering, electronic transactions, the guidance of the State Bank on risk management in e-banking activities and other relevant legal documents.

- Credit institutions and foreign bank branches must determine their own methods, forms, and technologies for carrying out electronic guarantee activities for the entire or each stage of the guarantee process (if any) and must meet the minimum requirements listed below:

- Having technical solutions and technologies to ensure accuracy, confidentiality, and safety in the process of collecting, using, and checking information and data;

+ Take steps to check, compare, update, and verify information and data; take steps to prevent forgery, interference, editing, and falsification of information and data; and

+ Implement risk assessment, management, and control measures; delegate specific responsibilities to each department and individual involved in e-guarantee activities, risk management, and supervision.

- In the case of identifying and verifying customer identification information via electronic means when the customer first establishes a relationship with a credit institution or foreign bank branch (except for the cases specified at Points b and d, Clause 4 of this Article), credit institutions and foreign bank branches must have solutions, technology, and techniques to collect, check, and compare information, ensuring at least the following requirements:

+ For individual customers: Ensure the correct match between customer identification information, customer's biometric data (the biological factors and characteristics associated with the customer performing identification, difficult to fake, has a low rate of overlap such as fingerprints, faces, irises, voice and other biometric factors) with the corresponding biometric information and factors on documents required to receive know customers in accordance with the provisions of the law on prevention and combat of money laundering, at the request of credit institutions, foreign bank branches or with personal identification data authenticated by competent state agencies or by an organization providing electronic authentication services in accordance with the law on electronic identification and authentication;

+ For customers who are organizations:

(i) Information about the organization: Ensure the correct match between the information identifying the organization's customers in accordance with the law on anti-money laundering and the legal status of the organization (lawfully established, still operating in accordance with the law) with information and data from the National Database on Business Registration; or with information and data authenticated by a competent state agency or by an organization providing electronic authentication services in accordance with the law on electronic identification and authentication;

(ii) Information about the legal representative of the organization conducting the transaction: Identify and verify the information of the individual performing the transaction in accordance with the regulations on identification and verification of individual customers at Point a of this clause. It must match the information of the legal representative or the authorized representative of the organization based on the business registration certificate and authorization document (in case of authorization).

- In the case of identification and verification of customer identification information via electronic means, the value of each underwriting commitment for individual customers must not exceed 4,000,000,000 (four billion) Vietnamese dong and for institutional customers must not exceed 45,000,000,000 (forty-five billion) Vietnamese dong. South, except for the following cases:

+ Customer identification information is authenticated by a competent state agency or electronically through an electronic authentication service provider in accordance with the law on electronic identification and authentication.

+ The customer sends an application for guarantee by authenticated email through the SWIFT system;

+ Customer information and guaranteed obligations are matched correctly through the customs electronic payment gateway or the national bidding network system;

+ When applying for guarantees or signing guarantee granting agreements with credit institutions or foreign bank branches, customers use digital signatures as required by law.

+ Customers are credit institutions and foreign bank branches in Vietnam.

- The information system performing electronic guarantee activities must comply with the regulations on ensuring the safety of information systems at level 3 or higher according to the government's regulations on ensuring the safety of information systems at each level and the regulations of the State Bank on information system safety in banking activities.

- Credit institutions and foreign bank branches must store and preserve electronic guarantee information and data in accordance with the law; ensure safety and security; and maintain backups to ensure the completeness and integrity of the records to allow access and use when needed or to serve the inspection, comparison, and settlement of checks, complaints, disputes, and information provision upon request from competent state management agencies.

Diem My

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