Vietnam: Periods over which office holders in the banking industry must not establish enterprises after being discharged from holding their positions

07 sectors over which office holders in the banking industry must not establish enterprises after being discharged from holding their positions​ in Vietnam

The list of sectors under the management of the State Bank of Vietnam over which persons with certain positions and powers must not establish, hold managerial titles or positions, or run enterprises, cooperatives, and credit institutions after being discharged from holding their positions includes:

(1) Issuance, re-issuance, alteration, and revocation of licenses for credit information service provision to credit information providers; inspection and examination of credit information providers.

(2) Issuance or suspension of payment operation licenses for credit institutions and other organizations; issuance, modification, supplementation, revocation of intermediate payment service provision licenses for non-bank organizations; inspection and examination of payment operations.

(3) Issuance, revocation of approval documents for foreign exchange business and service provision for credit institutions and other organizations as prescribed by law; inspection and examination of foreign exchange operations.

(4) Issuance, revocation of certificates of eligibility for gold jewelry and handicraft production, licenses for gold trading operations; inspection and examination of gold trading activities.

(5) Issuance, modification, supplementation, revocation of establishment and operation licenses for credit institutions; approval of the purchase, sale, division, separation, merger, amalgamation, and dissolution of credit institutions as prescribed by law; approval of the list of individuals proposed to be elected or appointed as members of the Board of Directors, Board of Members, Supervisory Board members, General Director (Director) of credit institutions; approval of other changes as prescribed by the Law on Credit Institutions 2010, except for the cases specified in (3).

(6) Creating lists to warn organizations of high money laundering risks; inspection and examination of anti-money laundering activities.

(7) Inspection, examination, and supervision of banks.

Periods over which office holders in the banking industry must not establish enterprises after being discharged from holding their positions in Vietnam

The periods over which persons with certain positions and powers must not establish, hold managerial titles or positions, or run enterprises, cooperatives, and credit institutions after being discharged from holding their positions are specified as follows:

- Within 12 months from the date of leaving the position as per the decision or approval of the competent authority for persons with certain positions and powers in sector (1).

- Within 18 months from the date of leaving the position as per the decision or approval of the competent authority for persons with certain positions and powers in sectors (2), (3), (4).

- Within 24 months from the date of leaving the position as per the decision or approval of the competent authority for persons with certain positions and powers in sectors (5), (6), (7).

Circular 20/2023/TT-NHNN takes effect from February 12, 2024.

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