05 Principles when using joint accounts at payment service providers in Vietnam

05 Principles when using joint accounts at payment service providers in Vietnam (Internet image)

1. 05 Principles when using joint accounts at payment service providers in Vietnam

According to Clause 4, Article 17 of Circular 17/2024/TT-NHNN, the use of joint accounts must follow the provisions in the agreement (or contract) on managing and using joint accounts by the account holders and must adhere to the following principles:

- The joint account holders have equal rights and obligations concerning the joint payment account, and the use of the joint payment account must be agreed upon by all account holders. Each account holder must be liable for all debt obligations arising from the use of the joint payment account;

- Notifications related to the use of the joint payment account must be sent to all account holders, except where there is a different agreement between the bank, foreign bank branch, and the joint account holders;

- Each joint account holder can authorize another person (including the other joint account holders) to use the joint payment account on their behalf, but it must be approved in writing by all remaining joint account holders;

- In case one of the individuals named in the joint payment account dies, is declared dead, is declared missing, or loses civil act capacity; or if the organization named in the joint payment account is dissolved, bankrupt, or terminates its operations according to the law, the rights to the account and obligations arising from the use of the joint payment account shall be resolved according to legal provisions;

- If the joint account holders have different nationalities or residency statuses, the joint payment account can only be used within the permissible scope agreed upon by all joint account holders according to the legal provisions on foreign exchange management.

2. 05 Principles for providing guidelines on use of checking accounts to customers in Vietnam

According to Clause 5, Article 17 of Circular 17/2024/TT-NHNN, banks and FBBs shall provide guidelines on use of checking accounts to customers that satisfy principles below:

- The scope of use and transaction limits for each customer group, compliant with risk management regulations, and the agreement on opening and using payment accounts as stated in Point c, Clause 1, Article 19 of Circular 17/2024/TT-NHNN;

- Sufficient necessary information to check, compare, and verify customer identification information during the use of payment accounts;

- Funds can only be withdrawn, and electronic payment transactions can only be carried out on the payment account once the identity documents and biometric information of the account holder or representative (for individual customers) or the legal representative (for organizational customers) have been accurately matched with:

+ Biometric data stored in the encrypted information storage section of the citizen identification card or ID card, which is accurately verified as issued by the Police authority or authenticated through the electronic identification account system; or

+ Biometric data collected through face-to-face meetings for foreigners who do not use electronic identification, or for Vietnamese expatriates with unclear nationality; or

+ Biometric data that has been collected and verified (ensuring a match between the biometric data of the individual and the biometric data stored in the encrypted information section of the citizen identification card or verified ID card issued by the Police authority or through electronic identification account authentication system); or

+ Biometric data of the individual stored in the National Population Database in case of using a citizen identification card without an encrypted information storage section;

- Applying authentication measures for each type of transaction in electronic payment services according to the regulations of the State Bank on safety and security for providing banking services via electronic means;

- The use of payment accounts in Vietnamese dong by non-residents, resident foreigners, and foreign currency accounts must comply with the provisions of Article 19 of Circular 17/2024/TT-NHNN and the legal provisions on foreign exchange management.

Vo Tan Dai

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