Quyết định 316/QD-TTg

DECISION

APPROVING PILOT IMPLEMENTATION OF TELECOMMUNICATION ACCOUNTS FOR PAYMENT OF LOW VALUE COMMODITIES AND SERVICES

PRIME MINISTER

Pursuant to Law on Governmental Organization dated June 19, 2015; Law on amendments to Law on Government Organization and Law on Local Governmental Organization dated November 22, 2019;

Pursuant to Law on Prevention of Money Laundering dated June 18, 2012;

Pursuant to Decree No. 138/2016/ND-CP dated October 1, 2016 on Operation regulations of the Government regarding resolution of Prime Minister’s affairs;

Pursuant to Resolution No. 52-NQ/TW dated September 21, 2019 of Politburo on policies on active participation in the Fourth industrial revolution;

Pursuant to Decision No. 149/QD-TTg dated January 22, 2020 of Prime Minister on approval of national financial inclusion strategy until 2025 with orientation to 2030;

Pursuant to Resolution No. 02/NQ-CP dated January 1, 2020 of the Government on continuation of primary tasks and solutions for improving business environment and increasing national competitive capacity in 2020;

Pursuant to Directive No. 11/CT-TTg dated March 4, 2020 of Prime Minister on emergency tasks and solutions for dealing with difficulties of business operations and ensuring social security in response to the Covid-19 epidemic;

At request of Governor of the State bank of Vietnam under Document No. 07/TTr-NHNN dated February 19, 2021;

HEREBY DECIDES:

Article 1. Approving pilot implementation of using telecommunication accounts for payment of low value commodities and services (Mobile-Money) under following clauses:

I. OBJECTIVES

1. Develop non-cash payments, increase access and use of financial services, especially in rural areas, mountainous regions, remote and isolated areas, borders and islands of Vietnam.

2. Utilize infrastructure, data and telecommunication network, reduce social costs for developing and expanding non-cash payment channels on mobile devices, and benefit users.

3. Results of pilot implementation of Mobile-Money shall serve as the basis for competent supervisory agencies to consider, develop and issue official regulations on provision of Mobile-Money service in Vietnam.

II. PILOT IMPLEMENTATION SCOPE

1. Entities responsible for pilot implementation:

Enterprises having license for providing intermediate payment service of e-wallet and license for establishing terrestrial mobile public telecommunication network utilizing radio frequency or subsidiaries permitted to utilize telecommunication infrastructure, network and data by parent companies having license for establishing terrestrial mobile public telecommunication network utilizing radio frequency (hereinafter referred to as “pilot implementation enterprises”).

2. Customers:

Individual customers registering and using Mobile-Money service must provide ID Card (CMND)/Citizen Identity Card (CCCD)/passport displaying information used for registering mobile subscription of the customers and identified, verified by pilot implementation enterprises according to regulations of the Government on registration of mobile subscription; the mobile subscription must be activated and used continuously for at least 3 consecutive months up to the time of registering and using Mobile-Money service. Each customer is eligible to only 1 Mobile-Money account in each pilot implementation enterprise.

3. Location for implementation

Pilot implementation shall be carried out on a nationwide scale, in which pilot implementation enterprises must prioritize implementation of Mobile-Money in rural areas, mountainous regions, remote and isolated areas, borders and islands of Vietnam.

4. Commodities and services:

Pilot implementation enterprises shall only provide Mobile-Money service to enable remittance and payment for commodities and services that are legal in Vietnam as per applicable laws to serve the general public’s demand; Mobile-Money service shall only be provided for legal domestic transaction as per Vietnamese law in Vietnam Dong (VND) but not cross-border payment/remittance for commodities or services.

5. Implementation period:

Implementation period: 2 years from the date on which the first pilot implementation enterprise(s) is/are approved to carry out pilot implementation of Mobile-Money service.

III. DETAILS OF PILOT IMPLEMENTATION

1. Regarding use of Mobile-Money service:

Pilot implementation enterprises shall provide Mobile-Money service for:

a) Cash deposit into Mobile-Money accounts in business locations (business location are selected according to criteria under Point a Clause 1 Section V hereof); money deposit into Mobile-Money accounts from customers’ checking accounts (who are owners of the beneficiary Mobile-Money accounts) in financial institutions or customers’ e-wallets (who are owners of the beneficiary Mobile-Money accounts) in pilot implementation enterprises providing Mobile-Money service;

b) Cash withdrawal from Mobile-Money accounts in business locations; money withdrawal from Mobile-Money accounts to customers’ checking accounts (who are owners of the Mobile-Money accounts) in financial institutions or to customers’ e-wallets (who are owners of the Mobile-Money accounts) in pilot implementation enterprises providing Mobile-Money service;

c) Payment for commodities and services in locations that accept payments via Mobile-Money;

d) Remittance between Mobile-Money accounts of customers in the same systems of pilot implementation enterprises, between Mobile-Money accounts of customers with checking accounts in financial institutions, between Mobile-Money accounts with e-wallets provided by pilot implementation enterprises.

2. Mobile-Money service limit:

A limit of VND 10 million/month/Mobile-Money account is applied to all withdrawal, remittance and payment activities combined.

IV. PROHIBITED ACTS

1. Provide or use other channels, methods (other than those specified under Section III hereof) to deposit/withdraw money from Mobile-Money accounts.

2. Provide or use Mobile-Money accounts for activities other than deposit, withdrawal, payment and remittance specified under Section III hereof.

3. Pilot implementation enterprises extend credit for Mobile-Money customers, pay interest based on Mobile-Money account balance or any activities that may increase monetary value in Mobile-Money accounts to more than the amount deposited by customers.

4. Pilot implementation enterprises conduct banking activities (giving loans, mobilizing capital).

5. Provide or use Mobile-Money accounts to conduct transactions serving money laundering, terrorism financing, fraud or other violations against regulations and law.

6. Rent, lease, borrow, lend, exchange, gift, give, purchase or sell Mobile-Money accounts or information thereof.

7. Pilot implementation enterprises use the money in Mobile-Money accounts of customers for other purposes of the enterprises.

V. IMPLEMENTATION

1. Pilot implementation enterprises:

a) Pilot implementation enterprises shall submit application for pilot implementation of Mobile-Money service to the State Bank of Vietnam for consideration and appraisal, consisting of:

- Pilot implementation scheme of Mobile-Money service (master register), which must include following details:

+ Business process: Pilot implementation enterprises must develop procedures (flowcharts and explanation for every step, cash flow from the point of transaction initiation to the point of obligation settlement among relevant parties) for operations specified under Section III hereof.

+ Pilot implementation enterprises must establish separate departments/divisions for operating and providing Mobile-Money service and develop specific measures for managing Mobile-Money accounts and mobile subscription SIM accounts (which are accounts serving provision and use of mobile communication services, telecommunication services) individually.

+ Regulations on liquidity assurance:

(i) Pilot implementation enterprises must open liquidity assurance accounts in commercial institutions and maintain the balance no lower than the total balance of all Mobile-Money accounts of customers at any given time; develop risk management mechanisms regarding liquidation to guarantee legal rights and benefits of customers. Liquidity assurance accounts for Mobile-Money service must be separated from other checking accounts of pilot implementation enterprises in commercial institutions (liquidity assurance accounts for e-wallet service, advance collection, advance payment, checking accounts for fees, salary accounts and other accounts of pilot implementation enterprises). Commercial institutions are responsible for making sure that pilot implementation enterprises only use liquidity assurance accounts for Mobile-Money service-related affairs rather than other purposes and keep liquidation assurance accounts for Mobile-Money service separate from other checking accounts of the enterprises in the commercial institutions;

 (ii) Pilot implementation enterprises must develop tools to enable the State Bank of Vietnam, Ministry of Information and Communications and Ministry of Public Security to access the system for information and data extraction and real-time supervision of total balance of all Mobile-Money accounts and balance of all liquidity assurance accounts for Mobile-Money service of the pilot implementation enterprises in commercial institutions; developed tools must enable supervisory agencies to supervise compliance of pilot implementation enterprises with Section IV hereof. Pilot implementation enterprises must provide all information of Mobile-Money accounts of customers on the tools and be legally responsible for accuracy of provided information.

+ Regulations on know your customer (KYC):

(i) Pilot implementation enterprises are responsible for KYC for Mobile-Money service customers: Develop tools for risk management and KYC procedures to assure that only customers eligible according to Clause 2 Section II hereof can register and use Mobile-Money service; decide on whether face-to-face meeting is required for customers registering and using Mobile-Money service for the first time. In case face-to-face meeting is not required, pilot implementation enterprises must develop and issue procedures for online registration and use of Mobile-Money service satisfactory to money laundering prevention laws, guarantee availability and adoption of measures, solutions and technology for recognizing and identifying customers; be fully responsible for customer’s information; develop verification process for each transaction of Mobile-Money accounts; develop administration measures for cases in which an individual uses multiple Mobile-Money accounts for remittance and/or payment for individuals, entities accepting payment in Vietnam territory; develop measures for restricting and eliminating SIM with incorrect/inadequate information;

(ii) Pilot implementation enterprises shall develop procedures, tools and provide guidelines, training for their personnel, business locations regarding procedures for recognizing customers, verifying, updating customers’ information and be responsible for KYC affairs of business locations.

+ General principle and internal regulations on prevention of money laundering and terrorism financing:

Pilot implementation enterprises must develop general principles and internal regulations on prevention of money laundering and terrorism financing as per applicable laws; establish methods of cooperating and informing competent authorities (Ministry of Information and Communications, Ministry of Public Security, State Bank of Vietnam) about Mobile-Money accounts suspected for involvement in criminal activities, violations against regulations and law, unusual/suspicious transactions (provided information must include all available information on Mobile-Money accounts); develop mechanisms for temporarily locking/freezing violating Mobile-Money accounts as soon as signs of violations against regulations and law are visible.

+ Regulations on selection and management of business locations:

(i) Pilot implementation enterprises must develop specific criteria for assessing (financial, infrastructure, personnel) capacity of business locations (in which, business locations are telecommunication service providers with defined address established by pilot implementation telecommunication enterprises or other telecommunication service providers which are juridical persons authorized by pilot implementation telecommunication enterprises under contracts) which serve as the basis for defining daily transaction limit and monthly transaction limit of each business location. Pilot implementation enterprises must have authorization agreement with business locations that are other juridical persons authorized by the enterprises; develop mechanisms for controlling and being entirely responsible for all activities and risks that arise in their business locations;

 (ii) Pilot implementation enterprises must equip and deploy artificial intelligent (AI) technology and big data in business locations to recognize and verify customers (facial recognition, iris recognition, etc.) registering and using Mobile-Money service; ensure that business locations do not convert payment cards for mobile communication service to Mobile-Money accounts, do not allow unmanageable amount of Mobile-Money accounts, deviations or abuse of Mobile-Money service for violations against the law;

(iii) Pilot implementation enterprises must develop mechanisms for controlling cash transactions (cash deposit and withdrawal from Mobile-Money accounts) that occur in business locations to verify and control precisely the amount of money received from customers; perform reconciliation with total balance of Mobile-Money accounts of customers; ensure that the money received from customers have been deposited in a 1:1 ratio to their Mobile-Money accounts by business locations. Pilot implementation enterprises must be responsible for any loss in Mobile-Money accounts of customers (except for cases in which the loss stems from customer’s actions) or inconsistency between amount of money credited to Mobile-Money accounts and deposited amount;

(iv) Pilot implementation enterprises must publicize list of business locations on their website, applications and business locations;

(v) Pilot implementation enterprises must develop mechanisms for internal control and audit, and requirements for improving and providing professional training for personnel in business locations. Request business locations to submit periodic reports and immediate reports on unusual/suspicious transactions to pilot implementation enterprises;

(vi) Pilot implementation enterprises must develop payment safety assurance mechanisms for business locations; procedures for processing transactions between pilot implementation enterprises and business locations for each activity; procedures for reconciliation, settlement and finalization; procedures for processing inspection and traceability, complaints and/or disputes of customers regarding transactions conducted in business locations.

+ Regulations on managing entities allowing payment (hereinafter referred to as “agents”):

(i) Pilot implementation enterprises are responsible for: (i) selecting and entering into contracts with agents (stores and entities providing commodities and services accepting payment via Mobile-Money accounts) engaged in legal businesses, commodities and services as per Vietnamese laws; (ii) supervising and inspecting agents during contract execution period; (iii) issuing internal regulations regarding procedures for recognizing and verifying agents, classified by risk levels; (iv) issuing regulations on receiving payment for commodities and services between pilot implementation enterprises and agents;

(ii) Pilot implementation enterprises must enter into contracts for accepting payment via Mobile-Money accounts with agents as per the law.

+ Regulations on information technology:

(i) Pilot implementation enterprises must develop systems satisfactory to level 3 information system security as per applicable laws. Information technology infrastructure and solutions serving Mobile-Money service provision must guarantee continuous and safe operation throughout pilot implementation period of Mobile-Money service;

(ii) Pilot implementation enterprises must develop appropriate tools and solutions for accurately identifying Internet Protocol (IP) and subscribers to track real users of Mobile-Money accounts;

(iii) Pilot implementation enterprises must develop storage systems for Mobile-Money transaction history (namely: deposit, withdrawal, remittance and payment for commodities and services); storage systems for customers’ identity, equipment identity, IP address (except for USSD transaction), media access control (MAC) address (except for USSD transaction), international mobile equipment identity (IMEI), time of transaction, transaction details, sender accounts, receiver accounts, balance, location of transaction, etc. from the point of opening accounts to the point closing accounts, which contain information serving traceability of service users (store information of closed Mobile-Money accounts for at least 2 years); keep copies of stored information to serve inspection, investigation and provide information promptly at request of competent authorities. IP address and time of login must be stored for at least 2 years. Regarding accounting documents, pilot implementation enterprises must store according to Law on Accounting.

+ Regulations on rights and responsibilities with customers:

(i) Pilot implementation enterprises must comply with regulations and law on consumer protection during pilot implementation of Mobile-Money service;

(ii) Pilot implementation enterprises must develop regulations and mechanisms regarding dealing with inspection, traceability, complaints and disputes of customers as per applicable laws;

(iii) Pilot implementation enterprises must develop disposal measures in case Mobile-Money accounts of customers still contain money while mobile number is revoked and given to other customers by pilot implementation enterprises or mobile subscribers have changed to mobile communication services provided by other telecommunication enterprises according to procedures for changing network providers and retaining subscription number;

(iv) Pilot implementation enterprises must fully, accurately, coherently and transparently inform customers about provided services; fees; clauses and conditions; rights and benefits of customers, responsibilities of pilot implementation enterprises for assuring legal rights and benefits of customers;

(v) Pilot implementation enterprises must develop regulations on encrypting and control access to customer information and transaction information to ensure information safety and protect customer data gathered by pilot implementation enterprises; store information related to accounts, Mobile-Money account balance of customers on systems to guarantee legal rights and benefits of customers;

(vi) Pilot implementation enterprises must regulate and publicize rights and responsibilities of customers when registering for Mobile-Money service.

+ Pilot implementation enterprises must develop procedures for internal inspection and control; risk assessment and specific risk management and handling measures.

+ Pilot implementation enterprises must develop systems for monitoring and controlling in order to accurately reflect revenues generated from provision of Mobile-Money service which serves as the basis for identifying value-added tax (VAT), corporate income tax, person income tax and other expenses as per tax laws.

- License for providing intermediate payment service (certified true copies).

- License for establishing terrestrial mobile public telecommunication network utilizing radio frequency (certified true copies).

- Personnel dossiers: Personal background sheet (self-produced personal background sheet must receive signature authentication as per the law), copies (certified true copies, copies issued from master registers or copies accompanied by master registers for comparison as per the law) of certificates proving professional capacity of legal representatives, General Directors, Deputy General Directors and key officials engaged in Pilot implementation scheme for Mobile-Money service; criminal records or equivalent documents of legal representatives and General Directors as per the law (issued no more than 6 months before the date of application for pilot implementation of Mobile-Money service); documents of authorized representatives of current or past workplaces of legal representatives and General Directors verifying positions and position duration or copies of documents verifying positions and position duration of legal representatives and General Directors.

b) After receiving approval for pilot implementation, pilot implementation enterprises must fully comply with this Decision and relevant law provisions; regularly review, detect suspected signs in use of Mobile-Money service and promptly report to competent agencies (Ministry of Information and Communications, State Bank of Vietnam, Ministry of Public Security).

c) Pilot implementation enterprises must be responsible for all activities that occur during pilot operation and implementation of Mobile-Money service. A pilot implementation enterprise that violates regulations under this Decision or allows any deviation or abuse of Mobile-Money service for violations against the law shall be suspended from participating in pilot implementation and deal with consequences arising from violations against applicable laws.

d) Submit irregular reports at request of regulatory agencies or quarterly/annual reports on Mobile-Money service pilot implementation results to State Bank of Vietnam, Ministry of Information and Communications and Ministry of Public Security. Quarterly reports shall start from the 1^st of the first month in a quarter to the last date of the last month in a quarter (pilot implementation enterprises shall submit reports for 1^st Quarter, 2^nd Quarter and 3^rd Quarter); reports must be submitted by the 5^th of the first month in the following quarter. Annual reports shall start from January 1 to December 31; reports must be submitted by the 15^th of the first month in the year following reporting period.

2. State bank of Vietnam:

a) On the basis of proposition of pilot implementation enterprises, the State Bank of Vietnam shall take charge and cooperate with Ministry of Information and Communications, Ministry of Public Security and relevant ministries in guiding, appraising application for pilot implementation of Mobile-Money service of pilot implementation enterprises, assessing adoption of this Decision for approval of pilot implementation on a case-by-case basis; monitoring implementation, guiding and providing explanations for issues that arise during pilot implementation of Mobile-Money services for payment.

b) Be responsible for monitoring and supervising balance of liquidity assurance accounts for provision of Mobile-Money service of pilot implementation enterprises in commercial institutions to ensure that account balance is not lower than total balance of all Mobile-Money accounts of customers at any given time.

c) Cooperate with Ministry of Information and Communications, Ministry of Public Security in inspecting pilot implementation enterprises and business locations carrying out pilot implementation of Mobile-Money service.

d) On a 6-monthly basis, consolidate and submit reports to Prime Minister on implementation, recommendations and propositions regarding arising issues (if any); take charge concluding and assessing after 2 years of pilot implementation, submitting reports on pilot implementation results and proposing appropriate policies.

3. Ministry of Information and Communications:

a) Cooperate with State Bank of Vietnam in guiding, appraising and assessing fulfillment of pilot implementation requirements (relating to state management functions of Ministry of Information and Communications) under this Decision and other relevant law provisions in case of application for pilot implementation of Mobile-Money service of pilot implementation enterprises.

b) Manage and supervise activities of pilot implementation enterprises and business locations during pilot implementation period to guarantee compliance with this Decision and relevant law provisions; supervise compliance of pilot implementation enterprises with regulations on prohibited acts and violations; manage collection of Mobile-Money service fees of pilot implementation enterprises; guide and provide explanation for issues that arise during pilot implementation relating to use of telecommunication accounts, telecommunication application and internet in Mobile-Money service.

c) Take charge and be responsible for inspecting, investigating (at least once per year) pilot implementation enterprises and their business locations during pilot implementation of Mobile-Money service; cooperate with State Bank of Vietnam in consolidating and assessing after 2 years of pilot implementation of Mobile-Money service and proposing appropriate policies.

4. Ministry of Public Security:

a) Cooperate with State Bank of Vietnam in guiding, appraising and assessing fulfillment of pilot implementation requirements (relating to state management functions of Ministry of Public Security) under this Decision and other relevant law provisions in case of application for pilot implementation of Mobile-Money service of pilot implementation enterprises.

b) Perform state management functions regarding security for pilot implementation enterprises; cooperate with Ministry of Information and Communications and State Bank of Vietnam in detecting and dealing with violations, prohibited acts; cooperate with Ministry of Information and Communications in managing, examining, inspecting provision of Mobile-Money service of pilot implementation enterprises and their business locations.

c) Actively detect, investigate and promptly deal with abuse of Mobile-Money service for violating regulations and law; cooperate with State Bank of Vietnam and Ministry of Information and Communications in concluding and assessing after 2 years of pilot implementation of Mobile-Money service and proposing appropriate policies.

5. Ministry of Finance:

Ministry of Finance shall conduct inspection as per inspection laws and other regulations for pilot implementation enterprises.

6. If necessary, ministries shall issue guiding documents within their competence during implementation.

Article 2. This Decision comes into effect from the day of signing.

Article 3. Governor of State Bank of Vietnam, Minister of Information and Communications, Minister of Public Security, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities are responsible for implementing this Decision./.