Nghị định 91/1999/ND-CP

DECREE

ON ORGANIZATION AND OPERATION OF THE BANKING INSPECTORATE

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Vietnam State Bank Law and the Law on Credit Institutions of December 12, 1997;
Pursuant to the Ordinance on Inspection of April 1^st, 1990;
At the proposals of the Governor of the State Bank of Vietnam and the Minister-Chairman of the Government Commission for Organization and Personnel,

DECREES

Chapter I

GENERAL PROVISIONS

Article 1.- Banking inspectorate is the State inspectorate specialized in banking, which is organized into a system in the apparatus of the Vietnam State Bank (hereafter referred to as the State Bank) and has its own seal.

Article 2.- Subject to the banking inspection are:

1. Organization and operation of credit institutions;

2. Banking activities of organizations other than credit institutions, which are licensed by the State Bank;

3. The observance of the law provisions on monetary and banking activities by agencies, organizations and individuals.

Article 3.- The banking inspectorate's activities aim to contribute to ensuring safety for the credit institutions system and protecting the legitimate rights and interests of money depositors, thus serving the implementation of the national monetary policy.

Article 4. - Contents of the banking inspectorate's activities:

1. To inspect the observance of legislation on monetary and banking activities as well as the observance of the provisions of banking operation licenses;

2. To detect, prevent and sanction administrative violations according to its competence; to propose the competent agencies to handle violations of legislation on monetary and banking activities;

3. To propose the State Bank Governor and directors of the State Bank’s provincial/municipal branches as well as the other competent agencies and organizations to apply measures to ensure the execution of the legislation on monetary and banking activities;

4. To verify, conclude on and propose the settlement of complaints and denunciations in accordance with the provisions of the Complaint and Denunciation Law, which are related to the banks’ organization and operations; to advise and assist the State Bank Governor in directing the prevention and fight against corruption in the banking sector.

Article 5.- The banking inspectorate’s activities shall comply only with law, ensuring the accuracy, objectivity, publicity, democracy and promptness; no agencies, organizations or individuals are allowed to unlawfully intervene in the operation of the banking inspectorate.

Chapter II

TASKS AND POWERS OF THE BANKING INSPECTORATE

Article 6.- The banking inspectorate shall have the following tasks and powers:

1. To regularly supervise and directly inspect organization and operations of credit institutions, banking activities of other organizations, as well as foreign exchange activities and gold trading, which fall into the State Bank’s State management function, in order to detect and prevent violations and propose measures to ensure the observance of legislation on monetary and banking activities;

2. To propose the State Bank Governor to apply the following handling measures:

a/ Placing credit institutions under the state of special control;

b/ Suspending a number of banking activities of credit institutions and other organizations involved in banking activities;

c/ Withdrawing the establishment and banking operation licenses of credit institutions: withdrawing banking operation licenses of other organizations.

3. To sanction administrative violations and propose sanctions against administrative violations in the field of monetary and banking activities according to the provisions of law;

4. To propose the State Bank Governor to allow or not allow auditing organizations to audit credit institutions;

5. To be entitled to make reservations about its opinions in cases where the head of the State Bank�s body of the same level disagrees with the conclusions of the banking inspectorate, and take responsibility for such opinions; at the same time, to report such to the competent State agency(ies) according to the provisions of the inspection legislation;

6. To investigate, verify, conclude on and propose the competent levels to handle, complaints and denunciations related to the banking service; to advise the State Bank Governor on the direction and inspection of the prevention and fight against corruption in the banking service according to the provisions of law;

7. To improve the inspection skills of officials and employees in the banking inspectorate;

8. To manage and direct the implementation of inspection programs, plans and activities in the banking service;

9. To perform tasks and exercise powers according to the provisions of Articles 8 and 9 of the Ordinance on Inspection as well as other tasks assigned by the State Bank Governor.

Article 7.- When conducting inspection, the banking inspectors shall have the following powers:

1. To request subjects under inspection and relevant parties to supply documents and evidences and clarify matters related to the inspection’s contents:

2. To make inspection record and propose handling measures;

3. To apply preventive measures and handle administrative violations according to the provisions of law;

4. To exercise other rights according to the provisions of the inspection legislation.

Article 8.- When conducting inspection, the banking inspectors shall have the following responsibilities:

1. To produce the inspection decision and inspectors’ cards;

2. To strictly comply, with the inspection order and procedures, not to cause troubles or harassment, thereby obstructing the normal banking activities and damaging the legitimate interests of the concerned credit institution as well as other organizations involved in banking activities;

3. To report to the State Bank Governor on the inspection results and propose handling measures;

4. To observe laws and be answerable to the State Bank Governor and before law for the inspection conclusions as well as all its acts and decisions.

Chapter III

ORGANIZATION OF THE BANKING INSPECTORATE

Article 9.- The organizational system of the banking inspectorate is composed of:

1. The State Bank Inspectorate;

2. The inspectorates of the State Bank's branches in the provinces and centrally-run cities (hereafter referred as the State Bank branch inspectorates);

3. The organizational structure of the banking inspectorate system shall be decided by the State Bank Governor after consulting and reaching agreement with the State Inspector General.

Article 10.- The banking inspectorate shall be subject to the direction of the State Bank Governor in performance of the banking inspection tasks nationwide.

Article 11. - The executive positions of the banking inspectorate include:

1. The chief inspector and deputy chief inspectors, for the State Bank Inspectorate;

2. The State Bank branch chief inspectors and deputy chief inspectors, for the State Bank branch inspectorates;

Article 12.- The State Bank chief inspector shall be appointed and dismissed by the Prime Minister upon the submission of the State Inspector General at the proposal of the State Bank Governor.

The appointment and dismissal of other positions and titles of banking inspectors shall comply with the provisions of the current inspection legislation.

Article 13.- The State Bank chief inspector shall have the following tasks and powers:

1. To direct, organize the performance of and perform tasks as well as exercise powers of the banking inspectorate as stipulated in Article 6 of this Decree:

2. To decide the establishment of inspection teams or send inspectors to inspect or re-inspect credit institutions and other organizations involved in banking activities;

3. To temporarily suspend (for a definite time) the execution of decisions issued by credit institutions and other organizations involved in banking activities if such decisions contravene the Vietnam State Bank Law, the Law on Credit Institutions and the inspection legislation; and at the same time, report thereon to the Governor of the State Bank;

4. To temporarily suspend (for a definite time) the execution of disciplining or job transfer decisions, issued by heads of the agencies or units directly managed by the State Bank Governor, against persons who are collaborating with the banking inspectorate or are subject to the inspection, if deeming that the execution of such decisions obstructs the inspection. If the above-said decisions are issued by the heads of agencies or units other than those directly managed the State Bank Governor, to propose the competent level to make decision, and at the same time report thereon to the State Bank Governor.

5. To issue warnings against or temporarily suspend (for a definite time) jobs of those personnel of agencies or units directly managed by the State Bank Governor, who deliberately obstruct the inspection or refuse to meet the requirements and/or to execute proposals and decisions of the banking inspectorate; if such persons are the heads of agencies or units directly managed by the State Bank Governor or those not managed by the State Bank Governor, to propose the competent level to make decision, and at the same time report thereon to the State Bank Governor;

6. To temporarily suspend (for a definite time) jobs of those personnel of credit institutions and other organizations involved in banking activities, if there are grounds to believe that such persons have violated the legislation on monetary and banking activities; and at the same time, report thereon to the State Bank Governor;

7. To temporarily suspend (for a definite time) the wrong banking activities of credit institutions and other organizations involved in banking activities, if having grounds to believe that such activities violate the legislation on monetary and banking activities; and at the same time, report thereon to the State Bank Governor.

8. To exercise other rights as stipulated in Articles 9 and 14 of the Ordinance on Inspection.

Article 14. - The chief inspector of the State Bank's branch inspectorate shall have the following tasks and powers:

1. To organize the implementation of the banking inspection programs and plans of the State Bank’s Inspectorate;

2. To issue decisions or propose the director of the State Bank's provincial/municipal branch to issue decisions on examination and inspection of credit institutions and other organizations involved in banking activities, within the ambit of the State Bank branch’s management responsibility;

3. To temporarily suspend (for a definite time) the execution of decisions of credit institutions and other organizations involved in banking activities, if such decisions contravene the Vietnam State Bank Law and the Law on Credit Institutions as well as the inspection legislation; and at the same time, report thereon to the director of the State Bank's branch and the chief inspector of the State Bank;

4. To propose the director of the State Bank's branch to apply the following measures:

a/ Suspending a number of banking activities of credit institutions and other organizations involved in banking activities, which comes under the competence of the director of the State Bank's branch;

b/ Withdrawing the establishment and banking operation licenses of credit institutions as well as the banking operation licenses of other organizations, which comes under the competence of the director of the State Bank’s branch;

5. To sanction according to his/her competence and propose the director of the State Bank’s branch to sanction administrative violations in the field of monetary and banking activities according to the provisions of law, and at the same time report thereon to the chief inspector of the State Bank;

6. To temporarily suspend (for a definite time) the execution of disciplining or job transfer decisions, issued by the heads of agencies or units under the management of the director of the State Bank's branch, against persons who are collaborating with the banking inspectorate or subject to the inspection, if deeming that the execution of such decisions obstructs the inspection. If the above-said decisions are issued by the heads of agencies or units not directly managed by the director of the State Bank's branch, to propose the competent level to make decision; and at the same time, report thereon to the director of the State Bank's branch and the chief inspector of the State Bank;

7. To serve warnings against or temporarily suspend (for a definite time) jobs of persons who deliberately obstruct the inspection or refuse to meet the requirements and proposals or execute decisions of the banking inspectorate. If such persons are the heads of agencies or units directly managed by the director of the State Bank branch or are personnel of agencies or units other than those subject to the management of the director of State Bank branch, to propose the competent level to make decision; and at the same time, report thereon to the director of the State Bank branch and the chief inspector of the State Bank;

8. To be entitled, in the course of inspection, to request the temporary suspension (for a definite time) of the banking activities which are contrary to law, and at the same time report thereon to the director of the State Bank's branch and the State Bank's chief inspector;

9. To perform tasks and exercise powers stipulated in Clauses 1, 6 and 9, Article 6 of this Decree.

Chapter IV

BANKING INSPECTORS

Article 15.- Banking inspectors shall all have to meet the criteria set for the State inspectorate officials according to the current provisions of law.

Article 16.- Banking inspectors (grade I) must be appointed from among officials who have been engaged in the banking operations for at least 3 years, including 1 year in the banking inspectorate.

Article 17. - Banking inspectors, while on duty, shall have the tasks and powers defined in the Ordinance on Inspection of April 1^st, 1990, the Vietnam State Bank Law and the Law on Credit Institutions of December 12, 1997 as well as this Decree.

Article 18. - Inspectors in the banking inspectorate system shall enjoy preferential regimes and policies and equipped with professional technical facilities according to the current provisions of law.

Chapter V

RELATIONSHIP BETWEEN THE BANKING INSPECTORATE AND THE RELEVANT AGENCIES

Article 19.- The banking inspectorate as subject to the State Inspeciorate's direction and guidance on inspection organization and operation and establish other relations with the State Inspeciorate according to the provisions of the inspection legislation.

Article 20.- In the course of inspecting organization and operation of credit institutions as well as the banking activities of other organizations, if detecting any signs of law offenses in the field of State management by the ministries, ministerial-level agencies, agencies attached to the Government, local agencies or units, the banking inspectorate shall have to notify the inspectorates of such ministries, ministerial-level agencies, agencies attached to the Government, local agencies or units thereof.

During the inspection and/or examination of activities which fall within their respective fields of State management, the inspectorates of the ministries, ministerial-level agencies and agencies attached to the Government as well as the State inspectorates of different localities shall, if detecting any signs of violation of the legislation on monetary and banking activities, have to notify the banking inspectorate thereof; if such violations reveal signs of criminal offenses, they shall have to transfer the dossiers to the competent investigation agencies, and at the same time notify the banking inspectorate thereof.

Article 21.- The banking inspectorate shall have to coordinate with the investigation agencies, the people’s procuracies and the people's courts of different levels in the prevention of and fight against crimes in the field of monetary and banking activities as prescribed by law.

In the course of inspection, if any credit institutions or other organizations involved in banking activities are found with signs of criminal offenses, the banking inspectorate shall have to transfer dossiers to the competent investigation agencies;

When necessary, the investigation agencies shall have to coordinate with the banking inspectorate in inquiring into matters related to the banking activities of credit institutions, other organizations and individuals.

Article 22. - The banking inspectorate may employ collaborators for their inspection activities according to the current provisions of the inspection legislation.

Chapter VI

COMMENDATION AND DISCIPLINE

Article 23.- Officials, employees, collaborators and banking inspection organizations that have recorded achievements in their inspection activities shall be commended and/or rewarded as prescribed by law.

Article 24.- Banking inspectors, who commit acts of violating the provisions of law, lack of responsibility while on duty, cover organizations and/or individuals that violate the legislation on monetary and banking activities as well as the provisions of this Decree shall, depending on the seriousness of their violations, be disciplined or examined for penal liability and if causing any damages, have to pay compensation therefor as prescribed by law.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 25. - This Decree takes effect 15 days after its signing. The earlier provisions which are contrary to this Decree are all now annulled.

Article 26. - The State Bank Governor shall have to guide the implementation of this Decree.

Article 27.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decree.