Văn bản hợp nhất 15/VBHN-NHNN

CIRCULAR

ON GUIDELINES FOR OPENING AND MAINTENANCE OF CHECKING ACCOUNTS AT PAYMENT SERVICE PROVIDERS

Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the Governor of the State Bank of Vietnam  on guidelines for opening and maintenance of checking accounts at payment service providers, coming into force as of October 15, 2014, amended by:

Circular No. 02/2019/TT-NHNN dated February 28, 2019 of the Governor of the State Bank of Vietnam on amendments to Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the Governor of the State Bank of Vietnam  on guidelines for opening and maintenance of checking accounts at payment service providers, coming into force as of March 1, 2019.

Circular No. 16/2020/TT-NHNN dated December 4, 2020 of the Governor of the State Bank of Vietnam on amendments to Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the Governor of the State Bank of Vietnam  on guidelines for opening and maintenance of checking accounts at payment service providers, coming into force as of March 5, 2021.

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated 16 June 2010;

Pursuant to the Civil Code No. 33/2005/QH11 dated 14 June 2005;

Pursuant to the Decree No. 101/2012/ND-CP dated 22 November 2012 of the Government on non-cash payment;

Pursuant to the Decree No. 156/2013/ND-CP dated 11 November 2013 of the Government providing for the functions, duties, authorities and organizational structure of the State Bank of Vietnam;

At the request of the Director of the Payment Department,

The Governor of the State Bank of Vietnam promulgates a Circular on guidelines for opening and maintenance of checking accounts at payment service providers. [1]^,[2].

Chapter I

GENERAL REGULATIONS

Article 1. Scope

1. This Circular provides guidance on the opening and use of checking accounts by entities, individuals at payment service providers.

2.[3] (annulled)

3. The opening and use of checking account in foreign currency by residents and non- residents, checking accounts in VND by non-residents and residents who are foreign individuals shall be conformable to laws and regulations on foreign exchange control and provisions of this Circular.

Article 2. Regulated entities

1. Payment service providers shall include:

a) The State Bank;

b) Commercial banks, banks for social policies, cooperative banks (hereinafter collectively referred to as banks);

c) Foreign bank branches.

2. Entities, individuals who open checking accounts at payment service providers (hereinafter called customers).

3. Other entities, individuals relating to the opening and use of checking accounts at payment service providers.

Article 3. Forms of opening checking accounts and interest payment for the balance on the checking account

1. Forms of opening checking accounts shall include personal checking account, corporate checking account and shared checking accounts.

2. Personal checking account shall mean an account that is opened by an individual at a payment service provider.

3.[4] Corporate checking account means an account opened by a corporate customer at the payment service provider. Holder of a corporate checking account is the organization opening that checking account. The legal representative or authorized representative (hereinafter referred to as “legal representative”) of the organization opening the checking account shall, on behalf of that organization, carry out transactions via that checking account within his/her competence.

4. Shared checking account shall mean the account as prescribed in Clause 3 Article 10 of Decree 101/2012/ND-CP dated 22 November 2012 on non-cash payment.

5.[5] Interests on checking account balances shall be calculated according to the rate of interests on demand deposits. Interest rates will be determined and openly posted by payment service providers in accordance with regulations of law.

Article 4. Authorization in use of checking account

1.[6] The checking account holder is entitled to authorize another person to use its/his/her checking account.

2.[7] The authorization to use the checking account must be made in writing in accordance with applicable regulations on authorization.3. For the purpose of authorization in using checking account, the account holder shall submit the letter of authorization together with the registration of signature specimen and a copy of the ID card or valid passport of the attorney (if the copy is not certified, the original thereof shall be presented for comparison) to the payment service provider where the account is opened.

Article 5. Rights and obligations of checking account holder

1. The checking account holder shall have following rights:

a) To use the amount of money on his account for performance of legal and valid payment orders.  The payment service provider (where the account is opened) shall facilitate the account holder to use his checking account conveniently and safely;

b) To select the means of payment, services and utilities of payment offered by the payment service provider;

c) To authorize another person to use his checking account in accordance with provisions in Article 4 of this Circular;

d) To request the payment service provider who his account is opened to perform legal and valid payment orders and to be supplied with information on payment transactions, account balance as per the agreement with the payment service provider;

dd) To request the payment service provider where his account is opened to temporarily lock, close the checking account upon necessity; to send a notice to the payment service provider of any dispute in regard of the shared account among the shared account holders;

e) Other rights in accordance with laws or written agreement between the account holder and the payment service provider, which are not contrary to prevailing laws and regulations.

2. Checking account holder shall have following obligations:

a) To maintain available balance on the checking account to service the set up payment orders. In case where there exists an overdraft agreement with the payment service provider where the checking account is opened, related obligations must be fulfilled upon paying in excess of the Credit balance on the account;

b) To implement regulations on opening and use of checking accounts as provided for in this Circular;

c) To timely notify the payment service provider, where his checking account is opened, upon finding out any errors, mistakes on his account or having a doubt that his account is misused;

d) To refund or coordinate with the payment service provider in refunding the amounts which were credited to his account by virtue of errors, mistakes;

dd)[8] Provide sufficient, clear and accurate information concerning the opening and use of checking account. Any changes in information provided in the application for checking account opening must be notified to the payment service provider where the checking account is opened in a timely manner and supported by relevant documents. Changing information concerning the checking account opened at the State Bank of Vietnam shall be made according to the Appendix 03 enclosed herewith;

e) To maintain a minimum balance on the checking account as stipulated by the payment service provider;

g) To take responsibility for any damage caused by the mistakes or being misused, defrauded upon using payment service via account at his fault;

h) Not to lease, lend his checking account;

i) Not to use the checking account for transactions in relation to money laundering, terrorism financing, swindling, fraud or any other illegal acts.

Article 6. Rights and obligations of payment service providers

1. Payment service providers which open checking accounts for customers shall have following rights:

a) Payment service providers shall be entitled, at the own discretion, to deduct from (Debit to) the checking account of customer in following cases:

- For collecting due, overdue debts, interest and other charges arising during the account management and supply of payment services as per the written agreement signed with the customers in conformity with applicable laws and regulations;

- Upon request by competent state regulator in judicial execution of decision on administrative sanction, judgment enforcement decision, tax collection decision or other payment obligations in accordance with laws and regulations;

- For adjusting items that are wrongly accounted, or that are not accounted to the right nature or not conformable to the details of the checking account in accordance with applicable laws and regulations and notify the account holder for information;

- Upon finding out the customer’s account is Credited wrongly or upon request for cancel of Credit order from the remitting payment service provider because such remitting payment service provider finds out some mistakes against the payment order of the remitter;

- For regular payments as per the agreement between the account holder and the payment service provider.

b) To refuse the payment order of account holder in following cases:

- The account holder fails to fulfill requirements of payment procedure, payment order is invalid, or not compatible to registered details in the account opening file or not conformable to the agreement between the account holder and the payment service provider;

- Balance on the checking account is insufficient or in excess of the overdraft limit for performing the payment order;

- Upon receiving a written request from a competent state regulator or having appropriate evidence showing that the payment order is for the purpose of money laundering, terrorism financing as stipulated by laws and regulations on anti-money laundering;

- The checking account is temporarily locked, totally blockaded or the checking account is being closed, the checking account is temporarily locked or blockaded partially whereas the remaining balance that is not locked, blockaded, is not sufficient (for the case of overdraft) or is in excess of the overdraft limit for performing payment orders.

c) To refuse request for temporary lock, close of checking account by the holder or otherwise the shared checking account is not blockaded yet in accordance with provisions in Item d Clause 1 Article 17 of this Circular when the account holder has not fulfilled yet his payment obligations under an enforcement decision of the competent state regulator or has not fully paid the payables to the payment service provider where his account is opened;

d) To stipulate on the minimum balance on the checking account, which shall be announced publicly and guided in details to the customer;

dd) To stipulate and apply measures of safety, security in the opening and use of checking accounts in accordance with applicable laws and regulations;

e) Other rights in accordance with laws or written agreement between the account holder and the payment service provider, which are not contrary to prevailing laws and regulations.

2. Payment service providers shall have following obligations:

a) To execute the payment order of the account holder after having verified, checked the legality, validity of the payment order;

b)[9] Keep and sufficiently update specimens of signatures and seals (if any) of customers for the purposes of verification during the use of checking accounts by customers;

c) To timely Debit to the customer’s checking account for inward remittance orders, deposits to account; to timely refund the amounts that were wrongly Debited to the customer’s checking account;

d)[10] Provide information in a timely and sufficient manner about the balance and transactions conducted via the checking account and the blockage of checking account in writing or in any other forms prescribed in the agreement on checking account opening, and assume responsibility for the accuracy of provided information;

dd) To timely update information upon having any change in the opening file customer’s checking account. To maintain the opening file of account and documents of account transactions in compliance with applicable laws and regulations;

e) To keep the secret of information relating to the checking account and transactions on the checking account of the holder in accordance with applicable laws and regulations;

g) To be liable for any damage that is caused by virtue of mistakes or act of misuse, fraudulence on the customer’s checking account at the payment service provider’s fault;

h) To comply with laws and regulations on anti-money laundering and counter-terrorism financing;

i) To set up internal procedures on the opening and use of checking accounts and maintain the minimum balance on the checking account. To instruct and inform the customer publicly and answer, promptly handle queries, complaints facing during the opening and use of checking accounts.

Chapter II

OPENING AND USE OF CHECKING ACCOUNTS AT THE STATE BANK

Article 7. Entities entitled to open checking accounts

1. State Bank’s Central Banking Department shall open checking accounts for following entities:

a) Credit institutions (Head offices);

b) Foreign bank branches in Vietnam;

c) Central State Treasury.

2. State Bank branches in provinces, cities under the central Government’s management (hereinafter shortly referred to as State Bank branches in provinces, cities) shall open checking accounts for credit institutions, foreign bank branches, State Treasuries in their local areas.

Article 8. Application file for opening a checking account

1. Application file for opening a checking account at the State Bank shall include:

a) An application for opening checking account, which is enclosed with a registration of stamp specimen, signature specimen (as per the Appendix 01 and Appendix 02 attached herewith), which is signed and sealed by the legal representative of the entity;

b) Documents proving that the applicant is established and operates legally, including its charter, establishment decision, operation license, business registration certificate or corporate registration certificate or investment certificate;

c)[11] Documents proving the capacity of the legal representative of the organization that wishes to open the checking account and the citizen identity card or ID card or unexpired passport of that legal representative;

d)[12] The document or decision on appointment and citizen identity card or ID card or unexpired passport of the chief accountant or the person in charge of accounting works and managing documents concerning transactions made with the State Bank of Vietnam.

2. Documents of the application file for opening checking account as stipulated in Items b, c, d Clause 1 of this Article may be either originals or copies. If documents of the application file are made in foreign language, they must be translated into Vietnamese and notarized in accordance with applicable laws and regulations.

Article 9. Procedures for opening a checking account

1. In seeking a checking account at the State Bank, the applicant shall prepare 01 (one) set of application file as stipulated in Article 8 of this Circular and submit to the State Bank (Central Banking Department or State Bank branch in province, city) where the proposed checking account is opened.

2. Upon receiving the application file for opening a checking account, the Central Banking Department, State Bank branch in province, city shall check the documents of the file and collate with details that are declared at the application for opening checking account to ensure the consistence and accuracy.

In the event where documents of the file are copies which are not certified or which are reproduced from the originals, the applicant shall be required to submit the original one for collation. The collator shall sign to confirm the copies and take responsibility for the accuracy of the copies against the original ones.

3. Within 01 working day from the receipt of the application file for opening checking account submitted by the entity applying for opening of checking account, the State Bank shall handle the opening of checking account as follows:

a) If the application file for opening checking account is sufficient and eligible, details that are declared at the Application for opening checking account are consistent with relevant documents of the file, the State Bank shall open the checking account and notify its customer of the figures and starting date of the account;

b) If the application file for opening checking account is insufficient, ineligible or contains some mismatches between the declared details in the application for opening checking account and relevant documents of the file, the State Bank shall notify its customer so that the file can be completed and submitted to the State Bank for consideration and settlement in accordance with provisions in Item a Clause 3 of this Article;

c) If the State Bank refuses to open the checking account, a notice of the reason must be sent to the customer for information.

Article 10. Use of checking account

1. The checking account opened at the State Bank may be used for deposit, withdrawal of cash, issue of cheque, accounting, monitoring and execution of payment orders via the payment systems which are organized and operated by the State Bank, ad hoc payment via account and other payment services supplied by the State Bank.

2. Checking accounts of credit institutions, foreign bank branches opened at the Central Banking Department of the State Bank may be used for executing payment transactions upon engaging in open market operations, sale and purchase of negotiable instruments, Government’s bonds, State Treasury’s bills, State Bank’s bills and other activities in the currency market in accordance with regulations of the State Bank.

Chapter III

OPENING AND USE OF CHECKING ACCOUNTS AT BANKS AND FOREIGN BANK BRANCHES

Article 11. Entities eligible to open checking accounts[13]

1. The following individuals are eligible to open checking accounts at banks or branches of foreign banks:

a) A person who is aged exactly 18 years or older and has full capacity for civil acts as regulated by the Law of Vietnam;  

b) A person who is aged between exactly 15 and nearly 18 years and does not have his/her incapacity or restricted capacity for civil acts;

c) A person who is under the age of 15, has restricted capacity for civil acts or is incapable of civil acts as defined by the Law of Vietnam is entitled to open a checking account via his/her legal representative;

d) A person who has limited cognition and behavioral control as defined by the Law of Vietnam may open a checking account via his/her guardian.

2. The organizations that are duly established and operate under the Law of Vietnam, including:     legal entities, private enterprises, household businesses and other organizations, are allowed to open checking accounts at banks or branches of foreign banks in accordance with laws.

Article 12. Applications for opening checking accounts[14]

With regard to a personal checking account, the bank or foreign bank branch is allowed to stipulate and instruct the client to prepare an application for checking account opening which must, inter alia, include the following documents:

a) The application form for checking account opening which is made using the form provided by the bank or foreign bank branch where the checking account is opened and complies with Clause 1 Article 13 of this Circular;

b) The applicant’s identity papers, including the citizen identity card or ID card or unexpired passport or birth certificate (if the applicant is a Vietnamese citizen aged under 14 years), or unexpired entry visa or certificate of visa exemption (if the applicant is a foreigner), except a checking account opened by a foreigner as prescribed in Clause 4 Article 14 of this Circular;

c) If a checking account is opened by a person’s guardian or legal representative (hereinafter referred to as the “applicant’s legal representative”), in addition to the documents specified in Point a, b Clause 1 of this Article, the application for checking account opening must also include the following documents:

- If the applicant’s legal representative is an individual: his/her identity papers and documents proving his/her capacity as a legal representative of the applicant for the checking account;

- If the applicant’s legal representative is a juridical person:  its establishment decision, operation license, enterprise registration certificate or other documents as prescribed by law; documents proving its capacity as a legal representative of the applicant for the checking account; identity papers and documents proving the representative capacity of its legal representative.

2. With regard to a corporate checking account, the bank or foreign bank branch is allowed to stipulate and instruct the client to prepare an application for checking account opening which must, inter alia, include the following documents:

a) The application form for checking account opening which is made using the form provided by the bank or foreign bank branch where the checking account is opened and complies with Clause 2 Article 13 of this Circular;

b) Documents proving that the organization opening the checking account is duly established and legally operating, including: establishment decision, operation license, enterprise registration certificate or other documents as prescribed by law;

c) Documents proving the capacity of legal representatives of the organization and their identity papers;

d) Decision on appointment of chief accountant or person in charge of accounting works or accounting service contract (if outsourced accounting is used) and identity papers of chief accountant or person in charge of accounting works.

3. With regard to a shared checking account, the bank or foreign bank branch is allowed to stipulate and instruct the client to prepare an application for checking account opening which must, inter alia, include the following documents:

a) The application form for checking account opening which is made using the form provided by the bank or foreign bank branch where the checking account is opened and complies with Clause 3 Article 13 of this Circular;

b) Documents about the holders of the shared checking account:

- If the holder of the shared checking account is an individual, the application for checking account opening shall include the documents specified in Clause 1 of this Article;

- If the holder of the shared checking account is an organization, the application for checking account opening shall include the documents specified in Clause 2 of this Article.

c) If the agreement or contract (hereinafter referred to as “agreement”) on opening and use of checking account does not include contents about the management and use of the shared checking account by its holders, a separate agreement on the management and use of the shared checking account between the holders of that shared checking account is required.

4. Documents included in the application for checking account opening specified in Clause 1 and Clause 2 of this Article are originals or electronic copies or certified true copies or copies issued from their master registers or copies presented with their originals for verification purpose as prescribed by law. If a copy is presented with its original for verification purpose, the bank or foreign bank branch shall make a certification on the received copy and assume responsibility for the accuracy of the received copy compared to its original.  Documents issued by foreign competent authorities must bear consular legalization in accordance with regulations of law. If documents included in an application for checking account opening are electronic copies, the bank or foreign bank branch must adopt solutions/technologies for collecting, checking and verifying information to ensure that contents of such electronic copies are adequate, accurate and corresponding with the originals.

5. The bank or foreign bank branch must enter into an agreement with its client on whether or not foreign language documents included in the application for checking account opening are translated into Vietnamese according to the following rules:

a) The bank or foreign bank branch must check, control and ensure the accuracy and adequacy of Vietnamese translations compared to their original foreign language documents;

b) Foreign language documents must be translated at the request of competent authorities. Translations must bear certification of a competent official of the bank, or foreign bank branch, or must be notarized or certified.

Article 13. Application form for opening checking accounts [15]

1. The application form for opening of a personal checking account shall be prescribed by the bank or foreign bank branch but must include the following information:

a) If the account holder is a Vietnamese:  full name, date of birth, nationality; occupation, position; telephone number; number of citizen identity card or ID card or unexpired passport, date of issue, issuing authority; registered permanent residence and current residence; being a resident or non-resident; TIN (if any);

b) If the account holder is a foreigner:  full name, date of birth, nationality; occupation, position; telephone number; number of unexpired passport, date of issue, issuing authority, entry visa (if any); registered permanent residence in a foreign country and registered residence in Vietnam; being a resident or non-resident; TIN (if any);

c) If a client applies for opening of a checking account through his/her legal representative, in addition to information about the account holder specified in Point a, b of this Clause, the application form for opening of a personal checking account must also include information about that legal representative, including:

- If the client’s legal representative is an individual, the information about the legal representative shall be specified according to Point a, b of this Clause;

- If the client’s legal representative is an organization, full and abbreviated business name, headquarters address, transaction address, telephone number, fax number (if any), main business lines and legal representative of that organization shall be specified.

2. The application form for opening of a corporate checking account shall be prescribed by the bank or foreign bank branch but must include the following information:

a) Full and abbreviated business name, headquarters address, transaction address, telephone number, business lines and TIN (if any);

b) Information about the legal representative of the organization applying for checking account opening as prescribed in Point a, b Clause 1 of this Article;

c) Information about the chief accountant or the person in charge of accounting works (if any) of the organization applying for checking account opening as prescribed in Point a, b Clause 1 of this Article;

3. The application form for opening of a shared checking account shall be prescribed by the bank or foreign bank branch but must include the following information:

a) If the holder of the shared checking account is an individual, his/her information shall be provided according to Clause 1 of this Article;

b) If the holder of the shared checking account is an organization, its information shall be provided according to Clause 2 of this Article.

Article 13a. Agreement on opening and use of checking account[16]

1. An agreement on opening and use of the checking account between the bank or foreign bank branch and the client must, inter alia, include the following contents:

a) Number (if any), date of the agreement;

b) Name of the bank or foreign bank branch;

c) Name of the account holder, full name of legal representative of the account holder (if the account holder is an organization), full name of the legal representative of the account holder (if the account holder is one of the entities specified in Point c and Point d Clause 1 Article 11 of this Circular);

d) Rights and obligations of the parties;

dd) Regulations on fees (types of fees, fee amounts (if any) and changes thereof);

e) Provision of information and methods for informing the account holder of account balance and transactions made via the checking account, account blockage or freeze, and other necessary information during the use of such checking account;

g) Cases in which an account is blocked/released and frozen/unfrozen, including the case where an account is blocked or frozen upon detection of mistakes or differences between a client’s identity information and his/her biometric factors during the online opening and use of the checking account prescribed in Point c Clause 2 Article 14a of this Circular;

h) Scope of use and limits on transactions made on the checking account and cases where the account holder’s payment order is refused or suspended;

i) Use of the checking account to make regular or periodical payments at the request of the account holder or the bank or foreign bank branch’s collection of due debts, overdue debts, interests and relevant fees arisen during the management of the checking account and provision of payment services;

k) The implementation of measures for ensuring safety and confidentiality during the use of the checking account;

l) Methods for receiving trace requests or complaints; time limit for dealing with a trace request or complaint and actions against results thereof as prescribed in Article 15a of this Circular;

m) Cases where the checking account is closed and settlement of remaining balance after the account closure;

n) Where the holders of a shared checking account do not yet enter into a document as prescribed in Point c Clause 3 Article 12 of this Article, the agreement on opening and use of checking account must include contents about the management and use of the shared checking account by its holders.

2. In case a standard form contract or contract containing general terms and conditions is employed when concluding an agreement on opening and use of the checking account, the bank or foreign bank branch must:

a) Openly post the standard form contract or contract containing general terms and conditions on the opening and use of the checking account at the lawful transaction locations of the bank or foreign bank branch and publish it on its website or online transaction application software on the Internet or mobiles (if any);

b) Provide adequate information about the standard form contract or contract containing general terms and conditions for the client before opening the checking account for the client and obtain the client’s certification of receipt of adequate information from the bank or foreign bank branch.

Article 14. Procedures for checking account opening[17]

1. When wishing to open a checking account, the client shall prepare an application as prescribed in Article 12 of this Circular and send it directly or by post or another electronic mean to the bank or foreign bank branch where the checking account will be opened.

2. When receiving the application for checking account opening from the client, the bank or foreign bank branch shall check and examine the documents included in the received application and take the following actions:

a) If the documents included in the application is adequate, lawful and valid, and information provided in the application form for checking account opening exactly corresponds with that on the documents included in the application, the bank or foreign bank branch shall open the checking account for the client according to Clause 3 of this Article;

b) If the documents included in the application is inadequate, unlawful or invalid, or the information provided in the application form for checking account opening does not correspond with that on the documents included in the application, the bank or foreign bank branch shall notify it to the client for completing the application;

c) If the bank or foreign bank branch refuses to open a checking account, reasons for such refusal must be given to the client.

3. Upon completion of check, examination and verification of client’s identity information as prescribed in the Law on anti-money laundering, the bank or foreign bank branch shall enter into an agreement on opening and use of the checking account with the client as follows:

a) With regard to a personal checking account: the bank or foreign bank branch shall meet in person with the client or his/her legal representative (if a checking account is opened by the client’s legal representative) for entering into the agreement on opening and use of the checking account, except the cases prescribed in Clause 4, 6 of this Article and Article 14a of this Circular;

b) With regard to a corporate checking account: the bank or foreign bank branch may decide whether to meet in person with the client’s legal representative or not when entering into the agreement on opening and use of the checking account.  If the bank or foreign bank branch decides not to meet in person with the client’s legal representative, it must adopt appropriate measures for verifying the accuracy of signature, seal (if any), digital certificate (if any) of the legal representative of the account holder on the agreement on opening and use of the checking account, and ensuring the matching  of that signature, seal (if any) and digital certificate (if any) with that of the legal representative of the account holder during the use of the checking account;

c) With regard to a shared checking account:

- If the holders of the shared checking account are individuals, the bank or foreign bank branch shall enter into an agreement on opening and use of checking account according to the provisions in Point a of this Clause;

- If the holders of the shared checking account are organizations, the bank or foreign bank branch shall enter into an agreement on opening and use of checking account according to the provisions in Point b of this Clause.

4. If a client is living abroad, the bank or foreign bank branch is allowed to open the checking account without meeting in person with the client but must verify the client's identity via a bank agent or an intermediary and must ensure the accuracy of verified information as well as assume responsibility for its verification and identification of that client.  The intermediary that is employed to verify the client's identity shall be selected in accordance with regulations of the Law on anti-money laundering.

5. Procedures for opening a personal checking account online shall comply with Article 14a of this Circular.

6. The bank or foreign bank branch shall decide the opening of a checking account for a client that has established a relationship with the bank or foreign bank branch and whose identity information has been verified but must ensure the availability of or must collect adequate information/documents as required in the application for checking account opening as prescribed in Article 12 of this Circular.

7. After having entered into the agreement on opening and use of the checking account with the client, the bank or foreign bank branch shall notify the number, name and effective date of the checking account.  The bank or foreign bank branch must collect specimen signatures and digital certificates (if any) of the account holder or his/her/its legal representative and relevant persons (if any), and specimen seal (if the account holder is an organization) for checking and verification during the use of the checking account.

8. Based on its conditions and capacity to supply payment services, the bank or foreign bank branch shall give instructions to its clients about procedures for checking account opening, in which cases of refusal to open a checking account must be specified, in accordance with  regulations of this Circular and the Law on anti-money laundering, and assume responsibility for the accuracy and adequacy of the application for checking account opening.

Article 14a. Online opening of a personal checking account[18]

1. The bank or foreign bank branch that performs online opening of checking account must formulate, promulgate and publish its procedures for online opening of checking account in conformity with regulations of this Article, the Law on anti-money laundering, the Law on e-transactions, and relevant regulations on assurance of safety and confidentiality of clients' information, and security in operations of banks/foreign bank branches, which include the following steps:

a) Collect information concerning the application for checking account opening as prescribed in Clause 1, 4, 5 Article 12, Clause 1 Article 13 of this Circular;

b) Check, examine and verify the client’s identity information;

c) Warn clients about acts which they are prohibited to perform during the online opening and use of checking account;

d) Provide clients with contents of the agreement on opening and use of checking account as prescribed in Clause 1 Article 13a of this Circular and enter into the agreement on opening and use of checking account with the client;

dd) Notify the client of number and name of the checking account, limit on transactions made via the checking account, and effective date of the checking account.

2. The bank or foreign bank branch shall decide methods, forms and technologies adopted to identify and verify a client, which serve its online opening of checking account; assume responsibility for any risks and meet the following requirements:

a) It must adopt solutions/technologies for collecting, checking and verifying to ensure the matching between a client’s identity and biometric data (including biological factor/characteristics that are specifically used to identify a person, cannot be forged, and are rarely matched with those of another person such as fingerprints, face, iris, voice and other biometric factors) and corresponding information and biometric data on the client’s identity papers prescribed in Clause 1 Article 12 of this Circular or personal identity data certified by competent authorities or other credit institutions or electronic certification and identification service providers;

b) It must adopt technical methods for certifying the identified client’s consent to contents of the agreement on opening and use of the checking account;

c) It must formulate procedures for risk management, control and assessment, that include measures for preventing acts of impersonating, intervening, correcting or falsifying the verification of a client’s identity before, during and after the checking account opening, and measures for checking and verifying a client’s identity to make sure that transactions made via a checking account opened online are made by the holder of that checking account.  Where any risks or differences between identity and biometric factors of a client or any suspicious transactions, as prescribed in the Law on anti-money laundering, are detected during the use of a checking account, the bank or foreign bank branch must promptly refuse or suspend transactions, block or freeze that checking account, and re-verify the client’s identity.  Procedures for risk management and control must be regularly reviewed and adjusted based on information/data updated during the provision of services;

d) It must adequately store and manage information/data used for identifying clients during their opening and use of checking accounts in chronological order, including:  client’s identity and biometric factors, sounds, images, videos and recordings, telephone number used when making transaction, and transaction log.  Information/data must be stored safely, kept confidential, backed up and have its adequacy and integrity ensured to serve the inspection, examination and solving of trace requests, complaints and disputes, and provide information at the request of competent authorities. Storage period shall comply with the Law on anti-money laundering.

3. Based on its technological conditions, the bank or foreign bank branch shall evaluate risks, determinate scope of use and decide the limit on transactions made on the client’s checking account opened online provided that total value of transactions (debit) on checking accounts of that client does not exceed VND 100 million/month/client.

4. The bank or foreign bank branch may decide a limit on transactions made on the checking account opened online higher than the one specified in Clause 3 of this Article in one of the following cases:

a) The bank or foreign bank branch collects, checks and verifies the client’s identity during the opening of the checking account through video call which has the same effectiveness as identification and verification of a client’s identity by meeting the client in person. Video call must ensure safety and confidentiality, have high resolution and uninterrupted signal, allow real-time audio-visual contact with the client to ensure the identification of client, and store all sound and image data or recordings/videos during the opening of the checking account;

b) The bank or foreign bank branch adopts technologies for checking/comparing the client’s biometric characteristics with the citizen’s biometric data on the citizen identity card database;

c) After the bank or foreign bank branch has identified and verified the client’s identity by meeting in person with the account holder;

d) Transactions are made online to transfer money to a saving or term deposit account of the same account holder opened at that bank or foreign bank branch;

dd) Cases where the bank or foreign bank branch is allowed to draw on the client’s checking account according to Point a Clause 1 Article 6 of this Circular.

5. The procedures for online opening of a checking account prescribed in this Article shall not apply to shared checking accounts, checking accounts of foreigners and the entities specified in Point b, c, d Clause 1 Article 11 of this Circular.

Article 15. Use of checking account

1. The holder may use his checking account for deposit, withdrawal of cash and request the payment service provider to supply payment services via account,  such as supply of means of payment, rendering of cheque payment service, payment order, authorized payment order, collection, authorized collection, bank card, letter of credit, remittance, and other value added services in conformity with applicable laws and regulations.

The banks, foreign bank branches shall instruct their customers on the principles and conditions for using checking account for the case of transaction under the traditional mode or electronic mode in accordance with applicable laws and regulations, making sure that necessary information is fully obtained for the purpose of checking, collating and identifying customers during the use of checking accounts.

2.[19] The personal checking account of an individual, who is under the age of 15, has restricted capacity for civil acts, is incapable of civil acts, or has limited cognition and behavioral control must be used via his/her guardian or legal representative.  The guardian/ legal representative shall conduct payment transactions via the checking account of the ward/ the represented in accordance with civil regulations on guardianship and representation.

3.[20] (annulled)

4. The use of a shared checking account shall be in compliance with details of the written agreement (or contract) on the management and use of shared checking account by account holders and be subject to following principles:

a) Holders of the shared checking account shall have equal rights and obligations to the shared checking account and the use of shared checking account must be supported by the approval of all account holders. Every account holder shall be responsible to make payment for any debt obligation arising from the use of the shared checking account;

b) A notice on the use of shared checking account shall be sent to all account holders, except otherwise as agreed by and between the payment service provider and the holders of the shared checking account;

c) Every holder of the shared checking account may authorize another person to use the shared checking account on his behalf, providing that a written consent must be obtained from all other holders;

d) In the event where one of subjects undersigning in the application for opening of shared checking account deceases, declared to be missing, losing civil act capacity; the subject undersigning in the application for shared checking account, who is an entity, goes dissolved, bankrupt or terminates operation in accordance with applicable laws and regulations, then the use right to the account and obligations deriving from the use of the shared checking account shall be solved in accordance with applicable laws and regulations.

Article 15a.  Responding to trace requests and complaints about checking accounts[21]

1. Each bank/ foreign bank's branch shall receive trace requests and/or complaints from customers during their use of checking accounts by obeying the following rules:

a) There are at least two methods adopted for receiving trace requests and complaints, including the receipt of trace requests and complaints via telephone exchange (with recording) and via transaction offices of the bank/ foreign bank's branch that is required to ensure the verification of information provided by the customer;

b) The bank/foreign bank's branch must make trace request/ complaint forms available for customers. If a trace request or complaint is made via telephone exchange, the bank/ foreign bank's branch shall request the customer to submit the written trace request/ complaint within the time limit prescribed by the bank/ foreign bank's branch to use as the basis for handling such trace request/ complaint.  If a customer authorizes another person to make trace request/ complaint, such authorization should be made in accordance with the law on authorization;

c) The bank/foreign bank's branch may reach an agreement on and provide specific regulations on the time limit for a trace request/ complaint which must be at least 60 days from the date on which the transaction of the trace request/ complaint is made.

2. Time limit for responding to a trace request/complaint:

a) Within a maximum period of 30 business days from the receipt of the initial trace request/complaint from the customer by one of the methods of receipt mentioned in Point a Clause 1 of this Article, the bank/foreign bank's branch shall respond to that customer's trace request/complaint;

b) Within a maximum period of 05 business days from the notification of processing results of a trace request/ complaint to the customer, the bank/ foreign bank's branch shall compensate for loss or damage incurred by the customer according to specific agreements and applicable laws if such loss or damage is caused through no fault of the customer and/or is not classified as a force majeure event as defined in terms and conditions on checking account opening;  

c) If no reasons is found or no faults is determined within the time limit for a trace request/ complaint mentioned in Point a of this Clause, within 15 following business days, the bank/ foreign bank’s branch must reach an agreement with the customer on measures against such trace request/ complaint.

3. If the case denotes a violation, the bank/ foreign bank’s branch must notify the competent authority in accordance with regulations of the criminal procedure code and notify the State Bank of Vietnam (via the Payment Department, the Bank Supervision and Inspection Agency, and the local branch of the State Bank of Vietnam), and at the same time, provide a written notification to the customer of the status of its/his/her trace request/ complaint.  In such case, the competent authority shall take charge of responding to the customer’s trace request/ complaint. If the competent authority determines that the trace request/ complaint shows no sign of violation, within 15 business days from the conclusion of the competent authority, the bank/ foreign bank’s branch shall reach an agreement with the customer on measures against the customer’s trace request/ complaint.

4. If the bank/ foreign bank’s branch, the customer and related parties cannot reach an agreement and/or disagree with the processing of the trace request/ complaint, the dispute shall be settled in accordance with applicable laws.

Chapter IV

TEMPORARY LOCK, BLOCKAGE AND CLOSE OF CHECKING ACCOUNT

Article 16. Temporarily locking a checking account

1. Payment service providers shall temporarily lock the entire or a part of the amount on the checking account of the customer (temporarily stopping the operation) upon the availability of the written request from the account holder (or his legal representative) or as per the written prior agreement between the account holder and the payment service provider, except for the case as stipulated in Item c Clause 1 Article 6 of this Circular.

2. The ending of temporary lock of a checking account and handling of outward, inward payment orders during the period of temporary lock as requested by the account holder (or his guardian, legal representative) or as per the written agreement between the account holder and the payment service provider.

Article 17. Blockading a checking account

1. The payment service provider shall blockade a part or entire of the amount on the customer’s checking account in following cases:

a) A written request issued by a competent regulator is available in accordance with applicable laws and regulations;

b)[22] The payment service provider finds out that there are mistakes or errors in Crediting to the customer’s checking account or the account may be blocked at the request for money refund of the payment service provider that has transferred money because there are mistakes or errors compared with the payment order of the remitter; in such case, the blocked amount on the checking account shall not exceed the amount improperly credited or transferred by mistake;

c)[23] (annulled)

d) A written notice is serviced by one of the account holders informing that there arises dispute among the holders of the shared checking account.

2.[24] Immediately after the checking account is blocked, the payment service provider must notify (in writing or by adopting any methods as agreed upon in the agreement on checking account opening signed by and between the payment service provider and the customer) the account holder or his/her guardian or legal representative of the reasons and scope of the account blockage; the blocked amount must be kept intact and closely monitored as per details of blockage.  If a checking account is partially blocked, the remaining amount on such checking account may be still used.

3.[25] (annulled)

4. The payment service provider shall end the blockage of checking account when one of following conditions is satisfied:

a) The term of blockage expires;

b) A written request for ending the blockage of checking account is issued by the competent regulator;

c) The payment service provider has finished handling the mistake, error in remittance;

d)[26] (annulled)

dd) A written notice is serviced by one of the account holders informing that there arises dispute among the holders of the shared checking account.

Article 18. Closing a checking account

1. The payment service provider shall close the customer’s checking account in following cases:

a)[27] The account holder submits a written request for closure of checking account and has discharged all relevant obligations.  In case the account holder is under the age of 15, has restricted capacity for civil acts, is incapable of civil acts, or has limited cognition and behavioral control, his/her guardian or legal representative shall carry out procedures for closure of checking account;

b) Holder of a personal checking account is deceased, declared as dead, missing or loses civil act capacity;

c) The entity holding the checking account terminates its operation in accordance with applicable laws and regulations;

d) The account holder breaks the commitment or agreements at the contract of opening and use of checking account signed with the payment service provider;

dd) Other cases as provided for by the laws.

2. The closing period of a checking account due to failure in maintaining the minimum balance and no transaction arising in a long time period; term for notice to the account holder before closing the checking account and other specific issues relating to the close of checking account in this case shall be determined and advised by the payment service provider to the customer.

3. After closing the checking account, the payment service provider shall be required to notify the account holder, the guardian or legal inheritor for information in case that the holder of checking account is deceased, declared as dead or missing.

4. The remaining balance after the checking account is closed shall be treated as follows:

a)[28] The balance shall be used to make payments at the request of the account holder or his/her guardian or legal representative if the account holder is under the age of 15, has restricted capacity for civil acts, is incapable of civil acts, or has limited cognition and behavioral control or the heir/ representative of the heirs if the account holder died or is declared dead or missing;

b) Making payment under the decision of the court;

c) The payment service provider shall handle in accordance with applicable laws and regulations in the event where the legal beneficiary to the balance on the account has already been notified but failed to come up to receive or as per a prior written agreement with the account holder in conformity with applicable laws and regulations.

5. After closing the checking account, if the customer has a demand for using the checking account, he shall be required to observe the procedures for opening a checking account as stipulated in this Circular.

Chapter V

IMPLEMENTATION[29]^,[30]

Article 19. Entry into force

1. This Circular comes into force from October 15, 2014.

2. From the effective date of this Circular, the Decision No. 1284/2002/QD-NHNN dated 21 November 2002 of the Governor of the State Bank on issuing the Regulation on opening and use of deposit accounts at the State Bank and credit institutions and Article 4 of Circular No. 23/2011/TT-NHNN dated 31 August 2011 of the Governor of the State Bank on implementing the scheme of administrative procedure simplification in payment activity and other areas under the Resolution of the Government on the simplification of administrative procedures within the jurisdiction of the State Bank of Vietnam shall expire.

Article 20. Implementation

1. The Banking Supervisory Agency shall take responsibility for checking, inspecting and supervising the implementation of this Circular and deal with acts of violation within the scope of their authority.

2. Head of units of the State Bank; Director of the Central Banking Department; General Manager of State Bank branches in provinces, cities under the central Government’s management; Chairman of Board of Directors, Chairman of Board of Members, General Director (Director) of banks, foreign bank branches shall be responsible for the implementation of this Circular.

[1] Circular No. 02/2019/TT-NHNN has the following bases:

“Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on credit institutions dated June 16, 2010 and the Law on amendments to the Law on credit institutions dated November 20, 2017;

Pursuant to the Government’s Decree No. 101/2012/ND-CP dated November 22, 2012 on non-cash payment and the Government's Decree No. 80/2016/ND-CP dated July 01, 2016 on amendments to certain articles of the Government’s Decree No. 101/2012/ND-CP dated November 22, 2012 on non-cash payment;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the request of the Director of the Payment Department;

The Governor of the State Bank of Vietnam promulgates a Circular on amendments to Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the State Bank of Vietnam providing guidelines for opening and maintenance of checking accounts at payment service providers.”

[2] Circular No. 16/2020/TT-NHNN has the following bases:

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on credit institutions dated June 16, 2010 and the Law on amendments to the Law on credit institutions dated November 20, 2017;

Pursuant to the Law on Anti-money Laundering dated June 18, 2012;

Pursuant to the Government’s Decree No. 101/2012/ND-CP dated November 22, 2012 on non-cash payment and the Government's Decree No. 80/2016/ND-CP dated July 01, 2016 on amendments to certain articles of the Government’s Decree No. 101/2012/ND-CP ;

Pursuant to the Government’s Decree No. 116/2013/ND-CP dated October 04, 2013 providing guidelines for implementation of the Law on Anti-money Laundering and the Government’s Decree No. 87/2019/ND-CP dated November 14, 2019 providing amendments to Decree No. 116/2013/ND-CP ;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the request of the Director of the Payment Department;

The Governor of the State Bank of Vietnam promulgates a Circular providing amendments to the Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the Governor of the State Bank of Vietnam providing guidelines for opening and use of checking accounts at payment service providers.

[3] This clause is annulled by Article 2 of Circular No. 02/2019/TT-NHNN .

[4] This clause is amended by clause 1 Article 1 of Circular No. 02/2019/TT-NHNN .

[5] This clause is amended by clause 1 Article 1 of Circular No. 16/2020/TT-NHNN .

[6] This clause is amended by clause 2 Article 1 of Circular No. 02/2019/TT-NHNN .

[7] This clause is amended by clause 2 Article 1 of Circular No. 02/2019/TT-NHNN .

[8] This point is amended by clause 3 Article 1 of Circular No. 02/2019/TT-NHNN .

[9] This point is amended by clause 4 Article 1 of Circular No. 02/2019/TT-NHNN .

[10] This point is amended by clause 4 Article 1 of Circular No. 02/2019/TT-NHNN .

[11] This point is amended by clause 5 Article 1 of Circular No. 02/2019/TT-NHNN .

[12] This point is amended by clause 5 Article 1 of Circular No. 02/2019/TT-NHNN .

[13] This Article is amended by clause 6 Article 1 of Circular No. 02/2019/TT-NHNN .

[14] This Article is amended by clause 2 Article 1 of Circular No. 16/2020/TT-NHNN .

[15] This Article is amended by clause 3 Article 1 of Circular No. 16/2020/TT-NHNN .

[16] This Article is amended by clause 4 Article 1 of Circular No. 16/2020/TT-NHNN .

[17] This Article is amended by clause 5 Article 1 of Circular No. 16/2020/TT-NHNN .

[18] This Article is amended by clause 6 Article 1 of Circular No. 16/2020/TT-NHNN .

[19] This clause is amended by clause 10 Article 1 of Circular No. 02/2019/TT-NHNN .

[20] This clause is annulled by Article 2 of Circular No. 02/2019/TT-NHNN .

[21] This Article is amended by clause 11 Article 1 of Circular No. 02/2019/TT-NHNN .

[22] This point is amended by clause 12 Article 1 of Circular No. 02/2019/TT-NHNN .

[23] This point is annulled by Article 2 of Circular No. 02/2019/TT-NHNN .

[24] This clause is amended by clause 12 Article 1 of Circular No. 02/2019/TT-NHNN .

[25] This clause is annulled by Article 2 of Circular No. 02/2019/TT-NHNN .

[26] This point is annulled by Article 2 of Circular No. 02/2019/TT-NHNN .

[27] This point is amended by clause 13 Article 1 of Circular No. 02/2019/TT-NHNN .

[28] This point is amended by clause 13 Article 1 of Circular No. 02/2019/TT-NHNN .

[29] Article 3 and Article 4 of Circular No. 02/2019/TT-NHNN read as follows:

“Article 3. Responsibility for implementation 

1. Banks and branches of foreign banks shall cooperate with institutional customers (except legal entities) whose checking accounts have been opened before the effective date of the Circular No. 32/2016/TT-NHNN dated December 26, 2016 by the State Bank of Vietnam in carrying out procedures for change of account holders that are the organizations opening checking accounts without re-signing agreements on checking account opening, except otherwise requested by a customer.

2. If a customer has signed a new agreement on checking account opening for changing the method of opening checking account as regulated in Clause 2 Article 4 of the Circular No. 32/2016/TT-NHNN (as amended in Article 1 of the Circular No. 02/2018/TT-NHNN dated February 12, 2018), the related bank/ foreign bank’s branch shall notify that customer of the agreement on name of checking account as regulated in Point a Clause 4 Article 14 of the Circular No. 23/2014/TT-NHNN (as amended in Clause 9 Article 1 of this Circular) and carry out procedures for change of the checking account’s name at the written request of the customer.

3. The Chief of the Ministry’s Office, Head of Payment Department, heads of affiliated agencies of the State Bank of Vietnam, Directors of the State Bank’s branches in centrally-affiliated cities and provinces, Chairpersons of Board of Directors, Chairpersons of Board of Members, and General Directors (Directors) of banks and branches of foreign banks shall be responsible for implementing this Circular.

Article 4. Effect

1. This Circular comes into force from March 01, 2019.

2. This Circular nullifies the Circular No. 32/2016/TT-NHNN and the Circular No. 02/2018/TT-NHNN dated February 12, 2018.”

[30] Article 2 and Article 3 of Circular No. 16/2020/TT-NHNN read as follows:

“Article 2. Responsibility for implementation 

The Chief of Office, heads of units affiliated to the State Bank of Vietnam, banks and foreign bank branches shall organize the implementation of this Circular.

Article 3. Implementation

1. This Circular comes into force from March 05, 2021.

2. This Circular nullifies Clause 7, 8, 9 Article 1 of the Circular No. 02/2019/TT-NHNN dated February 28, 2019 of the Governor of the State Bank of Vietnam providing amendments to the Circular No. 23/2014/TT-NHNN dated August 19, 2014 of the Governor of the State Bank of Vietnam providing guidelines for opening and use of checking accounts at payment service providers.”

[31] This Appendix is superseded by clause 14 Article 1 of Circular No. 02/2019/TT-NHNN .

[32] This Appendix is superseded by clause 14 Article 1 of Circular No. 02/2019/TT-NHNN .

[33] This Appendix is supplemented by clause 15 Article 1 of Circular No. 02/2019/TT-NHNN .