Decree No. 146/2024/ND-CP dated November 06, 2024 on amendments to Decree No. 102/2022/ND-CP defining functions, tasks, powers and organizational structure of state bank of Vietnam and Decree No. 26/2014/ND-CP prescribing organization and operation of banking inspection and supervision authorities, as amended in Decree No. 43/2019/ND-CP

DECREE

AMENDMENTS TO AND ABROGATION OF SOME ARTICLES OF GOVERNMENT’S DECREE NO. 102/2022/ND-CP DATED DECEMBER 12, 2022 DEFINING FUNCTIONS, TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF STATE BANK OF VIETNAM AND GOVERNMENT’S DECREE NO. 26/2014/ND-CP DATED APRIL 07, 2014 PRESCRIBING ORGANIZATION AND OPERATION OF BANKING INSPECTION AND SUPERVISION AUTHORITIES, AS AMENDED IN GOVERNMENT’S DECREE NO. 43/2019/ND-CP DATED MAY 17, 2019

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

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

Pursuant to the Law on Credits Institutions dated January 18, 2024;

Pursuant to the Law on Inspection dated November 14, 2022;

Pursuant to the Law on Anti-money Laundering dated November 15, 2022;

Pursuant to the Law on Penalties for Administrative Violations dated June 20, 2012; the Law on amendments to the Law on Penalties for Administrative Violations dated November 13, 2020;

At the request of the Governor of the State Bank of Vietnam (SBV);

The Government promulgates a Decree providing amendments to and abrogation of some articles of the Government’s Decree No. 102/2022/ND-CP dated December 12, 2022 defining functions, tasks, powers and organizational structure of the State Bank of Vietnam and the Government’s Decree No. 26/2014/ND-CP dated April 07, 2014 prescribing organization and operation of banking inspection and supervision authorities, as amended in the Government’s Decree No. 43/2019/ND-CP dated May 17, 2019.

Article 1. Amendments to Article 3 of Government's Decree No. 102/2022/ND-CP dated December 12, 2022 prescribing functions, tasks, powers and organizational structure of State Bank of Vietnam (SBV)

“Article 3. Organizational structure

1. Monetary Policy Department.

2. Foreign Exchange Management Department.

3. Payment Department.

4. Credit Department of Economic Sectors.

5. Department of Forecasting and Statistics - Monetary and Financial Stabilization.

6. International Cooperation Department.

7. Internal Audit Department.

8. Department of Legal Affairs.

9. Finance and Accounting Department.

10. Organization and Personnel Department.

11. Communications Department.

12. SBV Office.

13. Information Technology Department.

14. Issue and Vault Department.

15. State Foreign Exchange Reserve Management Department.

16. Anti-Money Laundering Department.

17. Administration Department.

18. Operations Center.

19. Banking Supervision Agency.

20. SBV municipal and provincial branches.

21. Banking Strategy Institute.

22. National Credit Information Center of Vietnam.

23. Banking Times.

24. Banking Review.

25. Banking Academy.

The organizations referred to in Clauses 1-20 of this Article shall assist the SBV’s Governor in performing the state management functions and the Central Bank’s functions; the organizations referred to in Clauses 21-25 of this Article are public administrative units serving the performance of SBV’s state management functions.

The Monetary Policy Department and the Department of Forecasting and Statistics - Monetary and Financial Stabilization are comprised of 6 divisions each. The Credit Department of Economic Sectors, the Organization and Personnel Department, the Finance and Accounting Department, and the International Cooperation Department are comprised of 5 divisions each. The Foreign Exchange Management Department, the Payment Department, and the Internal Audit Department are comprised of 4 divisions each. The Department of Legal Affairs is comprised of 3 divisions.

The SBV’s Governor shall submit the decision defining functions, tasks, powers and organizational structure of the Banking Supervision Agency and list of other public administrative units affiliated to the SBV to the Prime Minister of Vietnam for promulgation.

The SBV’s Governor shall promulgate decisions defining functions, tasks, powers and organizational structure of the SBV’s affiliated units in accordance with regulations of law, except Banking Supervision Agency.”

Article 2. Amendments to and abrogation of some Articles of Government’s Decree No. 26/2014/ND-CP dated April 07, 2014 prescribing organization and operation of banking inspection and supervision authorities as amended in the Government’s Decree No. 43/2019/ND-CP dated May 17, 2019

1. Article 1 of the Decree No. 26/2014/ND-CP is amended as follows:

“Article 1. Scope

This Decree deals with organization and operation of banking inspection and supervision authorities, banking inspectors, responsibilities of authorities, organizations and individuals involved in operation of banking inspection and supervision authorities.”

2. Clause 2 Article 2 of Decree No. 26/2014/ND-CP is amended as follows:

“2. Entities subject to supervision by banking inspection and supervision authorities (hereinafter referred to as “subject entities of banking supervision”):

a) The subject entities of banking supervision defined in Article 56 of the Law on the State Bank of Vietnam, including policy banks and subsidiaries of credit institutions;

b) Other entities as prescribed by law.”

3. Article 6 of Decree No. 26/2014/ND-CP , as amended in Clause 2 Article 1 of Decree No. 43/2019/ND-CP , is amended as follows:

“Article 6. Organizational system of banking inspection and supervision authorities

Banking inspection and supervision authorities are SBV’s inspectorates, and are organized into a system comprising:

1. The Banking Supervision Authority affiliated to SBV.

2. Offices of the Banking Supervision Agency.

3. Banking Inspection and Supervision Departments of SBV’s branches in provinces or central-affiliated cities (hereinafter referred to as “SBV’s provincial branches”).”

4. Clauses 1, 2 Article 7 of Decree No. 26/2014/ND-CP , as amended in Clause 3 Article 1 of Decree No. 43/2019/ND-CP , are amended as follows:

“1. The Banking Supervision Agency is a General Department-level authority that is affiliated to SBV and assigned to advise and assist the SBV’s Governor in performing the state management of credit institutions, foreign bank branches, banking inspection and supervision performance, citizen reception, complaint and denunciation settlement, anti-corruption and misconduct, and deposit insurance, carry out administrative inspections, specialized inspections and banking supervision in areas and sectors under the SBV’s management, perform citizen reception tasks, consider and resolve complaints and denunciations, and perform anti-corruption and misconduct tasks in accordance with applicable laws and as assigned by the SBV’s Governor.

2. The Banking Supervision Agency is comprised of Departments and Office (hereinafter referred to as “affiliated units of the Banking Supervision Agency”).

Directors of Offices of the Banking Supervision Agency shall have the power to issue decisions to carry out inspection of assigned subject entities of banking inspection (except the inspections conducted according to decisions issued by the Chief Inspector of the Banking Supervision Agency as prescribed in clause 3 Article 8 of this Decree), perform tasks and powers of the inspection decision maker, and take actions against administrative violations in accordance with regulations of law.”

5. Article 8 of Decree No. 26/2014/ND-CP , as amended in Clause 4 Article 1 of Decree No. 43/2019/ND-CP , is amended as follows:

“Article 8. Tasks and powers of Chief Inspector of Banking Supervision Agency

The head of the Banking Supervision Agency is its Chief Inspector. The Chief Inspector of the Banking Supervision Agency shall have the following tasks and powers:

1. Lead, direct and inspect performance of inspection and supervision tasks within the scope of SBV’s state management; lead the Banking Supervision Agency to perform tasks and powers as prescribed in law.

2. Consider and handle operational overlaps and duplications among the SBV’s inspection authorities as prescribed in point g clause 2 Article 55 of the Law on Inspection; submit reports to and request the Inspector-General of the Government Inspectorate of Vietnam (GIV) to consider and make decisions on handling operational overlaps and duplications between the SBV’s inspection authorities and inspection authorities of the Government’s affiliated units as prescribed in point d clause 2 Article 55 of the Law on Inspection.

3. Issue decisions to carry out inspection of subject entities of banking inspection under the SBV’s management as assigned by or at the request of the SBV’s Governor, including administrative inspections, inspections serving the settlement of complaints and denunciations, inspections of performance of anti-corruption and misconduct tasks, large-scale or complicated specialized inspections, re–inspections or other inspections which are deemed necessary; perform tasks and powers of the inspection decision maker; request Directors of SBV’s provincial branches to appoint their banking inspectors or other qualified officials to join inspection teams; mobilize officials and public employees of relevant authorities and units to join inspection teams.

4. Issue inspection decisions upon detection of violations against law committed by subject entities of banking inspection or in case there are any risks of threatening safe operation of credit institutions and foreign bank branches.

5. Issue a decision to re-inspect the case which has been concluded by the Office of the Banking Supervision Agency or the Banking Inspection and Supervision Department of a SBV’s provincial branch but there are signs of violation found through consideration and settlement of complaints, feedbacks and denunciations.

6. Request Directors of SBV’s provincial branches to direct their Inspection and Supervision Departments to carry out inspection of the subject entities under their jurisdiction as assigned by the SBV’s Governor in case there are any signs of violations against laws or any risks of threatening safe operation of credit institutions and foreign bank branches; if the Director of a SBV's provincial branch fails to carry out the request, submit report on such failure to the SBV’s Governor for consideration.

7. Consider and deal with the issues in dispute between the Chief Inspector and the Director of a SBV’s provincial branch; if the Director of the SBV’s provincial branch disagrees with the final decision, submit report on such case to the SBV’s Governor for consideration.

8. Request the SBV’s Governor to suspend, within his/her competence, unlawfully issued decisions in sectors and areas falling under the SBV’s state management which are detected through inspection and supervision.

9. Request the SBV’s Governor to resolve the issues concerning inspection and supervision tasks.

10. Request competent authorities to make amendments to applicable regulations or promulgate the new ones to meet management requirements; propose suspension, invalidation or abrogation of regulations which are found through inspection and supervision to be contrary to regulations of law.

11. Directly impose or request competent persons to impose penalties for administrative violations in accordance with regulations of law on penalties for administrative violations.

12. Request the SBV’s Governor to assign responsibility and take actions against the persons under his/her management who are found through inspection and supervision to have committed violations against laws or failed to comply with conclusions, recommendations and decisions on inspection and supervision; request heads of other authorities and organizations to assign responsibility and take actions against the persons under their management who are found through inspection and supervision to have committed violations against laws or failed to comply with conclusions, recommendations and decisions on inspection and supervision.

13. Request the SBV’s Governor to make decisions, within his/her competence, and organize the implementation of measures for ensuring safe banking operation of authorities, organizations and individuals under SBV’s state management.

14. Submit reports to the SBV’s Governor and the GIV’s Inspector-General on inspections within the scope of his/her assigned tasks; submit reports to the SBV’s Governor on performance of other tasks by the Banking Supervision Agency.

15. Inspect the implementation of policies and laws, and performance of assigned tasks and powers by heads of authorities and units under SBV’s management.

16. Decide the work sessions or direct contact between banking inspectors and other officials of the Banking Supervision Agency and the subject entities of banking supervision.

17. Decide the level of supervision of the subject entities of banking supervision, unless otherwise decided by the SBV’s Governor.

18. Perform other tasks and powers in accordance with regulations of law or as assigned by the SBV’s Governor.”

6. Article 18 of Decree No. 26/2014/ND-CP , as amended in Clause 6 Article 1 of Decree No. 43/2019/ND-CP , is amended as follows:

“Article 18. Power to issue inspection and re-inspection decisions

1. The Chief Inspector of the Banking Supervision Agency, Directors of Offices of the Banking Supervision Agency, and Chief Inspectors of SBV’s provincial branches shall issue inspection decisions.

2. The Chief Inspector of the Banking Supervision Agency shall issue decisions to re-inspect the cases which have been concluded by the Directors of Offices of the Banking Supervision Agency or Chief Inspectors of SBV’s provincial branches but there are signs of violation found through consideration and settlement of complaints, feedbacks and denunciations.”.

7. Article 29 of Decree No. 26/2014/ND-CP is amended as follows:

“Article 29. Formulation of policies and legislative documents

The Banking Supervision Agency shall provide advice for and assist the SBV’s Governor in formulating and promulgating within his/her competence or submitting policies and legislative documents on organization, operation and safety of banking systems, banking inspection and supervision, and deposit insurance under the SBV’s state management.”

8. Article 13 of the Decree No. 26/2014/ND-CP is abrogated.

Article 3. Entry into force and implementation

1. This Decree comes into force from January 05, 2025.

2. The SBV’s Governor, Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of provincial People’s Committees, Chief Inspector of the Banking Supervision Agency, and relevant authorities are responsible for the implementation of this Decree.