Tougher punishments on monetary-banking infringements

This is part of Decree 96/2014/ND-CP of the Government on sanctions against administrative violations in the monetary area and banking domain. 

The new decree, which replaces Decree 202/2004/ND-CP, dated December 10, 2004 and Decree 95/2011/ND-CP, dated December 20, 2011, expands scope of violations, especially acts related to money laundering and deposit insurance.

A fine of up to VND 500 million shall be imposed on acts of separating, merging, transforming legal status by credit organizations and branches of foreign banks without getting written approval from competent agencies.

Foreign currency activities of credit organizations, branches of foreign banks, agents without licenses issued by competent agencies or their licenses expired/suspended shall be subjected to a fine of VND 500-600 million.

The infringement of capital adequacy ratio shall be fined from VND 400-450 million.

The fresh decree also stipulates fines of VND 150 million on deposit insurance and VND 250 million on money laundering.

The above sanctions shall be applied to individuals and doubled for violations by organizations./.

By Kim Anh