This is part of Decree 96/2014/ND-CP detailing  administrative sanctions in the monetary area and banking sector issued by the Government.

The new decree replaces Decree 202/2004/ND-CP, dated December 10, 2004 and Decree 95/2011/ND-CP, dated December 20, 2011.

Decree 96 supplements new administrative infringements on the financial field, especially with regard to money laundering and deposit insurance.

A penalty of VND 500 million (US$ 23.5 million) shall be imposed on violations of unlicensed operation; separation, merging, and transformation of legal status in credit organizations and branches of foreign banks without documented licenses issued by competent State agencies.    

A fine of VND 500-600 million shall be applied to credit organizations, branches of foreign banks, currency exchange agents, and others which operate without licenses issued by competent agencies or operate differently from their permitted licenses or of which operation licenses were expired or suspended.

The infringement of capital adequacy ratio shall be subjected to a fine of VND 400-450 million.

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

By Kim Anh