Chỉ thị 02/CT-NHNN năm 2021 về tăng cường phòng, chống, ngăn ngừa vi phạm pháp luật trong hoạt động thẻ ngân hàng do Ngân hàng Nhà nước Việt Nam ban hành

DIRECTIVE

ENHANCING PREVENTION AND HANDLING OF VIOLATIONS RELATED BANK CARD OPERATIONS

During the past, banking authorities have proactively and actively performed their role and cooperated with regulatory authorities and local governments in preventing, detecting and taking actions against violations against regulations on payment operations in general and on bank card operations in particular, and thus have contributed to assurance of safety and security of bank card operations. In order to minimize risks and continue intensifying control and prevention of bank card operations-related violations, the Governor of the State Bank of Vietnam (“SBV”) hereby requests SBV's affiliates, card issuers, acquirers, intermediary payment service providers and representative offices of international card associates to adopt the following measures:

I. SBV’s affiliates

SBV’s affiliates shall, within the ambit of their assigned functions, powers and tasks, proactively provide advice and proposals, and organize the implementation of the following measures:

1. Continue improving the legal framework for bank card operations and regulations on penalties for violations against regulations on bank card operations; Intensify review and collection of information about bank card operations which will be then used for developing plans for inspection and handling of violations related to bank card operations (within their competence) committed during the issuance and use of bank cards by card issuers, acquirers, intermediary payment service providers, and merchants in a manner ensuring effectiveness and strict compliance with laws.

2. Intensify cooperation, exchange and sharing of information concerning prevention and handling of crimes and violations related to bank card operations between SBV and law enforcement agencies and relevant regulatory authorities.

II. Card issuers and acquirers

1. Inspect and review all procedures and regulations on application and contracts for opening and use of payment accounts and bank cards, and then amend and revise their internal regulations on these contents to ensure safety and confidentiality of clients’ information and compliance with laws; review the scope of use of bank card specified in contracts for issuance of use of bank card, payment limits and exchange rates of card transactions which must be conformable with regulations of law; strictly comply with SBV’s directives and warnings1 about supervision and control of bank card operations with attaching special importance to identification and verification of information about clients and merchants; Request all relevant officials within their systems to strictly comply with relevant regulations of law as well as their internal regulations and guidelines.

2. Improve efficiency in administration, management and internal control and inspection systems for minimizing risks and preventing violations related to bank card operations; Organize and cooperate with intermediary payment service providers to carry out inspection and review of card transactions conducted at merchants in order to prevent: (i) taking advantage of credit card limits for transferring money to or crediting payment accounts, debit cards or prepaid cards of clients or a third party (other than merchants); (ii) conducting fictitious transactions at merchants (without selling goods and supplying services) in order to withdraw cash; (iii) conducting card transactions against regulations of law (relating to games of chance, gambling, sports betting, trading of foreign exchange, securities, virtual currencies, electronic currencies, etc.); Review and termination of cooperation with and take appropriate remedial measures against intermediary payment service providers or merchants that are found to use bank cards in contravention of law.

3. Intensify information dissemination activities and provision of instructions to clients, intermediary payment service providers and merchants to clearly understand and use bank card services in a safe manner and in accordance with regulations of law. To be specific: proactively share and exchange information between issuers and acquirers to detect suspicious transactions in a timely manner; warn clients, intermediary payment service providers and merchants against using or facilitating other entities' use of payment accounts and bank cards for unlawful purposes such as lending of payment accounts, selling, buying, hiring or lending of bank cards or card information, or opening of bank cards for others, etc.

4. Closely cooperate with law enforcement agencies and relevant regulatory authorities in detecting and handling violations related to bank card operations as prescribed by law.

III. Intermediary payment service providers

1. Provide intermediary payment services under the license issued by SBV in accordance with regulations of law; using provided intermediary payment services for facilitating the lawful use of bank cards is prohibited.

2. Inspect and review internal procedures to ensure the adequacy, safety and confidentiality of clients’ information and compliance with law; strictly comply with SBV’s directives and warnings2 about provision of intermediary payment services. Request all of their relevant officials to strictly comply with relevant regulations of law as well as their internal regulations and guidelines.

3. Improve efficiency in internal control and inspection to minimize risks and prevent bank card operations-related violations during their provision of intermediary payment services; Organize and cooperate with card issuers and acquirers to detect suspicious transactions in a timely manner and prevent: (i) taking advantage of credit card limits for transferring money to or crediting payment accounts, debit cards or prepaid cards of clients or a third party (other than merchants); (ii) conducting fictitious transactions at merchants (without selling goods and supplying services) in order to withdraw cash; (iii) conducting card transactions against regulations of law (relating to games of chance, gambling, sports betting, trading of foreign exchange, securities, virtual currencies, electronic currencies, etc.).

4. Closely cooperate with issuers, acquirers, law enforcement agencies and relevant regulatory authorities in detecting and handling violations related to bank card operations as prescribed by law.

IV. Representative offices of international card associations

Within the ambit of their assigned functions and tasks, representative offices of international card associations shall act as contact points, directly implement or cooperate to implement the following measures:

1. Review and ensure their cooperation with card issuers, acquirers and switching companies in Vietnam in providing card services to clients in accordance with regulations of the law of Vietnam and SBV’s instructional documents3.

2. Intensify exchange and sharing of information and provide card issuers, acquirers and intermediary payment service providers with the list of high-risk merchants that make card payments against regulations of the law of Vietnam (for activities relating to games of chance, gambling, sports betting, trading of foreign exchange, securities, virtual currencies, electronic currencies, etc.).

V. Implementation

1. This Directive comes into force from the day on which it is signed.

2. SBV’s affiliates, card issuers, acquirers, intermediary payment service providers and representative offices of international card associations shall perform their tasks specified in this Directive and submit reports on implementation results to SBV (via Payment Department) by July 15, 2021.

3. Chief of Office, Director of Payment Department, heads of SBV’s affiliates, Directors of SBV’s branches in provinces or central-affiliated cities, Chairpersons of Boards of Directors, Chairpersons of Boards of Members and General Directors (Directors) of credit institutions, Chairpersons of Boards of Directors and General Directors (Directors) of intermediary payment service providers and chief representatives of international card associations are responsible for implementation of this Directive./.

1 The Official Dispatch No. 166/NHNN-TT dated January 07, 2019, the Official Dispatch No. 2160/NHNN-TT dated March 29, 2019, the Official Dispatch No. 6410/NHNN-TT dated August 16, 2019, and the Official Dispatch No. 7076/NHNN-TT dated September 25, 2020,….

2 The Official Dispatch No. 2160/NHNN-TT dated March 29, 2019 and the Official Dispatch No. 1080/NHNN-TT dated February 21, 2020,…

3 The Official Dispatch No. 2160/NHNN-TT dated March 29, 2019, the Official Dispatch No. 6410/NHNN-TT dated August 16, 2019, and the Official Dispatch No. 7076/NHNN-TT dated September 25, 2020,….

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