On February 28th, 2019, the State Bank of Vietnam promulgated Circular No. 02/2019/TT-NHNN (“Circular 02”) amending and supplementing a number of articles of Circular No. 23/2014/TT-NHNN dated August 19th, 2014 on guidelines for opening and use of payment accounts at payment services providers (“Circular 23”). Circular 02 took effect from March 1st, 2019 and abrogated Circular No. 32/2016/TT-NHNN and Circular No. 02/2018/TT-NHNN of the State Bank.
Circular 02 has some noteworthy points as follows:
Entities entitled to open payment accounts:
- Individuals opening payment accounts:
- Classification of individuals being from full 15 years old to less than 18 years old is abrogated in Circular 02. Particularly, those individuals are not requested to have own assets to secure obligations in opening payment accounts and may open the accounts without the participation of guardians or legal representatives.
- Entities opening payment accounts:
- While Circular 32 and Circular 02, which amend Circular 23, permit only entities having legal status to open payment accounts, Circular 02 abrogates this provision and stipulates same provisions as stated in Circular 23. According to which, in additions to legal entities, other entities without legal status such as private enterprises, household businesses and other entities are also entitled to open payment accounts, provided that they are legally established and operating in Vietnam.
Holder of corporate payment accounts:
- Pursuant to Circular 23, holder of a corporate payment account is the legal representative or authorized representative of such organization. Meanwhile, according to Circular 02, the holder is the organization opening the account; the legal representative or authorized representative shall, on behalf of that organization, carry out transactions via that payment account within his/her competence.
- Banks are responsible for cooperating with clients being entities (except for legal entities) which opened payment accounts before March 1st, 2017 in carrying out procedures for change of account holders that are the organizations opening payment accounts without re-signing agreements, except otherwise requested by the clients in writing.
We do trust the above points are notable and sufficient, but should you have any question or need a deeper discussion on this issue, please do not hesitate to contact us.
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Mazars Vietnam_Legal Alert_March 2019 (ENG)
Mazars Vietnam_Legal Alert_March 2019 (VIE)