On December 29, 2023, the Governor of the State Bank issued Circular 20/2023/TT-NHNN regulating the list of fields under the management scope of the State Bank of Vietnam and the time limit within which officials are not allowed to establish, hold positions, manage or operate enterprises, cooperatives or credit institutions after leaving positions.
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Circular 20/2023/TT-NHNN applies to people with positions and powers at the State Bank and does not apply to cases where people with positions and powers are appointed, transferred or appointed. Acting as a representative of state capital at credit institutions and enterprises with state capital; Participate in management, control, and administration at weak credit institutions that are under special control according to decisions of competent authorities.
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(1) According to Circular 20/2023/TT-NHNN, areas under the management of the State Bank that people with positions and powers are not allowed to establish, hold titles, management and executive positions enterprises, cooperatives, and credit institutions in the fields that they were previously responsible for managing after leaving their positions include:
- Grant, re-issue, change content and revoke operating licenses to provide credit information services to credit information organizations; inspect and examine credit information organizations;
- Licensing or suspending payment activities of credit institutions and other organizations; grant, amend, supplement, and revoke licenses to provide payment intermediary services of organizations other than banks; inspect and examine payment activities;
- Issuing and revoking documents approving business and providing foreign exchange services to credit institutions and other organizations according to the provisions of law; inspection and examination of foreign exchange activities;
- Issuing and revoking certificates of eligibility to produce gold jewelry and fine arts, and licenses for gold business activities; inspect and examine gold business activities;
- Granting, amending, supplementing and revoking licenses for establishment and operation of credit institutions; Approve the purchase, sale, division, separation, consolidation, merger and dissolution of credit institutions according to the provisions of law; Approve the proposed list of people elected and appointed as members of the Board of Directors, Council of Members, members of the Supervisory Board, General Director (Director) of the credit institution; Approve other changes according to the provisions of the Law on Credit Institutions, except for the cases specified in Circular 20/2023/TT-NHNN;
- Create a warning list of organizations with high risks of money laundering; inspect and examine money laundering prevention and combat activities;
- Inspect, examine and supervise banks.
(2) Circular 20/2023/TT-NHNN also stipulates a period of time when people with positions and powers are not allowed to establish, hold positions, management positions, or operate businesses, cooperatives, or credit organizations. applications in the field I was previously responsible for managing after leaving my position, specifically:
- Within 12 months from the date of resignation according to the decision and approval of the competent authority for people with positions and powers in the field specified in Circular 20/2023/TT-NHNN;
- Within 18 months from the date of resignation according to the decision and approval of the competent authority for people with positions and powers in the fields specified in Circular 20/2023/TT-NHNN;
- Within 24 months from the date of resignation according to the decision and approval of the competent authority for people with positions and powers in the fields specified in Circular 20/2023/TT-NHNN.
Thus, people holding positions in the banking industry according to Circular 20/2023/223/TT-NHNN are not allowed to establish businesses and can only be established after the expiration date from the date of termination of their positions according to the law. Circular 20/2023/TT-NHNN takes effect from February 12, 2024.
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