Enhancing Risk Management, Fraud Prevention, and Detection
SBV requests credit institutions to strictly implement risk management measures and prevent fraudulent activities in payment transactions. This includes reviewing and ensuring the implementation of internal processes and regulations related to opening and utilizing payment accounts, bank cards, and payment services, as well as risk management procedures and contracts/agreements.
Proactively enforce the new regulations outlined in Circulars 15, 17, and 18 issued by SBV. Effectively communicate these changes to customers to ensure compliance with the effective dates. By January 1, 2025: complete biometric data verification for individual customers; by July 1, 2025: complete biometric data verification for legal representatives of organizational customers to continue performing cash withdrawals and electronic transactions on payment accounts and bank cards.
Conduct a comprehensive review of the validity of identity documents presented by customers when opening payment accounts and applying for bank cards. Ensure that customers are notified at least 30 days in advance if their identity documents are about to expire, allowing them to update and provide new information. From January 1, 2025, temporarily suspend payment transactions and cash withdrawals on payment accounts and bank cards for customers with expired or invalid identity documents.
Strengthen communication and warnings to customers about criminal schemes and methods. Educate customers on measures to secure their personal data and prevent data breaches when conducting online transactions. Provide guidance on the safe usage of services and execution of secure payment transactions.
Strictly implement the procedures for opening and utilizing payment accounts and bank cards, as per the new regulations. Emphasize to the entire system the importance of implementing enhanced risk management measures for opening and using organizational payment accounts, preventing their illegal use, especially during the last months of 2024 and the Lunar New Year of 2025.
Enhance management, inspection, and supervision of payment acceptance units to timely detect and prevent fraudulent activities and the misuse of payment transactions for illegal purposes.
Strengthen the management, supervision, and control of interbank payment transactions through various payment systems. Ensure smooth and secure operations to meet customer needs during the end of 2024 and the Lunar New Year of 2025. Proactively forecast payment trends and develop specific response plans for different scenarios to allocate adequate resources and meet the increased payment demands before and during the Solar New Year and Lunar New Year of 2025.
Proactively develop and implement ATM operation plans that are tailored to different regions and areas. Closely monitor and promptly replenish cash in ATMs. Efficiently handle and respond to any incidents or situations that may arise, ensuring uninterrupted cash withdrawal transactions for the public.
Implement measures to guarantee stable and seamless payment service provision. Efficiently handle and respond to customer inquiries, complaints, and transaction disputes according to regulations. Resolve any incidents or situations promptly to maintain smooth, continuous, and secure payment operations.
Ensure Stable, Secure, and Continuous Operations
SBV requires intermediary payment service providers to review and ensure the implementation of internal processes and regulations related to opening and using e-wallets, providing intermediary payment services, risk management procedures, and contracts/agreements for opening and using e-wallets, as per the new regulations outlined in Circular 40.
Strictly adhere to the procedures for opening and using e-wallets, as per the new regulations, and implement measures to prevent, deter, and minimize the risk of intermediary payment services being exploited for illegal purposes, in accordance with SBV’s directives. Collaborate closely with relevant units to promptly address any issues and ensure stable, secure, and uninterrupted intermediary payment service provision.
Enhance communication and awareness campaigns to encourage customers to complete biometric data verification for e-wallet owners or their representatives (for individual customers) or legal representatives (for organizational customers) before January 1, 2025.
Warn customers about fraudulent and criminal activities, including scams and identity theft. Educate customers on measures to secure their personal data and prevent data breaches when conducting online transactions. Provide guidance on the safe usage of services and the execution of secure intermediary payment transactions, especially during the end of 2024 and the Lunar New Year of 2025.
For intermediary payment service providers that have participated in budget revenue collection, ensure effective coordination in budget revenue collection during the end of the year. Guide and support customers regarding the procedures and processes, as per regulations, to guarantee smooth, secure, and accurate budget revenue collection.
For organizations and units operating payment systems, SBV requests a thorough review of infrastructure and technical systems, including backup plans. Implement measures to handle and respond to potential overload situations and incidents promptly, ensuring stable, secure, and uninterrupted payment system operations. Proactively forecast payment trends and develop specific response plans to accommodate the surge in transactions during the 2024 year-end settlement and the Lunar New Year of 2025.
Strengthen the monitoring, supervision, and management of bank members’ solvency, the establishment, adjustment, and utilization of netting limits. Provide early warnings and require members to take timely measures to supplement capital and adjust netting limits accordingly, ensuring uninterrupted and seamless payment transactions for customers.
SBV’s provincial and municipal branches shall proactively monitor and grasp public opinions and incidents related to payment activities in their respective areas. Enhance guidance, inspection, and supervision of credit institutions to improve service quality and ensure security and safety in payment transactions. Collaborate with relevant authorities to detect, handle, and prevent fraudulent and criminal activities related to payment activities, in accordance with the law.
Provide guidance to banks and foreign bank branches in their respective areas to ensure effective coordination in budget revenue collection. Facilitate smooth budget revenue payments by individuals and enterprises through the banking system.
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The current state of corporate governance (CG) in Vietnam, including its integration with ESG factors, lags behind other ASEAN countries and falls below the average assessment rating.
The Digital Wallet Wars: Banks and E-Wallets Battle it Out for User Verification Supremacy
As per the State Bank of Vietnam’s insights, cashless payments have witnessed a remarkable surge, with over 182 million personal accounts facilitating such transactions. Notably, several banks now process more than 95% of their transactions through digital channels, a testament to the country’s evolving digital landscape.
Positive Signals from the Vietnamese Banking Sector in Q3 2024
In a tumultuous economic climate, the Vietnamese banking sector in Q3 2024 demonstrated resilience and growth, with positive signals across the board. The latest financial reports indicate significant improvements in the financial performance of commercial banks, especially with the impending expiration of Circular 06. The CAMELS evaluation model paints a comprehensive picture of the current health and stability of the country’s banking system.
The Great Credit Card Freeze: Banks Warn of an Impending Transaction Standstill
“Unauthenticated accounts, debit and credit cards, and expired identification documents will be suspended by the bank.”
“VIB Bank Contributes Over $129 Million in Taxes for 2023, Completing an Additional $3.6 Million Payment for 2022-2023”
As per the Large Enterprise Taxation Department’s document dated November 11, 2024, Vietnam International Commercial Joint Stock Bank (VIB) has completed the payment of an additional 8.5 billion VND in taxes for the years 2022 and 2023, bringing the total tax payment for 2023 to 3,102 billion VND.
