“Association of Banks Emphasizes on Member Organizations’ Compliance with Biometric Authentication Regulations”

As per the provisions of Circular No. 17/2024/TT-NHNN on the opening and use of payment accounts with payment service providers (Circular 17), and Circular No. 18/2024/TT-NHNN on the regulations for bank cards (Circular 18), from January 1, 2025, account holders/cardholders will be unable to perform online transactions (cash withdrawals, money transfers, bill payments, top-ups, etc.) and over-the-counter/ATM cash withdrawal or transfer transactions if: (1) They have not completed the biometric data declaration and accurate biometric authentication; and (2) They have not updated or supplemented their identity documents (ID cards, CCCD, passports, or visas) that have expired.

These regulations demonstrate the State Bank’s strong and determined efforts to enhance security and protect online payment transactions, thereby fostering a healthy environment for the deep and sustainable development of cashless payments.

At the meeting, banks shared that despite facing numerous challenges, they have implemented comprehensive and aggressive solutions to promptly support customers in updating their biometric data, ensuring uninterrupted transactions.

Since the beginning of the year, to comply with Decision 2345/QD-2345 on the deployment of security and protection measures for online and bank card payments, banks have actively coordinated with the Ministry of Public Security to integrate customer authentication and identification solutions through chip-based CCCD cards. Following the issuance of Circular 17 and Circular 18 (effective from June 28, 2024), banks have continued to proactively and aggressively implement various solutions to urge and support customers to complete biometric authentication to avoid disruptions to their online transactions.

Especially from early October 2024, banks have been consistently sending notifications to customers, advising them to review the validity of their identity documents and promptly update their biometric data to prevent any interruption to their online transactions. For foreigners and overseas Vietnamese whose nationality has not been determined, the authentication process requires a face-to-face meeting at the bank. These notifications are regularly sent to customers through various channels, including email, SMS banking, and internet banking.

In parallel, banks have been strengthening optimal and convenient authentication solutions for customers, such as authentication at branches, authentication on digital platforms, requiring staff support with on-screen notifications, establishing a 24/7 support team to guide customers in setting up facial biometrics, expanding the call center team through a toll-free hotline, and forming a quick response team to provide continuous information reception.

As a result, banks can promptly report and resolve any incidents within the shortest time possible.

Numerous banks have launched promotional programs, offering gifts, reward points, and lucky draws to motivate and encourage customers to update their biometric data before the deadline.

Additionally, many banks have extended their operating hours during the week and even on Saturdays and Sundays to accommodate customers’ needs for branch authentication. A representative from one bank shared that after implementing extended working hours, the number of customers successfully updating their biometric data doubled compared to before. In some industrial zones, there has been a surge in the number of customers who are factory and company employees updating their biometric data, especially on weekends.

For Vietnamese citizens working abroad and unable to return to Vietnam for in-person biometric authentication, banks have implemented remote support solutions, including authentication through the bank’s application, using the National Electronic Identification (VNeID) application for customers with level-2 electronic identification accounts, and contacting the bank for special support.

With the effective date of Circular 17 and Circular 18 approaching, representatives of the participating banks emphasized that customers should update their biometric data as soon as possible to avoid potential overload on the app or at branches, as experienced during the peak period in July. Moreover, the year-end typically sees an increase in transactions, and customers need to update their biometric data and valid identity documents to prevent service disruptions. This information ensures that accounts are used by the rightful owners, contributes to reducing financial fraud, and protects customers from fraudulent activities.

At the meeting, Mr. Nguyen Quoc Hung, Vice Chairman and General Secretary of the Vietnam Banks Association, requested: “Member organizations should strictly adhere to and aggressively implement the contents according to Circular No. 17/2024/TT-NHNN and Circular No. 18/2024/TT-NHNN of the State Bank of Vietnam. Banks’ systems need to continuously update and review data and take measures to remind customers to complete biometric authentication and update valid identity documents.”

Mr. Hung also advised: “The end of the year and the beginning of the new year usually involve many transactions, so account holders should update their biometric data and valid identity documents in 2024 to avoid interruptions due to restrictions or temporary suspensions of certain banking services, including online transactions and the use of ATMs/CDMs.”