When Will Bank Accounts Be Frozen Starting January 1, 2026?

The Vietnamese government has recently issued Decree 296, which outlines the enforcement of administrative penalty decisions. This decree will take effect on January 1, 2026.

Decree 296 establishes the principles, procedures, and measures for coercive enforcement of administrative penalty decisions, confiscation of violating items and means, implementation of remedial actions, and reimbursement of expenses to the executing authorities.

A notable aspect of the decree is the detailed financial coercion measures to recover fines. This includes deducting funds from bank accounts or deposits held by non-compliant individuals or organizations at credit institutions or the State Treasury.

Within one working day of receiving the enforcement decision, credit institutions, the State Treasury, or foreign bank branches in Vietnam must freeze the equivalent amount in the violator’s account. If the balance is insufficient, the entire account will be frozen.

These institutions are obligated to provide information, freeze, and transfer funds from the accounts of those subject to enforcement upon request from authorized officials.

To ensure compliance, the decree allows for urgent account freezes or asset seizures if there is evidence of money or asset dissipation by the violator.

In addition to account deductions, Decree 296 details salary deductions and asset seizures. Up to 30% of monthly income (after insurance and taxes) can be deducted from salaries and pensions, while other income sources can be deducted up to 50%, ensuring a minimum living standard for the individual and dependents.

Asset seizures, equivalent to the fine amount, are also permitted, but exclude the primary residence necessary for the violator’s basic living needs.

Seizure notifications must be provided to the individual or organization at least five working days in advance, along with the local commune-level People’s Committee where the asset is located.