Socialist Republic of Vietnam

NATIONAL ASSEMBLY

No. 06-1997-QHX 12 December 1997




LAW ON STATE BANK OF VIETNAM


In order to formulate and implement effectively the national monetary policy; to strengthen State management of monetary and banking operations; to facilitate the development of a socialist-oriented multi-sector commodity economy managed by the State; and simultaneously to protect the interests of the State and the legitimate rights and interests of organizations and individuals;

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam;

This Law makes provisions on the State Bank of Vietnam.


CHAPTER I

General Provisions

Article 1

Role and functions of the State Bank of Vietnam.

1. The State Bank of Vietnam (hereinafter referred to as the State Bank) is a Government body and is also the central bank of the Socialist Republic of Vietnam.

2. The State Bank has the function of State management of monetary and banking operations, is the bank which issues money, acts as the banker for credit organizations, and is the bank providing the Government with monetary services.

3. The State Bank is responsible for stabilizing the value of money, ensuring the safety of banking activities and of credit organizations, and facilitating the development of a socialist-oriented economy.

4. The State Bank is a legal entity, having prescribed capital owned by the State, with its principal office located in Hanoi.

Article 2

National monetary policy.

The national monetary policy is an integral part of the financial economic policies of the State formulated for the purposes of stabilizing the value of money, controlling inflation, facilitating socio-economic development, ensuring national defence and security, and improving the living standards of the population.

The State shall carry out uniform management of all banking operations and shall formulate policies in order to mobilize domestic resources; to maximize use of foreign resources; to utilize the strength of combination of various economic sectors; to ensure the leading role of State owned credit organizations in carrying out monetary and banking operations; to ensure compliance with socialist orientation and the protection of national sovereignty; to enhance international co-operation and integration; to meet the requirements of socio-economic development; and to contribute to the industrialization and modernization of the country.

Article 3

Approval and implementation of the national monetary policy.

1. The National Assembly shall approve and supervise the implementation of the national monetary policy and control the annual estimated inflation rate by reference to the balance of the State Budget and the rate of economic growth.

2. The President of the State shall, on behalf of the State of the Socialist Republic of Vietnam, perform duties and exercise powers as stipulated in the Constitution and relevant laws in relation to the negotiation and signing of, participation in, and approval of international treaties and agreements with respect to financial, monetary and banking operations.

3. The Government shall formulate the national monetary policy and estimate the annual inflation rate for submission to the National Assembly for decision; organize the implementation of the national monetary policy; determine the volume of money to be put in circulation each year and the purposes of use of such volume of money and periodically submit reports thereon to the Standing Committee of the National Assembly; and shall make decisions on other policies and detailed measures for the implementation thereof.

Article 4

National monetary policy consultative council.

1. The Government shall establish a national monetary policy consultative council to advise the Government on matters relating to its duties and powers in relation to the currency policy.

2. Members of the national monetary policy consultative council shall include: a chairman of the council being a deputy prime minister of the Government, a standing commissioner being the Governor of the State Bank, and other commissioners being representatives of the Ministry of Finance, Ministry of Planning and Investment, relevant ministries and branches and other banking specialists.

3. The duties and powers of the national monetary policy consultative council shall be determined by the Government.

Article 5

Duties and powers of the State Bank.

The State Bank shall have the following powers and duties:

1. In relation to its functions of State management:

(a) To participate in the development of strategies and plans for social and economic development of the State;

(b) To formulate the national monetary policy project for consideration by the Government for submission to the National Assembly for approval and organization of implementation; formulating strategies for development of the system of banks and credit organizations in Vietnam;

(c) To formulate draft laws, ordinances and other projects in relation to currency and banking operations; to issue legal instruments under its authority in relation to currency and banking operations;

(d) To issue to or withdraw from credit organizations establishment and operating licences, except those granted by the Prime Minister; to issue and withdraw operating licences in respect of other banks; to make decisions on dissolution, division or merger of credit organizations in accordance with provisions of the law;

(e) To carry out examination and inspection of banking operations; to control credit operations; and to deal with offences in relation to currency and banking operations under its authority;

(f) To manage obtaining and repayment of foreign loans by enterprises in accordance with provisions of the Government;

(g) To preside over the formulation and supervise the implementation of the international balance of payments;

(h) To control the trading of foreign exchange and gold;

(i) To sign and participate in international treaties in relation to currency and banking operations in accordance with provisions of the law;

(k) To represent the Socialist Republic of Vietnam at international monetary organizations and banks where so authorized by the President of the State or the Government;

(l) To organize training courses in banking operations; to study and apply scientific and technological achievements in relation to banking operations.

2. In relation to its functions as the central bank:

(a) To organize the printing, casting, maintenance and transportation of currency; and to carry out the issuance, recall, replacement and destruction of currency;

(b) To carry out re-financing in order to provide short term credits and means of payment for the economy;

(c) To administer the monetary market and to carry out open-market transactions;

(d) To control international reserves; and to manage the foreign exchange reserves of the State;

(e) To establish the system of payments through banking institutions; to conduct payment services; and to control the provision of means of payment;

(f) To act as an agency for and to provide banking services to the State Treasury;

(g) To establish an information system and to provide services in relation to banking information.

3. Other duties and powers as stipulated by law.

Article 6

Responsibilities of ministries, ministerial equivalent bodies, Government bodies and other State bodies at the central level in relation to banking operations.

1. Ministries, ministerial equivalent bodies, Government bodies, and other State bodies at the central level shall, within the scope of their respective duties and authority, co-ordinate with the State Bank in carrying out State management of monetary and banking operations.

2. The Ministry of Finance shall co-ordinate with the State Bank in formulating the national financial and monetary policy and determining the total estimated amount of money to be advanced to the State Budget in the next fiscal year; and shall comply with other provisions of this Law in respect of the relationship between the Ministry of Finance and the State Bank.

Article 7

Responsibilities of peoples' councils and people's committees at various levels for implementation of laws on monetary and banking operations.

Peoples' councils and people's committees at various levels shall, within the scope of their respective duties and authority, supervise and inspect the implementation of the laws on monetary and banking operations within their respective localities.

Article 8

Role of the Fatherland Front of Vietnam and its member organizations in banking operations.

The Fatherland Front of Vietnam and its member organizations shall co-ordinate with relevant State bodies in supervising the implementation of the laws on monetary and banking operations; requesting and encouraging organizations and individuals to observe provisions of the laws on monetary and banking operations.

Article 9

Definitions.

In this Law, the following terms shall have the meanings ascribed to them hereunder:

1. Currency means a means of payment, including paper money, coins and other valuable papers.

2. Monetary market means a short term capital market where papers having short term value, including Treasury bonds, State Bank bonds, deposit certificates, and other short term valuable papers, are sold or purchased.

3. Banking operations means the business operation of monetary and banking services, of which the most common are the receipt and use of deposits for making loans and providing payment services.

4. Open-market transaction means the purchase or sale of short term valuable papers by the State Bank in the monetary market in order to implement the national monetary policy.

5. Compulsory reserve means the amount of money that a credit organization shall deposit at the State Bank in order to implement the national monetary policy.

6. Foreign exchange means foreign currencies, gold meeting international standards, valuable papers, and other means of payment in foreign currency.

7. Foreign exchange transaction means any investment, borrowing, lending, guarantee, purchase, sale, or other transaction in which foreign exchange is involved.

8. Exchange rate means the rate between the value of the Vietnamese currency and that of a foreign currency.

9. International reserves means the foreign exchange reserves of the State managed by the State Bank and the foreign exchange reserves of credit organizations licensed to conduct foreign exchange transactions.

10. Re-financing means the supply of credits guaranteed by the State Bank in order to provide short term loans and means of payment to banks.

11. Re-lending in accordance with credit contracts means a form of re-financing by the State Bank to banks which have made loans to clients.

12. Basic interest rates means the interest rates published by the State Bank to serve as the basis for credit organizations to determine their own trading interest rates.

13. Interest rates for re-financing means the interest rates applied by the State Bank for re-financing.

14. Re-discount interest rates means a form of interest rates for re-financing applied in cases where the State Bank re-discounts commercial notes or short term valuable papers in favour of credit organizations.

15. Short term valuable papers mean papers which are valuable for a duration of less than one year.


CHAPTER II

Organization of the State Bank

Article 10

Organizational structure.

1. The State Bank is organized into a centralized and uniform system, comprising an administrative and professional body located in the principal office, branches located in provinces and cities under central authority, representative offices within and outside the country, and other subsidiary units.

2. The organizational structure, duties and powers of the administrative body of the State Bank shall be stipulated by the Government.

Article 11

Leadership and administration of the State Bank.

1. The Governor of the State Bank (hereinafter referred to as the Governor), being a member of the Government, shall be responsible for leading and administering the State Bank.

2. The Governor shall have the following duties and powers:

(a) To direct and organize the performance of duties and exercise of powers of the State Bank as stipulated in article 5 of this Law and provisions of the Law on the Organization of the Government;

(b) To be responsible to the Prime Minister of the Government and the National Assembly for the scope of work under his authority;

(c) To be the legal representative of the State Bank.

Article 12

Branches and representative offices of the State Bank.

1. A branch of the State Bank is one of its subsidiary unit, directed and uniformly managed by the Governor.

A branch shall have the following duties and powers as entrusted by the Governor:

(a) To carry out examination and inspection of operations of banks located within its assigned locality;

(b) To grant or withdraw establishment and operating licences for credit organizations and operating licences for other banking institutions; to make decisions on dissolution, division or merger of credit organizations located within its locality;

(c) To re-finance and make loans for payment purposes;

(d) To provide payment, deposit and other banking services to credit organizations and the State Treasury;

(e) To carry out other duties as authorized by law.

2. A representative office of the State Bank is one of its subsidiary unit, performing representative functions as authorized by the Governor. A representative office shall not be permitted to conduct banking operations.

3. The Governor shall issue detailed provisions on the organizational structure, duties and powers of branches and representative offices of the State Bank..

Article 13

Subsidiary units.

1. The State Bank shall have professional units to be in charge of specific duties in relation to training, scientific study, provision of informatics services, provision of banking information, and publication of banking newspapers and periodicals.

2. The Prime Minister shall make decisions on establishment of enterprises under the State Bank to provide specialized products for banking operations.

Article 14

Responsibilities of officers and officials of the State Bank.

Any officer or official of the State Bank shall:

1. Maintain the secrets of professional operations of the State Bank and credit organizations and confidential information relating to deposits of clients in accordance with provisions of the law;

2. Not be permitted to act as a consultant, representative or collaborator of monetary, credit, trading or financial organizations or other business establishments, unless otherwise provided by law;

3. Not be permitted to use his or her position and powers for the purpose of taking bribes, extorting or gaining unlawfully personal interests;

4. Fulfil other obligations of a State officer or official in accordance with provisions of the law.


CHAPTER III

Operations of the State Bank


SECTION I

Implementation of National Monetary Policy

Article 15

Responsibilities of the State Bank in implementing the national monetary policy.

The State Bank shall, in implementing the national monetary policy, be responsible for the following:

1. To preside over the formulation of the national monetary policy project and the preparation of the annual plans for supplementation of money in circulation for submission to the Government;

2. To use tools to implement the national monetary policy; to put money into or withdraw it from circulation in accordance with market indicators within the limits of the supplementary amount of money approved by the Government;

3. To submit to the Government and the National Assembly reports on the results of implementation of the national monetary policy.

Article 16

Tools to implement the national monetary policy.

In order to implement the national monetary policy, the State Bank shall use tools such as re-financing, interest rates, exchange rates, compulsory reserves, open-market transactions, and other tools as determined by the Governor.

Article 17

Forms of re-financing.

The State Bank shall carry out re-financing to other banks in the following forms:

1. Re-lending in accordance with credit contracts;
2. Discounting or re-discounting commercial notes and other short term valuable papers;

3. Making loans guaranteed by pledges of commercial notes or other short term valuable papers.

Article 18

Interest rates.

The State Bank shall determine and announce basic interest rates and re-financing interest rates.

Article 19

Exchange rates.

1. Exchange rates of Vietnamese currency shall be formulated on the basis of the supply of and demand for foreign currencies in the market and the regulation by the State.

2. The State Bank shall determine and publish exchange rates of Vietnamese currency.

Article 20

Compulsory reserves.

1. The State Bank shall determine the levels of compulsory reserves for specific forms of credit organizations and specific forms of deposits at ratios from zero (0) per cent to twenty (20) per cent of all deposits in the credit organization for a particular period.

2. The payment of interest on compulsory reserves for specific forms of credit organizations and specific forms of deposits for particular periods shall be stipulated by the Government.

Article 21

Open-market transactions.

The State Bank shall conduct open-market transactions through the purchase or sale of Treasury bonds, deposit certificates, State Bank bonds, and other short term valuable papers in the monetary market in order to implement the national monetary policy.

SECTION II

Issuance of Paper Money and Coins

Article 22

Currency unit.

The standard currency unit of the Socialist Republic of Vietnam is "dong", its national sign is "d" and its international sign is "VND"; one dong is equivalent to ten (10) "hao" and one hao is equivalent to ten (10) "xu".

Article 23

Issuance of money.

1. The State Bank is the sole agency which issues the currency of the Socialist Republic of Vietnam, comprising paper money and coins.

2. Paper money and coins issued and circulated by the State Bank shall be used as an unlimited means of payment throughout the territory of the Socialist Republic of Vietnam.

3. The State Bank shall manage the money reserves to be put in circulation in accordance with provisions of the Government.

4. The State Bank shall be responsible for providing the economy with adequate paper money and coins with proper quantities of each type of notes and coins.

5. Money put in circulation shall be Adebit@ assets of the economy and shall be balanced by Acredit@ assets of the State Bank.

Article 24

Printing, casting, maintenance, transportation, issuance and destruction of currency.

1. The State Bank shall be responsible for designing the face value, size, weight, picture, artwork and other features of paper money and coins for submission to the Prime Minister for approval.
2. The State Bank shall be responsible for organizing the printing, casting, maintenance, transportation, issuance and destruction of currency.

Article 25

Dealing with defaced money.

The State Bank shall stipulate the criteria by which money shall be classified as defaced and the principles and procedures for the exchange and recovery of money defaced as a result of the process of circulation; and shall not agree to exchange notes defaced as a result of deliberate acts.

Article 26

Recovery and replacement of money.

The State Bank shall recover and withdraw from circulation all types of money which is no longer suitable and shall issue new money in its place. The types of money recovered shall be exchanged with other types of money of equivalent value within the duration stipulated by the State Bank. After the duration for recalling and changing of money, money recalled shall no longer be valuable.

Article 27

Sample money and money used as souvenir.

The State Bank shall organize the printing, casting and sale within and outside the country of various forms of sample money and money used as souvenir designed for the purpose of collection or other purposes as stipulated by the Government.

Article 28

Promulgation of and inspection and supervision of implementation of regulations on issuance of money.

1. The Government shall promulgate regulations on issuance and circulation of money, containing provisions in relation to the printing, casting, maintenance, transportation, issuance, recalling, replacement and destruction of money, and fees for money-issuing activities.

2. The Ministry of Finance shall inspect the implementation of the regulations on issuance and circulation of money and shall, in co-ordination with the Ministry of Interior, supervise the processes of printing, casting and destroying money.

Article 29

Prohibited acts.

The following acts shall be strictly prohibited:

1. Forging money; transporting, accumulating and circulating forged money.

2. Destroying money.

3. Refusing to circulate money issued by the State Bank.


SECTION III

Credit Operations

Article 30

Lending.

1. The State Bank shall make short term loans in the form of re-granting of capital to credit organizations being banks in accordance with the provisions of article 17 of this Law.

2. The State Bank may, in special circumstances where approved by the Prime Minister, make loans to credit organizations which are temporarily in the state of insolvency thereby threatening to cause instability to the credit organization system.

3. The State Bank shall not make loans to any individual or organization not being a credit organization as specified in clauses 1 and 2 of this article.

Article 31

Guarantees.

The State Bank shall not provide guarantees for the purpose of organizations and individuals to obtain loans, except guarantees determined by the Prime Minister for credit organizations to obtain foreign loans.

Article 32

Money advanced to State Budget.

The State Bank shall, subject to a decision by the Prime Minister, make advances to the central Budget in order to balance temporary deficits of the State Budget. Any such amount of advanced money shall be repaid within the budget year, unless otherwise stipulated by the Prime Minister.

Article 33

Contribution of capital and purchase of shares.

The State Bank shall not be permitted to contribute capital to or purchase shares of other credit organizations or enterprises.


SECTION IV

Opening of Accounts, Payments and Budgetary Operations

Article 34

Opening of accounts.

1. The State Bank may open accounts at foreign banks, international monetary organizations or banks.

2. The State Bank shall open accounts for and conduct transactions on behalf of domestic credit organizations, foreign banks, international monetary organizations and banks.

3. The State Bank shall open accounts for and conduct transactions on behalf of the State Treasury. In communes and towns which are far from central areas, the State Treasury may open its accounts at a State owned commercial bank.

Article 35

Payments and budgetary operations.
1. The State Bank shall establish an inter-bank payment system through which payment services shall be provided.

2. The State Bank shall conduct budgetary operations by way of collection and payment of cash to clients.

3. The State Bank shall fully conduct payment transactions, on a cash or non-cash basis, in accordance with the requirements of account holders in a timely manner.

4. The State Bank shall sign and fulfil terms of payment agreements entered into with foreign banks, international monetary organizations and banks in accordance with provisions of the law.

Article 36

Acting as an agent of the State Treasury.

The State Bank shall act as an agent of the State Treasury in the organization of tenders for issuance and payment of State Treasury bonds and bills.


SECTION V

Foreign Exchange Control and Transactions

Article 37

Duties and powers of State Bank in relation to foreign exchange control.

In relation to foreign exchange control, the State Bank shall have the following duties and powers:

1. To formulate laws, ordinances, and other projects in relation to foreign exchange control; to issue legal instruments under its authority in relation to foreign exchange control;

2. To issue and withdraw licences for conduct of foreign exchange transactions;

3. To organize and direct the inter-bank foreign currency market and the domestic foreign exchange market;

4. To examine and inspect the observance of legal provisions in relation to foreign exchange control; to supervise the export or import of foreign exchange;

5. To supervise foreign exchange transactions conducted by credit organizations;

6. To perform other duties and powers in relation to foreign exchange control in accordance with provisions of the law.

Article 38

Management of foreign exchange reserves of the State.

1. The foreign exchange reserves of the State shall include:

(a) Foreign currency in cash, all deposits in foreign currency in accounts opened at foreign banks;

(b) Bills and debt certificates in foreign currency payable by foreign countries;

(c) Stocks issued or guaranteed by foreign governments, foreign banks, international monetary organizations or banks;

(d) Gold;

(e) Other foreign exchange of the State.

2. The State Bank shall manage the foreign exchange reserves of the State of the Socialist Republic of Vietnam in accordance with provisions of the Government for the purposes of implementing the national monetary policy, ensuring international solvency, and maintaining the foreign exchange reserves of the State.

3. The use of the foreign exchange reserves of the State for contingencies or imperative demands of the State shall be agreed by the Prime Minister.

4. The State Bank shall submit to the Government and the Standing Committee of the National Assembly reports on any increase or decrease in the foreign exchange reserves of the State.

5. The Ministry of Finance shall inspect the management of the foreign exchange reserves of the State by the State Bank in accordance with provisions of the Government.

Article 39

Foreign exchange transactions conducted by the State Bank.

The State Bank shall carry out the purchase or sale of foreign exchange in the domestic market in order to implement the national monetary policy; and shall carry out the purchase or sale of foreign exchange in the international market and conduct other foreign exchange transactions in accordance with provisions of the Government.


SECTION VI

Information Activities

Article 40

Collection and provision of information.

1. The State Bank shall carry out the collection, analysis and forecast of information in relation to economic, financial, monetary and banking operations within and outside the country for the purposes of formulation and implementation of the national monetary policy. Relevant organizations and bodies shall be responsible for providing the State Bank with necessary information as requested in accordance with provisions of the Government.

2. The State Bank shall exchange information with and act as an agency providing information in relation to monetary and banking operations for credit organizations and other organizations and individuals.

Article 41

Publication of information.

The State shall publish information in relation to monetary and banking operations. The Governor shall provide for the scope, forms and time of publication of such information.

Article 42

Maintenance of confidential information.

The State Bank shall formulate and submit to the Government for decision a list of confidential documents in relation to monetary and banking operations; and shall maintain secrets of the State, of the State Bank, and of clients in accordance with provisions of the law.


CHAPTER IV

Financial and Accounting Operations and Reports of
the State Bank

Article 43

Prescribed capital.

The prescribed capital of the State Bank shall be provided by the State Budget. The level of prescribed capital of the State Bank shall be determined by the Prime Minister.

Article 44

Financial collection and payments.

In principle, financial collection and payments by the State Bank shall be carried out in accordance with provisions of the Law on State Budget. The Government shall provide in detail for the contents of financial collection and payments appropriate to the particular operations of the State Bank.

Article 45

Difference between income and payments of the State Bank.

The difference between the annual income and payments of the State Bank shall be equivalent to the total income gained from the professional operations of the State Bank and other sources from which operating costs and reserve contingency funds have been deducted.

Article 46

Contribution to funds.

Part of the difference between the income and payments of the State Bank shall be contributed to funds required for the implementation of the national monetary policy in accordance with provisions of the Government; the remaining amount of money shall be paid into the State Budget.

Article 47

Accounting operations of the State Bank.

The State Bank shall carry out accounting operations in accordance with the account and voucher system provided for in the laws on accounting and statistics.

Article 48

Auditing.

Annual financial reports prepared by the State Bank shall be audited and certified by the State auditing body.

Article 49

Fiscal year and financial reports.

1. The fiscal year of the State Bank shall commence on the first day of January and finish on the thirty first day of December of the calendar year.

2. The State Bank shall comply with the financial reporting regimes stipulated by law.


CHAPTER V

Banking Inspection Body and General Controller
of the State Bank

Article 50

Banking inspection body.

1. The banking inspection body shall be the inspection body specialized in banking inspection, being a part of the organization of the State Bank.

2. The relations between the banking inspection body and the State inspection body shall be specified in the laws on inspection.

3. The organizational structure, duties and powers of the banking inspection body shall be stipulated by the Government.

Article 51

Objects and purposes of banking inspection.

1. Objects of the banking inspection body shall be credit organizations and the operations thereof and the banking operations of other organizations.

2. The banking inspection body shall be established for the purposes of ensuring the safe operations of credit organizations, protecting the legitimate rights and interests of depositors, and implementing the national monetary policy.

Article 52

Operations of the banking inspection body.

The banking inspection body shall carry out the following operations:

1. To inspect the observance of the laws on monetary and banking operations and the implementation of provisions provided for in the licences for conducting banking transactions;

2. To identify, prevent, and deal with within its authority, or make proposals for relevant competent bodies to deal with, breaches of the laws on monetary and banking operations;

3. To make recommendations on measures to ensure the implementation of the laws on monetary and banking operations.

Article 53

Powers of the banking inspection body.

The banking inspection body shall, in carrying out inspections, have the following powers:

1. To request the objects of inspection and concerned parties to provide any documents and evidence or to answer questions in relation to the contents of inspection;

2. To make records of inspection and recommendations on solutions to deal with offences;

3. To apply measures to prevent or deal with offences in accordance with provisions of the law.

Article 54

Responsibilities of banking inspectors.

Banking inspectors shall, in performing their duties, have the following responsibilities:

1. To present the decision on inspection and inspector card;

2. To follow the stipulated process of and procedures for inspection; to avoid causing troubles or obstructions to the ordinary operations of inspected credit organizations and other organizations conducting banking operations and thereby damaging legitimate rights and interests;

3. To prepare and submit to the Governor reports on results of inspection and proposed measures to deal with offences;

4. To abide by provisions of the law and be responsible to the Governor and before the law for any conclusions, acts and decisions in relation to inspections.

Article 55

Rights of credit organizations and other organizations conducting banking operations upon inspection by the banking inspection body.

A credit organization or organization conducting banking operations shall, upon inspection by the banking inspection body, have the following rights:

1. To request inspectors to present the decision on inspection and inspector card and to comply with legal provisions on inspection;

2. To lodge complaints or institute legal proceedings at the relevant competent State body in respect of any act of inspectors or conclusion and decision by the banking inspection body which is deemed to be wrongful;

3. To request compensation for damage resulting from improper acts or wrongful conclusions and decisions of the banking inspection body.

Article 56

Responsibilities of credit organizations and other organizations conducting banking operations upon inspection by the banking inspection body.

A credit organization or organization conducting banking operations shall, upon inspection by the banking inspection body, have the following responsibilities:

1. To fulfil requests of the banking inspection body relating to the contents of inspection;

2. To comply with the decisions of the banking inspection body.

Article 57

General controller.

1. The general controller shall be a part of the organization of the State Bank and have the following duties:

(a) To control the operations of units in the State Bank system;

(b) To carry out internal audits of professional units conducting central banking transactions.

2. The organizational structure, duties and powers of the general controller shall be stipulated by the Governor.


CHAPTER VI

Rewards and Dealing with Breaches

Article 58

Rewards.

Organizations and individuals making achievements in terms of banking operations, facilitating socio-economic development, or maintaining the safe operations of the system of credit organizations shall be rewarded in accordance with provisions of the law.

Article 59

Subjects and forms of offences.

1. Any organization or individual committing a breach of the provisions of article 29 of this Law; or conducting banking operations without the relevant licence or beyond the scope of operations specified in the licence; or causing obstruction to examinations or inspections by the State Bank; or committing a breach of other provisions of this Law or provisions of the laws on monetary and banking operations; shall, depending on the nature and seriousness of the breach, be subject to disciplinary penalty, administrative penalty or prosecution for criminal liability in accordance with provisions of the law.

2. Any officer or official of the State Bank who commits a breach of the provisions of article 14 of this Law; or proves to be irresponsible in performing his or her duties; or illegally protects organizations or individuals committing a breach of the provisions of this Law and other provisions of the laws on monetary and banking operations shall, depending on the nature and seriousness of the breach, be subject to internal penalty or investigation for criminal liability in accordance with provisions of the law.

3. In cases where an organization or individual commits a breach of the provisions of clause 1 or 2 of this article, thereby resulting in damage to the interests of the State or other organizations and individuals, the offender shall be requested to pay compensation for damage in accordance with provisions of the law.

Article 60

Powers of the State Bank in dealing with administrative offences.

The State Bank shall have the power to deal with administrative offences committed by organizations and individuals in relation to monetary and banking operations in accordance with provisions of the law.

Article 61

Complaints and legal proceedings in relation to decisions on dealing with administrative offences.

1. Any organization or individual being administratively penalized for an offence in relation to monetary and banking operations shall have the right to lodge a complaint to the competent State body or to institute legal proceedings at a court with respect to the decision on dealing with the administrative offence.

2. Pending the response to the complaint lodged or legal proceedings instituted, the administratively penalized organization or individual shall continue to comply with the decision on dealing with the administrative offence. When a decision on settlement of the complaint by the competent State body or a judgement of the court is made, the decision on settlement of the complaint by the competent State body or the judgment of the court shall be complied with.

CHAPTER VII

Implementation Provisions

Article 62

Time-limit for implementation.

1. This Law shall be of full force and effect as of 1 October 1998.

2. The Ordinance on the State Bank of Vietnam dated 23 May 1990 shall expire as from the first effective date of this Law.

3. The Government, Supreme People's Court and Supreme Inspectorate Body shall, within the scope of their respective duties and powers, consider provisions of the laws on monetary and banking operations for the purposes of repeal or amendment thereof and addition thereto or issuance of new provisions; or propose to the Standing Committee of the National Assembly to repeal, amend or add to such provisions or to issue new provisions; in the light of the provisions of this Law.

Article 63

Guidelines for implementation.

The Government shall provide detailed provisions and guidelines for the implementation of this Law.
This Law was passed by Legislature X of the National Assembly of the Socialist Republic of Vietnam at its 2nd Session on 12 December 1997.

Chairman of the National Assembly

NONG DUC MANH