On May 15, 2024, the Government issued Decree No. 52/2024/ND-CP regulating non-cash payments (“Decree 52”), replacing Decree No. 101/2012/ND-CP (has been revised and supplemented). Decree 52 has the following notable amendments and additions:
1. Supplementing the legal framework on digital currency
Previously, the term "electronic currency" was mentioned in the Law on Prevention and Combat of Money Laundering but was not explained in a number of sub-law documents, so in fact, there was a lot of confusion and misunderstanding. between "electronic money" and some new types of assets that have not been recognized by law such as "virtual currency", "cryptocurrency", etc. For the first time, Decree 52 clearly stipulates the concept of electronic money, explicitly.
Specifically, according to the provisions of Decree 52, electronic money is the value of Vietnamese Dong stored on electronic means provided on a reciprocal basis with the amount paid in advance by customers to banks and branches. Foreign banks, payment intermediary service providers providing e-wallet services.
In fact, forms of electronic money storage such as e-wallets and prepaid cards have existed for a long time and increasingly play a role in transaction payment activities of organizations and individuals. Decree 52 adds regulations to strictly manage the operation of forms of electronic money storage as follows:
- Banks and foreign bank branches are allowed to issue and provide e-wallets and prepaid cards. The supply, issuance and use of e-wallets and prepaid cards comply with the regulations of the State Bank.
- Organizations providing payment intermediary services providing e-wallet services must ensure to maintain the total balance on all accounts ensuring payment for e-wallet services opened at banks and bank branches. foreign goods are not lower than the total balance of all e-wallets issued to customers; The service is only allowed for e-wallets linked to the customer's own payment account or debit card.
Completing the legal framework for electronic money contributes to preventing and eliminating illegal payment means issued by unauthorized organizations; Clearly distinguish between cryptocurrencies and virtual currencies that have not been recognized by law in the market.
2. Supplementing regulations on legal capital levels for enterprises and organizations providing payment intermediary services that are not banks
According to new regulations in Decree 52, intermediary payment services are expanded, including:
- Financial switching services,
- International financial switching services,
- Electronic clearing service,
- E-wallet service,
- Collection and payment support services
- Electronic payment gateway service
In particular, the conditions for actually contributed or allocated charter capital for organizations that are not banks or foreign bank branches providing payment intermediary services are as follows:
+ Organization providing e-wallet services, collection and payment support services and electronic payment gateway services: 50 billion VND;
+ Organization providing financial switching services, international financial switching services, electronic clearing services: 300 billion VND.
3. Additional regulations on prohibited behaviors in making non-cash payments
Non-cash payment methods are one of the channels most exploited by data exploiters and traders due to their popularity as well as the nature related to bank accounts and payment transactions. Decree 52 adds regulations on prohibited acts in making non-cash payments to ensure safety, order and efficiency of the payment system, protecting the legitimate rights and interests of customers. The parties use non-cash payment methods in transactions. Previously, if the prohibition was limited to disclosing and providing information related to account holders' deposits at payment service providers not in accordance with the provisions of law, Decree 52 opened wide scope, strictly prohibit disclosing or providing information about payment account balances, bank card balances, e-wallet balances and payment transactions of customers at payment service providers. Payment or payment intermediary service providers do not comply with relevant laws.
It can be seen that the protection of personal information and data in payment activities, especially non-cash payments, is given special attention when Decree 52 adds details to the regulations prohibiting acts of revealing, stealing, trading information of individuals and personal accounts of parties involved in opening accounts and using intermediary payment methods.
In addition, in order to prevent acts of using non-cash payment methods in criminal activities, Decree 52 also prohibits performing, organizing or facilitating the acts of: Using or taking advantage of payment accounts, payment instruments, payment services, payment intermediary services to gamble, organize gambling, cheat, defraud, do illegal business and carry out illegal activities.
4. Additional cases of blocking payment accounts when there are mistakes or errors with the payment order of the remitting party
Decree 52 adds cases when a payment service provider detects a mistake or error when mistakenly crediting a customer's payment account or complying with the provider's request to refund money. Responding to money transfer payment services due to errors or errors compared to the payment order of the remitting party after crediting the customer's payment account. The amount blocked on the payment account must not exceed the amount of error or error.
According to the above regulations, blocking part or all of the money in a bank account can only be done when the remitting bank makes mistakes or errors compared to the payment order of the remitting party. That is, the bank transferred incorrect information compared to the customer's payment order, a complete error on the part of the remitting bank. At the same time, the party requesting a refund of the mistakenly transferred money must also be the remitting bank. Thus, people who mistakenly transfer money do not have the right to request the payment bank to block the recipient's account. This gives payment service providers more basis to coordinate solutions and protect customers' interests.
In addition, Decree 52 also regulates payment service providers, payment account owners and competent authorities if they illegally block payment accounts or request them to block them, causing damage. The payment account owner is responsible for compensation.
5. The handling of the balance upon closing a payment account can be done according to the prior agreement between the bank and the account holder.
Previously, handling the account holder's balance in case the account holder temporarily lost consciousness was very difficult because there was not enough legal basis for implementation. In this situation, relatives or people trusted by the account owner can only wait for the account owner to die or request the Court to declare loss/limitation of civil act capacity to resolve the matter.
To solve the above problem, Decree 52 adds a legal basis for handling the balance when closing a payment account, which can be done according to the prior agreement between the payment account owner and the payment service provider. ; In case the account owner is a person who has lost civil act capacity, a person with difficulty in cognition or behavior control, or a person with limited civil act capacity, payment will be made at the representative's request. According to the law, the guardian is in accordance with civil law regulations; or pay to the heir or legal heir representative in case the payment account owner is an individual who dies or is declared dead.
Decree 52 takes effect from July 1, 2024.
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