Cases in which Vietnamese banks are allowed to block customers’ accounts
“Hello Lawyer, I am currently retired, so I want to set up a bank account. However, my neighbors suggested that I should not open an account because my account may still be blocked by the bank. , Please let me know what is Freezing a bank account and the cases in which the bank is frozen the customer’s account. Please help me answer it. Thank you!“. Thanks for your question. To clarify this, today, LSX Lawfirm will give you an article about “Cases in which Vietnamese banks are allowed to block customers’ accounts“, as follows:
Legal grounds
- Criminal Procedure Code 2015
- Civil Procedure Code 2015
- Law on Tax Administration 2019
- Law on Civil Judgment Execution Amended 2014
- Circular 23/2014/TT-NHNN
- Circular 02/2019/TT-NHNN
What is account blockade?
According to the law, account freezing is also one of the coercive measures in both civil and criminal proceedings that will be applied to those who are fined; property confiscation or to secure compensation when there are grounds to determine that the person has an account in credit proceedings.
The blockade of accounts will also be applied to the accounts of other people if there are grounds that there is money in these people’s accounts related to the violations; crimes committed by the accused or there are grounds to believe that the account holder has dispersed assets for the purpose of preventing the dispersion of assets during the investigation process; judge; settle the case according to the provisions of law.
Cases in which banks are allowed to freeze customers’ accounts
Pursuant to Article 17 of Circular 23/2014/TT-NHNN; and Circular 02/2019/TT-NHNN, payment service providers (including banks, a number of non-bank credit institutions, microfinance institutions, etc.) transfer part or all of the amount on the customer’s payment account in the following cases:
There is a written request from a competent authority as prescribed by law then;
The payment service provider discovers that there is a mistake when it is recorded in the customer’s payment account or upon a request for a refund of the money transfer payment service provider due to a mistake; errors compared with the money transmitter’s payment order then;
The amount blocked on the checking account does not exceed the amount in error; errors;
There is a written notice from one of the account holders of the arising of a dispute over a joint payment account between the holders of the joint payment account then.
Usually, when the account is blocked, it falls into the subjects of inspection that show signs of asset dispersal when there are signs that it will be done; prepare to make money transfers to other accounts with unclear information about the purpose; content; receiver.
Order and procedures for requesting account blockade
In criminal proceedings
To secure prosecution; investigate; prosecute; judge; judgment enforcement; within their competence, agencies, and persons competent to conduct proceedings may apply measures to request freezing of accounts.
The order and procedures for requesting an account blockade shall comply with the provisions of Article 129 of the 2015 Criminal Code. Accordingly, the account blockade shall only apply to persons accused of crimes for which the Penal Code prescribes a fine; having their property confiscated, or to secure compensation for damage when there are grounds to determine that such person has an account at a bank or the State Treasury.
An account freeze also applies to another person’s account if there are grounds to believe that the funds in that account are related to the accused’s criminal conduct.
In civil proceedings
The request to block the account at the bank at the written request of the competent court. During the settlement of the relevant case. The application of this measure is necessary to ensure the settlement of the case or the execution of the judgment.
Procedures for requesting a bank to freeze an account must comply with the provisions of the Civil Code 2015 on the application of temporary emergency measures.
In civil judgment enforcement activities
The request to freeze an account is one of the measures to ensure judgment enforcement. According to Article 67 of the 2014 Law on Civil Judgment Execution, the freezing of accounts shall be carried out in cases where the judgment debtor has an account at a bank.
The decision to block an account must clearly specify the amount; frozen assets. The enforcer must hand over the blockade decision to the bank that is managing the judgment debtor’s account.
In case it is necessary to immediately freeze the judgment debtor’s account at the place of custody but the blockade decision has not been issued, the enforcer shall make a written request to the bank that is managing the judgment debtor’s account to block it. account.
Within 24 hours after making the minutes, the enforcer must issue a decision to block the account. The credit institution that is managing the account must immediately comply with the executor’s request for account blockade.
In tax administration activities
The request to freeze accounts is one of the measures to enforce tax administrative decisions. The order and procedures are carried out in accordance with the provisions of the Law on Tax Administration 2019.
Bank’s responsibilities when blocking accounts
Immediately after the payment account is blocked, the payment service provider must notify (in writing or in the form of notice agreed upon in the opening contract then; use the payment account between the payment service provider and the payment service provider). payment services and customers opening a payment account) to the account holder or the guardian or legal representative of the account holder about the reason and scope of the blockade of the payment account
The blocked amount on the payment account must be preserved; strictly control according to the blockade content. In case the account is partially blocked, the unblocked part can still be used normally.
Conditions for ending the blockade of payment accounts
The blockade of the account will be terminated and the blockade period will be terminated in accordance with the law.
A payment service provider shall terminate the blockade of a payment account when it meets one of the following conditions:
End of blockade period;
Having a written request from a competent authority on the termination of the blockade of the payment account;
The payment service provider has finished handling the error; confusion about money transfer then;
There is written notice from all the joint payment account holders. That the dispute over the joint payment account between the joint payment account holders has been resolved then.
As such, the termination of the account blockade requires a written request from the competent authority. On the termination of the blockade of the payment account or after the investigating authority verifies. That the payment account is free of fraud or violates the law then.
How do not be blocked an account?
Avoid lending personal accounts to others then.
Avoid sharing personal accounts with many other people then.
Do not engage in illegal activities: gambling; cheating; or illegal trade…
Conclusion
Thus, not the bank can arbitrarily block the account. The account blockade is completely based on the provisions of the law. Therefore, customers only need to note a few issues. The use of a bank account brings a lot of benefits then.
Consulting service of LSX Lawfirm
Above is LSX Lawfirm’s advice on the content of the problem. “Cases in which Vietnamese banks are allowed to block customers’ accounts”. And all the above knowledge to use in work and life. If you have any questions and need more advice and help, please contact the hotline for reception. Lawyer X is a place that provides reputable and fast business services at reasonable prices. Customers will be extremely satisfied when using our services.
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Related questions
The blockade of bank accounts must be for the right subjects, must be done in accordance with the authority and comply with the procedures prescribed by law. The blockade of an account is only done when there is a decision of a competent authority or in case the bank detects a mistake or error in the payment process or detects that the account holder has committed a violation. In addition, the bank is only allowed to block the payment account at the request of one of the payment account holders for the joint payment account.
– Firstly, Heads and Deputy Heads of investigating bodies at all levels: accordingly, heads and deputy heads of investigating agencies at all levels must immediately notify the same-level procuracy before executing the order to freeze assets. bank account.
– Secondly, The director and deputy director of the People’s Procuracy and the director and deputy director of military procuracies at all levels.
– Thirdly, The Chief Justice and Deputy Chief Justice of the People’s Court; Chief Justices and Deputy Chief Justices of Military Courts at all levels; People’s Trial Counsel.
– Finally, The judge presides over the Court session.
Individuals can open a bank account when meeting the following conditions: I am Vietnamese; foreigners living and working legally in Vietnam; Age 15 and up; Having the full capacity for civil acts; Have ID card/ID card/passport.
Conclusion: So the above is Cases in which Vietnamese banks are allowed to block customers’ accounts. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
