What is the full text of Decree 340/2025/ND-CP on administrative penalties in the monetary and banking sector?
On December 25, 2025, the Government issued Decree 340/2025/ND-CP regulating administrative penalties for violations in the monetary and banking sector.
Accordingly, Decree 340/2025/ND-CP stipulates administrative violations, forms of penalties, penalty levels, remedial measures, implementation of remedial measures, authority to impose administrative penalties, and authority to draw up administrative violation reports in the monetary and banking sector.
Decree 340/2025/ND-CP stipulates that administrative violations in the monetary and banking sector include:
- Violations of regulations regarding the management and use of licenses and prohibited acts;
- Violations of regulations regarding organization, governance, and operation;
- Violations of regulations concerning shares, stocks, and Capital contributions;
- Violations of regulations regarding Capital mobilization and service fees;
- Violations of regulations regarding credit granting, receiving mandates, entrusting funds, and interbank operations;
- Violations of regulations concerning credit information activities and the provision of credit information services;
- Violations of regulations concerning foreign exchange operations and gold trading;
- Violations of regulations concerning payment, currency and treasury management, and provision of treasury services;
- Violations of regulations concerning the purchase and investment in fixed assets, real estate business, and advisory activities of credit institutions and branches of foreign banks;
- Violating regulations on ensuring the safety of operations of credit institutions and branches of foreign banks;
- Violations of regulations on deposit insurance and the fund guaranteeing the safety of the people's credit fund system;
- Violations of regulations on anti-money laundering; anti-terrorism financing; and anti-financing of weapons of mass destruction;
- Violations of regulations regarding information and reporting procedures;
- Violating regulations regarding obstructing inspections and audits, and failing to comply with requests from competent authorities;
- Violations of regulations regarding the purchase, sale, and handling of debt;
- Violations of regulations on information technology security in banking operations.
Decree 340/2025/ND-CP stipulates the subjects liable to administrative penalties as follows:
- Decree 340/2025/ND-CP applies to organizations and individuals who commit administrative violations in the monetary and banking sector.
- The organizations stipulated in Clause 1, Article 2 of Decree 340/2025/ND-CP include:
+ Credit institutions; branches, transaction offices, representative offices, and domestic business units of credit institutions; branches of foreign banks; representative offices of foreign credit institutions and other foreign organizations engaged in banking activities;
+ Businesses; subsidiaries of businesses (branches, representative offices);
+ Cooperatives, cooperative unions; subordinate units of cooperatives and cooperative unions (branches, representative offices);
+ Other organizations established and operating in Vietnam.
*Decree 340/2025/ND-CP takes effect from February 9, 2026.
*The above is the full text of Decree 340/2025/ND-CP on administrative penalties in the monetary and banking sector, specifically detailing the provisions.
What is the full text of Decree 340/2025/ND-CP on administrative penalties in the monetary and banking sector? (Image from the Internet)
What are the forms of penalties and fines in the monetary and banking sector according to Decree 340?
Article 5 of Decree 340/2025/ND-CP stipulates the forms of penalties, fine amounts, authority to impose fines, remedial measures, and principles of penalties in the monetary and banking sector as follows:
(1) Main forms of punishment:
- Warning;
- Fines.
(2) Additional forms of punishment:
- Temporary revocation of licenses for: foreign exchange dealer registration certificates, and certificates for currency exchange agents of countries sharing a border, for a period of 1 to 3 months;
- Temporary suspension applies to: foreign exchange activities for a period of 3 to 6 months; trust activities for a period of 1 to 3 months; debt trading activities for a period of 3 to 6 months; credit information service provision for a period of 1 to 3 months; the use of third-party information technology services for a period of 1 to 3 months; gold bullion trading activities for a period of 6 to 9 months; raw gold import activities for a period of 9 to 12 months; and lending for overseas investment for a period of 1 to 6 months.
- Confiscation of evidence and means used to commit administrative violations, confiscation of foreign currency, Vietnamese Dong, and gold.
(3) Amount of fines and authority to impose fines:
- The fines stipulated in Chapter II of Decree 340/2025/ND-CP are the fines applicable to individuals; the fines applicable to organizations committing the same administrative violation are twice the fines applicable to individuals.
- The fine for individuals working at people's credit funds, microfinance institutions, or affiliated units of people's credit funds and microfinance institutions is 10% of the fine stipulated in Chapter II of Decree 340/2025/ND-CP; the fine for organizations that are people's credit funds, microfinance institutions, or affiliated units of people's credit funds and microfinance institutions is twice the fine for individuals working at people's credit funds, microfinance institutions, or affiliated units of these organizations;
- The authority to impose fines for each position stipulated in Chapter III of Decree 340/2025/ND-CP is the authority to apply to an administrative violation committed by an individual and is determined based on the maximum fine applicable to individuals as stipulated in points a and b, Clause 3, Article 5 of Decree 340/2025/ND-CP. The fine imposed by an organization for an administrative violation is twice the fine imposed on an individual.
(4) Remedial measures:
- Mandatory payment into the state budget of any illegal profits obtained from the violation; mandatory return of any altered or tampered licenses;
- Compelling the refund of fees and amounts collected incorrectly to organizations and individuals paying the fees, including interest; compelling the return or recovery of entrusted assets to the trustee; compelling the immediate refund of collected deposit insurance fees and the immediate recovery of paid deposit insurance funds; compelling the repurchase or resale of debt;
- Mandatory debt recovery for outstanding debts; mandatory recovery of Capital used improperly; mandatory Capital; prohibition of converting corporate bonds into shares; prohibition of exercising warrants attached to bonds; mandatory repurchase of corporate bonds sold to subsidiaries if the subsidiary still holds those bonds;
- Mandating the establishment of funds in accordance with the law; mandating the classification of assets, the creation of risk provisions for outstanding debts and ongoing administrative violations; mandating the reversal of risk provisions used improperly, and the transfer of processed debts using risk provisions for on-balance sheet accounting in accordance with the law;
- Compulsory compliance with legally prescribed rates, limits, and restrictions; mandatory immediate correction of inaccurate information; mandatory submission of complete and accurate reports; mandatory issuance and submission of internal regulations in accordance with legal regulations; mandatory immediate public posting of copies of deposit insurance participation certificates; mandatory provision of complete information and documents; mandatory account freezing; mandatory unfreezing of accounts;
- Enforcing compliance with legal regulations on information technology security in banking operations; enforcing compliance with legal regulations on anti-money laundering, anti-terrorism financing, and anti-proliferation of weapons of mass destruction; enforcing compliance with legal regulations on payments; enforcing compliance with legal regulations on credit granting;
- Forcing counterfeit money to be stamped or punched with holes;
- To compel the cessation of stock listing activities on foreign stock markets; to compel the termination of operations; to compel the cessation of one or more banking business activities; to compel the termination of insurance product supply contracts and bear all costs and losses resulting from the termination of insurance product supply contracts in cases where the customer requests contract termination;
- No expansion of network and operating area is permitted until the violations committed by the credit institution have been rectified;
- Dividends will not be Chia until the violations are rectified;
- Propose or request the competent authority to consider and apply measures such as: revoking licenses; revoking certificates of registration for foreign exchange dealers; revoking certificates of registration for dealers of currencies of neighboring countries; revoking licenses for opening and using foreign currency accounts abroad; revoking licenses for trading gold bars; revoking approval documents for providing payment services not through customer payment accounts; revoking licenses for providing payment intermediary services; revoking certificates of eligibility to provide credit information services;
- XEM , propose, or request the competent authority to apply measures such as: suspending or dismissing individuals who have violated and/or are responsible for violations; prohibiting individuals who have violated and/or are responsible for violations from holding management, executive, or supervisory positions at credit institutions or branches of foreign banks; requesting credit institutions or branches of foreign banks to dismiss individuals and implement other disciplinary measures as prescribed by law for individuals who have violated the regulations within the jurisdiction of the credit institution or branch of a foreign bank;
- To compel the dismissal, removal from office, or to propose to the competent authority to issue a decision on the dismissal or removal from office of elected or appointed individuals who violate regulations.
(5) The exchange rate between the US dollar and other foreign currencies is determined as follows:
- For the US dollar, the central exchange rate is the rate announced by the State Bank of Vietnam and applied at the time the administrative violation was committed.
- For other foreign currencies, the cross-exchange rate for that foreign currency to the Vietnamese Dong is the US dollar exchange rate, with the US dollar to Vietnamese Dong exchange rate being the central rate announced by the State Bank of Vietnam. The exchange rate for that foreign currency to the US dollar is the rate displayed on Reuters or Bloomberg screens or other means for foreign currencies not displayed on Reuters or Bloomberg screens at the time the administrative violation was committed.
(6) During the process of XEM and handling violations of regulations at point b, clause 4, point a, clause 5 of Article 7; points b, c, clause 5 of Article 17; clause 2 of Article 22; clause 3 of Article 23; clause 3 of Article 25; point o, clause 4 of Article 27; clause 1, points a, b, clause 5, points b, c, d, e, i, clause 6, points a, d, clause 7 of Article 30; points a, e, clause 4 of Article 31; point a, clause 6, point d, clause 7 of Article 32; point b, clause 4 of Article 44; point a, clause 1 of Article 52; According to Clause 3, Article 55 of Decree 340/2025/ND-CP, if the violation shows signs of a crime, the competent authority handling the case must transfer the relevant file concerning the alleged criminal act to the competent authority for criminal prosecution as prescribed in Article 62 of the Law on Handling Administrative Violations 2012. If the violation shows signs of a crime but is not subject to criminal prosecution, it shall be subject to administrative penalties as prescribed in Decree 340/2025/ND-CP.
What are the penalties for violating regulations on internal control systems and independent audits according to Decree 340?
Article 11 of Decree 340/2025/ND-CP stipulates that violations of regulations on internal control systems and independent audits are subject to the following penalties:
- A fine of VND 20,000,000 to VND 30,000,000 shall be imposed for the act of failing to report the results of internal audits, independent audits, or the internal control system as required by law.
- A fine of VND 30,000,000 to VND 50,000,000 shall be imposed for any of the following violations:
+ Failure to select an independent auditing firm to audit and provide assurance services regarding the operation of the internal control system in the preparation and presentation of financial statements in the following fiscal year, as required by law;
+ Failure to notify the State Bank of Vietnam about the selected independent auditing firm within the 30-day period as stipulated in the Law on Credit Institutions 2024 .
- A fine of between VND 80,000,000 and VND 100,000,000 shall be imposed for any of the following violations:
+ Internal audits did not carry out the tasks stipulated in Clause 2, Article 58 of the Law on Credit Institutions 2024 and other legal regulations;
+ Failure to conduct independent audits as required by the Law on Credit Institutions 2024 and other relevant legal regulations;
+ Failure to implement senior management oversight, internal control, risk management, and internal assessments of Capital adequacy levels as required by law.
- A fine of VND 100,000,000 to VND 150,000,000 will be imposed for the act of failing to establish an internal audit team under the Supervisory Board.
- A fine of VND 200,000,000 to VND 250,000,000 will be imposed for the act of failing to establish an internal control system as prescribed in the Law on Credit Institutions 2024 .
Source: Law Library
