Vietnam to get tough on banking violations

TN News

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Banks in Vietnam will face a fine of up to VND100 million if they buy or sell foreign currencies at unofficial rates or impose illegal transaction fees on customers, according to a draft decree.

The decree stipulates that unfair competitive practices can be fined between VND10 million and VND100 million (US$485-4,850), news website VnExpress reported.

The highest fine of VND90-100 million will be imposed for illegal forex trading activities.

Banks will have to pay a fine of VND20-30 million if their advertisements on interest rates and loans are found to be untruthful or misleading. A similar penalty will be imposed on those breaking the central bank's interest rate cap by offering gift or cash bonuses.

The draft decree also proposes a fine of VND50 million on banks that ease credit regulations for clients.

VnExpress did not say when the decree would take effect.

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