On November 20, 2023, the Governor of the State Bank of Vietnam (SBV) issued Circular No. 14/2023/TT-NHNN regulating the internal control system of non-bank credit institutions (“Circular 14”).

Now, let’s delve into the details with Bizlawyer!

Circular 14 consists of 6 chapters, 39 articles; the applicable entities are non-bank credit institutions, including financial companies, financial leasing companies; and organizations, individuals related to the internal control system of non-bank credit institutions.

Circular 14 requires that the internal control system of non-bank credit institutions must meet the requirements for internal control systems as stipulated by the Law on Credit Institutions; be suitable for the scale, conditions, and complexity of the non-bank credit institution’s business activities; have sufficient financial, human, and information technology resources to ensure the effectiveness of the internal control system; establish and maintain a control culture and professional ethical standards for non-bank credit institutions.

Non-bank credit institutions must have internal regulations in accordance with the provisions of the Law on Credit Institutions, ensuring compliance with the Circular and relevant legal regulations. The Board of Directors, the Council of Members shall promulgate regulations on the organization, management, and operation of non-bank credit institutions, excluding matters within the competence of the General Meeting of Shareholders, owners; the Inspection Board issues internal regulations of the Inspection Board; the Director General (Director) issues internal rules, procedures, and operational processes (hereinafter referred to as internal procedures); to be regularly assessed in accordance with the provisions of the Circular and the regulations of the non-bank credit institution regarding appropriateness, compliance with legal regulations, and amendments and supplements (if necessary).

This Circular is effective from October 01, 2024.

The above is the entire content of the Circular: Regulations on the internal control system of non-bank credit institutions.

* This news is for informational purposes only regarding newly issued legal regulations and is not intended for specific case consultation or application.

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