VIE GVT Insurance Business Penalties

Published on: Jan 7, 2025

On Dec. 31, VIE GVT issued decree re insurance business violations.

  • VIE GVT issued decree no. 174/2024/ND-CP establishing comprehensive framework for administrative violations in insurance sector, including penalties, remedial measures.
  • The framework in the decree applies to domestic and foreign insurers, insurance brokers, branches of foreign insurers, and insurance agents operating in Vietnam.
  • Document dated Dec. 31, 2024, received from VIE GVT Jan. 3, summarized on Jan. 7.
  • Penalty Provisions
  • Fines range from VND 10mn to VND 200mn depending on violation type and severity.
  • Major violation categories include operating without proper licenses, failure to maintain minimum capital requirements, non-compliance with reporting obligations, violations of anti-money laundering regulations, improper insurance product sales and marketing.
  • Insurance and banking supervision agency officials authorized to impose penalties up to VND 100mn; provincial-level enforcement bodies can impose fines up to set limits.
  • In addition, the decree grants multiple authorities certain enforcement powers, including insurance regulators, banking supervisors, and market conduct supervisors.
  • Effectiveness
  • The decree takes effect from Feb. 15, 2025.
Regulators
VIE GVT
Entity Types
IB; Ins
Reference
Reg 174/2024/ND-CP, 12/31/2024
Functions
AML; Compliance; Financial; Legal; Registration/Licensing; Reporting; Risk; Sales Practices; Treasury
Countries
Vietnam; Cross-Border
Category
State
N/A
Products
Insurance
Rule Type
Final
Regions
AP
Rule Date
Dec 31, 2024
Effective Date
Feb 15, 2025
Rule ID
239176
Linked to
N/A
Reg. Last Update
Dec 31, 2024
Report Section
AML & Enforcement