Supervising payment systems to ensure safety

13:22-16/07/2018

The State Bank is drafting a circular on supervision of payment systems.

Accordingly, the objectives of monitoring the payment systems are to ensure the safety, stability and efficiency of the systems;  their compliance with Vietnam's laws  and international principles and standards on payment; equality, impartiality, fairness, independence and neutrality between the payment system operating organizations and the members participating in the payment systems.

In addition, early detecting risks arising during the operation of the payment systems and warning the payment system operating organizations help minimize the risks; enhance the transparency of the systems, including management and operation regulations; rights and obligations of the participants; promote innovation, creativity, interconnection between the payment systems; protect the legitimate rights and interests of customers; enhance the customers’ confidence in payment services.

The supervisory unit monitors the payment systems with the following activities:

1. Monitoring the operation of the payment systems: a / To collect documents, information and data; b / Comparing and checking the accuracy of data; c / Synthesize and analyze documents, information and data collected and examined.

2. On-site examination: To submit to the State Bank’s Governor for approval of proposals on setting up inspection teams to conduct on-siteexaminations in case the supervisory unit detectsthat documents, information and data provided by the payment system operating organizationsare inadequate, wrong, faulty or inappropriate, but theyhavenot yet solved or detectedproblems related to risks.

3. Assessment of the payment systems: to determine and notify the payment system operating organizations of the timing of the assessment, legal provisions and international standards applicable to the assessment.

4. Request for adjustment or change: To propose and submit to the State Bank’s Governor for consideration of and decision on issues to be adjusted or changed (if any) for thepayment system operation.

Collaboration in monitoring cross-border remittance and payment systems

Based on the need for co-operation between the State Bank of Vietnam (SBV) and foreign competent authorities, the two sides jointly set up agreements or memorandums of understanding on cooperation in monitoring cross-border remittance and payment systems.

Cooperation in monitoring the cross-border remittance and payment systems

may include the following major contents: a / Remittance and payment systems within the scope of supervisory cooperation agreements; b / The rights and obligations of the parties in cooperating to supervise the remittance and payment systems; c- The list of information and data to be provided, the ways of information supply and information safety assurancerelated to the payment and remittance systems  within the scope of supervisory cooperation.

Vietnam’s members participating in the cross-border remittance and payment systems shall have to coordinate with SBV  in providing documents, information and data related to their participation in, and the situation of these systems.

In addition, the draft also specifies the content of supervision of the payment systems, including: national interbank electronic payment system; foreign currency payment system; payment system for securities trading; system for clearing and settlement of financial transactions; internal payment systems of credit institutions.

Please read the full text of the draft and comments here