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Official Gazette

Monday, August 15, 2022

SBV proposes conditions for online lending

Updated: 14:04’ - 02/07/2022
Credit institutions could provide loans via electronic means as long as they satisfy the conditions on customer information security and confidentiality and operational safety specified by the State Bank of Vietnam (SBV).

These are new provisions proposed by the SBV in a draft circular revising the central bank’s Circular 39 of 2016 on provision of loans by credit institutions and foreign bank branches to clients.

Accordingly, if wishing to provide loans online, credit institutions would have to formulate, issue and publicize dossiers, order and procedures for lending via electronic means in accordance with regulations on anti-money laundering, e-transactions and other relevant laws.

They would be required to manage, control and assess risks regarding automated professional processes. Particularly, they need to apply models of risk monitoring and early warning to promptly take measures for prevention of fraudulent acts.

Regarding the Know-Your-Customer process, credit institutions would have to apply technological measures to collect, check and compare customer identification information and biometric data with corresponding information and biometric factors stated in customer personal identity papers or personal identification data already authenticated by competent state agencies or with information available at customer data warehouses.- (VLLF)
 

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