Banks may be fined 500 million VND if they force customers to buy insurance.

(Dan Tri) - Banks that attach non-compulsory insurance products to the provision of banking products and services in any form may be fined from 400 million to 500 million VND.

In the appraisal document of the draft Decree replacing Decree 88/2019 on administrative sanctions in the monetary and banking sector, a new regulation is stated as a fine of VND 400 million to VND 500 million for violations of attaching the sale of non-compulsory insurance products to the provision of banking products and services in any form as prescribed in the Law on Credit Institutions.

This penalty level is added to be compatible with the Law on Credit Institutions, which will take effect from the beginning of July 2024. Currently, banking regulations do not mention any form of insurance that is mandatory for borrowers.

This penalty level also applies to violations of conducting banking activities without a license, illegally interfering in banking activities, other business activities of credit institutions, foreign bank branches, as well as performing acts of competition restriction or acts of unfair competition that risk causing harm or causing harm to the implementation of national monetary policy and the safety of the credit institution system.

The draft also stipulates that violations of capital mobilization interest rates, service provision fees, business, and derivative product provision will be fined from 10 to 20 million VND for not publicly posting capital mobilization interest rates and service provision fees; posting unclear capital mobilization interest rates and service provision fees, causing confusion for customers; and collecting service provision fees that are not in accordance with regulations.

Banks can be fined from 400 million if they force customers to buy insurance (Photo: Manh Quan).

The draft decree also stipulates a fine of between VND20 million and VND40 million for acts of applying capital mobilization interest rates and service provision fees that are not at the listed levels.

In addition, there is a fine of 50 million to 100 million VND for violations of regulations on capital mobilization interest rates; trading and supplying derivative products on interest rates, currencies, commodity prices and other financial assets.

A fine of between VND150 million and VND200 million is prescribed for the act of not establishing a risk management process, not classifying customers according to risk level or classifying customers according to risk level not in accordance with the provisions of the Law on Anti-Money Laundering, the Law on Anti-Terrorism and the law on preventing and combating the financing of proliferation of weapons of mass destruction.

Source: https://dantri.com.vn/kinh-doanh/ngan-hang-co-the-bi-phat-500-trieu-dong-neu-ep-khach-mua-bao-hiem-20250715011449436.htm