Vietnam Daily News

NA members draft new law on bank deposit insurance

Written by Dailynews.vn Friday, 16 December 2011 00:16

Vietnam News - Customers will be allowed to receive claim money on bank deposit insurance in Vietnamese dong, but not in foreign currency or other precious metals, according to a law drafted by the National Assembly yesterday, Dec 14.

Many have called the proposed new measure unfair.

Photo: VOV

“Customers should have the rights to receive claim money in Vietnamese dong, foreign currency or precious metals,” said Chairman of the Finance and State Budget Council Phung Quoc Hien.

Social Affairs Committee Chairwoman Truong Thi Mai said that bank deposit insurance should be established following advanced risk management models to minimise unexpected bankruptcy risks and protect legal rights.

In the context of increasing the number of banks and transactions in Viet Nam, the deposit insurance model should be researched carefully to minimise risk.

Deputies agreed that the law targets individual savers and should be managed by the State Bank of Viet Nam. A limit on insurance payments should be regulated, but be higher than the current ceiling level of VND50 million (US$2,400).

Money from deposit insurance funds should be invested in the business of commercial banks instead of lying dormant in State Bank coffers.

Relating to the draft of Law on Anti-Money Laundering, deputies agreed that it could help in sustainable development amidst international commitments.

It was agreed that the law be called the Law on Anti-Money Laundering instead of the Law on Anti-Money Laundering and Terrorism, to keep matters of terrorism separate.

Anti-money laundering activities should be managed by the Government with support from relevant bodies such as the State Bank, the Ministry of Security, procuracy and court sectors.

NA Chairman Nguyen Sinh Hung said that the law should focus on activities relating to the use of bad (laundering) money to support terrorism while legal money funding terrorism should be dealt with in accordance with the Law on Terrorism prevention to be submitted to the NA for approval next year.

Chairman of the Council for Nationalities Ksor Phuoc said that money laundering detection and prevention would be the responsibility of the bank sector while inspection and prosecution belong to the police, procuracy and court sectors to increase co-operation.

VietNamNet/Viet Nam News

Source: www.lookatvietnam.com/2011/12/na-members-draft-new-law-on-bank-deposit-insurance.html