HCMC – Vietnam’s central bank has drafted a decree proposing fines of up to VND500 million for banks that bundle loans with non-compulsory insurance products.
The draft, intended to replace Decree No. 88/2019/ND-CP, aims to update penalties in line with the latest laws on credit institutions and anti-money laundering.
The heaviest fines, ranging from VND400 million to VND500 million, target the bundling of non-mandatory insurance products with financial services. This practice, considered a violation of consumer rights, is a growing concern.
The draft decree also introduces penalties for other infractions, including unlawful interference in banking operations, anti-competitive practices, and actions that threaten national monetary policy or the stability of credit institutions.
Additionally, fines of VND150 million to VND200 million are proposed for failures in risk management. These include not classifying customers according to risk levels or improper classifications, both of which are requirements under anti-money laundering regulations.
