Proposal to allow business registration agencies to extract and verify criminal records

Many regulations on business establishment will be amended and supplemented. Illustrative photo.

The Ministry of Finance has just sent to the National Assembly deputies report No. 188/BC-BTC dated May 19, 2025, accepting and explaining the opinions of the National Assembly deputies at the group meeting on the draft Law amending a number of articles of the Law on Enterprises to serve the discussion session in the hall about this bill.

In the appendix attached to this report, the drafting agency said that it had accepted the delegates' comments and adjusted the concept of "beneficial owner of an enterprise" to be consistent with the Law on Anti-Money Laundering; at the same time, the Government was assigned to specify the criteria for determination (specific ratio of charter capital ownership, direct or indirect ownership, controlling rights through voting ratio or controlling rights through appointment/dismissal of personnel, etc.), and declare information about beneficial owners of enterprises.

“After the draft Law amending and supplementing a number of articles of the Law on Enterprises is passed by the National Assembly , the Ministry of Finance will report to the Government on amending and supplementing the Decree on administrative sanctions in the financial sector to supplement regulations on administrative sanctions for enterprises that do not properly fulfill their obligations to collect, update, store and provide information on beneficial owners,” the document stated.

The Ministry of Finance will propose to supplement regulations on administrative sanctions for enterprises that fail to properly fulfill their obligations to collect, update, store and provide information on beneficial owners.

Regarding the amendment and supplementation of the subjects allowed to establish, participate in management, operation, and work at enterprises, including civil servants, the Ministry of Finance said that there were opinions suggesting adding some specific conditions to avoid conflicts of interest, such as: limiting the activities of enterprises that civil servants are allowed to participate in managing (only related to research results at public units where civil servants work); regulations on independent monitoring mechanisms for cases where civil servants are leaders and also hold positions in enterprises, and the obligation to report conflicts of interest (if any).

There are suggestions to consider regulations for officials of some research institutes with special functions such as national defense, security, encryption technology, biotechnology, military biotechnology, etc.; add regulations to exclude civil servants working at agencies and public service units with functions of national defense and security that are classified as state secrets, in accordance with the provisions of the Law on Protection of State Secrets, etc.

The Ministry of Finance stated that the above contents have not been regulated in documents and policies of the Party and the State and are not within the scope of the Enterprise Law. Therefore, the Ministry of Finance will review and coordinate with relevant agencies to absorb them in the process of comprehensively amending the Enterprise Law and perfecting specialized legal regulations.

Regarding the removal of the regulation that in case the business registration authority requests, the person registering to establish a business must submit a criminal record to the business registration authority, explaining concerns that this regulation is too "broad" and potentially risky, the Ministry of Finance explained: Currently, the Government is drafting a Decree to replace Decree No. 01/2021/ND-CP on business registration.

The Ministry of Finance will study and review the proposal to allow business registration agencies to extract and verify criminal records information through connection with the national database on population and criminal records to control risks in the process of drafting decrees for the Government to consider and promulgate.

Similarly, to determine accurate information about the person registering the business owner to limit the situation of individuals establishing fake businesses, the Ministry of Finance said that this content will also be reviewed and specifically regulated in the Decree replacing Decree No. 01/2021/ND-CP on business registration, which adds regulations on individuals using personal identification numbers to carry out business registration procedures.

MR. PHUONG

Source: https://www.sggp.org.vn/de-xuat-cho-phep-co-quan-dang-ky-kinh-doanh-duoc-trich-xuat-xac-minh-ly-lich-tu-phap-post795966.html