Director of Hanoi City Police: The State Bank should not be given the authority to investigate the banking sector.

SGGPO 06/10/2023 16:08

Referring to the recent mass capital withdrawal events in Vietnam and around the world , Deputy Trinh Xuan An said that it is necessary to design additional regulations to prevent systemic risks, ensuring effective response capabilities.

Deputy Nguyen Hai Trung, Director of Hanoi City Police. Photo: QUANG PHUC

Continuing the 5th session, on the afternoon of June 10, the National Assembly discussed in the hall the draft Law on Credit Institutions (amended). Opinions agreed with the necessity of amending the law to institutionalize the Party's policy, overcome the shortcomings and limitations of the current law, create a legal basis to continue handling bad debts, strengthen risk prevention, improve inspection and control capacity, improve the capacity of credit institutions, ensure safety, health and stability of the credit institution system.

Participating in the discussion session to complete the draft Law on Credit Institutions (amended), delegate Trinh Xuan An (Dong Nai) emphasized that risk prevention for the banking system is very important.

Referring to the recent mass capital withdrawal events in Vietnam and around the world, the delegate said that it is necessary to design additional regulations to prevent systemic risks, ensuring effective response capabilities.

Director of Hanoi City Police: The State Bank should not be given the authority to investigate the banking sector.

Delegate Trinh Xuan An (Dong Nai)

Besides, Deputy Trinh Xuan An is also interested in handling cross-ownership related to credit institutions.

“The problem is not the restriction, but the need to end cross-ownership in the credit system. This is a very difficult problem, the provisions in Article 55 and Article 127 of the draft are not strong enough to end cross-ownership,” said Deputy Trinh Xuan An.

In this direction, it is necessary to strictly handle organizations and individuals who commit violations, redesign the model of financial supervision and inspection agencies related to banks, to more effectively solve this problem.

Also stating that cross-ownership, manipulation, and group interests in the banking sector are still worrisome issues, Deputy Nguyen Hai Trung, Director of Hanoi Police, said that the solutions mentioned in the draft are only technical solutions to limit major shareholders.

According to the delegate, it is necessary to study and supplement two issues. First, add more regulations and strengthen the role of the State Bank to limit the abuse of power by major shareholders and executive management rights to manipulate the operations of credit institutions. Second, have more measures and solutions to manage and control the circumvention of the law, using many individuals and other legal entities to stand in the name of shares to create large shareholder groups to operate credit institutions.

Commenting on the regulations on providing information to specialized crime prevention agencies, Deputy Nguyen Hai Trung said that the provisions of the draft Law do not meet the time requirements in practice of crime prevention, especially the prevention of crimes using high technology to commit fraud in cyberspace today.

The situation of crimes using cyberspace and high technology to commit fraud, appropriate assets, gamble, organize gambling, and launder money is very complicated, causing extremely serious consequences. When crimes occur, the police force must quickly deploy to investigate the money flow and freeze accounts.

Deputies attending the meeting on the afternoon of June 10

However, current legal regulations do not meet the requirements for timely prevention of money transfers to subjects. Therefore, to improve the effectiveness of crime prevention, in the direction of regulations to shorten the time to provide customer account information to serve the fight against crime and can assign the Government to study detailed regulations.

In addition, Deputy Nguyen Hai Trung said that in order to improve the effectiveness of crime prevention, it is necessary to review and legalize regulations on account legitimacy in relevant legal documents; complete and synchronize guiding documents to ensure the effectiveness of implementation in legal documents that must be linked together to support the determination of legitimacy.

“This law needs to have specific regulations on the conditions that require credit institutions to have a technological platform and physical facilities in customer identification to ensure legitimacy; requiring credit institutions to be responsible for reviewing, detecting and coordinating with the police and relevant agencies to strictly handle violations of illegitimate accounts. However, it is proposed not to stipulate that the State Bank has the authority to investigate violations of the law in the banking sector,” said Deputy Nguyen Hai Trung.

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