Are credit institutions allowed to accept custody of assets for customers?

Lawyer Hoang Van Chien, Hanoi Bar Association, advises on the content of this question as follows:

Are credit institutions allowed to accept custody of assets for customers?

Pursuant to Article 1 of Circular No. 02/2016/TT-NHNN regulating asset preservation services, safe deposit box and safe deposit box rental services of credit institutions, foreign bank branches (credit institutions) are permitted to perform these activities.

Accordingly, applicable subjects include:

Credit institutions are allowed to provide asset preservation services, rent cabinets and safes;

Individuals, legal entities, and other entities as prescribed by the Civil Code using asset preservation services; using safe deposit box and safe rental services of credit institutions (customers).

Thus, credit institutions are allowed to take care of customers' assets through providing asset care services.

Principles of implementing asset custody services for customers at credit institutions?

Pursuant to Article 3 of Circular No. 02/2016/TT-NHNN, the principles for performing asset preservation services are as follows:

Principles for performing asset storage services, renting cabinets and safes

Credit institutions are only allowed to provide asset storage services and rent out cabinets and safes when:

License for establishment and operation of a credit institution with the content of providing asset preservation services, renting cabinets and safes;

There are internal regulations and procedures for performing asset storage services, renting cabinets and safes.

When performing asset custody services, credit institutions must:

Use a separate warehouse according to the treasury standards prescribed by the State Bank of Vietnam (hereinafter referred to as the State Bank); or use a separate warehouse in the treasury with a warehouse door according to the treasury door standards prescribed by the State Bank; or must equip a separate cabinet or safe in the treasury to provide asset storage services;

Provide boxes/bags/storage bags to ensure safety of assets.

When providing safe deposit box and safe deposit box rental services, credit institutions must:

Use a separate warehouse according to the treasury standards prescribed by the State Bank or use a separate warehouse space in the treasury with a warehouse door according to the treasury door standards prescribed by the State Bank to provide safe deposit box and safe rental services;

Equip cabinets and safes to keep assets safe;

Install surveillance cameras and equip security control devices to ensure safety during the process of customers entering the warehouse to rent cabinets and safes.

Accordingly, credit institutions when performing asset preservation services for customers are based on the following principles:

License for establishment and operation of a credit institution with the content of providing asset custody services;

There are internal regulations and procedures for performing asset preservation services;

Use a separate warehouse according to the treasury standards prescribed by the State Bank of Vietnam (State Bank); or use a separate warehouse in the treasury with a warehouse door according to the treasury door standards prescribed by the State Bank; or must equip a separate cabinet or safe in the treasury to provide asset storage services;

Provide boxes/bags/storage bags to ensure safety of assets.

Source: https://daibieunhandan.vn/to-chuc-tin-dung-co-duoc-phep-nhan-bao-quan-tai-san-cho-khach-hang-khong-10395614.html