HOW IS THE ILLEGAL COLLECTION, STORAGE, EXCHANGING, TRADING, PUBLISHING OF INFORMATION ABOUT BANK ACCOUNTS HANDLED?

Table of Contents:

  1. What is the Illegal collection, storage, exchanging, trading, publishing of information about bank accounts?
  2. Penalties for the Illegal collection, storage, exchanging, trading, publishing of information about bank accounts conduct.
    • 2.1 Administrative sanctions
    • 2.2 Criminal prosecution

1. What is the Illegal collection, storage, exchanging, trading, publishing of information about bank accounts?

The illegal buying and selling of bank accounts is manifested in the parties collecting and agreeing to exchange information with each other, according to which the seller provides the account number information that he has obtained from many sources to the buyer and is paid in money or other objects to gain illegal profits or other illegal purposes.

2. Penalties for the Illegal collection, storage, exchanging, trading, publishing of information about bank accounts conduct.

2.1 Administrative sanctions

For illegal trading of bank accounts but not sufficient to prosecute criminal liability, pursuant to Clauses 5, 6, and 10, Article 26 of Decree 88/2019/ND-CP on penalties for administrative violations in the monetary and banking sector, it is stipulated that:

“5. A fine of VND 40,000,000 to VND 50,000,000 shall be imposed for one of the following violations:

a) Renting, leasing, borrowing, lending payment accounts, buying, selling payment account information with a quantity of 01 payment account to less than 10 payment accounts that is not yet subject to criminal prosecution;

b) Forging payment documents when providing or using payment services without being subject to criminal prosecution

6. A fine of VND 50,000,000 to VND 100,000,000 shall be imposed for one of the following violations:

a) Opening payment accounts for customers, allowing customers to use payment accounts in violation of the law in the process of providing payment services;

b) Renting, leasing, borrowing, lending payment accounts, buying or selling payment account information with a quantity of 10 or more payment accounts without being subject to criminal prosecution;

c) Forging payment means, storing, circulating, transferring, using fake payment means without being subject to criminal prosecution;

d) Issuing, supplying, using illegal payment means without being subject to criminal prosecution;

d) Operating in violation of the State Bank’s approval for the provision of payment services not through customers’ payment accounts.”

10. Remedial measures:

a) Forced to pay into the state budget the illegal profits obtained from committing violations specified in Clauses 1, 4, 5, 6, 7 and 8 of this Article;

b) Not allowing the expansion of the scope, scale and area of ​​operation during the period of not yet rectifying the violations specified in Points a, c, d, Clause 6, Point c, Clause 7 and Point a, Clause 8 of this Article;

c) Requesting the competent authority to revoke the written approval for the provision of payment services not through customers’ payment accounts for the violations specified in Point d, Clause 6 of this Article.”

Thus, acts related to bank account transactions such as leasing, borrowing, buying, selling, etc. that are not yet criminally prosecuted will be fined up to 100 million VND, and at the same time, the illegal profits gained from these acts will be returned to the state budget.

2.2 Criminal prosecution

For the act of illegally collecting, storing, exchanging, buying, selling, or publicizing information about other people’s bank accounts with a quantity of from 20 to less than 50 accounts or illegally profiting from VND 20,000,000 to less than VND 50,000,000, as stipulated in Article 291 of the Penal Code 2015, amended and supplemented in 2017 as follows:

Article 291. Illegal collection, storage, exchanging, trading, publishing of information about bank accounts

1. Any person who illegally collects, stores, exchanges, trades, publishes information about other people’s bank accounts with a quantity of 20 – 49 accounts or earns an illegal profit of from VND 20,000,000 to under VND 50,000,000 shall be liable to a fine of from VND 20,000,000 to VND 100,000,000 or face a penalty of up to 03 years’ community sentence.

2. This offence committed in any of the following cases shall carry a fine of from VND 1000,000,000 to VND 200,000,000 or a penalty of 03 – 24 months’ imprisonment:

a) The offence involves information about 50 – 199 accounts of other people;

b) The offence is committed by an organized group;

c) The offence is committed in a professional manner;

d) The illegal profit earned is from VND 50,000,000 to under VND 200,000,000;

dd) Dangerous recidivism.

3. This offence committed in any of the following cases shall carry a fine of from VND 200,000,000 to VND 500,000,000 or a penalty of 02 – 07 years’ imprisonment:

a) The offence involves information about ≥ 200 accounts of other people;

b) The illegal profit earned is ≥ VND 200,000,000;

4. The offender might also be liable to a fine of from VND 10,000,000 to VND 50,000,000 or prohibited from holding certain positions or doing certain jobs for 01 – 05 years or have part or all of his/her property confiscated.

Thus, depending on the nature and severity of the act, anyone who illegally buys and sells bank accounts may be prosecuted with a fine of up to VND 500,000,000 or imprisoned for up to 7 years.