November 29, 2024 – The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 51/2024/TT-NHNN stipulating the independent audits of the commercial banks, the non-bank credit institutions, the micro-finance institutions, and the foreign bank branches.
The new Circular is composed of 3 Chapters with 22 Articles, specifically as follows:
Chapter I: General provisions, comprising of 5 Articles (from Article 1 to Article 5), stipulating the scope of regulation; the subjects of application; the interpretation of terms; the scope of audits; and the encouragement of audits.
Chapter II: Specific provisions, comprising of 14 Articles (from Article 6 to Article 19), stipulating the time for selecting an independent audit organization; the authority to select an independent audit organization; the substances of an independent audit; the comments of an independent audit; the results of an independent audit; the requirements for an independent audit organization conducting an audit of a commercial bank, a non-bank credit institution, or a foreign bank branch; the requirements for an independent audit organization conducting an audit of a micro-finance institution; the standards for chartered certified auditors and the representative of an independent audit organization; the responsibilities of the independent audit organization and the chartered certified auditors conducting an audit of a credit institution or a foreign bank branch; the responsibilities of the credit institutions and the foreign bank branches; the responsibilities of the State Bank of Vietnam (SBV) municipal/provincial branches where the credit institutions and the foreign bank branches being audited are located; the responsibilities of the Banking Supervision Agency; the responsibilities of the SBV entities; and the settlement of disputes related to independent audits.
Chapter III: Enforcement, comprising of 3 Articles (from Article 20 to Article 22), stipulating the entry into force; the transitional provisions; and the implementation arrangements.
The Circular will take effect from January 15, 2025.
Translated by Hai Yen