The Decree No. 174/2024/ND-CP dated December 30, 2024, regulates the administrative penalties in the field of insurance business, effective from February 15, 2025.

The Decree No. 174/2024/ND-CP dated December 30, 2024, regulates the administrative penalties in the field of insurance business, effective from February 15, 2025.

Legislation

The Decree No. 174/2024/ND-CP dated December 30, 2024, regulates the administrative penalties in the field of insurance business, effective from February 15, 2025.

GOVERNMENT
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No: 174/2024/NĐ-CP

Hanoi, December 30, 2024

DECREE
REGULATING ADMINISTRATIVE PENALTIES IN INSURANCE BUSINESS

Pursuant to the Government Organization Law dated June 19, 2015; the Law amending and supplementing a number of articles of the Government Organization Law and the Local Government Organization Law dated November 22, 2019;

Pursuant to the Law on Administrative Penalties dated June 20, 2012; the Law amending and supplementing a number of articles of the Law on Administrative Penalties No. 67/2020/QH14 dated November 13, 2020;

Pursuant to the Insurance Business Law dated December 9, 2000; the Law amending and supplementing a number of articles of the Insurance Business Law dated November 24, 2010; the Law amending and supplementing a number of articles of the Insurance Business Law and the Intellectual Property Law dated June 14, 2019;

Pursuant to the Insurance Business Law dated June 16, 2022;

Pursuant to the Anti-Money Laundering Law dated November 15, 2022;

Pursuant to the Anti-Terrorism Law dated June 12, 2013;

At the request of the Minister of Finance;

The Government promulgates the Decree regulating administrative penalties in the insurance business.

Chapter I


GENERAL PROVISIONS

Article 1. Scope of regulation

  1. This Decree stipulates administrative violations, completed and ongoing administrative violations; forms of penalties, penalty levels, and corrective measures for each administrative violation; subjects to be penalized; the authority to impose penalties, specific penalty levels for each position, and the authority to prepare records for administrative violations in the insurance business.

  2. Administrative violations in other fields related to the insurance business not specified in this Decree shall be handled according to the provisions of relevant documents.

Article 2. Subjects of application

  1. Vietnamese individuals, organizations, and foreign individuals and organizations with administrative violations in the insurance business specified in this Decree.

  2. Organizations specified in Clause 1 of this Article include:

a) Life insurance companies, non-life insurance companies, health insurance companies, reinsurance companies, insurance brokerage companies; branches of foreign non-life insurance companies, branches of foreign reinsurance companies (hereinafter referred to as foreign branches in Vietnam);

b) Representative offices of foreign insurance companies, representative offices of foreign reinsurance companies, representative offices of foreign insurance brokerage companies, representative offices of foreign financial and insurance groups in Vietnam (hereinafter referred to as foreign representative offices in Vietnam);

c) Organizations operating as insurance agents;

d) Mutual organizations providing micro-insurance;

đ) Organizations providing auxiliary insurance services (insurance companies, insurance brokers, and other legal entities);

e) Other related organizations specified in this Decree.

  1. Individuals with the authority to impose administrative penalties, individuals with the authority to prepare violation records, and other relevant organizations or individuals specified in this Decree.

Article 3. Forms of penalties, corrective measures

  1. For each administrative violation in the insurance business, the primary penalty is a monetary fine for the organization or individual.

  2. Warning applies to individuals aged from 14 to under 16 who commit violations specified in this Decree.

  3. Monetary penalty levels for individuals and organizations:

a) The penalty levels for administrative violations specified in this Decree apply to individuals, except for cases specified in Article 9, Article 10, Clause 2 of Article 11, Article 12, Article 14, Clause 2 of Article 15, Article 16, Clause 2 of Article 18, Article 20, Article 21, Clause 2 of Article 22, Article 24, Article 25, points b, c, Clause 1 and point c, Clause 2 of Article 27, Article 28, Article 33, Clause 1 of Article 38, Article 40, which are applied only for organizations;

b) The monetary penalty for organizations is twice the monetary penalty for individuals for the same violation;

c) The maximum monetary penalty for individuals committing administrative violations in the insurance business is 100 million VND, and for organizations, it is 200 million VND.

  1. Supplementary penalty: Suspension of activities for a limited period.

  2. Corrective measures include:

a) Requiring the restoration of the original situation as specified in point a, Clause 1, Article 28 of the Law on Administrative Penalties;

b) Requiring the publication or correct publication of information or correction of misinformation;

c) Requiring actuaries to perform all duties as required by law; requiring insurance companies, reinsurance companies, foreign branches in Vietnam, micro-insurance mutual organizations to use actuaries to perform all required tasks as per legal provisions;

d) Requiring the provision of documents related to insurance contracts that have not yet expired at the time of the violation;

đ) Requiring clear and complete explanation to the policyholders regarding their insurance rights, exclusions, and obligations under the contracts that have not expired;

e) Requiring the provision of evidence of insurance contract agreements for contracts that have not expired at the time of violation detection;

g) Requiring notification to the Ministry of Finance about providing insurance services or products on the internet;

h) Requiring compliance with legal regulations;

i) Requiring the suspension of employees directly involved in insurance brokerage or agency activities;

k) Requiring the return of the business establishment or representative office licenses;

l) Requiring the return of unlawfully obtained funds.

Article 4. Statute of limitations for administrative penalties

  1. The statute of limitations for administrative penalties in the insurance business follows the provisions of Article 6 of the Law on Administrative Penalties.

  2. The statute of limitations for administrative violations in the insurance business is determined as follows:

a) For ongoing violations, the statute of limitations begins from the date the competent authority detects the violation;

b) For completed violations, the statute of limitations begins from the date the violation ends.

  1. The end date of the violation to calculate the statute of limitations is the date the legal requirements are correctly followed, unless otherwise specified in Clause 4 of this Article.

Article 5. Principles for determining the monetary penalty level and suspension period in case of aggravating or mitigating circumstances; repeated violations

  1. When determining the monetary penalty or suspension period for organizations or individuals with both aggravating and mitigating circumstances, the aggravating circumstances are reduced by the mitigating circumstances, with each mitigating circumstance reducing one aggravating circumstance.

  2. The specific monetary penalty for a violation is applied as follows:

a) If there are no mitigating or aggravating circumstances, the average penalty in the fine range is applied;

b) With one mitigating circumstance, the fine will be set at the average between the average and the minimum of the penalty range;

c) With two or more mitigating circumstances, the minimum fine in the penalty range is applied;

d) With one aggravating circumstance, the fine will be set at the average between the average and the maximum of the penalty range;

đ) With two or more aggravating circumstances, the maximum fine in the penalty range is applied.

  1. The suspension period for the supplementary penalty of suspension is determined as follows:

a) If there are no mitigating or aggravating circumstances, the average suspension period is applied;

b) With one mitigating circumstance, the suspension period will be set at the average between the average and the minimum of the penalty range;

c) With two or more mitigating circumstances, the minimum suspension period in the penalty range is applied;

d) With one aggravating circumstance, the suspension period will be set at the average between the average and the maximum of the penalty range;

đ) With two or more aggravating circumstances, the maximum suspension period in the penalty range is applied.

  1. Repeated administrative violations: Organizations or individuals committing repeated violations are penalized for each violation, except for repeated violations that are considered aggravating circumstances as specified in Articles 13, 16, 17, 18, 19, 20, 23, 24, 25, 27, 30, 31 of this Decree.

Chapter II

ADMINISTRATIVE VIOLATIONS, SANCTIONS, AND REMEDIAL MEASURES

Section 1. VIOLATIONS OF REGULATIONS ON ESTABLISHMENT AND OPERATION

Article 6. Penalties for violations of regulations on approved dossiers

A fine from 80,000,000 VND to 100,000,000 VND will be imposed for any of the following violations:

  1. Dossiers requesting the issuance or extension of the foreign representative office license in Vietnam contain fraudulent information to meet the requirements for issuance or extension.

  2. Dossiers requesting the issuance of establishment and operation licenses contain fraudulent information to meet the conditions for issuing establishment and operation licenses for insurance companies, reinsurance companies, foreign branches in Vietnam, insurance brokers, and microinsurance mutual organizations.

Article 7. Penalties for violations of regulations on establishment and operation licenses, foreign representative office licenses in Vietnam

  1. A fine from 10,000,000 VND to 30,000,000 VND will be imposed for any of the following violations:

a) Failure to publish or improperly publish information about foreign representative offices in Vietnam in accordance with the law, as specified in Article 76, Clause 4 of the Insurance Business Law No. 08/2022/QH15.

b) Failure to publish or improperly publish information related to the issued license or establishment and operation license and the official operational date as required by the law, as specified in Article 72, Clause 2, and Article 135 of the Insurance Business Law No. 08/2022/QH15.

c) Failure to notify or improperly notify the compliance with regulations for official operations according to the law, as specified in Article 73, Clause 3 of the Insurance Business Law No. 08/2022/QH15.

  1. A fine from 40,000,000 VND to 60,000,000 VND will be imposed for violating the regulations regarding the correction of the establishment and operation license or foreign representative office license.

  2. A fine from 60,000,000 VND to 80,000,000 VND will be imposed for changing the charter capital or registered capital without approval from the Ministry of Finance in writing, as stipulated in Article 74, Clause 1, Item b and Article 136, Clause 1, Item b of the Insurance Business Law No. 08/2022/QH15.

  3. A fine from 80,000,000 VND to 100,000,000 VND will be imposed for any of the following violations:

a) Conducting insurance business, reinsurance business, or reinsurance transfer before the official operational date, as stipulated in Article 72, Clause 2, and Article 73, Clause 4 of the Insurance Business Law No. 08/2022/QH15.

b) Operating insurance, reinsurance, reinsurance transfer, or insurance brokerage without an establishment and operation license.

c) Operating insurance, reinsurance, reinsurance transfer, or insurance brokerage not in accordance with the issued establishment and operation license.

d) Engaging in activities directly related to the subject matter or scope of the administrative violation while operations are suspended or the establishment and operation license has been revoked or expired.

e) Operating activities that do not match the granted foreign representative office license in Vietnam or operating when the license has been revoked or expired according to the law, as stipulated in Article 61 of Decree No. 46/2023/ND-CP.

  1. Remedial measures:

a) For violations mentioned in Clause 1 and Clause 2 of this Article, the violators will be forced to publish or correct the information properly.

b) The violators will be forced to return the establishment and operation license or foreign representative office license in Vietnam for violations mentioned in Clause 2 of this Article.

c) The violators will be forced to restore the original state for violations mentioned in Clause 3 and Clause 4 of this Article.

Article 8. Penalties for violations of regulations regarding division, separation, merger, transformation, dissolution of enterprises, termination of foreign branch activities in Vietnam

  1. A fine from 80,000,000 VND to 100,000,000 VND will be imposed for the dissolution of an insurance company, reinsurance company, insurance brokerage company, or termination of a foreign branch’s activities in Vietnam that violates the law, as specified in Article 115 and Article 136, Clause 1, Item e of the Insurance Business Law No. 08/2022/QH15, and Decree No. 46/2023/ND-CP, Article 17, Clause 5, and Article 55.

  2. A fine from 80,000,000 VND to 100,000,000 VND will be imposed for the violation of division, separation, merger, transformation, or dissolution of an insurance company, reinsurance company, insurance brokerage company, or foreign branch in Vietnam that violates:

a) Failure to obtain written approval from the Ministry of Finance for such actions, as stipulated in Article 74, Clause 1, Item e and Article 136, Clause 1, Item e of the Insurance Business Law No. 08/2022/QH15.

b) Failure to report to the Ministry of Finance on the results of division, separation, merger, transformation, or dissolution according to the plan approved by the Ministry of Finance, as stipulated in Decree No. 46/2023/ND-CP, Article 23, Clause 4, and Article 71, Clause 4.

  1. Remedial measure:

The violators will be forced to restore the original state for violations mentioned in Clause 1 and Item a of Clause 2 of this Article.

Section 2. VIOLATIONS OF REGULATIONS ON ORGANIZING ACTIVITIES

Article 9. Penalties for violations of regulations on the organization and operation of insurance companies, reinsurance companies, foreign branches in Vietnam, and mutual organizations providing microinsurance.

  1. A fine of between 60,000,000 VND and 100,000,000 VND shall be imposed on an insurance company, reinsurance company, foreign branch in Vietnam, or mutual organization providing microinsurance for one of the following violations:

a) The organizational structure of the insurance company, reinsurance company, or mutual organization providing microinsurance does not comply with the legal requirements specified in Article 79 of the Insurance Business Law No. 08/2022/QH15, Article 20 of Decree No. 21/2023/ND-CP;

b) The insurance company, reinsurance company, foreign branch in Vietnam, or mutual organization providing microinsurance fails to issue processes or regulations as required by law, as stipulated in point c, Clause 2, Article 73 of the Insurance Business Law No. 08/2022/QH15, Clause 2, Article 26, Clause 4, Article 39 of Decree No. 21/2023/ND-CP;

c) The insurance company, reinsurance company, or foreign branch in Vietnam does not implement financial management as required by law, as specified in Clause 2, Article 108 of the Insurance Business Law No. 08/2022/QH15.

  1. A fine of between 140,000,000 VND and 180,000,000 VND shall be imposed on the insurance company, reinsurance company, foreign branch in Vietnam, or mutual organization providing microinsurance for one of the following violations:

a) The insurance company, reinsurance company, or foreign branch in Vietnam fails to maintain a CEO (Director), actuary as required by law, as stated in Clause 4, Article 80 of the Insurance Business Law No. 08/2022/QH15;

b) The management or controlling persons of the insurance company, reinsurance company, foreign branch in Vietnam, or mutual organization providing microinsurance do not meet the conditions or standards set by law, as specified in Articles 81 of the Insurance Business Law No. 08/2022/QH15, Articles 26, 27, 28, 29, 30 of Decree No. 46/2023/ND-CP;

c) The Chairman of the Board of Directors, CEO (Director), or actuary of a mutual organization providing microinsurance does not meet the conditions or standards set by law, as stipulated in Articles 24, Clause 1, Clause 2, Clause 3, Article 25 of Decree No. 21/2023/ND-CP;

d) Violation of the appointment principles set in Article 82 of the Insurance Business Law No. 08/2022/QH15;

e) Changing the Chairman of the Board of Directors (Chairman of the Member Council), CEO (Director), or actuary without obtaining prior written approval from the Ministry of Finance, as required by law, according to point d, Clause 1, Article 74 of the Insurance Business Law No. 08/2022/QH15.

  1. Corrective Measures:

Compel compliance with the legal provisions for the violations listed in Clause 1 and Clause 2 of this Article.

Article 10. Penalties for violations of regulations concerning the management of insurance brokerage companies

  1. A fine of between 140,000,000 VND and 180,000,000 VND shall be imposed on insurance brokerage companies for one of the following violations:

a) The Deputy Director or Deputy CEO, Chief Accountant, head of the department of the insurance brokerage company fails to meet the required standards as specified in Clause 1, Article 138 of the Insurance Business Law No. 08/2022/QH15, Articles 79, 80 of Decree No. 46/2023/ND-CP.

b) The Chairman of the Board of Directors, Chairman of the Member Council, CEO, or General Director does not meet the conditions set by law, as stated in Articles 77, 78 of Decree No. 46/2023/ND-CP;

c) Changing the Chairman of the Board of Directors, Chairman of the Member Council, CEO, or General Director without written approval from the Ministry of Finance as required by law, according to point d, Clause 1, Article 136 of the Insurance Business Law No. 08/2022/QH15.

  1. Corrective Measures:

Compel compliance with the legal provisions for the violations listed in Clause 1 of this Article.

Article 11. Penalties for Violations of Regulations on Actuarial Expert Responsibilities

  1. A fine ranging from VND 40,000,000 to VND 60,000,000 will be imposed for violations by an actuarial expert:

a) Failing to perform duties assigned by insurance companies, reinsurance companies, foreign branches in Vietnam, or mutual organizations providing microinsurance, as stipulated by law under Clause 4, Article 82 of the Insurance Business Law No. 08/2022/QH15 and Clause 3, Article 25 of Decree No. 21/2023/NĐ-CP;

b) Failing to fully perform the duties assigned by insurance companies, reinsurance companies, foreign branches in Vietnam, or mutual organizations, as stipulated by law under Clause 4, Article 82 of the Insurance Business Law No. 08/2022/QH15 and Clause 3, Article 25 of Decree No. 21/2023/NĐ-CP.

  1. A fine ranging from VND 80,000,000 to VND 100,000,000 will be imposed on insurance companies, reinsurance companies, foreign branches in Vietnam, or mutual organizations providing microinsurance that violate one of the following actions: failure to use or the use of an actuarial expert who does not fully perform their duties in accordance with the law, as stipulated by Clause 4, Article 82 of the Insurance Business Law No. 08/2022/QH15 and Clause 3, Article 25 of Decree No. 21/2023/NĐ-CP.

  2. Measures to rectify the violation:

a) Oblige to comply with legal regulations for violations under point a, Clause 1 of this Article;

b) Oblige the actuarial expert to fully perform their duties according to the law for violations under point b, Clause 1 of this Article;

c) Oblige the insurance company, reinsurance company, foreign branch in Vietnam, or mutual organization providing microinsurance to use an actuarial expert who performs their duties according to the law for violations under Clause 2 of this Article.

Article 12. Penalties for Violations of Regulations on Changes That Must Be Approved or Notified

  1. A fine ranging from VND 40,000,000 to VND 60,000,000 will be imposed on insurance companies, reinsurance companies, insurance brokerage companies, or foreign branches in Vietnam that violate one of the following actions: failing to notify or notifying late to the Ministry of Finance as required by law, according to Clause 3, Article 74 and Clause 2, Article 136 of the Insurance Business Law No. 08/2022/QH15.

  2. A fine ranging from VND 50,000,000 to VND 70,000,000 will be imposed on insurance companies, reinsurance companies, insurance brokerage companies, or foreign branches in Vietnam that violate regulations on changing names or the location of the head office without approval from the Ministry of Finance, as required by law, according to point a, Clause 1, Article 74 and point a, Clause 1, Article 136 of the Insurance Business Law No. 08/2022/QH15.

  3. A fine ranging from VND 160,000,000 to VND 200,000,000 will be imposed on insurance companies, reinsurance companies, insurance brokerage companies, or foreign branches in Vietnam that violate regulations on changes that must be approved by the Ministry of Finance in writing, as stipulated by point d, point g, Clause 1, Article 74 and point c, point d, Clause 1, Article 136 of the Insurance Business Law No. 08/2022/QH15.

  4. Measures to rectify the violation:

a) Oblige to comply with legal regulations for violations under Clauses 1, 2, and 3 of this Article;

b) Oblige to restore the original situation for violations under Clause 3 of this Article.

Article 13. Penalties for Violations of Regulations on Reinsurance, Reinsurance Transfers of Insurance Companies, Reinsurance Companies, Foreign Branches in Vietnam, and Mutual Organizations Providing Microinsurance

  1. A fine ranging from VND 50,000,000 to VND 70,000,000 will be imposed for any of the following violations:

a) Failing to approve a reinsurance program or reinsurance transfer as required by law;

b) The reinsurance program or reinsurance transfer lacks required content as stipulated by law;

c) Organizing reinsurance or reinsurance transfers not in compliance with legal requirements.

  1. A fine ranging from VND 80,000,000 to VND 100,000,000 will be imposed for any of the following violations:

a) Reinsuring or transferring reinsurance of all risks received under an insurance or reinsurance contract to one or more insurance companies, reinsurance companies both domestic and international, foreign reinsurance organizations, or other foreign branches in Vietnam;

b) Retention amounts not complying with legal regulations;

c) Selecting or limiting reinsurance in violation of legal requirements;

d) Reinsuring or transferring reinsurance to foreign insurance companies or foreign reinsurance organizations that do not meet legal conditions;

e) Receiving reinsurance for risks already transferred in violation of legal requirements.

  1. Measures to rectify the violation:

Oblige to comply with legal regulations for violations under Clauses 1 and 2 of this Article (for contracts still in effect).

Article 14. Penalties for Violations of Regulations on Transferring Insurance Contracts Portfolio

  1. A fine ranging from VND 80,000,000 to VND 100,000,000 will be imposed on insurance companies or foreign non-life insurance branches violating one of the following actions:

a) Transferring insurance contract portfolios without prior written approval from the Ministry of Finance, as stipulated in Clause 1, Article 93 of the Insurance Business Law No. 08/2022/QH15;

b) Failing to transfer insurance contract portfolios in accordance with the law, as stipulated in Article 91 of the Insurance Business Law No. 08/2022/QH15;

c) The transferring party continues to sign new insurance contracts under the transferred insurance business, as stipulated in Clause 4, Article 34 of Decree No. 46/2023/NĐ-CP.

  1. Measures to rectify the violation:

a) Oblige to comply with legal regulations for violations under Clause 1 of this Article;

b) Oblige to restore the original situation for violations under Clause 1 of this Article.

Article 15. Penalties for violations of insurance compensation and payment regulations

  1. Acts of collusion with the beneficiary of insurance rights to resolve insurance compensation or payment unlawfully; acts of falsifying documents, intentionally distorting information to refuse compensation or payment when an insurance event has occurred; acts of falsifying documents, intentionally distorting information in the claims files; acts of self-inflicting property or health damage to receive insurance benefits, except where the law provides otherwise and does not reach criminal prosecution, shall be fined as follows:

a) A fine from 20,000,000 VND to 40,000,000 VND for violations where the amount embezzled is under 10,000,000 VND or the damage is less than 20,000,000 VND;

b) A fine from 40,000,000 VND to 60,000,000 VND for violations where the amount embezzled is from 10,000,000 VND to under 15,000,000 VND or the damage is from 20,000,000 VND to under 30,000,000 VND;

c) A fine from 80,000,000 VND to 100,000,000 VND for violations where the amount embezzled is from 15,000,000 VND to under 20,000,000 VND or the damage is from 30,000,000 VND to under 50,000,000 VND.

  1. A fine from 160,000,000 VND to 200,000,000 VND for violations of fraud in insurance business by legal entities engaging in acts specified in Clause 1, Article 213 of the 2015 Criminal Code (amended and supplemented in 2017), where the amount embezzled is under 200,000,000 VND or the damage is under 400,000,000 VND or has not reached the level of criminal prosecution.

  2. Corrective measures:

    a) Forced return of the embezzled amount for violations mentioned in Clause 1 and Clause 2 of this article.

Section 3. Violations in Providing Insurance Products

Article 16. Penalties for violations regarding the provision of insurance products

  1. A fine from 30,000,000 VND to 50,000,000 VND for insurance companies, foreign non-life insurance branches, micro-insurance mutual organizations, or insurance brokers failing to notify the Ministry of Finance within 7 working days of providing insurance services/products on the internet, including information about the company, services, insurance products, organizational structure, and other relevant details.

  2. A fine from 60,000,000 VND to 100,000,000 VND for insurance companies, foreign non-life insurance branches violating any of the following acts:

a) Failure to provide the insured with the documents in the contract signing process as required by law;

b) Failure to explain clearly and fully to the insured about insurance benefits, exclusion clauses, rights, and obligations of the insured during contract signing;

c) Failure to provide the insured with proof of the concluded insurance contract as required by law;

d) Threatening or coercing to sign an insurance contract.

  1. Corrective measures:

a) Forced notification to the Ministry of Finance about providing insurance services/products on the internet for violations mentioned in Clause 1 of this article;

b) Forced provision of documents during the contract conclusion for contracts still valid at the time of violation for violations mentioned in Clause 2, item a of this article;

c) Forced explanation of the benefits, exclusions, rights, and obligations for insurance contracts still valid at the time of violation for violations mentioned in Clause 2, item b of this article;

d) Forced provision of proof of contract conclusion for contracts still valid at the time of violation for violations mentioned in Clause 2, item c of this article.

Article 17. Penalties for violations of life insurance and health insurance regulations by insurance companies, foreign non-life insurance branches, and micro-insurance organizations

  1. A fine from 80,000,000 VND to 100,000,000 VND for violations such as:

a) Rules, conditions, or clauses of insurance not meeting legal requirements;

b) Summary documents of life insurance or health insurance policies that do not comply with the law;

c) Sales materials for life insurance policies not complying with the law;

d) Insurance applications or questionnaires not complying with the law;

e) Promotional documents for life or health insurance products that do not comply with the law;

f) Advertising of life insurance products not complying with the law;

g) Incorrect implementation of legal regulations on linked investment insurance, pension insurance, or health insurance.

  1. Additional penalties:

Suspension of operations for 1 to 3 months for parts of the license directly related to violations under item g of Clause 1 of this article.

  1. Corrective measures:

Force compliance with legal requirements for violations in Clause 1 of this article.

Article 18. Penalties for violations related to insurance products, commissions for insurance brokers, and micro-insurance organizations

  1. A fine from 80,000,000 VND to 100,000,000 VND for any of the following:

a) Launching life insurance, health insurance, motor vehicle insurance, or micro-insurance products before receiving approval from the Ministry of Finance for premium calculation methods or revisions thereof;

b) Non-compliance with approved premium calculation methods.

  1. A fine from 80,000,000 VND to 100,000,000 VND for insurance companies, foreign non-life insurance branches, or micro-insurance organizations paying commissions, bonuses, or other benefits contrary to legal agreements.

  2. Additional penalties:

Suspension of operations for 1 to 3 months for parts of the license directly related to violations as specified in Clause 1 and Clause 2 of this article.

  1. Corrective measures:

Forcing compliance with legal requirements for violations mentioned in Clause 1 and Clause 2 of this article.

Article 19. Penalties for violations of compulsory insurance regulations by non-life insurance companies and foreign branches

  1. A fine from 30,000,000 VND to 50,000,000 VND for any of the following violations:

a) Refusing to sell compulsory insurance;

b) Non-compliance with the scope, exclusions, premium rates, or minimum insured amounts;

c) Failing to separate compulsory insurance in extended contracts.

  1. Additional penalties:

Suspension of operations for 1 to 3 months for parts of the license related to violations as specified in Clause 1, item b of this article.

  1. Corrective measures:

Forcing compliance with legal requirements for violations mentioned in Clause 1 of this article.

Article 20. Penalties for violations of cross-border insurance service provision regulations

  1. A fine from 20,000,000 VND to 40,000,000 VND for insurance companies, foreign branches, or insurance brokers licensed in Vietnam violating any of the following:

a) Failure to retain or provide documentation proving the insurance service provider complies with legal conditions for cross-border service provision;

b) Failure to report cross-border insurance service provision to the Ministry of Finance as required by law.

  1. A fine from 40,000,000 VND to 60,000,000 VND for foreign-invested organizations or foreign nationals working in Vietnam violating the following:

a) Participating in foreign insurance without going through a licensed insurance broker in Vietnam;

b) Participating in insurance with an unqualified foreign insurer violating cross-border service provision laws.

  1. A fine from 60,000,000 VND to 80,000,000 VND for violations by foreign branches, insurance brokers, or insurance companies in Vietnam regarding non-compliance with cross-border service provision rules.

  2. Corrective measures:

Forcing compliance with legal regulations for violations mentioned in Clause 1 of this article.

Section 4. VIOLATIONS OF REGULATIONS ON INSURANCE BROKERAGE, INSURANCE AGENCY, INSURANCE SUPPORT SERVICES, AND FOREIGN REPRESENTATIVE OFFICES IN VIETNAM

Article 21. Penalties for Violations of the Regulation on Purchasing Professional Liability Insurance for Insurance Brokerage Firms

  • A fine from 20,000,000 VND to 40,000,000 VND will be imposed on insurance brokerage firms that fail to meet their obligation to purchase professional liability insurance appropriate for their insurance brokerage activities as stipulated by law, specifically under item đ, Clause 2, Article 137 of the Insurance Business Law No. 08/2022/QH15.

Article 22. Penalties for Violations of the Regulation on Purchasing Professional Liability Insurance for Organizations and Individuals Providing Insurance Support Services

  1. A fine from 10,000,000 VND to 30,000,000 VND will be imposed on individuals providing consultancy services who fail to purchase professional liability insurance for their consultancy services as required by law, as stipulated in Clause 4, Article 142 of the Insurance Business Law No. 08/2022/QH15.

  2. A fine from 30,000,000 VND to 50,000,000 VND will be imposed on organizations providing insurance support services who fail to purchase professional liability insurance appropriate for each type of insurance support service, as required by law, as stipulated in Clause 4, Article 142 of the Insurance Business Law No. 08/2022/QH15.

Article 23. Penalties for Violations of Insurance Brokerage Regulations

  1. A fine from 20,000,000 VND to 40,000,000 VND will be imposed for one of the following violations:

    a) Failure to enter into a written agreement with the client when providing insurance brokerage services, or having a written agreement that does not clearly specify the content of the brokerage activity, the term of the agreement, and the rights and obligations of each party as required by law;

    b) Obstructing the insurance buyer or insured person from providing information related to the insurance contract or encouraging them not to disclose such details; offering promotions in the form of illegal benefits to induce clients to sign insurance contracts; urging the insurance buyer to cancel an existing insurance contract to purchase a new one, as stipulated in points a, b, and c, Clause 3, Article 137 of the Insurance Business Law No. 08/2022/QH15;

    c) Failing to protect the confidentiality of information provided by clients, insurance companies, reinsurance companies, or foreign branches in Vietnam, except when required by competent state authorities or with the consent of the relevant parties, as stipulated in point a, Clause 2, Article 137 of the Insurance Business Law No. 08/2022/QH15;

    d) Failing to compensate clients for damages caused by the brokerage activity as required by law, as stipulated in point b, Clause 2, Article 137 of the Insurance Business Law No. 08/2022/QH15;

    đ) Failing to disclose required information to clients as stipulated by law, as stipulated in point c, Clause 2, Article 137 of the Insurance Business Law No. 08/2022/QH15.

  2. A fine from 40,000,000 VND to 60,000,000 VND will be imposed for one of the following violations:

    a) Advising clients to purchase insurance from an insurance company or foreign non-life insurance branch under less favorable terms than those offered by other insurers to earn higher brokerage commissions, as stipulated in point d, Clause 3, Article 137 of the Insurance Business Law No. 08/2022/QH15;

    b) Providing clients with misleading or incorrect information about the insurance terms and conditions of the insurance company or foreign non-life insurance branch, as stipulated in point đ, Clause 3, Article 137 of the Insurance Business Law No. 08/2022/QH15.

  3. A fine from 50,000,000 VND to 70,000,000 VND will be imposed on the use of individuals carrying out insurance brokerage activities who do not meet the legal requirements as stipulated in Clause 2, Article 138 of the Insurance Business Law No. 08/2022/QH15.

  4. Additional sanctions:

    • Suspension of operations for 1 to 3 months for insurance activities directly related to the violation, in case of violation of any act under Clause 2 of this Article.

  5. Remedial Measures:

    • Obligation to comply with legal regulations for violations under Clause 1 and Clause 2 of this Article.
    • Obligation for insurance brokerage firms to stop using individuals performing insurance brokerage activities who have violated regulations under Clause 3 for 12 months from the date of receiving the administrative penalty decision.

Article 24. Penalties for Violations of Insurance Agency Regulations

  1. A fine from 60,000,000 VND to 80,000,000 VND will be imposed on insurance companies, foreign non-life insurance branches, or mutual organizations offering micro-insurance for one of the following violations:

    a) Using individuals acting as insurance agents for other insurance companies or foreign non-life insurance branches in the same type of insurance without complying with legal requirements, as stipulated in Clause 1, Article 127 of the Insurance Business Law No. 08/2022/QH15;

    b) Using individuals as insurance agents for other mutual organizations offering micro-insurance services without complying with legal requirements, as stipulated in Clause 1, Article 127 of the Insurance Business Law No. 08/2022/QH15;

    c) Using organizations acting as insurance agents without written approval from the insurer or the mutual organization offering micro-insurance, as stipulated in Clause 2, Article 127 of the Insurance Business Law No. 08/2022/QH15;

    d) Using individuals or organizations that do not meet the conditions for insurance agency activities as stipulated by law, as specified in Article 125 of the Insurance Business Law No. 08/2022/QH15 and Article 62 of Decree No. 46/2023/NĐ-CP;

    đ) Issuing insurance contracts without the required consent from the insurance buyer as required by law.

  2. A fine from 60,000,000 VND to 100,000,000 VND will be imposed on organizations that fail to supervise and evaluate insurance agents' compliance with laws and the quality of their advisory services.

  3. Remedial Measures:

    • Obligation to comply with legal regulations for violations under Clause 1 and Clause 2 of this Article.
    • Obligation to stop using the insurance agent involved in the violation for 12 months from the date of receiving the administrative penalty decision.

Article 25. Penalties for Violations of Regulations on Issuance and Withdrawal of Insurance Certificates

  1. A fine from 60,000,000 VND to 80,000,000 VND will be imposed on insurers or training institutions that issue certificates of insurance agents, brokers, or supporting services not in accordance with the law, as stipulated in Clause 2, Article 130 of the Insurance Business Law No. 08/2022/QH15.

  2. Remedial Measures:

    • Obligation to comply with legal regulations for violations under Clause 1 of this Article.

Article 26. Penalties for Violations by Foreign Representative Offices in Vietnam

  1. A fine from 40,000,000 VND to 60,000,000 VND will be imposed for any of the following violations:

    a) Changing the name, nationality, or address of the insurance company, reinsurance company, or foreign insurance brokerage firm without legal approval;

    b) Failing to report any changes as required by law.

  2. Remedial Measures:

    • Obligation to comply with legal regulations for violations under Clause 1 of this Article.

Article 27. Penalties for Violations by Individuals or Organizations Providing Insurance Support Services

  1. Fines will be imposed on individuals or organizations that fail to maintain client confidentiality or use information improperly.

  2. Additional penalties will be imposed for violations related to service provision by insurance support providers.

Article 28. Penalties for Violations Related to Capital Requirements

Fines will be imposed for insurance companies, reinsurance companies, and insurance brokers who fail to meet capital requirements as stipulated by law.

Article 29. Penalties for Violations Related to Deposits

  1. Fines will be imposed for failure to comply with deposit regulations.

  2. Remedial Measures:

    • Obligation to comply with legal regulations regarding deposits.

Article 30. Penalties for Violations of Provisions on Provisioning, Management, and Use of Insurance Provisions and Mandatory Reserves

  1. A fine ranging from VND 20,000,000 to VND 40,000,000 for the act of provisioning the Mandatory Reserve Fund not in accordance with the law, as specified in Clause 1 and Clause 2, Article 98 of the Insurance Business Law No. 08/2022/QH15, and Clause 1, Article 42 of Decree No. 21/2023/NĐ-CP.

  2. A fine ranging from VND 60,000,000 to VND 80,000,000 for any of the following violations:

    a) Failure to register the provisioning method and basis with the Ministry of Finance, or provisioning insurance reserves without approval from the Ministry of Finance as required by law, specified in Clause 3, Article 97 of the Insurance Business Law No. 08/2022/QH15 and Article 45 of Decree No. 46/2023/NĐ-CP;

    b) Misuse of the Mandatory Reserve Fund in violation of the law.

  3. A fine ranging from VND 80,000,000 to VND 100,000,000 for any of the following violations:

    a) Provisioning insurance reserves not according to the method and basis registered with the Ministry of Finance, as specified in Article 45 of Decree No. 46/2023/NĐ-CP;

    b) Misuse of the insurance reserve fund in violation of the law, as specified in Clause 2, Article 38, Clause 2, Article 40, and Clause 2, Article 42 of Decree No. 46/2023/NĐ-CP;

    c) Provisioning insurance reserves without confirmation from an actuary as required by law, as specified in Clause 1, Article 38 of Decree No. 46/2023/NĐ-CP;

    d) Provisioning insurance reserves in violation of the law, as specified in Clause 2, Article 97 of the Insurance Business Law No. 08/2022/QH15; Article 38 of Decree No. 21/2023/NĐ-CP.

  4. Measures to remedy the consequences:

    Compel the company to comply with the legal provisions in the cases of violations in Clauses 1, 2, Item a, Item b, and Item d of Clause 3 of this Article.

Article 31. Penalties for Violations of Capital Investment Provisions

  1. A fine ranging from VND 20,000,000 to VND 40,000,000 for any of the following violations:

    a) Failure to separately record and track investments from owners' capital and investments from idle capital from insurance reserves;

    b) Reinsurance companies simultaneously conducting life, non-life, and health reinsurance without separately recording and tracking investments from idle capital of each type of reinsurance.

  2. A fine ranging from VND 50,000,000 to VND 70,000,000 for any of the following violations of investment principles:

    a) Investing outside the sources of investment prescribed by law, as specified in Clause 1, Article 99 of the Insurance Business Law No. 08/2022/QH15;

    b) Investing idle capital from insurance reserves not in accordance with the law, as specified in Articles 61 and 62 of Decree No. 73/2016/NĐ-CP; Clause 3, Article 39 of Decree No. 21/2023/NĐ-CP;

    c) Investing more than 30% of the investment capital into companies within the same corporate group with mutual ownership relations, as specified by law, according to Item d, Clause 2, Article 99 of the Insurance Business Law No. 08/2022/QH15;

    d) Investing owners’ capital not in accordance with the law, as specified in Article 46 of Decree No. 46/2023/NĐ-CP; investments from foundation capital, mandatory reserves, and idle capital from insurance reserves of microinsurance mutual organizations not in accordance with the law, as specified in Clause 3, Article 39 of Decree No. 21/2023/NĐ-CP;

    e) Receiving entrusted investments without being authorized to conduct investment entrustment activities as prescribed by law, as specified in Item g, Clause 2, Article 99 of the Insurance Business Law No. 08/2022/QH15.

  3. A fine ranging from VND 80,000,000 to VND 100,000,000 for any of the following violations:

    a) Borrowing funds for direct investment or investment entrustment in securities, real estate business, or equity in other enterprises not in accordance with the law, as specified in Item c, Clause 2, Article 99 of the Insurance Business Law No. 08/2022/QH15;

    b) Reinvesting in any form for shareholders, capital contributors, or related parties, except for deposits in shareholders that are credit institutions not in accordance with the law, as specified in Item d, Clause 2, Article 99 of the Insurance Business Law No. 08/2022/QH15;

    c) Using the insurance reserve capital to invest abroad in any form not in accordance with the law, as specified in Item b, Clause 2, Article 99 of the Insurance Business Law No. 08/2022/QH15;

    d) Purchasing corporate bonds issued for restructuring debts of the issuing enterprise not in accordance with the law, as specified in Item e, Clause 2, Article 99 of the Insurance Business Law No. 08/2022/QH15;

    e) Engaging in prohibited investment activities as prescribed by law, as specified in Clause 3, Article 99 of the Insurance Business Law No. 08/2022/QH15;

    f) Investing abroad not in accordance with the law, as specified in Article 100 of the Insurance Business Law No. 08/2022/QH15, except as provided in Clause 3, Article 12 of this Decree.

  4. Measures to remedy the consequences:

    Compel the company to comply with the legal provisions in cases of violations specified in Clauses 2 and 3 of this Article.

Section 5: VIOLATIONS OF PROVISIONS ON PAYMENT CAPACITY, RISK MANAGEMENT, INTERNAL CONTROL, INTERNAL AUDIT

Article 32. Penalties for Violations of Financial Safety Regulations in Business Operations

  1. A fine ranging from VND 40,000,000 to VND 60,000,000 for failure to promptly report financial status and the causes of potential payment difficulties as required by law, as specified in Clause 2, Article 78 of the Insurance Business Law No. 24/2000/QH10.

  2. A fine ranging from VND 80,000,000 to VND 100,000,000 for any of the following violations:

    a) Failure to implement or incorrectly implement recovery plans for payment capacity and organizational stability, which were approved by the Ministry of Finance when the company is at risk of payment insolvency, as prescribed by law, as specified in Clause 1, Article 79 of the Insurance Business Law No. 24/2000/QH10;

    b) Failure to notify the Ministry of Finance in writing about the actual situation, causes, and corrective actions taken as prescribed by law, as specified in Clause 1, Article 67 of Decree No. 73/2016/NĐ-CP;

    c) Failure to comply with payment recovery requirements as prescribed by law, as specified in Clause 2, Article 79 of the Insurance Business Law No. 24/2000/QH10, Clause 2, Article 67 of Decree No. 73/2016/NĐ-CP;

    d) Transferring profits abroad without ensuring the required capital safety ratio or payment capacity as prescribed by law, as specified in Item a, Clause 1, Article 107 of the Insurance Business Law No. 08/2022/QH15.

  3. Measures to remedy the consequences:

    a) Compel the company to comply with the law in cases of violations as specified in Clause 1, Item a, Item b, and Item c of Clause 2 of this Article;

    b) Compel the company to restore the original state in cases of violations as specified in Item d of Clause 2 of this Article.

Article 33. Penalties for Violations of Risk Management, Internal Control, and Internal Audit Regulations

  1. A fine ranging from VND 40,000,000 to VND 60,000,000 for any of the following violations related to risk management:

    a) Failure to organize risk management according to legal requirements;

    b) Failure to build internal risk management policies and regulations according to the law;

    c) Failure to conduct capital adequacy and payment capacity stress tests as required by law;

    d) Failure to submit risk management reports to the Ministry of Finance as prescribed by law;

    e) Incomplete or incorrect risk management reports as required by law.

  2. A fine ranging from VND 40,000,000 to VND 60,000,000 for any of the following violations related to internal control:

    a) Failure to meet internal control principles as prescribed by law;

    b) The compliance control department failing to perform its tasks as prescribed by law.

  3. A fine ranging from VND 40,000,000 to VND 60,000,000 for any of the following violations related to internal auditing:

    a) Failure to annually evaluate internal control activities as required by law;

    b) Failure to conduct internal audits as required by law.

  4. Measures to remedy the consequences:

    Compel the company to comply with the legal provisions in cases of violations as specified in Clauses 1, 2, and 3 of this Article.

Article 34. Sanctions for Violations of Provisions on the Implementation of Improvement Measures

  1. A fine ranging from 60,000,000 VND to 80,000,000 VND shall be imposed for any of the following violations in cases where improvement measures must be implemented:

    a) Failure to select, implement, or properly implement one or more improvement measures as prescribed by law, as specified in Clause 1, Clause 2, Article 111 of the Insurance Business Law No. 08/2022/QH15;

    b) Failure to notify the Ministry of Finance in writing about the current status, causes, and improvement measures being applied as prescribed by law, as specified in Clause 1, Article 111 of the Insurance Business Law No. 08/2022/QH15.

  2. A fine ranging from 80,000,000 VND to 100,000,000 VND shall be imposed for any of the following violations during the implementation of improvement measures:

    a) Transferring profits abroad, distributing profits, or paying dividends, as stipulated in Point a, Clause 3, Article 111 of the Insurance Business Law No. 08/2022/QH15;

    b) Increasing reinsurance, as stipulated in Point b, Clause 3, Article 111 of the Insurance Business Law No. 08/2022/QH15.

  3. Corrective measures:

    a) Forcing the correct implementation of legal regulations in cases of violations specified in Clause 1 and Clause 2 of this Article;

    b) Forcing the restoration of the original situation in cases of violations specified in Point a, Clause 2 of this Article.

Article 35. Sanctions for Violations of Provisions on Early Intervention Measures

  1. A fine ranging from 40,000,000 VND to 60,000,000 VND shall be imposed for any of the following violations:

    a) Failure to build or correctly build a plan to improve the capital safety ratio within the specified deadline, as stipulated in Clause 2, Article 112 of the Insurance Business Law No. 08/2022/QH15;

    b) Failure to organize or improperly organize the implementation of the improvement plan within the specified deadline, as stipulated in Clause 2, Clause 3, Article 112 of the Insurance Business Law No. 08/2022/QH15;

    c) Failure to report, or report inaccurately or late to the Ministry of Finance on the current situation, causes, and the capital safety improvement plan, as stipulated in Clause 2, Article 112 of the Insurance Business Law No. 08/2022/QH15.

  2. A fine ranging from 80,000,000 VND to 100,000,000 VND shall be imposed for any of the following violations during the implementation of early intervention measures:

    a) Transferring profits abroad, distributing profits, or paying dividends, as stipulated in Point a, Clause 5, Article 112 of the Insurance Business Law No. 08/2022/QH15;

    b) Increasing reinsurance, as stipulated in Point a, Clause 5, Article 112 of the Insurance Business Law No. 08/2022/QH15;

    c) Purchasing treasury shares, as stipulated in Point b, Clause 5, Article 112 of the Insurance Business Law No. 08/2022/QH15;

    d) Expanding the scope, content, and term of operations, as stipulated in Point c, Clause 5, Article 112 of the Insurance Business Law No. 08/2022/QH15.

  3. Corrective measures:

    a) Forcing the correct implementation of legal regulations in cases of violations specified in Clause 1 and Clause 2 of this Article;

    b) Forcing the restoration of the original situation in cases of violations specified in Point a, Clause 2 of this Article.

Article 36. Sanctions for Violations of Provisions on Control Measures

  1. A fine ranging from 40,000,000 VND to 60,000,000 VND shall be imposed for any of the following violations:

    a) Failure to hire or improperly hire an independent audit organization to review, assess the financial situation, determine the actual value of the charter capital, allocated capital, and payment ability within the specified deadline as prescribed by law, as stipulated in Clause 3, Article 113 of the Insurance Business Law No. 08/2022/QH15;

    b) Failure to build or correctly build a plan to improve the capital safety ratio within the specified deadline as stipulated by law, as stipulated in Clause 4, Article 113 of the Insurance Business Law No. 08/2022/QH15;

    c) Failure to organize or improperly organize the implementation of the capital safety ratio improvement plan within the specified deadline as stipulated by law, as stipulated in Clause 4, Clause 5, Article 113 of the Insurance Business Law No. 08/2022/QH15;

    d) Failure to report, or report inaccurately or late to the Ministry of Finance on the current situation, causes, and capital safety improvement plan as stipulated by law, as stipulated in Clause 4, Article 113 of the Insurance Business Law No. 08/2022/QH15.

  2. A fine ranging from 80,000,000 VND to 100,000,000 VND shall be imposed for any of the following violations during the implementation of control measures:

    a) Transferring profits abroad, distributing profits, or paying dividends, as stipulated in Point a, Clause 7, Article 113 of the Insurance Business Law No. 08/2022/QH15;

    b) Increasing reinsurance, as stipulated in Point a, Clause 7, Article 113 of the Insurance Business Law No. 08/2022/QH15;

    c) Purchasing treasury shares, as stipulated in Point a, Clause 7, Article 113 of the Insurance Business Law No. 08/2022/QH15;

    d) Expanding the scope, content, and term of operations, as stipulated in Point a, Clause 7, Article 113 of the Insurance Business Law No. 08/2022/QH15;

    đ) Participating in capital contribution to establish an enterprise; purchasing real estate to be used as a business headquarters, office, or warehouse directly serving the business activities, as stipulated in Point b, Clause 7, Article 113 of the Insurance Business Law No. 08/2022/QH15;

    e) Investing in high-risk assets or conducting business activities that reduce the capital safety ratio, as stipulated in Point c, Clause 7, Article 113 of the Insurance Business Law No. 08/2022/QH15.

  3. Corrective measures:

    a) Forcing the correct implementation of legal regulations in cases of violations specified in Clause 1 and Clause 2 of this Article;

    b) Forcing the restoration of the original situation in cases of violations specified in Point a, Clause 2 of this Article.

Article 37. Sanctions for Violations of Provisions on Responsibilities When Improvement, Early Intervention, and Control Measures Are Applied

A fine ranging from 40,000,000 VND to 60,000,000 VND shall be imposed for failure to report to the Ministry of Finance on the results and degree of improvement as prescribed by law, as stipulated in Clause 3, Article 114 of the Insurance Business Law No. 08/2022/QH15.

Article 38. Sanctions for Violations of Provisions on the Separation of Owner’s Capital and Insurance Premium Funds, and the Allocation of Surplus

  1. A fine ranging from 40,000,000 VND to 60,000,000 VND shall be imposed on insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam for violating any of the following acts:

    a) Failure to register with the Ministry of Finance the principles for separating owner’s capital and insurance premium funds as prescribed by law, as stipulated in Clause 1, Article 101 of the Insurance Business Law No. 08/2022/QH15 and Clause 1, Article 51 of Decree No. 46/2023/ND-CP;

    b) Failure to properly implement the separation of owner’s capital and insurance premium funds that have been registered and approved by the Ministry of Finance as prescribed by law, as stipulated in Clause 1, Article 101 of the Insurance Business Law No. 08/2022/QH15;

    c) Failure to register with the Ministry of Finance the method for allocating surplus in the life insurance contract fund of life insurance companies before implementation as prescribed by law, as stipulated in Clause 4, Article 101 of the Insurance Business Law No. 08/2022/QH15;

    d) Failure to implement the surplus allocation method approved by the Ministry of Finance as prescribed by law, as stipulated in Clause 2, Clause 4, Article 101 of the Insurance Business Law No. 08/2022/QH15.

  2. A fine ranging from 60,000,000 VND to 80,000,000 VND shall be imposed for any of the following violations:

    a) Life insurance companies failing to separate, record, and monitor separately the assets, capital, revenue, expenses, and operational results of life insurance contracts that share profits according to the method approved by the Ministry of Finance as prescribed by law, as stipulated in Clause 2, Article 101 of the Insurance Business Law No. 08/2022/QH15;

    b) Life insurance companies transferring assets and compensating for deficits in the contract owner’s fund in violation of legal regulations, as stipulated in Article 101 of the Insurance Business Law No. 08/2022/QH15.

  3. A fine ranging from 80,000,000 VND to 100,000,000 VND shall be imposed for any of the following violations:

    a) Failure to separate owner’s capital and insurance premium funds according to legal regulations, as stipulated in Clause 1, Article 101 of the Insurance Business Law No. 08/2022/QH15;

    b) Failure to allocate surplus according to legal regulations, as stipulated in Clause 2, Clause 4, Article 101 of the Insurance Business Law No. 08/2022/QH15.

  4. Corrective measures:

    Forcing the correct implementation of legal regulations for violations specified in Clause 1, Clause 2, Clause 3 of this Article.

Section 6. VIOLATIONS OF REPORTING AND DISCLOSURE REGULATIONS

Article 39. Sanctions for Violations of Provisions on Reporting, Information Disclosure, and Updating Agent Information

  1. A fine ranging from 10,000,000 VND to 30,000,000 VND shall be imposed for any of the following violations:

    a) Failure to submit reports within the prescribed deadline as prescribed by law;

    b) Submitting incomplete reports as prescribed by law, as stipulated in Clause 1, Article 106 and Clause 5, Article 138 of the Insurance Business Law No. 08/2022/QH15, Article 34 of Decree No. 21/2023/ND-CP on microinsurance, Clause 2, Article 75 of Decree No. 67/2023/ND-CP on compulsory civil liability insurance for motor vehicle owners, compulsory fire and explosion insurance, and compulsory insurance in construction investment activities;

    c) Failing to notify the Ministry of Finance on the content of information disclosure on time as prescribed by law, as stipulated in Clause 3, Article 117 and Clause 8, Article 138 of the Insurance Business Law No. 08/2022/QH15.

  2. A fine ranging from 20,000,000 VND to 40,000,000 VND shall be imposed for any of the following violations:

    a) Incomplete or inaccurate information in the reports as prescribed by law;

    b) Incorrect or incomplete information in public disclosures as prescribed by law, as stipulated in Clause 1, Article 117, Clause 8, Article 138 of the Insurance Business Law No. 08/2022/QH15, Article 45 of Decree No. 21/2023/ND-CP;

    c) Public disclosure of information in the wrong format or outside the prescribed time limit as prescribed by law, as stipulated in Clause 2, Article 117, Clause 8, Article 138 of the Insurance Business Law No. 08/2022/QH15, Article 44 of Decree No. 21/2023/ND-CP.

  3. A fine ranging from 40,000,000 VND to 60,000,000 VND shall be imposed for any of the following violations:

    a) Failure to submit reports as prescribed by law, as stipulated in Article 106, Article 138 of the Insurance Business Law No. 08/2022/QH15, Article 34 of Decree No. 21/2023/ND-CP;

    b) Annual financial reports without confirmation from an independent auditor as prescribed by law, as stipulated in Clause 1, Clause 2, Article 105 of the Insurance Business Law No. 08/2022/QH15;

    c) Failure to publicly disclose information as prescribed by law, as stipulated in Clause 1, Article 117, Article 138 of the Insurance Business Law No. 08/2022/QH15, Articles 44 and 45 of Decree No. 21/2023/ND-CP;

    d) Failure to notify the Ministry of Finance about the content of public information as prescribed by law, as stipulated in Clause 3, Article 117, Article 138 of the Insurance Business Law No. 08/2022/QH15.

  4. A fine ranging from 60,000,000 VND to 80,000,000 VND shall be imposed for failure to register and update the information of individual insurance agents and employees in insurance agent organizations directly conducting insurance agency activities in the insurance business database as prescribed by law, as stipulated in Clause 4, Article 127, Point 1, Clause 2, Article 128 of the Insurance Business Law No. 08/2022/QH15.

Section 7. VIOLATIONS OF REGULATIONS ON ANTI-MONEY LAUNDERING, COUNTER-TERRORISM FINANCING, AND NON-PROLIFERATION OF WEAPONS OF MASS DESTRUCTION IN LIFE INSURANCE BUSINESS

Article 40. Penalties for Violations of Regulations on Anti-Money Laundering, Counter-Terrorism Financing, and Non-Proliferation of Weapons of Mass Destruction in Life Insurance Business

  1. Life insurance companies that violate regulations on customer identification, information collection, updating, and verification of customer identification; responsibilities for establishing internal regulations and reporting, providing, and storing information, records shall be fined as follows:

a) A fine from 20,000,000 VND to 40,000,000 VND for failure to identify, update, and verify customer information according to legal regulations as specified in Articles 9, 10, 11, 12, 13, and 14 of the Anti-Money Laundering Law, Clause 1, Article 34 of the Counter-Terrorism Law, Item a, Clause 2, Article 22 of Decree No. 81/2019/ND-CP;

b) A fine from 30,000,000 VND to 60,000,000 VND for failure to monitor special transactions according to legal regulations as specified in Article 20 of the Anti-Money Laundering Law;

c) A fine from 30,000,000 VND to 60,000,000 VND for failure to comply with regulations regarding the storage and protection of information, records, documents, and reports on anti-money laundering, counter-terrorism financing as specified in Articles 38 and 40 of the Anti-Money Laundering Law and Article 34 of the Counter-Terrorism Law;

d) A fine from 40,000,000 VND to 80,000,000 VND for failure to issue and comply with internal regulations on anti-money laundering, counter-terrorism financing, and non-proliferation of weapons of mass destruction as specified in Article 24 of the Anti-Money Laundering Law, Article 34 of the Counter-Terrorism Law, and Article 22 of Decree No. 81/2019/ND-CP;

e) A fine from 50,000,000 VND to 100,000,000 VND for failure to conduct risk assessments on money laundering, terrorism financing, and non-proliferation of weapons of mass destruction; failure to update annual risk assessments, failure to report or report risk assessments after the deadline, failure to disseminate updated risk assessments throughout the system of the reporting entity as specified in the Anti-Money Laundering Law, Counter-Terrorism Law, and Non-Proliferation of Weapons of Mass Destruction regulations;

f) A fine from 50,000,000 VND to 100,000,000 VND for failure to develop regulations on customer classification, failure to classify customers by risk level, failure to develop risk management procedures for money laundering, terrorism financing, and non-proliferation of weapons of mass destruction as specified in the relevant laws;

g) A fine from 50,000,000 VND to 100,000,000 VND for failure to issue policies and procedures to identify and assess the risk of money laundering before providing new products, services, or applying innovative technology to existing products and services as specified in Article 19 of the Anti-Money Laundering Law;

h) A fine from 80,000,000 VND to 100,000,000 VND for violations regarding the responsibility related to foreign persons with political influence as specified in Article 17 of the Anti-Money Laundering Law.

  1. Life insurance companies that violate regulations on providing information related to anti-money laundering, prohibited activities in anti-money laundering, reporting large transactions, suspicious transactions, or electronic money transfer transactions shall be fined as follows:

a) A fine from 30,000,000 VND to 50,000,000 VND for failure to comply with regulations on reporting large transactions, suspicious transactions, or electronic money transfer transactions as specified in Articles 25, 26, and 34 of the Anti-Money Laundering Law;

b) A fine from 30,000,000 VND to 60,000,000 VND for obstructing the provision of information to support anti-money laundering work as specified in Article 8 of the Anti-Money Laundering Law;

c) A fine from 50,000,000 VND to 100,000,000 VND for failure to report, provide information, records, documents, or reports to support anti-money laundering, counter-terrorism financing, and non-proliferation of weapons of mass destruction as required by the competent authorities as specified in Article 39 of the Anti-Money Laundering Law, Article 33 of the Counter-Terrorism Law, and Article 22 of Decree No. 81/2019/ND-CP;

d) A fine from 80,000,000 VND to 100,000,000 VND for organizing, participating, or facilitating money laundering activities that are not serious enough for criminal prosecution as specified in Article 8 of the Anti-Money Laundering Law;

e) A fine from 80,000,000 VND to 100,000,000 VND for failure to apply transaction delay measures, failure to report to competent authorities, failure to freeze accounts, seal, or temporarily seize assets as required by law as specified in Articles 44 and 45 of the Anti-Money Laundering Law.

  1. Life insurance companies violating regulations on counter-terrorism financing shall be fined as follows:

a) A fine from 80,000,000 VND to 100,000,000 VND for failure to report to anti-terrorism forces when detecting signs or acts of terrorism financing as specified in Article 33 of the Counter-Terrorism Law;

b) A fine from 80,000,000 VND to 100,000,000 VND for failure to report suspicious transactions related to terrorism financing; failure to apply temporary measures or report applying temporary measures when there are suspicions about customers or customer transactions related to terrorism financing, or customers listed in the anti-terrorism blacklist.

  1. Life insurance companies violating regulations on the proliferation of weapons of mass destruction shall be fined as follows:

A fine from 80,000,000 VND to 100,000,000 VND for failure to notify competent authorities when detecting acts of proliferation or financing activities related to or violating laws on weapons of mass destruction as specified in Article 25 of Decree No. 81/2019/ND-CP.

  1. Measures to Remedy Consequences:

Forcing compliance with legal provisions in cases of violations specified in Clauses 1, 2, 3, and 4 of this Article.

  1. Life insurance companies committing violations in the areas of anti-money laundering, counter-terrorism financing, and non-proliferation of weapons of mass destruction in the insurance business not specified in this Decree shall be fined according to the provisions in the Government Decree on administrative penalties in the fields of finance and banking.

Section 8. ADMINISTRATIVE PENALTY AUTHORITY IN INSURANCE BUSINESS

Article 41. Penalty Authority in the Insurance Business

  1. Persons assigned to perform specialized inspection duties at the Insurance Supervisory and Management Department of the Ministry of Finance have the authority to:

a) Issue warnings;

b) Impose fines up to 500,000 VND;

c) Apply measures to remedy consequences as specified in Clause 5, Article 3 of this Decree.

  1. Heads of specialized inspection teams at the Insurance Supervisory and Management Department of the Ministry of Finance have the authority to:

a) Issue warnings;

b) Impose fines up to 50,000,000 VND;

c) Suspend operations temporarily;

d) Apply measures to remedy consequences as specified in Clause 5, Article 3 of this Decree.

  1. Directors of the Insurance Supervisory and Management Department have the authority to:

a) Issue warnings;

b) Impose fines up to 100,000,000 VND;

c) Suspend operations temporarily;

d) Apply measures to remedy consequences as specified in Clause 5, Article 3 of this Decree.

  1. Provincial Police Directors have the authority to:

a) Issue warnings;

b) Impose fines up to 50,000,000 VND;

c) Apply measures to remedy consequences as specified in Clause 5, Article 3 of this Decree.

  1. Heads of Economic Security Police, Heads of Anti-Corruption, Economic, Smuggling Police, Heads of Administrative Police on Social Order, Heads of Criminal Investigation Police on Social Order, and Heads of Fire Prevention, Rescue, and Rescue Police have the authority to:

a) Issue warnings;

b) Impose fines up to 100,000,000 VND;

c) Apply measures to remedy consequences as specified in Clause 5, Article 3 of this Decree.

  1. Bank inspectors have the authority to:

a) Issue warnings;

b) Impose fines up to 500,000 VND;

c) Apply measures to remedy consequences as specified in Clause 5, Article 3 of this Decree.

  1. Directors of the Banking Inspection and Supervision Department have the authority to:

a) Issue warnings;

b) Impose fines up to 70,000,000 VND;

c) Apply measures to remedy consequences as specified in Clause 5, Article 3 of this Decree.

  1. The Chief Inspector of the Banking Supervision Department has the authority to penalize violations as specified in Clause 2, Article 40 of this Decree:

a) Issue warnings;

b) Impose fines up to 100,000,000 VND;

c) Apply measures to remedy consequences as specified in Clause 5, Article 3 of this Decree.

Article 42. Principles for Determining and Defining the Authority to Impose Administrative Penalties in the Insurance Business

  1. Heads of specialized inspection teams have the authority to impose penalties for violations within the scope and content of the inspection during the inspection period in accordance with the law on inspections. If the inspection period expires and penalties cannot be imposed due to objective reasons, the case must be transferred to the competent person for penalty imposition.

  2. If the administrative violation in the insurance business falls under the penalty authority of multiple persons, the first person handling the case shall impose the penalty.

  3. If the penalty forms, amounts, or additional penalties exceed the authority as specified in this Decree, the person handling the case must transfer the file to the competent authorities for penalty imposition.

  4. The penalty authority of the persons specified in Article 41 of this Decree applies to the violation of individuals; in case of a fine, the penalty authority for organizations is twice the authority for individuals.

  5. The authority to impose administrative penalties for violations by the positions specified in Article 41 of this Decree is detailed as follows:

a) The positions specified in Clauses 1, 2, and 3 of Article 41 have the authority to penalize violations as specified in this Decree, except for violations specified in Clauses 2, 3, and 4 of Article 40;

b) Police positions specified in Clauses 4 and 5 of Article 41 have the authority to penalize violations specified in Articles 15, Item d, Clause 2, Article 16, Item b, Clause 1, Article 39, and Article 40 of this Decree;

c) Positions in the State Bank of Vietnam specified in Clauses 6, 7, and 8 of Article 41 have the authority to penalize violations specified in Clauses 1 and 2 of Article 40 of this Decree.

Article 43. Authority to Issue Administrative Violation Records in the Field of Insurance Business

  1. The officials mentioned in Article 41 of this Decree, when detecting administrative violations in the field of insurance business, have the authority to issue administrative violation records according to regulations.

  2. Public security officers, individuals authorized to perform official duties according to legal documents or administrative documents issued by competent agencies or individuals, have the authority to issue administrative violation records in accordance with the law.

Article 44. Enforcement of Sanctions and Corrective Measures

  1. The enforcement of administrative violation penalties is carried out in accordance with the provisions in Section 2, Chapter III, Part Two of the Law on Handling Administrative Violations and Decree No. 118/2021/ND-CP dated December 23, 2021, by the Government, which details some provisions and measures to implement the Law on Handling Administrative Violations.

  2. Records, documents, or papers related to the enforcement of sanctions and corrective measures must be included in the administrative violation penalty files as stipulated in Article 57 of the Law on Handling Administrative Violations.

Chapter III

IMPLEMENTATION PROVISIONS

Article 45. Effectiveness

  1. This Decree comes into effect on February 15, 2025.

  2. The provisions on administrative penalties in the field of insurance business from Articles 1 to 33 of Decree No. 98/2013/ND-CP dated August 28, 2013, by the Government, which regulates administrative penalties in the field of insurance business and lottery operations, as amended and supplemented by Decrees No. 48/2018/ND-CP dated March 21, 2018, No. 80/2019/ND-CP dated November 1, 2019, and No. 102/2021/ND-CP dated November 16, 2021, are abolished.

  3. Point a, Clause 1 of Article 28, Clause 1, points a, b, c of Clause 2 of Article 32 of this Decree take effect until December 31, 2027.

  4. Point d, Clause 1 of Article 28, Point đ of Clause 3 of Article 31, Articles 34, 35, 36, and 37 of this Decree take effect from January 1, 2028.

  5. If the legal documents referenced for application in this Decree are amended, supplemented, or replaced, the provisions of the amended, supplemented, or replaced legal documents shall apply.

Article 46. Transitional Provisions

  1. In cases where an administrative penalty decision has been issued before this Decree comes into effect, and after the effective date of this Decree, the individual or organization subject to the penalty still has a complaint, it shall be resolved according to the Decree on administrative penalties in the field of insurance business effective at the time of the administrative violation.

  2. For administrative violations that occurred and were completed before the effective date of this Decree but were later discovered or are being considered for penalty, the Decree on administrative penalties in the field of insurance business effective at the time of the violation will apply, unless this Decree does not provide for legal responsibility or provides lighter legal responsibility for the violator, in which case the provisions for penalties stipulated in this Decree will apply.

Article 47. Implementation Responsibility

The Ministers, Heads of Ministerial-level agencies, Heads of Government agencies, and Chairpersons of People's Committees of provinces and centrally-run cities, as well as the entities subject to this Decree, are responsible for the implementation of this Decree.

Recipients:

Recipients:

  • The Politburo of the Central Party Committee;
  • The Prime Minister, Deputy Prime Ministers;
  • Ministries, ministerial-level agencies; government agencies;
  • The People's Councils, People's Committees of provinces and centrally-run cities;
  • The Office of the Central Party Committee and Party Committees;
  • The Office of the General Secretary;
  • The Office of the President;
  • The Ethnic Council and Committees of the National Assembly;
  • The National Assembly Office;
  • The Supreme People's Court;
  • The Supreme People's Procuracy;
  • The State Audit;
  • The National Financial Supervisory Commission;
  • The Social Policy Bank;
  • The Vietnam Development Bank;
  • The Central Committee of the Vietnam Fatherland Front;
  • Central agencies of mass organizations;
  • The Government Office: Head of the Office, Deputy Heads, Assistant to the Prime Minister, General Director of the Government Portal, Departments, Units directly under the Office, Official Gazette;
  • Archive: Administrative and Economic Department (100b).

ON BEHALF OF THE GOVERNMENT ON BEHALF OF THE PRIME MINISTER DEPUTY PRIME MINISTER




Ho Đuc Phoc

See details here.