Vietnam to get tough on banks' foreign currency violations

Banks in Vietnam will face a fine of up to VND100 million if they buy or sell foreign currencies at unofficial
rates or impose illegal transaction fees on customers.

A draft decree stipulates that unfair competitive practices can be fined between VND10 million and VND100 million or US$485-4,850, according to VnExpress.

The highest fine of VND90-100 million will be imposed for illegal forex trading activities.

Banks will have to pay a fine of VND20-30 million if their advertisements on interest rates and loans are found to be untruthful or misleading. A similar penalty will be imposed on those breaking the central bank’s interest rate cap by offering gift or cash bonuses.

The draft decree also proposes a fine of VND50 million on banks that ease credit regulations for clients.

VnExpress has not indicated when the decree would take effect.