Vietnam’s New Regulations on Bank Guarantees in Force

On 1 April 2023, Circular No. 11/2022/TT-NHNN issued in 2022 by the State Bank of Vietnam (SBV) regarding bank guarantee operations came into effect. Among its provisions, the Circular’s Article 9 permits credit institutions, foreign bank branches, and customers to conduct bank guarantee transactions using electronic means.

When issuing e-guarantees, institutions and banks must conform to AML legal regulations and SBV guidelines on management of risks associated with e-banking operations and other relevant legislative documents. Each institution or bank may decide on methods, forms and technologies to be used throughout the entire e-guarantee process, subject to meeting specified requirements.

The Circular is comprised 37 articles contained within four chapters (General Provisions; Specific Provisions; Reporting and Implementation Organization; and Implementation).

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