On  September 30, 2022, The State Bank Of Vietnam issues Circular No. 11/2022/TT-NHNN prescribing bank guarantee (hereinafter referred to as “Circular No. 11/2022/TT-NHNN”).

Circular No. 11/2022/TT-NHNN has supplemented regulations on electronic guarantee activities, thereby allowing credit institutions and selected customers to conduct banking guarantee activities by electronic method.

The implementation of electronic guarantee activities must ensure security, safety, protection of data messages and confidentiality of information in accordance with the provisions of law. Accordingly, the identification and verification of customer identification information via electronic means will limit the value of each guarantee commitment:

(i)    Individual customers: The value of each guarantee commitment is not more than VND 4 billion.

(ii)    Organization customer: The value of each guarantee commitment is not more than VND 45 billion.

This limitation does not apply to the following cases: Customer identification information is verified by a competent state agency; customers submit a guarantee request through the SWIFT system; customers use digital signature when applying for guarantee; customers are credit institutions, foreign bank branches, etc.

Circular No. 11/2022/TT-NHNN takes effect from April 01, 2023.