VI Is the Chief Accountant of a credit institution a manager or an operator of the credit institution? What conditions must the Chief Accountant of a credit institution meet? Who is not allowed to be the Chief Accountant of a credit institution? Through today’s article, let’s find out about this issue with Pham Consult!
Is the Chief Accountant of a credit institution a manager or an operator of the credit institution?
According to Article 4 of the Law on Credit Institutions 2024, it is stipulated as follows:
Explanation of terms
In this Law, the following terms are construed as follows:
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25. Credit institution executives include General Director (Director), Deputy General Director (Deputy Director), Chief Accountant, Branch Director and equivalent positions as prescribed in the Charter of the credit institution.
26. Credit institution managers include Chairman, other members of the Board of Directors; Chairman, other members of the Board of Members; General Director (Director) and other management positions as prescribed in the Charter of the credit institution.
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Accordingly, credit institution executives include General Director (Director), Deputy General Director (Deputy Director), Chief Accountant, Branch Director and equivalent positions as prescribed in the Charter of the credit institution.
Meanwhile, the manager of a credit institution includes the Chairman, other members of the Board of Directors; Chairman, other members of the Board of Members; General Director (Director) and other management positions as prescribed in the Charter of the credit institution.
Thus, according to this provision, the chief accountant is the executive of the credit institution.
However, the credit institution can still classify this position as a manager as prescribed in the Charter of the credit institution.
What conditions must the chief accountant of a credit institution meet?
The standards and conditions for managers, executives and some other positions of credit institutions are stipulated in Article 41 of the Law on Credit Institutions 2024 as follows:
Standards and conditions for managers, executives and some other positions of credit institutions
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5. Deputy General Directors (Deputy Directors), Chief Accountants, Branch Directors, General Directors (Directors) of subsidiaries and equivalent positions as stipulated in the Charter of credit institutions must meet the following standards and conditions:
a) Not falling into the case of not being allowed to hold the position prescribed in Clause 2, Article 42 of this Law; for Deputy General Directors (Deputy Directors), they must not fall into the case of not being allowed to hold the position prescribed in Clause 1, Article 42 of this Law;
b) Meet one of the following conditions: have a university degree or higher in one of the following fields: finance, banking, economics, business administration, law, accounting, auditing or other fields in the professional field that he/she will undertake; have a university degree or higher in another field and have at least 03 years of direct work experience in the field of finance, banking or the professional field that he/she will undertake;
c) Reside in Vietnam during the term of office;
d) The Chief Accountant must also meet the standards and conditions prescribed by the law on accounting.
Accordingly, the Chief Accountant of a credit institution must meet all of the following standards and conditions:
– Not falling into the case of not being allowed to hold the position prescribed in Clause 2, Article 42 of the Law on Credit Institutions 2024; for the Deputy General Director (Deputy Director), he/she must not fall into the case of not being allowed to hold the position prescribed in Clause 1, Article 42 of the Law on Credit Institutions 2024;
– Meet one of the following conditions: have a university degree or higher in one of the following fields: finance, banking, economics, business administration, law, accounting, auditing or other fields in the professional field that he/she will be in charge of; have a university degree or higher in another field and have at least 03 years of direct work experience in the field of finance, banking or the professional field that he/she will be in charge of;
– Reside in Vietnam during the term of office;
– Meet the standards and conditions prescribed by the law on accounting as prescribed in Article 54 of the 2015 Law on Accounting:
Standards and conditions of chief accountants
1. Chief accountants must meet the following standards and conditions:
a) Standards prescribed in Clause 1, Article 51 of this Law;
b) Have accounting expertise and skills at intermediate level or higher;
c) Have a certificate of training for chief accountants;
d) Have at least 02 years of actual accounting work experience for those with accounting expertise and skills at university level or higher and at least 03 years of actual accounting work experience for those with accounting expertise and skills at intermediate or college level. 2. The Government shall specify the standards and conditions for chief accountants in accordance with each type of accounting unit.
Who is not allowed to be the Chief Accountant of a credit institution?
Cases that are not allowed to hold positions are stipulated in Article 42 of the Law on Credit Institutions 2024. The following people are not allowed to be the Chief Accountant of a credit institution, including:
– Minors; people with difficulty in cognition and behavior control; people with limited or lost civil capacity;
– People who are being prosecuted for criminal liability, serving a prison sentence; serving administrative measures at a compulsory drug rehabilitation facility or compulsory education facility; being banned by the Court from holding positions, practicing a profession or doing certain jobs;
– People who have been convicted of a serious crime or more;
– People who have been convicted of a crime of property infringement whose criminal record has not yet been cleared;
– Cadres, civil servants, public employees, managers from the department level and above in enterprises in which the State holds 50% or more of the charter capital, except for those appointed as representatives to manage the State’s capital contribution, of enterprises in which the State holds 50% or more of the charter capital at credit institutions or appointed, designated, or appointed to participate in the management, operation, and control of credit institutions as required by the task;
– Officers, non-commissioned officers, professional soldiers, workers, and national defense officials in agencies and units of the Vietnam People’s Army; officers, professional non-commissioned officers, and police workers in agencies and units of the Vietnam People’s Public Security, except for those appointed as representatives to manage the State’s capital contribution, of enterprises in which the State holds 50% or more of the charter capital at credit institutions;
– Other cases as prescribed in the Charter of the credit institution.
– Wife, husband, father, mother, children, brothers, sisters of members of the Board of Directors, members of the Board of Members, General Director (Director) of the credit institution and the spouses of these persons.
Cases that are not allowed to hold positions are stipulated in Article 42 of the Law on Credit Institutions 2024. The following people are not allowed to be the Chief Accountant of a credit institution, including:
– Minors; people with difficulty in cognition and behavior control; people with limited or lost civil capacity;
– People who are being prosecuted for criminal liability, serving a prison sentence; serving administrative measures at a compulsory drug rehabilitation facility or compulsory education facility; being banned by the Court from holding positions, practicing a profession or doing certain jobs;
– People who have been convicted of a serious crime or more;
– People who have been convicted of a crime of property infringement whose criminal record has not yet been cleared;
– Cadres, civil servants, public employees, managers from the department level and above in enterprises in which the State holds 50% or more of the charter capital, except for those appointed as representatives to manage the State’s capital contribution, of enterprises in which the State holds 50% or more of the charter capital at credit institutions or appointed, designated, or appointed to participate in the management, operation, and control of credit institutions as required by the task;
– Officers, non-commissioned officers, professional soldiers, workers, and national defense officials in agencies and units of the Vietnam People’s Army; officers, professional non-commissioned officers, and police workers in agencies and units of the Vietnam People’s Public Security, except for those appointed as representatives to manage the State’s capital contribution, of enterprises in which the State holds 50% or more of the charter capital at credit institutions;
– Other cases as prescribed in the Charter of the credit institution.
– Wife, husband, father, mother, children, brothers, sisters of members of the Board of Directors, members of the Board of Members, General Director (Director) of the credit institution and the spouses of these persons.
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