On 16 October 2017, the Government promulgated Decree No. 115/2017/ND-CP guiding implementation of paying enforcement guarantee amount by commercial legal entities in accordance with Penal Code No. 100/2015/QH13 amended, supplemented by Law No. 12/2017/QH14 and Criminal Procedure Code No. 101/2015/QH13 (“Decree 115”).
Some notable points of Decree 115 are as follows:
1. Payment principle
Payment to secure the judgment enforcement against legal entities prosecuted, investigated, adjudicated will be effected only on the basis of a decision applying coercive measures by the competent investigative authority, the People’s Procuracy, the Court and the civil judgment enforcement agency.
2. Money paid to ensure judgment enforcement
The money paid to secure the judgment enforcement, including the money paid to secure the execution of fine judgment and the money paid to secure the performance of compensation obligation, may be paid in Vietnamese dong or foreign currency under the lawful ownership of commercial legal entities.
The amount level to be paid will be decided by the competent legal proceeding agency on a case-by-case basis but not less than 50% and not higher than the maximum fine stipulated in the applicable clause or no higher than the actual damage determined.
3. Payment schedule
The payment of a commercial legal entity must be completed within seven (07) days from the date of receipt of a decision from the competent legal proceeding authority on the application of the measure forcing to pay a sum of money to ensure the judgment enforcement.
The commercial legal entity may pay through bank transfer or cash deposit to the custody account of the investigative body or civil judgment enforcement body opened at the State Treasury or financial agency in the military.
According to Decree 115, the paid amount will be temporarily kept, refunded or remitted to the State budget according to the decision of the competent legal proceeding agency.
Decree 115 takes effect from 1 January 2018.