Penalties for illegal profiteering from usury

Reply: Usury is a case where the lender lends money to the borrower at an interest rate 5 times or more higher than the highest interest rate. The interest rate agreed upon by both parties must not exceed 20%/year of the loan amount.

Illegal profits from usury are the amount of interest exceeding the highest loan interest rate prescribed by the 2015 Civil Code of 20% and other illegal income.

The penalty for the act of illegally profiting from usury is prescribed in Article 201 of the 2015 Penal Code, amended by the 2017 Penal Code, on the crime of usury in civil transactions as follows:

1. Any person who, in a civil transaction, lends money at an interest rate five times or more higher than the highest interest rate prescribed in the Civil Code, illegally profits from VND 30,000,000 to less than VND 100,000,000, or has been administratively sanctioned for this act or has been convicted of this crime, has not had his/her criminal record expunged, and continues to violate, shall be subject to a fine of VND 50,000,000 to VND 200,000,000 or to non-custodial reform for up to 3 years.

2. Committing a crime and illegally gaining profits of VND 100,000,000 or more shall be subject to a fine of VND 200,000,000 to VND 1,000,000,000 or imprisonment of 6 months to 3 years.

3. The offender may also be fined from VND 30,000,000 to VND 100,000,000, banned from holding positions, practicing a profession or doing certain jobs from 01 year to 05 years.

Thus, those who commit the crime of usury may be prosecuted with a fine of VND 50,000,000 to VND 200,000,000, or non-custodial reform for up to 3 years, or imprisonment from 6 months to 3 years. In addition, the offender may also be fined from VND 30,000,000 to VND 100,000,000, banned from holding positions, practicing a profession or doing certain jobs from 1 year to 5 years.