Article 214. Crime of Social Insurance and Unemployment Insurance Fraud
1. Any person who commits one of the following acts, thereby appropriating social insurance or unemployment insurance funds from VND 10,000,000 to under VND 100,000,000 or causing damage from VND 20,000,000 to under VND 200,000,000, and not falling within the cases prescribed in Articles 174, 353, and 355 of this Code, shall be subject to a fine of between VND 20,000,000 and VND 100,000,000, non-custodial reform for up to 02 years, or imprisonment from 03 months to 02 years:
a) Preparing false dossiers or falsifying contents of social insurance or unemployment insurance dossiers to deceive the social insurance agency;
b) Using false dossiers or dossiers with falsified contents to deceive the social insurance agency in order to enjoy social insurance or unemployment insurance benefits.
2. If the offense falls under any of the following circumstances, the offender shall be subject to a fine of between VND 100,000,000 and VND 200,000,000 or imprisonment from 01 to 05 years:
a) Organized crime;
b) Professional commission of crime;
c) Appropriating social insurance or unemployment insurance funds from VND 100,000,000 to under VND 500,000,000;
d) Causing damage from VND 200,000,000 to under VND 500,000,000;
đ) Using sophisticated, deceitful tricks;
e) Dangerous recidivism.
3. If the offense falls under any of the following circumstances, the offender shall be sentenced to imprisonment from 05 to 10 years:
a) Appropriating social insurance or unemployment insurance funds of VND 500,000,000 or more;
b) Causing damage of VND 500,000,000 or more.
4. The offender may also be subject to an additional fine of between VND 10,000,000 and VND 100,000,000, prohibition from holding certain positions, practicing certain professions, or performing certain jobs for 01 to 05 years.
Article 215. Crime of Health Insurance Fraud
1. Any person who commits one of the following acts, thereby appropriating health insurance funds from VND 10,000,000 to under VND 100,000,000 or causing damage from VND 20,000,000 to under VND 200,000,000, and not falling within the cases prescribed in Articles 174, 353, and 355 of this Code, shall be subject to a fine of between VND 20,000,000 and VND 100,000,000, non-custodial reform for up to 02 years, or imprisonment from 03 months to 02 years:
a) Preparing false medical records, making false prescriptions or inflating the quantity, adding drugs, medical supplies, technical services, hospital bed charges, and other expenses not actually used by the patient;
b) Forging medical records, health insurance cards, or using fictitiously issued cards, counterfeit cards, revoked cards, altered cards, or another person’s card in medical examination and treatment to unlawfully obtain health insurance benefits.
2. If the offense falls under any of the following circumstances, the offender shall be subject to a fine of between VND 100,000,000 and VND 200,000,000 or imprisonment from 01 to 05 years:
a) Organized crime;
b) Professional commission of crime;
c) Appropriating health insurance funds from VND 100,000,000 to under VND 500,000,000;
d) Causing damage from VND 200,000,000 to under VND 500,000,000;
đ) Using sophisticated, deceitful tricks;
e) Dangerous recidivism.
3. If the offense falls under any of the following circumstances, the offender shall be sentenced to imprisonment from 05 to 10 years:
a) Appropriating health insurance funds of VND 500,000,000 or more;
b) Causing damage of VND 500,000,000 or more.
4. The offender may also be subject to an additional fine of between VND 10,000,000 and VND 100,000,000, prohibition from holding certain positions, practicing certain professions, or performing certain jobs for 01 to 05 years.
Article 216. Crime of Evasion of Payment of Social Insurance, Health Insurance, and Unemployment Insurance for Employees
1. Any person who is obliged to pay social insurance, health insurance, and unemployment insurance for employees but fraudulently or by other means fails to pay or fails to fully pay for 06 months or more in any of the following cases, and who has already been administratively sanctioned for such act but continues to commit it, shall be subject to a fine of between VND 50,000,000 and VND 200,000,000, non-custodial reform for up to 01 year, or imprisonment from 03 months to 01 year:
a) Evading payment of insurance contributions from VND 50,000,000 to under VND 300,000,000;
b) Evading payment of insurance contributions for between 10 and under 50 employees.
2. If the offense falls under any of the following circumstances, the offender shall be subject to a fine of between VND 200,000,000 and VND 500,000,000 or imprisonment from 06 months to 03 years:
a) Committing the crime two times or more;
b) Evading payment of insurance contributions from VND 300,000,000 to under VND 1,000,000,000;
c) Evading payment of insurance contributions for between 50 and under 200 employees;
d) Failing to remit amounts of insurance already collected or deducted from employees as prescribed at Point a or Point b Clause 1 of this Article.
3. If the offense falls under any of the following circumstances, the offender shall be subject to a fine of between VND 500,000,000 and VND 1,000,000,000 or imprisonment from 02 to 07 years:
a) Evading payment of insurance contributions of VND 1,000,000,000 or more;
b) Evading payment of insurance contributions for 200 employees or more;
c) Failing to remit amounts of insurance already collected or deducted from employees as prescribed at Point b or Point c Clause 2 of this Article.
4. The offender may also be subject to an additional fine of between VND 20,000,000 and VND 100,000,000, prohibition from holding certain positions, practicing certain professions, or performing certain jobs for 01 to 05 years.
5. Commercial legal entities committing offenses under this Article shall be subject to the following penalties:
a) For the circumstances specified in Clause 1: a fine of between VND 200,000,000 and VND 500,000,000;
b) For the circumstances specified in Clause 2: a fine of between VND 500,000,000 and VND 1,000,000,000;
c) For the circumstances specified in Clause 3: a fine of between VND 1,000,000,000 and VND 3,000,000,000.
This is guided by Resolution No. 05/2019/NQ-HĐTP, which provides instructions on the application of Article 214 regarding the crime of Social Insurance and Unemployment Insurance Fraud, Article 215 regarding the crime of Health Insurance Fraud, and Article 216 regarding the crime of Evasion of Payment of Social Insurance, Health Insurance, and Unemployment Insurance for Employees under the Penal Code.
Article 2. On certain terms used in the application of Articles 214, 215, and 216 of the Penal Code
1. “Preparing false dossiers” as stipulated in Point a Clause 1 Article 214 of the Penal Code means the act of preparing social insurance or unemployment insurance dossiers containing forged documents or papers (for example: documents that are non-existent, not issued by a competent authority, issued in violation of regulations, beyond competence, or beyond the prescribed time limit, etc.) for the purpose of claiming benefits such as: sickness; maternity; occupational accidents and occupational diseases; retirement; survivorship allowance; unemployment allowance; counseling and job introduction support; vocational training support; training and retraining support for skill enhancement to maintain employment for employees; and other benefits as prescribed by law.
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15. Damages caused by acts of Social Insurance, Health Insurance, and Unemployment Insurance Fraud as prescribed in Articles 214 and 215 of the Penal Code do not include the amounts of social insurance, health insurance, and unemployment insurance misappropriated.
Article 3. On certain aggravating circumstances for sentencing
1. “Professional commission of crime” as stipulated in Point b Clause 2 of Articles 214 and 215 of the Penal Code means that the offender commits Social Insurance, Health Insurance, or Unemployment Insurance Fraud five (05) times or more (regardless of whether the offender has been prosecuted for criminal liability, provided the statute of limitations has not expired or the criminal record has not been expunged), and uses the illicit gains obtained from the crime as a source of income.
2. “Using sophisticated or deceitful tricks” as stipulated in Point đ Clause 2 of Articles 214 and 215 of the Penal Code means cases where the offender uses high technology, colludes with persons holding positions or authority in State agencies, or uses other fraudulent methods to destroy evidence, conceal the offense, and cause difficulties in detecting, investigating, and handling the crime.
Article 4. Criminal liability in certain specific cases
1. Where a person repeatedly commits the same type of act prescribed in Articles 214 and 215 of the Penal Code to misappropriate social insurance, health insurance, or unemployment insurance funds, and none of these acts have been administratively sanctioned and the statute of limitations for such sanction or prosecution has not expired, if the total misappropriated amount equals or exceeds the minimum threshold for criminal prosecution under the Penal Code, then that person shall be prosecuted for the corresponding crime based on the aggregate misappropriated amount, provided the acts were committed continuously and consecutively over time.
2. Where a person repeatedly commits the same type of act prescribed in Articles 214 and 215 of the Penal Code causing damage to the social insurance, health insurance, or unemployment insurance funds, and none of these acts have been administratively sanctioned and the statute of limitations for such sanction or prosecution has not expired, if the total damages equal or exceed the minimum threshold for criminal prosecution under the Penal Code, then that person shall be prosecuted for the corresponding crime based on the aggregate damages, provided the acts were committed continuously and consecutively over time.
3. Where the offender both misappropriates social insurance, health insurance, or unemployment insurance funds and causes damage, and both the misappropriated amount and the damage exceed the minimum threshold for criminal prosecution under Articles 214 and 215 of the Penal Code, then:
a) If both the misappropriated amount and the damages fall within the basic penalty bracket, the offender shall be prosecuted under the basic penalty bracket.
Example: Nguyen Van A prepares false social insurance dossiers to misappropriate VND 20,000,000 and causes damages of VND 150,000,000. Nguyen Van A shall be prosecuted for Social Insurance and Unemployment Insurance Fraud under Clause 1 Article 214 of the Penal Code.
b) If the misappropriated amount and the damages fall into different penalty brackets, the offender shall be prosecuted under the higher penalty bracket.
Example: Nguyen Van A prepares false social insurance dossiers to misappropriate VND 20,000,000 and causes damages of VND 250,000,000. Nguyen Van A shall be prosecuted for Social Insurance and Unemployment Insurance Fraud under Point d Clause 2 Article 214 of the Penal Code.
c) If both the misappropriated amount and the damages fall within the same aggravated penalty bracket, the offender shall be prosecuted under both aggravating circumstances.
Example: Nguyen Van B prepares false social insurance dossiers to misappropriate VND 150,000,000 and causes damages of VND 250,000,000. Nguyen Van B shall be prosecuted for Social Insurance and Unemployment Insurance Fraud with the aggravating circumstances specified in Points c and d Clause 2 Article 214 of the Penal Code.
4. Any person who prepares forged social insurance, unemployment insurance, or health insurance dossiers or health insurance cards to misappropriate funds or cause damages shall, apart from being prosecuted for the corresponding crime under Articles 214 or 215 of the Penal Code, also be prosecuted for the crime of “Forgery of seals or documents of agencies or organizations; use of forged seals or documents of agencies or organizations” under Article 341 of the Penal Code if the elements constituting such crime are met.
Article 6. Determination of the procedural status of the Social Insurance Agency
In criminal cases where the accused or defendant is prosecuted for Social Insurance and Unemployment Insurance Fraud under Article 214 of the Penal Code; Health Insurance Fraud under Article 215; or Evasion of Social Insurance, Health Insurance, and Unemployment Insurance Payment for Employees under Article 216, the Social Insurance Agency shall participate in the proceedings as the victim.
Article 7. Implementation
1. When detecting acts showing signs of crimes as prescribed in Articles 214, 215, and 216 of the Penal Code, within the scope of its functions and powers, the Social Insurance Agency shall send a written request for prosecution together with relevant evidence and documents to the competent procedural authorities for consideration and initiation of criminal proceedings under the Criminal Procedure Code.
For trade unions, organizations representing employees, and other agencies, organizations, and individuals that detect acts showing signs of crimes prescribed in Articles 214, 215, and 216 of the Penal Code, such acts must be promptly reported to the competent procedural authorities for consideration and initiation of proceedings under the Criminal Procedure Code.
2. Upon receiving crime reports or written requests for prosecution together with relevant evidence and documents, the competent procedural authorities must examine, accept, and settle them in accordance with the law.
3. The sending of written requests for prosecution and transfer of evidence and relevant documents to the competent procedural authorities shall be carried out in accordance with the Criminal Procedure Code and Joint Circular No. 01/2017/TTLT-BCA-BQP-BTC-BNN&PTNT-VKSNDTC dated December 29, 2017 of the Ministry of Public Security, Ministry of National Defense, Ministry of Finance, Ministry of Agriculture and Rural Development, and the Supreme People’s Procuracy, providing for the coordination among competent agencies in implementing certain provisions of the 2015 Criminal Procedure Code on receiving and handling denunciations, reports of crimes, and requests for prosecution.
