Financial Crime World

Here is the converted article text in markdown format:

Implementation of New Anti-Money Laundering (AML) Law in Vietnam

PwC Vietnam presents a comprehensive overview on the implementation of the new AML Law in Vietnam, highlighting its key aspects and providing practical solutions for firms to consider.

Key Aspects of the New AML Law

1. KYC Information

The new law requires reporting entities to obtain identity information from customers, including:

  • Settlor/Grantor
  • Trustee
  • Beneficiary
  • Other parties concerned

2. Correspondent Banking Relationship

Reporting entities must ensure that respondent banks have performed due diligence on their customers and can provide customer identification information upon request.

3. AML Technology System

The law requires reporting entities to implement an AML technology system that includes:

  • Transaction monitoring
  • Risk assessment
  • Customer due diligence

4. Effective Governance, Culture, Policy, and Procedure

Reporting entities must establish effective governance, culture, policy, and procedure to ensure compliance with the new AML Law.

Practical Solutions for Implementing the New AML Law

  1. Good Governance and Strong Oversight of Outsourced Functions

Establishing good governance and strong oversight of outsourced functions is essential to ensure that outsourced service providers perform services to the required standards.

  1. Effective Quality Assurance Programme

Implementing an effective QA programme that is risk-focused, varying frequency and intensity of monitoring to level of risk identified will help maintain quality and accuracy of investigations.

  1. Effective Investigation Process

Establishing a list of minimum standards when investigating suspicious transaction alerts will help maintain quality and accuracy of investigations.

Conclusion

The implementation of the new AML Law in Vietnam is crucial for preventing money laundering and other financial crimes. By understanding its key aspects and implementing effective measures, firms can ensure compliance with the law and maintain a strong reputation in the market.