Financial Crime Awareness Programs in Vietnam: Understanding the Changes Under the Revised Anti-Money Laundering Law
Introduction
Vietnam’s National Assembly has approved revisions to the country’s Anti-Money Laundering (AML) Law, aimed at preventing financial crimes and enhancing transparency in its financial system. The updated law took effect on March 1, 2023, introducing significant changes that businesses need to be aware of to comply with the new regulations.
Key Changes under the Revised AML Law
Expanded Definition of Money Laundering Activities
The revised AML Law expands the definition of money laundering activities, requiring reporting entities to identify and report suspicious transactions. This includes unusual changes in transaction volume, frequent small deposits followed by a large transfer, or customers receiving unusually large deposits.
Additional Reporting Obligations for Digital Wallet Providers
Digital wallet providers are now required to report certain transactions, including those exceeding a specific threshold amount.
New Measures for Client Information Verification
The law introduces new measures for client information verification, requiring businesses to conduct thorough due diligence on their clients and report any suspicious activity.
Fresh Risk Assessment Policy
The revised AML Law implements a fresh risk assessment policy, requiring reporting entities to conduct regular risk assessments and disseminate any updates publicly.
Compliance Requirements for Businesses in Vietnam
To adapt to these changes, businesses in Vietnam are advised to:
- Train employees on anti-money laundering best practices
- Develop internal regulations to prevent and combat money laundering
- Implement reliable anti-money laundering systems
- Identify suspicious transactions and report them within specific timeframes
By understanding the revised AML Law and taking steps to comply with its requirements, businesses can help prevent financial crimes and maintain a transparent and secure financial system.
Importance of Compliance for Foreign Investors
The revisions to Vietnam’s Anti-Money Laundering Law are part of the country’s efforts to align its policies with international standards and bolster foreign investor confidence. As the Vietnamese economy continues to grow and advance, it is crucial that businesses understand their obligations under the new law and take steps to ensure compliance.
Seeking Guidance from Experts
Dezan Shira & Associates is a leading provider of advisory services in Vietnam and across ASEAN. If you need guidance on how to navigate the revised Anti-Money Laundering Law, please contact us at asean@dezshira.com or visit our website at www.dezshira.com.