Financial Crime World

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Vietnam’s New AML Law: What You Need to Know to Stay Compliant

Strengthening Efforts Against Money Laundering and Terrorist Financing

The Vietnamese government has introduced a new Anti-Money Laundering (AML) law to strengthen its efforts against money laundering and terrorist financing. To help businesses navigate the new requirements, PwC has prepared a comprehensive guide outlining the key changes and what companies need to do to stay compliant.

The new law requires businesses to maintain transparency in legal arrangements, including:

  • Partnerships
  • Trusts
  • Other structures that may be used for money laundering or terrorist financing

This means that companies must ensure that all parties involved in these arrangements are properly identified and verified.

Suspicious Transaction Reporting

The law also introduces stricter requirements for reporting suspicious transactions. Companies must now report any transactions that they suspect may be related to money laundering or terrorist financing, regardless of the amount involved.

Good Governance and Strong Oversight

To ensure compliance with the new law, companies must implement:

  • Effective risk management systems
  • Regular training and awareness programs for employees
  • Strong oversight procedures

This includes establishing effective governance and oversight procedures, conducting regular reviews and assessments to identify any weaknesses or gaps in their AML systems.

Effective Quality Assurance Programmes

The law emphasizes the importance of effective quality assurance programmes to ensure that companies are properly monitoring and reporting suspicious transactions. Companies must establish a robust QA programme that includes:

  • Regular reviews and assessments
  • Identification of weaknesses or gaps in AML systems

Practical Solutions for Firms

PwC has identified several practical solutions that firms can implement to comply with the new law, including:

  • Establishing effective governance and oversight procedures
  • Implementing risk-based approaches to transaction monitoring
  • Conducting regular training and awareness programs for employees
  • Establishing a robust QA programme

Conclusion

The Vietnamese government’s new AML law is designed to strengthen the country’s efforts against money laundering and terrorist financing. To stay compliant, companies must ensure that they have effective governance and oversight procedures in place, as well as robust quality assurance programmes.

By implementing these measures, firms can reduce their risk of non-compliance and maintain a strong reputation.

About PwC

PricewaterhouseCoopers (PwC) is a leading professional services firm providing audit, tax, and advisory services to businesses around the world. Our team of experts has extensive experience in AML compliance and can help companies navigate the new law and ensure that they are fully compliant with all requirements.

Contact: Mr. Hiran Cabraal Director, Financial Crime Risk Consulting Service PricewaterhouseCoopers Consulting (Vietnam) Ltd Email: cabral.hiran@pwc.com

Ms. Dinh Hong Hanh Partner, Financial Services Leader PricewaterhouseCoopers Consulting (Vietnam) Ltd Email: dinh.hong.hanh@pwc.com