Financial Crime World

Financial Crime Reporting Guidelines in Vietnam Take Effect in 2023

New Law Aims to Strengthen Anti-Money Laundering Efforts in Vietnam

Hanoi, November 15, 2022 - The National Assembly of Vietnam has passed a new law on anti-money laundering (AML), which is set to take effect in 2023. This law aims to strengthen the country’s efforts against financial crimes and prevent the misuse of its financial system.

Stricter Measures for Businesses

Under the new law, businesses operating in Vietnam are required to implement stricter measures to prevent money laundering and terrorist financing. These measures include:

  • Enhanced customer due diligence
  • Ongoing monitoring of transactions
  • Reporting of suspicious activities to the State Bank of Vietnam (SBV)

Expanded Definition of Politically Exposed Persons

The law also expands the definition of politically exposed persons (PEPs) to include foreign individuals with political influence who hold senior positions in international organizations or bodies of foreign countries.

Anti-Money Laundering Procedure Requirements

Reporting entities must develop an anti-money laundering procedure, which includes:

  • Rules for customer classification according to low, average or high risk
  • Measures against PEPs and their related persons

Reporting Requirements

The law sets out specific requirements for reporting:

  • High-value transactions
  • Suspicious transactions
  • Suspicious signs

Reporting entities are required to report such activities within a certain timeframe, ranging from one working day to three working days.

Retention of Information and Documents

The new law also clarifies the types of information and documents that need to be retained for AML purposes, with a retention time limit of five years.

Responsibilities of State Authorities

State authorities, including:

  • State Bank of Vietnam (SBV)
  • Ministry of Public Security
  • Ministry of Defense
  • Other relevant ministries

are responsible for preventing and combating money laundering. The People’s Procuracy, People’s Court, and People’s Committees at all levels also have specific responsibilities under the law.

Enhanced Efforts Against Financial Crimes

The new AML law is expected to enhance Vietnam’s efforts against financial crimes and maintain its position as a reputable player in the global economy.