Financial Crime World

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VIETNAM INTRODUCES NEW ANTI-MONEY LAUNDERING REGULATIONS

Hanoi, Vietnam - The State Bank of Vietnam (SBV) has issued Circular 09/2023/TT-NHNN to guide the implementation of the Anti-Money Laundering Law in the country. The new regulations aim to strengthen the fight against money laundering and terrorist financing in Vietnam’s financial sector.

Key Provisions of the Circular

  • The circular outlines several key criteria that firms should use to assess the money laundering risks associated with a given transaction, including:
    • Business sector and country or territory in which the transaction is taking place
    • Type of customer and products or services being provided
  • Firms are required to develop their own scoring system to evaluate the money-laundering risk associated with each transaction, ranging from one to five. A lower score indicates a reduced likelihood of money laundering risk.

AML Procedures and Reporting Requirements

  • The circular requires firms to establish step-by-step AML risk management procedures that include:
    • Objectives and scope
    • Customer risk ratings
    • Procedures for identifying and responding to suspicious transactions
  • Firms are required to report certain electronic funds transfers to the relevant authorities, including:
    • Financial institution’s business name, address, and account numbers
    • Transaction details

Exemptions and Effective Date

  • The circular does not require reporting of transactions made by debit card, credit card, or prepaid card
  • Most provisions of the circular come into effect from July 28, 2023
  • Regulations on money laundering risk management and reporting obligations will take effect from December 1, 2023

Advice for Foreign Investors

For foreign investors operating in Vietnam, it is essential to understand the new AML regulations and ensure compliance with the requirements outlined in Circular 09/2023/TT-NHNN. Failure to comply may result in penalties and reputational damage.

Dezan Shira & Associates can assist foreign investors in understanding and complying with Vietnam’s AML regulations.

Contact Us

For more information on Vietnam’s AML regulations or to receive a complimentary subscription to our products, please contact us at [insert contact email] or visit our website at [insert website URL]. Dezan Shira & Associates can be reached at [insert contact email] or [insert website URL].