Financial Crime World

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Financial Institutions Must Report Electronic Funds Transfers Under New Anti-Money Laundering Regulations

Hanoi, Vietnam - The State Bank of Vietnam (SBV) has introduced new regulations requiring financial institutions to report electronic funds transfers (EFTs) with a minimum value of 500,000 Vietnamese dongs or 1,000 USD. This move aims to strengthen anti-money laundering (AML) measures in the country.

Reporting Requirements

Circular 09/2023/TT-NHNN, issued by the SBV, mandates that:

  • Initiating institutions provide complete and accurate information, adhering to regulations on cashless payment and foreign exchange.
  • Intermediary institutions and beneficiaries have a mechanism to identify non-compliant transfers and may reject, suspend, or implement post-transaction control measures or report such transfers as suspicious.

Transaction Information

The reported transactions must include the following details:

  • Initiating and beneficiary institutions
  • Individual and corporate customers
  • Transaction information: account numbers, currency, date, and purpose of transaction

Exemptions

Certain customer identification details are not required for:

  • Beneficiaries of outbound transfers from Vietnam or individuals transferring from overseas to Vietnam
  • Transactions involving e-transactions, debit or credit card payments, or pre-paid cards

New Threshold

From December 1, 2023, high-value transactions with a minimum value of 400,000,000 Vietnamese dongs must be reported to the SBV, up from the current threshold of 300,000,000 Vietnamese dongs.

Suspicious Transactions Reporting

Financial institutions are also required to report suspicious transactions. The AML Law 2022 provides guidelines for identifying “suspicious signs” in various sectors, including payment intermediaries and banking.

Implementation Support

Effective implementation of the regulations will require support from state management agencies, such as:

  • Establishment of a centralized KYC data center system
  • Business registration agencies

Sources

  • Circular 09/2023/TT-NHNN
  • AML Law 2022
  • Decision No. 11/2023/QD-TTG