Financial Crime World

Here is the rewritten article in markdown format:

Vietnam’s Banking Sector Embraces eKYC Guidelines

Hanoi, Vietnam - In a major shift towards digital banking, Vietnam’s State Bank of Vietnam (SBV) has officially implemented electronic Know Your Customer (eKYC) guidelines for credit institutions to open remote accounts for customers. As of March 15, 2021, eKYC has become the new norm in Vietnam’s banking sector.

What is eKYC?

eKYC is an online customer identification method that enables banks and financial institutions to verify customer identities electronically. This technology has been touted as a game-changer for digital banking, allowing customers to open accounts remotely and conduct transactions seamlessly.

SBV’s Efforts to Promote Digital Banking

The SBV has been working towards increasing automation in the banking sector since 2018. The goal is to automate at least 20% of processes by 2020 and increase this ratio to 35% by 2025. To achieve this, eKYC technology must be implemented in most credit institutions.

Risk Assessment Conditions and Transaction Limits

According to Circular 16/2020/TT-NHNN, banks and foreign bank branches must assess risks based on technological conditions and determine the scope of use for payment accounts opened electronically. The total transaction value limit per month is capped at VND 100 million (approximately USD 4,300) per customer. In special cases, banks may apply higher limits but must implement additional risk prevention measures.

Benefits of eKYC

The implementation of eKYC has seen significant results for the banking sector. The number of new customers and transactions via electronic channels such as mobile banking and internet banking have increased substantially. According to recent data:

  • Payment transactions via mobile banking rose by nearly 124% in volume and 126% in value compared to 2019.
  • Internet-based transactions saw a 9% increase in volume and 26% increase in value.

Challenges in Implementing eKYC

Experts and bankers alike have emphasized that implementing eKYC is not easy and requires significant investments in technology infrastructure, information, teamwork, and expertise. To deploy eKYC, banks must build big data systems that can share and connect with other banks, ministries, and agencies to ensure accurate customer identification.

With the official implementation of eKYC guidelines, Vietnam’s banking sector is poised for further growth and development in the digital age. As the country continues to push towards a cashless society, eKYC technology will play a crucial role in ensuring the safety and security of financial transactions.