Financial Crime World

Here is the rewritten article in markdown format:

Vietnam Cracks Down on Money Laundering with Stricter Regulations

Strengthened Anti-Money Laundering Regime

Hanoi, March 3, 2023 - Vietnam has implemented the Law on Anti-Money Laundering No. 14/2022/QH15, effective from March 1, 2023, to strengthen its anti-money laundering (AML) regime.

Broader Definition of Money Laundering

The new law replaces the previous Law on Anti-Money Laundering No. 07/2012/QH13 and aims to prevent money laundering in business activities by introducing a broader definition of money laundering. According to the 2022 Law, money laundering is defined as any act that legitimizes the origin of properties acquired directly or indirectly from criminal acts, including income, yields, profits, or gains generated from assets derived from such acts.

Expanded Reporting Subjects

The law also expands the list of reporting subjects that must implement Know-Your-Customer (KYC) measures to verify their customers’ identity and report large value transactions and suspicious transactions to the Anti-Money Laundering Department of the State Bank of Vietnam. The new reporting subjects include:

  • Financial institutions performing payment intermediary services
  • Securities brokerage
  • Management of securities investment funds
  • Securities portfolio management

Reporting Subjects

Under the 2022 Law, the following organizations or individuals are considered reporting subjects:

  • Those engaged in receiving saving deposits activities
  • Lending activities
  • Financial leasing activities
  • Payment services
  • Other activities deemed to be high-risk by the government

Thorough KYC Measures

The law updates guidance on identifying transactions subject to reporting. Reporting subjects must now implement KYC measures more thoroughly to identify suspicious transactions, rather than relying on detailed signs of suspicious activity.

Implementation and Goals

The implementation of the 2022 Law is part of Vietnam’s efforts to align its AML regulations with international best practices and to ensure the security and safety of the national finance system and currency. The law aims to:

  • Prevent money laundering and terrorist financing in Vietnam
  • Strengthen the country’s reputation as a stable and secure financial hub in the region