Financial Crime World

Vietnam’s Anti-Money Laundering Efforts Intensify Amid Economic Growth

Hanoi, Vietnam - As Vietnam continues to integrate into regional and global economies, the country has become a hotspot for international money laundering activities. To combat this growing threat, the State Bank of Vietnam (SBV) and other relevant authorities have made anti-money laundering (AML) a top priority.

New AML Law Takes Effect

Update on Anti-Money Laundering Legislation

Since March 1, 2023, Vietnam has implemented the Anti-Money Laundering Law of 2022, which updates the 2012 law. The new legislation brings significant changes to establish a more stringent AML framework, including:

  • Broadened definition of money laundering activities: Expanding the scope of what constitutes money laundering
  • Additional reporting requirements for digital wallet providers: Enhancing transparency and oversight in the digital payments sector
  • New procedures for verifying client information: Strengthening Know Your Customer (KYC) requirements

AML Regulations in Vietnam

Overview of Existing Legislation

Effective January 1, 2018, the revised Penal Code introduced changes to money laundering crimes and extended criminal liability to legal entities involved in money laundering. Vietnam has established legislative standards for:

  • Know Your Customer (KYC): Ensuring accurate customer information is collected and verified
  • Suspicious Transaction Reports (STR): Reporting unusual transactions to prevent money laundering

Areas for Improvement

While Vietnam aligns with international standards, there is room for improvement in financial oversight for AML activities.

Roles of AML Regulators

Key Authorities Involved in Anti-Money Laundering Efforts

The SBV has a general responsibility for AML regulation and state management. Other authorities involved include:

  • Ministry of Finance: Contributing to AML policy-making and implementation
  • Ministry of Public Security: Assisting with law enforcement and investigation
  • Ministry of Construction: Ensuring compliance in the construction sector
  • Ministry of Justice: Providing legal guidance on AML matters
  • People’s Procuracy and People’s Court: Upholding the rule of law and enforcing AML regulations

FATF Status of Vietnam

Partnership with International Organizations

Vietnam is not a member of the Financial Action Task Force (FATF) but is part of the Asia/Pacific Group on Money Laundering (APG). In the most recent Mutual Evaluation Report completed in 2022, Vietnam’s implementation of anti-money laundering and counter-terrorist financing measures yielded mixed results.

AML Solutions for Vietnam

Partner with a Reliable AML Compliance Solution

To address AML requirements in Vietnam, businesses can turn to Sanction Scanner, a reliable partner that offers highly efficient anti-money laundering solutions. Our platform simplifies AML compliance procedures, enabling you to fulfill your AML obligations within Vietnam’s regulatory framework effortlessly.