Vietnam’s State Bank Issues New Guidelines for Know Your Customer (KYC) Procedures
The State Bank of Vietnam has issued Circular No. 16/2020/TTNHNN, amending Circular No. 23/2014/TT-NHNN on opening and using payment accounts at institutions providing payment services. The new guidelines aim to clarify and supplement regulations on dossiers, procedures, and agreements for opening and using payment accounts.
Key Changes
- Introduction of electronic know your customer (eKYC) procedures
- Require financial institutions to verify customers’ identities electronically to comply with anti-money laundering (AML) legislation
- Allow individuals to open payment accounts online, but certain restrictions apply:
- Shared payment accounts
- Foreign individual customers
- Those under 15 years of age
Implementation Requirements
- Banks and foreign banks’ branches must develop their own procedures for implementing eKYC, which must include steps such as:
- Collecting information
- Examining and verifying KYC information
- Warning customers about prohibited acts
- Providing customers with the content of and signing payment account agreements
- Informing customers about their payment account codes and transaction limits
Flexibility and Risk Management
- Banks have the right to decide on the method, form, and technology for eKYC, but must ensure that minimum conditions are met, including:
- Having solutions and technologies to collect and verify KYC information
- Verifying customer consent
- Developing risk management procedures
- Storing and preserving eKYC information
Transaction Value Limit
- A transaction value limit of VND100 million per month per customer is set for payment accounts opened via e-method, although this can be increased for verified accounts.
Other Notable Provisions
- Interest rates applicable to payment account balances
- Dossiers and request forms for opening payment accounts
- Consumer rights protection
Effective Date
- The new guidelines come into effect on March 5, 2021.