Financial Crime World

New Anti-Money Laundering Law in Vietnam: Expanding the Fight against Financial Crimes

Vietnam’s National Assembly approved and implemented the updated Anti-Money Laundering (AML) Law on March 1, 2023. This significant step aims to strengthen Vietnam’s financial system and combat financial crimes.

Key Features of the New AML Law

Broadening the Definition of Money Laundering

  • Makes it an offense for individuals or organizations to conceal or legitimize the origins of properties derived from criminal activities.

Stricter Regulations for Digital Wallets

  • Requires providers of payment services, including digital wallet services, to implement Know-Your-Customer (KYC) measures.

Sweeping Changes for Reporting Entities

  • Financial leasing activities, payment services, stockbrokers, securities investment consulting, and more are now reporting entities.
  • These entities must comply with new KYC measures to identify customers accurately.

Key Information Required

Entities must identify:

  • A customer’s Vietnamese citizenship
  • If they are foreigners with single or multiple citizenships
  • ‘Stateless individuals’
  • If the customer is an organization

New Policy: Risk Assessment

  • Reporting entities must assess their risks every five years.
  • They must disclose updates publicly.

Policymakers Focus on Politically Exposed Persons (PEPs) and Source of Wealth Verification

  • Broadened definition of PEPs includes foreigners with political influence and senior positions in organizations.
  • Reporting entities are responsible for verifying the source of wealth of PEP customers and monitoring suspicious transactions.

Relaxed Regulations for Micro-Enterprises and Individuals

  • New AML Law relaxes requirements for micro-enterprises and individuals.
  • Adoption of specific practices, such as a Customer Acceptance Policy (CAP), internal training, and promoting awareness.

Reporting Timeframes and Indicators of Suspicious Transactions

  • Reporting entities must report all suspicious transactions within one to three days.
  • Indicators include sudden changes in volume, frequent small transactions, and large unusual deposits.

Adapting to the New AML Law

  • Businesses must provide proper training for employees on AML best practices.
  • Implement a reliable anti-money laundering software and establish a risk assessment framework.

Contact Us

For further information on navigating the complex legal landscape of Vietnam and other Asian markets, please contact ASEAN Briefing by Dezan Shira & Associates: