Financial Crime World

Vietnam Tightens Grip on Financial Crimes Amid Money Laundering Risks

As Vietnam’s economy continues to grow at a rapid pace, the country has become an attractive destination for international money laundering activities. In response, the government is bolstering its anti-money laundering (AML) laws and regulations to combat these illicit operations.

Vietnam’s AML Laws and Regulations: Key Changes

The AML Law 2022 came into effect on March 1, 2023, introducing significant changes to the AML framework. These key amendments include:

  • Broadening the definition of money laundering activities: The new law expands the scope of money laundering activities, making it easier to identify and prosecute related crimes.
  • Imposing additional reporting requirements on digital wallet providers: Digital wallet providers are now required to report suspicious transactions and maintain accurate customer information.
  • Introducing new procedures for verifying client information: Businesses must verify client information using advanced technologies and risk-based approaches.
  • Implementing a fresh risk assessment policy: The government has introduced a risk-based approach to assess the likelihood of money laundering activities in different sectors.

Vietnam’s AML Regulators: Who’s In Charge?

The State Bank of Vietnam (SBV) has primary responsibility for AML regulation and state management. It monitors and inspects AML activities in reporting organizations within the currency, banking, and foreign exchange sectors. The Ministry of Finance (MOF) oversees AML operations in the insurance and securities industries.

Other Authorities Involved in Anti-Money Laundering Efforts

  • The Ministry of Public Security: Responsible for gathering and investigating money laundering-related information.
  • The Ministry of Construction: Implementing AML measures in the real estate sector.
  • The Ministry of Justice: Responsible for AML measures related to attorneys, legal practice groups, notaries, and notary public offices.
  • The People’s Procuracy and the People’s Court: Collaborating with other authorities to investigate, prosecute, and adjudicate money laundering offenses.

Vietnam’s FATF Status: What Does It Mean?

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 the following results:

  • Compliant with 2 of the FATF 40 Recommendations
  • Largely Compliant with 11 of the FATF 40 Recommendations
  • Highly Effective for 0 aspects
  • Substantially Effective with 2 of the Effectiveness & Technical Compliance ratings

Vietnam’s AML Solutions: Partnering with Sanction Scanner

In the dynamic financial landscape of Vietnam, where stringent regulations govern every transaction, Sanction Scanner stands as a reliable partner. We utilize advanced technologies to offer highly efficient anti-money laundering solutions, empowering businesses operating in Vietnam to address their AML requirements seamlessly. Our platform simplifies AML compliance procedures, enabling you to fulfill your AML obligations within Vietnam’s regulatory framework effortlessly.