Vietnam Strengthens Anti-Money Laundering Regulations
As Vietnam continues to integrate into regional and global economies, the country has become increasingly vulnerable to international money laundering activities. In response, the State Bank of Vietnam (SBV) and other relevant authorities have prioritized combatting financial crimes.
New AML Law Enacted in 2023
On March 1, 2023, Vietnam implemented the Anti-Money Laundering (AML) Law of 2022, which amends the 2012 law. The updated legislation introduces significant changes to establish a more stringent AML framework.
- Broadening the definition of money laundering activities: The new law expands the scope of money laundering activities to include additional forms of illicit transactions.
- Imposing additional reporting requirements on digital wallet providers: Digital wallet providers are now required to report suspicious transactions and maintain customer information records.
- Introducing new procedures for verifying client information: Businesses must implement enhanced know-your-customer (KYC) procedures to verify the identity of clients.
- Implementing a fresh risk assessment policy: Financial institutions must conduct regular risk assessments to identify potential money laundering risks.
Vietnam’s Commitment to Global Standards
In light of Vietnam’s ongoing economic growth and development, the government is aligning its policies with global standards. The new AML Law aims to protect the integrity of Vietnam’s financial system and enhance confidence among foreign investors.
Legislative Framework for AML in Vietnam
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) and Suspicious Transaction Reports (STR). The SBV has also introduced standardized STR forms.
Regulators Play Key Role in Combating Financial Crimes
The SBV is responsible for AML regulation and state management, while the Ministry of Finance oversees AML operations in the insurance and securities industries. Other authorities involved in anti-money laundering efforts include:
- The Ministry of Public Security: 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.
- People’s Committees at all levels: Providing legal training on anti-money laundering and working with state agencies to formulate policies and strategies to prevent and combat money laundering.
Vietnam’s FATF Status
Vietnam is part of the Asia/Pacific Group on Money Laundering (APG), a regional body similar to the Financial Action Task Force (FATF). In its most recent Mutual Evaluation Report, 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 Seeks to Enhance AML Solutions
In the dynamic financial landscape of Vietnam, Sanction Scanner stands as a reliable partner. We utilize advanced technologies to offer highly efficient anti-money laundering solutions. These innovative tools empower 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.
You can explore our website to initiate contact or request a demo and embark on a journey to success while ensuring full compliance with Vietnam’s financial regulations.