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Vietnam Steps Up Efforts to Combat Money Laundering with New Anti-Money Laundering Law
Hanoi, Vietnam - On March 1, 2023, Vietnam implemented its updated Anti-Money Laundering (AML) Law, aimed at strengthening the country’s financial system and boosting investor confidence.
Key Changes Under the New AML Law
The 2022 AML Law has introduced several key changes to prevent financial crimes such as money laundering and corruption. Some of the notable changes include:
- Expanded Definition of Money Laundering: The law now includes activities aimed at legitimizing the origins of properties obtained directly or indirectly from criminal activities.
- Know-Your-Customer (KYC) Requirements: Organizations that provide payment services, including digital wallet providers, must implement KYC measures. A broader list of reporting entities, including financial leasing companies, stockbrokers, and casino operators, must also comply with KYC requirements.
New Risk Assessment Policy
The AML Law introduces a new risk assessment policy, requiring government agencies and reporting entities to conduct regular assessments of money laundering risks. The State Bank of Vietnam will review these assessments every five years in cooperation with the government.
Client Information Verification
The law has broadened the definition of Politically Exposed Persons (PEPs) to include foreign individuals with political influence and senior positions in organizations in Vietnam or abroad. Reporting entities must take measures to verify the source of wealth of PEPs and monitor their transactions.
Adapting to the Changes
To comply with the new AML Law, businesses in Vietnam should:
- Train employees on anti-money laundering best practices
- Develop internal regulations to prevent money laundering
- Implement reliable anti-money laundering systems, such as software that provides key data intelligence
Conclusion
The updated Anti-Money Laundering Law is a significant step forward for Vietnam’s financial system, aimed at preventing financial crimes and boosting investor confidence. Businesses operating in the country must adapt to the changes by implementing stricter regulations and monitoring their transactions closely.
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