Vietnam Strengthens Anti-Money Laundering Regime with New Law
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Hanoi, March 3 - Vietnam’s anti-money laundering (AML) regime has been strengthened with the coming into effect of the Law on Anti-Money Laundering No. 14/2022/QH15 (“2022 Law”), which replaces the previous Law on Anti-Money Laundering No. 07/2012/QH13.
Objectives
The new law aims to tighten regulations and prevent money laundering risks in business activities, particularly with the rapid development of Vietnam’s economy and financial market. The amendments are designed to align with international best practices and ensure the security and safety of the national finance system and currency.
Key Highlights of the 2022 Law
Definition of Money Laundering
The 2022 Law broadens the definition of money laundering to capture all acts of legitimising the origin of properties acquired from criminal activities, including income, yields, profits, or gains generated from such assets.
Reporting Subjects
The law expands the list of reporting subjects required to implement Know-Your-Customer (KYC) measures and report large value transactions and suspicious transactions to the Anti-Money Laundering Department of the State Bank of Vietnam. These organizations include:
- Financial institutions performing payment intermediary services
- Securities brokerage
- Management of securities investment funds
- Securities portfolio management
These reporting subjects must verify their customers’ identity and report large value transactions and suspicious transactions to the authorities.
Guidance on Identifying Transactions Subject to Reporting
Under the 2022 Law, reporting subjects are required to identify and report suspicious transactions and large value transactions to the Anti-Money Laundering Department. The law takes a more general approach to identifying suspicious transactions, requiring reporting subjects to implement KYC measures more thoroughly.
Transaction Value Thresholds
The law does not specify transaction value thresholds for reporting obligations, leaving it to the Prime Minister to provide further guidance on this matter.
This new law aims to strengthen Vietnam’s AML regime and ensure the security and safety of the national finance system and currency.