Vietnam’s Anti-Money Laundering Law Takes Effect

Strengthening Country’s Fight Against Financial Crime

Hanoi, Vietnam - March 1, 2023 marks the effective date of Vietnam’s new Anti-Money Laundering Law (Law No. 14/2022/QH15), replacing the outdated Law No. 07/2012/QH13.

Definition and Obligations

The new law defines “money laundering” as an act of individuals or organizations to legitimize the origin of property obtained from a crime. Reporting entities, including financial institutions and non-financial businesses, are required to implement measures against money laundering and comply with other obligations outlined in the law.

New Regulations

• Collect and update customer identification information
• Conduct money laundering risk assessments
• Classify customers as low, medium, or high risks
• Review a list of politically influential foreign individuals announced by the State Bank of Vietnam and take measures to verify the origin of assets owned by these individuals
• Report large-value transactions and suspicious transactions to the State Bank of Vietnam

Suspicious Transactions

The State Bank of Vietnam has outlined specific signs of suspicious transactions for each business sector. In cases where there are grounds for suspecting money laundering or criminal activities, reporting entities must:

• Delay transactions for up to three working days
• Report to competent agencies

Enhancing Anti-Money Laundering Regime

The new law aims to strengthen Vietnam’s efforts in combating financial crime and protecting its financial system from the risks of money laundering and terrorist financing. The government has also been granted the authority to add specific activities that pose money laundering risks to the list of reporting entities, further enhancing the country’s anti-money laundering regime.

By implementing these measures, Vietnam is taking a significant step towards preventing and combating financial crime, ensuring the stability and integrity of its financial system.