Financial Crime World

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Vietnam Takes Tough Stance Against Financial Crimes

As Vietnam continues its rapid economic growth and integration into regional and global economies, the country has become a prime target for money laundering activities. To combat this menace, the State Bank of Vietnam (SBV) and other relevant authorities have ramped up efforts to strengthen anti-money laundering (AML) measures.

New AML Law Brings Stricter Regulations

Since March 1, 2023, Vietnam has implemented the Anti-Money Laundering (AML) Law of 2022, which amends the 2012 law. The updated legislation introduces a more stringent AML framework, requiring businesses to comply with new reporting requirements, verify client information, and implement risk assessment policies.

Key Changes

  • New reporting requirements for businesses
  • Verification of client information
  • Implementation of risk assessment policies

Government Aligns Policies with Global Standards

Vietnam’s government is taking steps to align its policies, including the new AML Law, with global standards. This move aims not only to protect the integrity of the country’s financial system but also to enhance confidence among foreign investors.

Benefits of Alignment

  • Protecting the integrity of the financial system
  • Enhancing confidence among foreign investors

AML Laws and Regulations in Vietnam

Since 2018, Vietnam has introduced changes to money laundering crimes, extending criminal liability to legal entities involved in money laundering. The country has established legislative standards for Know Your Customer (KYC) and Suspicious Transaction Reports (STR). However, customer due diligence and KYC processes within domestic banks require enhancement and rigorous enforcement.

Key Regulations

  • Criminal liability for legal entities involved in money laundering
  • KYC and STR legislative standards
  • Enhancing customer due diligence and KYC processes

Roles of AML Regulators

The SBV is responsible for AML regulation and state management, overseeing AML activities in reporting organizations. The Ministry of Finance (MOF) oversees AML operations in the insurance and securities industries. Other authorities involved in anti-money laundering efforts include:

AML Regulators

  • State Bank of Vietnam (SBV)
  • Ministry of Finance (MOF)
  • Ministry of Public Security
  • Ministry of Construction
  • Ministry of Justice
  • People’s Procuracy
  • People’s Court

FATF Status

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 its most recent Mutual Evaluation Report, Vietnam was found to be Compliant with 2 FATF Recommendations and Largely Compliant with 11 recommendations.

Compliance Status

  • Compliant with 2 FATF Recommendations
  • Largely Compliant with 11 recommendations

AML Solutions for Vietnam

In the dynamic financial landscape of Vietnam, Sanction Scanner stands as a reliable partner, offering highly efficient anti-money laundering solutions. Our advanced technologies empower businesses operating in Vietnam to address their AML requirements seamlessly, simplifying compliance procedures and enabling full compliance with Vietnam’s regulatory framework.

Benefits of AML Solutions

  • Highly efficient anti-money laundering solutions
  • Simplified compliance procedures
  • Full compliance with Vietnam’s regulatory framework