Vietnam’s New Anti-Money Laundering Law Takes Effect, Boosts Enforcement Against Financial Crimes
Hanoi, Vietnam - Vietnam’s new Anti-Money Laundering Law (Law No. 14/2022/QH15) has come into effect, introducing stricter measures to combat financial crimes and enhance cooperation between law enforcement agencies.
Key Features of the New Law
Preventing Misuse of Financial System
The law aims to prevent the misuse of Vietnam’s financial system for illegal activities such as money laundering, terrorist financing, and corruption. It replaces Anti-Money Launderling Law No. 07/2012/QH13, which was in force since July 1, 2013.
Reporting Entities Obligations
- Financial institutions, payment intermediary service providers, and organizations engaged in non-financial businesses must implement measures against money laundering.
- These entities must:
- Collect and update customer identification information
- Verify customer identity through national databases or other organizations
- Conduct a money laundering risk assessment and classify customers as low, medium, or high risks
- Apply risk-management measures in accordance with the customers’ risk levels
Enhanced Cooperation between Law Enforcement Agencies
- The law aims to enhance cooperation between law enforcement agencies, including the police, customs, and tax authorities, in identifying and investigating financial crimes.
- It provides for the establishment of a national anti-money laundering committee to oversee the implementation of the law and coordinate efforts among relevant agencies.
Benefits of the New Law
Boosts Cooperation with Other Countries
Vietnam’s move to strengthen its anti-money laundering regime comes as part of international efforts to combat financial crimes. The new law is expected to boost Vietnam’s cooperation with other countries in this regard, while also enhancing public trust in the country’s financial system.
Expected Outcomes
The new law is expected to:
- Strengthen enforcement against financial crimes
- Enhance public trust in Vietnam’s financial system
- Boost cooperation between law enforcement agencies
- Prevent the misuse of financial systems for illegal activities