Financial Crime World

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Vietnam’s Anti-Money Laundering Regime Toughens Up with New Law

The Vietnamese government has strengthened its anti-money laundering (AML) regulations with the passage of the Law on Anti-Money Laundering No. 14/2022/QH15, which came into effect on March 1st.

Aims and Objectives

The new law aims to implement a stricter regime and supplement new policies to prevent the risk of money laundering in business activities, reflecting the rapid development of Vietnam’s economy and financial market. The government is also seeking to align its AML regulations with international best practices to ensure the security and safety of its national finance system and currency.

Key Highlights of the New Law

The 2022 Law broadens the definition of money laundering to capture all acts of legitimizing the origin of properties acquired from criminal activities, including income, yields, profits, or gains generated from such assets. The law also introduces a longer list of reporting subjects that must 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.

  • Financial institutions providing payment intermediary services, securities brokerage, management of securities investment funds, and securities portfolio management are now included as reporting subjects.
  • These organizations must verify their customers’ identity and report large value transactions and suspicious transactions to the authorities.
  • The law requires reporting subjects to implement KYC measures more thoroughly to identify suspicious transactions, rather than relying on specific signs of suspicious activity.

Impact and Expectations

The new AML regulations are expected to improve Vietnam’s ability to combat money laundering and terrorist financing. The stricter regime is likely to increase transparency and accountability among financial institutions and other organizations subject to reporting requirements.

As Vietnam continues to develop its economy and financial market, the government will need to remain vigilant in implementing effective AML regulations to prevent the risk of money laundering and maintain the integrity of its financial system.