Vietnam Introduces Stricter Money Laundering Regulations
Strengthened Anti-Money Laundering Regime in Vietnam
Hanoi, March 3, 2023 - The National Assembly of Vietnam has passed a new law aimed at strengthening regulations to prevent money laundering in business activities. The Law on Anti-Money Laundering No. 14/2022/QH15 (2022 Law) came into effect from March 1, 2023, replacing the previous Law on Anti-Money Laundering No. 07/2012/QH13.
Broader Definition of Money Laundering
The new law introduces a broader definition of money laundering, capturing all acts of legitimizing the origin of properties acquired directly or indirectly from criminal acts and income, yields, profits, or gains generated from assets derived from criminal acts.
Expanded List of Reporting Subjects
The list of reporting subjects has been expanded to include financial institutions performing payment intermediary services, as well as new reporting subjects such as:
- Reporting Subjects:
- Receiving saving deposits activities;
- Lending activities;
- Financial leasing activities;
- Payment services;
- Payment intermediary services;
- Issuing transfer instruments, bank cards, and money transfer orders activities;
- Bank guarantees and financial commitments activities;
- Foreign exchange services and activities relating to the provision of monetary instruments on the money market;
- Securities brokerage activities, securities investment consultancy and securities underwriting services;
- Management of securities investment funds and securities portfolio management services;
- Life insurance business activities;
- Currency exchange activities;
- Trading in prize-winning games activities;
- Real estate business activities (except for real estate leasing and sub-leasing activities and real estate consulting services);
- Trading in precious metals and precious stones activities;
- Accounting services, notary services, legal services by lawyers and law practice organisations;
- Services for the establishment, management, and administration of enterprises, provision of directors and company secretarial services to third parties, and entrusting services; and
- Other activities as prescribed by the Government from time to time.
Implementation of Know-Your-Customer Measures
Reporting subjects are required to implement Know-Your-Customer measures more thoroughly to identify suspicious transactions. The law provides guidance on identifying signs of suspicious transactions for each type of business field and corresponding business type of the reporting subject.
Transaction Value Thresholds
The law does not stipulate transaction value thresholds that will be subject to reporting obligations, with further guidance expected from the Prime Minister.
Strengthening Vietnam’s Anti-Money Laundering Regime
The new regulations aim to strengthen Vietnam’s anti-money laundering regime, aligning it with international best practices to ensure the security and safety of the national finance system and currency.