Vietnam: 03 criteria for reporting entities to define the beneficial owners

According to Article 5 of Decree No. 116/2013/ND-CP of Vietnam’s Government, the reporting entities must define the beneficial owners according to the following criteria:

1. Individuals owning in reality for an account or a transaction: Account owners, account co-owners or any person who controls operation or enjoyment of such account or transaction;

2. Individuals who have right to control juridical persons: Individuals holding 10% or more of charter capital of such juridical person; individuals holding 20% or more of charter capital of organization which contribute more 10% of capital of such juridical person; owners of private enterprises; other individuals controlling such juridical person in reality;

3. Individuals have right to control an investment entrustment, authorization agreement: The entrustment or authorization individuals; individuals having right to control individuals, juridical persons or entrustment or authorization organizations.

Note: Identifying and verifying information used to identify the beneficial owners will comply with provisions in Article 4 of this Decree. For clients being foreign organizations or organizations with one or many parties, which join in the capital contribution, being foreign individuals or organizations, the reporting entities must additionally verify information used to identify such foreign individuals or organizations by using documents, data issued by the foreign competent agencies.

View more details at Decree No. 116/2013/ND-CP of Vietnam’s Government, effective from October 10, 2013.

Ty Na

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