What are 08 signs of suspicious activity in securities sector related to money laundering in Vietnam?
Which entities must report on anti-money laundering in Vietnam?
Pursuant to Clauses 1, 2, Article 4 of the 2022 Law on Anti-Money Laundering in Vietnam, the entities must report on anti-money laundering as follows:
(1) Reporting entities are financial institutions licensed to conduct one or more of the following activities or operations:
- Acceptance of deposits;
- Lending;
- Financial leasing;
- Payment services;
- Payment intermediary services;
- Issuing negotiable instruments/transferable securities, bank cards, fund/money transfer/wire transfer orders;
- Bank guarantees and financial commitments;
- Providing foreign exchange services, money market instruments;
- Securities brokerage; advice to security investment, provision of security for securities issues;
- Investment fund and portfolio management;
- Life insurance business;
- Money and currency changing.
(2) Reporting entities are relevant non-financial businesses and professions subject to law that conduct one or more of the following activities or operations:
- Prize-awarding games, including electronic games; telecommunications network-based games, Internet-based games; casinos; lottery tickets; betting;
- Real estate business, except leasing or subleasing of real property and real estate consulting;
- Dealing in precious metals, jewels;
- Supply of accounting services; provision of notarial services; provision of legal services rendered by lawyers, legal professional organizations;
- Providing business formation, management and administration services; providing services of acting as (or arranging for another person to act as) a director or secretary of a company to third parties;
What are 08 signs of suspicious activity in securities sector related to money laundering in Vietnam?
What are 08 signs of suspicious activity in securities sector related to money laundering in Vietnam?
Pursuant to Article 31 of the 2022 Law on Anti-Money Laundering in Vietnam, signs of suspicious activity in securities sector related to money laundering include:
(1) Suspicious transactions involving unusual purchase and sale of securities that occur within one or several days are performed by an entity or person.
(2) A securities company conducts money transfers unfit for securities business activities.
(3) A nonresident transfers a large amount of money from a securities trading account or discharges an investment entrustment agreement to move funds out of Vietnam.
(4) A customer regularly sells all stocks on the portfolio and requests a securities company to sign a payment order to enable its/his/her cash withdrawals from a commercial bank.
(5) A customer makes unusual investments in various types of securities that are not favorable in a short while.
(6) A customer's securities trading account unexpectedly is credited with a large amount of money unfit for the customer’s financial capability.
(7) A transaction involving the purchase or sale of securities is funded by an investment fund set up in a country or territory at high risk of money laundering.
(8) A foreign investor residing in a country or territory (or jurisdiction) at high risk of money laundering contributes capital to set up an investment fund or investment company in Vietnam.
What are the measures for assurance of security and safety of the securities market in Vietnam?
Pursuant to Article 7 of the 2019 Law on Securities in Vietnam, the measures for assurance of security and safety of the securities market in Vietnam include:
- Supervision of security and safety of the securities market;
- Response to and recovery from events that adversely affect the safety, stability and integrity of the securities market;
- Suspension of certain listed or registered securities from trading on the system;
- Suspension of some or all transactions of Vietnam Stock Exchange and its subsidiaries;
- Partial or full suspension or restoration of securities registration, depositing, offsetting, payment functions of Vietnam Securities Depository and Clearing Corporation;
- Temporarily or permanently prohibition from holding certain positions in securities companies, fund management companies, branches of foreign securities companies, investment companies; prohibition from securities activities due to commission of securities offences;
- Freezing the securities account; requesting a competent person to freeze a deposit account involved in a securities fraud.
Thus, the competent authority will apply the above measures to ensure security and safety of the securities market.
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