Transactions of 400 million VND or more must be reported to the State Bank of Vietnam? Who is responsible for reporting?
Transactions of 400 million VND or more must be reported to the State Bank of Vietnam?
Pursuant to Article 25 of the 2022 Law on Anti-Money Laundering in Vietnam stipulating as follows:
Reporting of Should-be-reporting Large Transactions
1. Reporting entities shall be responsible for reporting to the State Bank of Vietnam when conducting should-be-reported large transactions.
2. The Prime Minister shall decide the range of values of which transactions are classified as should-be-reported large transactions, depending on the socio-economic condition existing over time.
3. The Governor of the State bank of Vietnam shall enact regulations on regimes for reporting of should-be-reported large transactions.
Thus, the reporting entities shall be responsible for reporting to the State Bank of Vietnam when conducting should-be-reported large transactions.
Regarding the determination of large transactions, the Law assigns the Prime Minister to decide the range of values of which transactions are subject to mandatory reporting in accordance with socio-economic conditions in each period.
Specifically, on April 27, 2023, the Government issued Decision No. 11/2023/QD-TTg stipulating a range of values of which transactions are subject to mandatory reporting.
According to that, in Article 3 of Decision No. 11/2023/QD-TTg, large transactions must be reported as follows:
Range of values of which transactions are subject to mandatory reporting
Transactions valued from 400.000.000 VND (four hundred million) or higher are considered high-value transactions subject to mandatory reporting.
Thus, from December 1, 2023, transactions valued from 400.000.000 VND or higher must be reported to the State Bank of Vietnam.
Transactions of 400 million VND or more must be reported to the State Bank of Vietnam? Who is responsible for reporting?
Who is responsible for reporting transactions valued at more than 400 million VND?
Pursuant to Article 2 of Decision No. 11/2023/QD-TTg stipulating the reporting entities as follows:
Regulated entities
Regulated entities are financial institutions and relevant non-financial businesses and professions according to Clause 1 and Clause 4 Article 4 of the Law on Anti-Money Laundering.
Thus, the entities responsible for reporting transactions valued at more than 400 million VND include:
(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; services of acting as (or arranging for another person to act as) a director or secretary of a company to third parties; legal arrangement services.
When is the time to report large transactions to the State Bank of Vietnam?
Pursuant to Article 37 of the 2022 Law on Anti-Money Laundering in Vietnam stipulating as follows:
Reporting deadlines or time limits
1. Reporting entities shall report the should-be-reported large transactions specified in Article 25 and the wire transfer transaction specified in Article 34 herein within 01 working day following the date on which each transaction occurs with respect to electronic reports; within 02 working days following the date on which each transaction occurs with respect to physical reports.
2. Reporting entities shall report the suspicious transactions specified in Article 26 herein within 03 working days following the date on which each transaction occurs, or within 01 working day following the date on which the reporting entity detects the suspicious transaction.
3. Where it is discovered that a suspicious transaction requested by a customer is associated with a criminal act, the reporting entity shall be required to report it to the competent state authority and the State Bank of Vietnam within 24 hours following the date of such discovery.
Thus, the reporting entities shall report the should-be-reported large transactions within 01 working day following the date on which each transaction occurs with respect to electronic reports;
Within 02 working days following the date on which each transaction occurs with respect to physical reports.
Decision No. 11/2023/QD-TTg takes effect from December 1, 2023.
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