Vietnam: What are the regulations on ensuring transparency for information of juridical persons and legal agreements in anti-money laundering?
- What are the regulations on ensuring transparency for information of juridical persons in anti-money laundering in Vietnam?
- What are the regulations on ensuring transparency for information under legal agreements in anti-money laundering in Vietnam?
- Does a non-profit organization have to ensure transparency in its operations for anti-money laundering in Vietnam?
What are the regulations on ensuring transparency for information of juridical persons in anti-money laundering in Vietnam?
Pursuant to Article 21 of the Law on Anti-Money Laundering 2022, in anti-money laundering, information of juridical persons must be made transparent as follows:
- Business registration agencies, agencies licensing for establishment and operation of juridical persons must update and store basic information of juridical persons including names and types of juridical persons, establishment decisions, operation licenses, legal status, head office address, organizational structure; list of managers of juridical persons, charters; beneficial owners of juridical persons (if any).
- The above information must be stored for at least 05 years after the date the juridical person terminates its operation in accordance with the provisions of law.
- Juridical persons are responsible for collecting, updating and storing their basic information including names and types of juridical persons, establishment decisions, operation licenses, legal status, head office address, organizational structure; list of managers of juridical persons, charters; beneficial owners of juridical persons.
- The State Bank of Vietnam and competent state agencies in the course of performing their functions and tasks of state management of anti-money laundering, investigation, prosecution and trial have the right to request agencies and juridical persons to provide information specified in Clause 1, Article 21 of the Law on Anti-Money Laundering 2022 and Clause 2, Article 21 of the Law on Anti-Money Laundering 2022.
What are the regulations on ensuring transparency for information under legal agreements in anti-money laundering in Vietnam?
Pursuant to Article 22 of the Law on Anti-Money Laundering 2022, in anti-money laundering, the information under legal agreements must be made transparent as follows:
- The trustee in the legal agreement has the following responsibilities:
+ Collect and update information to identify the trustor, trustee, beneficiaries, relevant parties (if any), individuals with ultimate control over the trust.
The above information must be stored for at least 05 years from the time the trustee ceases to participate in the trust activity;
+ Provide the information specified at Point a of this Clause to competent agencies upon request; for financial institutions, organizations and individuals engaged in related non-financial business lines during establishing and maintaining client relationships with these organizations and individuals related to assets placed in the trust when being required.
- When identifying clients as trustors, financial institutions, organizations and individuals engaged in related non-financial business lines can request the trustees provide the above-mentioned information and trust documents.
- In addition, the State Bank of Vietnam and competent state agencies in the course of performing their functions and tasks of state management of anti-money laundering, investigation, prosecution and trial have the right to request organizations and individuals to provide all the above-mentioned information.
Does a non-profit organization have to ensure transparency in its operations for anti-money laundering in Vietnam?
First of all, non-profit organizations are understood as organizations that operates without the profit purpose, including associations, social funds, charitable funds, religious organizations, foreign non-governmental organizations established, registered to operate in accordance with the provisions of Vietnamese law (pursuant to Clause 14, Article 3 of the Law on Anti-Money Laundering 2022).
Regarding transparency of information, pursuant to Article 23 of the Law on Anti-Money Laundering 2022, the operations of non-profit organizations must be transparently implemented as follows:
- Non-profit organizations must collect, update and store the following information, applications and documents:
+ Information about the sponsoring organization or individual, including full name, address, donation amount, funding method and other information (if any);
+ Information about the organization or individual receiving the grant, including full name, address, amount of grant, method of receiving the grant, purpose of using the grant and other information (if any);
+ Applications, documents and records related to the sponsorship and receipt of grants.
- Non-profit organizations must store the above information, applications and documents for at least 05 years from the time the sponsorship or receipt of grants terminates.
- In case a non-profit organization dissolves or terminates its operation, the above information, applications and documents must be handed over to the competent authority managing that non-profit organization.
In addition, the State Bank of Vietnam and competent state agencies have the right to request non-profit organizations to provide such information, applications and documents in order to perform their functions and tasks of state management of anti- money laundering, investigations, prosecution and trial.
The Law on Anti-Money Laundering 2022 will take effect from March 1, 2022.
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