Is it compulsory to submit report on domestic electronic funds transfer and minimum transfer value is 500.000.000 VND in Vietnam?

Guiding implementation of the Law on Anti-Money Laundering in Vietnam

On 28/7/2023, the Governor of State Bank of Vietnam promulgated Circular 09/2023/TT-NHNN guiding implementation of the Law on Anti-Money Laundering in 2022.

Circular 09/2023/TT-NHNN prescribes following contents:

- Criteria and methods for assessing money laundering risks of reporting entities;

- Risk management procedures for money laundering risks and customer classification based on money laundering risk levels;

- Internal regulations on anti-money laundering;

- Reporting of large transactions;

- Reporting of suspicious transactions;

- Electronic funds transfer;

- Reporting of electronic funds transfer;

- Format and time limit of report on electronic data.

Regulated entities of the Circular 09/2023/TT-NHNN are:

- Financial institutions

- Organizations and individuals engaging in relevant non-financial professions.

- Vietnamese organizations, individuals, foreign organizations, foreigners, international organizations trading with financial institutions, organizations, individuals engaging in relevant non-financial professions.

- Other organizations and individuals relating to anti-money laundering.

Is it compulsory to submit report on domestic electronic funds transfer and minimum transfer value is 500.000.000 VND in Vietnam?

Pursuant to Clause 1 Article 9 of the Circular 09/2023/TT-NHNN stipulating regulations on reporting of electronic funds transfer as follows:

Reporting of electronic funds transfer

1. Reporting entities are responsible for collecting information under Clause 3 of this Article and reporting to AML authority via electronic means according to Clause 1 Article 10 hereof when executing electronic funds transfer which falls under any of the cases below:

a) Electronic funds transfer where all participating financial organizations under Clause 1 Article 8 hereof are located in Vietnam (hereinafter referred to as “domestic electronic funds transfer”) and minimum transfer value is 500.000.000 VND or in equivalent value in foreign currency.

b) Electronic funds transfer where at least one participating financial organization under Clause 1 Article 8 hereof are located outside of Vietnam (hereinafter referred to as “international electronic funds transfer”) and minimum transfer value is 1.000 USD or in equivalent value in other foreign currency.

As regulations above, if transfer value of domestic electronic funds transfer is over 500.000.000 VND, it is compulsory to report to AML authority via electronic means.

What are regulations on complex or unusually large transactions in Vietnam?

Pursuant to Article 8 of the Decree 19/2023/NĐ-CP stipulating complex or unusually large transactions in Vietnam as follows:

Complex or unusually large transactions

1. A transaction is deemed as an unusually large transaction when it is clearly disproportionate to the income of a reporting entity's customer, or does not match the value of regular transactions between a customer and a reporting entity.

2. A transaction is deemed as a complex transaction when it does not match the scale, type and line of a customer’s business, or the frequency, method and scale of equivalent transactions in the same sector or industry.

As regulations above, complex or unusually large transactions are:

- A transaction is deemed as an unusually large transaction when it is clearly disproportionate to the income of a reporting entity's customer, or does not match the value of regular transactions between a customer and a reporting entity.

- A transaction is deemed as a complex transaction when it does not match the scale, type and line of a customer’s business, or the frequency, method and scale of equivalent transactions in the same sector or industry.

Best regards!