Shall transactions with a large value from 400 million VND or more be reported to the State Bank of Vietnam from 01/12/2023?

Shall transactions with a large value from 400 million VND or more be reported to the State Bank of Vietnam from 01/12/2023?

On April 27th, 2023, the Government issued the Decision 11/2023/QD-TTg promulgating the large-value transactions that must be reported.

Pursuant to Article 3 of the Decision 11/2023/QD-TTg stipulating large-value transactions that must be reported as follows:

Large-value transactions that must be reported

The transaction with large value that must be reported is from VND 400,000,000 (four hundred million) or more.

Thus, from December 1st, 2023, the transaction with a large value of VND 400,000,000 or more must be reported to the State Bank of Vietnam.

In Vietnam: Which financial institutions, organizations and individuals operating in non-financial businesses shall have to report when the transaction has a large value from 400 million VND?

Pursuant to Article 2 of the Decision 11/2023/QD-TTg stipulating regulated entities as follows:

Regulated entities

Financial institutions, organizations and individuals operating in non-financial businesses as prescribed in Clauses 1 and 2, Article 4 of the Law on Anti-Money Laundering.

Pursuant to Clause 1 and 2, Article 4 of the Law on Anti-Money Laundering in 2022 stipulating reporting entities as follows:

Reporting Entities

1. Reporting entities are financial institutions licensed to conduct one or more of the following activities or operations:

a) Acceptance of deposits;

b) Lending;

c) Financial leasing;

d) Payment services;

dd) Payment intermediary services;

e) Issuing negotiable instruments/transferable securities, bank cards, fund/money transfer/wire transfer orders;

g) Bank guarantees and financial commitments;

h) Providing foreign exchange services, money market instruments;

i) Securities brokerage; advice to security investment, provision of security for securities issues;

k) Investment fund and portfolio management;

l) Life insurance business;

m) 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:

a) Prize-awarding games, including electronic games; telecommunications network-based games, Internet-based games; casinos; lottery tickets; betting;

b) Real estate business, except leasing or subleasing of real property and real estate consulting;

c) Dealing in precious metals, jewels;

d) Supply of accounting services; provision of notarial services; provision of legal services rendered by lawyers, legal professional organizations;

dd) 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;

3. The Government shall promulgate regulations on new activities at risk of money laundering conducted by reporting entities not referred to in clause 1 and 2 of this Article after receiving approval from the Standing Committee of the National Assembly of Vietnam.

As regulations above, financial institutions, organizations and individuals operating in non-financial businesses shall have to report are:

1. Financial institutions:

- 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. Relevant non-financial businesses and professions:

- 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 is the reporting form regarding transactions with a large value from 400 million VND in Vietnam?

Pursuant to Article 36 of the Law on Anti-Money Laundering in 2022 stipulating reporting forms as follows:

Reporting Forms

1. Reporting entities shall send electronic data or physical reports when compatible IT systems have not yet been created to meet the requests for transfer of electronic data with respect to those reports specified in Article 25, 28 and 34 herein.

2. Where necessary, reporting entities may report by facsimile, telephone or email provided that such reporting conforms to report data safety, confidentiality or security requirements, and confirmation is given in either of the forms defined in clause 1 of this Article.

3. When submitted reports on suspicious transactions, reporting entities shall be required to enclose records on opening of accounts used for transactions, customer identification data, documentary evidence and other documents relating to suspicious transactions, and preventive measures that have been taken.

As regulations above, the reporting forms apply for transactions with a large value are:

- Send electronic data;

- Send physical reports;

Where necessary, reporting entities may report by facsimile, telephone or email provided that such reporting conforms to report data safety, confidentiality or security requirements, and confirmation is given in either of the forms: electronic data or physical reports.

Decision 11/2023/QD-TTg is effective from 01/12/2023.

Best regards!