What are the penalties for the act of money laundering in Vietnam? What are common signs of suspicious activity of money laundering in Vietnam?

What are the penalties for the act of money laundering in Vietnam?

Pursuant to Article 324 of the Criminal Code in 2015 (amended by Clause 122 Article 1 of the Law on amendments to the Criminal Code in 2017) stipulating money laundering:

Money laundering

1. A person who commits any of the following acts shall face a penalty of 01 - 05 years' imprisonment:

a) Directly or indirectly participating in finance transactions, banking transactions, or other transactions to conceal the illegal origin of the money or property obtained through his/her commission of a crime, or obtained through another person's commission of a crime to his/her knowledge;

b) Using money or property obtained through his/her commission of a crime or obtained through another person's commission of a crime to his/her knowledge for doing business or other activities;

c) Concealing information about the true origin, nature, location, movement, or ownership of money or property obtained through his/her or commission of a crime or obtained through another person's commission of a crime to his/her knowledge, or obstructing the verification of such information;

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As regulated above, a person who commits any of the following acts shall be liable to criminal responsibility.

- Directly or indirectly participating in finance transactions, banking transactions, or other transactions to conceal the illegal origin of the money or property obtained through his/her commission of a crime, or obtained through another person's commission of a crime to his/her knowledge;

- Using money or property obtained through his/her commission of a crime or obtained through another person's commission of a crime to his/her knowledge for doing business or other activities;

- Concealing information about the true origin, nature, location, movement, or ownership of money or property obtained through his/her or commission of a crime or obtained through another person's commission of a crime to his/her knowledge, or obstructing the verification of such information;

- Committing any of the offences specified in Point a through c of this Clause while knowing that the money or property is obtained through transfer, conversion of money or property obtained through another person's commission of a crime.

The offender shall face a penalty of 01 - 15 years' imprisonment depending on the severity of the violation. A person that prepares for the commission of this offence shall face a penalty of 06 – 36 months’ imprisonment.

The offender might also be liable to a fine of from VND 20,000,000 to VND 100,000,000 or prohibited from holding certain positions or doing certain jobs for 01 - 05 years or have part or all of his/her property confiscated.

What are the penalties for the act of money laundering in Vietnam? What are common signs of suspicious activity of money laundering in Vietnam? - image from internet

What are common signs of suspicious activity of money laundering in Vietnam?

Pursuant to Article 27 of the Law on Anti-Money Laundering in 2022 stipulating common signs of suspicious activity of money laundering in Vietnam:

- The customer refuses to provide information or provide inaccurate, inadequate and inconsistent identities.

- The customer induces the reporting entity not to report the transaction to the competent state authority.

- It is unlikely to identify a customer based on the information provided by the customer or a transaction relating to an anonymous party.

- The phone number provided by a customer does not work or exist after an account is created or a transaction is performed.

- The transaction is performed by order or according to the authorization obtained from entities and persons defined in the Greylist.

- The transaction can, based on the customer’s identification information or through examination of economic and legal concepts thereof, determine the connection between the parties involved and criminal activities or the association with the entities or persons appearing on the Greylist.

- The natural or legal person participates in a transaction at great expense, which is deemed as incommensurate with their business situation and income.

- The customer requests the reporting entity to carry out a transaction without conforming to the procedures and processes required by law.

What are signs of suspicious activity of money laundering in real estate business sector in Vietnam?

Pursuant to Article 33 of the Law on Anti-Money Laundering in 2022 stipulating signs of suspicious activity of money laundering in real estate business sector in Vietnam:

- Real estate transactions are the authorized transactions performed without reference to any legal basis.

- A customer does not care about the price of the real property or transaction fees payable.

- A customer fails to provide information relating to the real property in question or does not wish to provide further information about his/her personal background.

- The price involved in a transaction between parties does not match the market price.

Best regards!