10 contents of internal regulations on Anti-Money Laundering in Vietnam

10 contents of internal regulations on Anti-Money Laundering in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

On July 28, 2023, the State Bank of Vietnam issued Circular 09/2023/TT-NHNN guiding implementation of the Law on Anti-Money Laundering (AML).

10 contents of internal regulations on AML in Vietnam

According to Article 5 of Circular 09/2023/TT-NHNN, internal regulations on AML of reporting entities under Points b, c, e, g, h, i, and k Clause 1 Article 24 of the Law on Anti-money Laundering 2022 include:

(1) Customer identification procedures which include collecting, updating, verifying information in accordance with anti-money laundering laws and regulations on situations during identification, identification information, and update; classification of responsibilities for identifying customers based on risk levels and operational scale, scope, characteristics of reporting entities.

(2) Money-laundering risk management procedures in reporting entities must include details under Clause 1 Article 4 of Circular 09/2023/TT-NHNN.

(3) Regulations on information storage and security according to Article 38, Article 40 of the Law on Anti-money Laundering 2022.

(4) Regulations on adoption of temporary measures according to Article 44 of the Law on Anti-money Laundering 2022 and Decree of the Government elaborating the Law on Anti-money Laundering 2022.

(5) Regulations on reporting and informing the State Bank of Vietnam (hereinafter referred to as “SBV”) and competent authority, including regulations on report and communication procedures, methods which satisfy regulations on report deadline and contents.

(6) Regulations on recruitment which must include regulations on recognizing, selecting personnel that meet position requirements; provide basic AML training within 6 months from the date on which they are recruited.

(7) AML training and advanced training, including: regulations of the law and internal regulations on AML; responsibilities in case of failure to adhere to regulations of the law or internal regulations on AML; money laundering schemes; money laundering risks relating to products and services; tasks assigned to leaders and employees.

(8) Internal audit in anti-money laundering, including: independently and objectively inspecting, reviewing, and evaluating internal audit system, compliance with internal regulations and regulations of the law on AML; proposing solutions for improving effectiveness of money laundering countermeasures.

Internal audit for AML can be done separately or together with other operations as long as the internal audit must be presented separately under audit report.

If reporting entities are not required to perform internal audit as per the law, reporting entities must control compliance with internal regulations and regulations of the law on AML.

(9) Responsibilities of relevant individuals and departments in implementation of money laundering countermeasures must ensure that:

- At least one manager of reporting entities or one individual authorized by managers of reporting entities is assigned to be responsible for organizing, directing, and inspecting compliance with regulations on AML (hereinafter referred to as “AML compliance officer”);

- Depending on operational scale, scope, and characteristics, reporting entities must establish specialized units (department, ward, group) or designate existing units to oversee AML compliance or designate AML compliance officers in their head office; assign one or several individuals, units to responsible for AML in branches and subsidiaries of reporting entities relevant to AML operations (if any).

(10) Reporting entities are responsible for:

- on an annual basis, providing AML training for leaders and employees whose operations are relevant to AML (including employees assigned with tasks directly relating to trading in money, assets with customers);

- on an annual basis, updating regulations of AML laws, policies, risk management procedures appropriate to AML risk management results in reporting entities and practical situations in order to evaluate internal regulations and consider amendment, replacement accordingly; sending internal regulations on AML to authority exercising AML tasks affiliated to the SBV (hereinafter referred to as “AML authority”) within 30 days from the date on which AML internal regulations are promulgated, amended, or replaced;

- on an annual basis, sending internal audit reports on AML in reporting entities to AML authority within 60 days from the date on which a financial year ends except for reporting entities that are not required to perform internal audit as per the law;

- registering full name, workplace address, phone number, email address of AML compliance officers under Point a Clause 9 of Article 5 of Circular 09/2023/TT-NHNN and AML compliance officer or contact personnel affiliated with units under Point b Clause 9 of Article 5 of Circular 09/2023/TT-NHNN; email address of units under Point b Clause 9 of Article 5 of Circular 09/2023/TT-NHNN (if any) to AML authority;

- informing AML authority in writing when information under Point d Clause 10 of Article 5 of Circular 09/2023/TT-NHNN is changed within 15 days from the date on which the information is changed.

(11) Reporting entities that are micro-enterprises and individuals shall promulgate internal regulations on AML which include (1), (2), (3), (4) and Points a, dd Clause 1 Article 24 of the Law on Anti-money Laundering 2022.

Circular 09/2023/TT-NHNN takes effect as of July 28, 2023, except for the case specified in Clause 2, Article 11 of Circular 09/2023/TT-NHNN.

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