Directive on strengthening risk management of money laundering in the banking sector in Vietnam for the 2024-2028 period

Directive on strengthening risk management of money laundering in the banking sector in Vietnam for the 2024-2028 period​ (Image from the internet)

On November 6, 2024, the State Bank of Vietnam issued Directive 05/CT-NHNN on strengthening risk management of money laundering in the banking sector in Vietnam for the 2024-2028 period.

Directive on strengthening risk management of money laundering in the banking sector in Vietnam for the 2024-2028 period

The Governor of the State Bank of Vietnam requires the Banking Inspection and Supervision Agency, State Bank branches in provinces and central-affiliated cities, credit institutions, and foreign bank branches to focus on effectively executing the following tasks:

(1) For the Banking Inspection and Supervision Agency and State Bank branches in provinces and central-affiliated cities

- Continue organizing inspections, examinations, and supervision on anti-money laundering, focusing on risk-based inspection, examination, and supervision of entities subject to reporting within the jurisdiction based on the national money laundering risk assessment results of Vietnam during the 2018-2022 period and the money laundering risk levels of the reporting entities.

- Strengthen inspections, examinations, and supervision on anti-money laundering, particularly focusing on risk-based procedures for reporting entities such as banks and foreign bank branches assessed as having high money laundering risks according to the national money laundering risk evaluation of Vietnam during 2018-2022.

- Periodically inspect, examine, and supervise anti-money laundering procedures for reporting entities with low/medium-low/medium money laundering risks based on the national money laundering risk assessment results of Vietnam during 2018-2022, including: finance companies, leasing finance companies, consumer credit finance companies, microfinance organizations, people's credit funds, intermediary payment service providers, foreign exchange agents, and foreign currency exchange offices.

- The Banking Inspection and Supervision Agency is responsible for overseeing and compiling the inspection, examination, and anti-money laundering supervision results of the Banking Inspection and Supervision Agency, State Bank branches in provinces and cities, and reporting to the Governor of the State Bank in accordance with the law on anti-money laundering.

(2) For credit institutions, foreign bank branches, intermediary payment companies

- Intensify the inspection and review of documents and transactions when providing products with potential money laundering risks in the banking sector identified based on the national money laundering risk assessment results of Vietnam during the 2018-2022 period.

- Enhance the review of transactions with customers related to sectors with high or medium-high money laundering risks according to the national money laundering risk evaluation results of Vietnam during 2018-2022.

- In accordance with the regulations on reporting suspicious transactions in Clause 1, Article 26, and Clause 3, Article 37, Anti-Money Laundering Law 2022, credit institutions, foreign bank branches, and intermediary payment companies should pay special attention while reviewing transactions. If there is suspicion or reasonable grounds to suspect that money, assets in the transactions are related to source crimes with high or medium-high money laundering risks as assessed by the national money laundering risk evaluation of Vietnam during 2018-2022, including fraud, illicit drug trafficking, embezzlement, bribery, abuse of power to misappropriate assets, tax evasion, human trafficking, smuggling, illegal cross-border transportation of goods, currency, gambling, organizing gambling, organized crime, transnational crime, and environmental crime, they must prepare and send suspicious transaction reports to the Anti-Money Laundering Department.

- Enhance training, and capacity building to ensure compliance with legal regulations on anti-money laundering and to implement risk management measures appropriate to the national and organizational money laundering risks.

More details can be found in Directive 05/CT-NHNN issued on November 6, 2024.

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