How are Vietnam’s regulation on foreign Clients as individual of political influence?

Recently, the National Assembly of Vietnam has officially approved the Law on prevention of money laundering 2012 including 5 Chapters and 50 Articles.

Khách hàng nước ngoài là cá nhân có ảnh hưởng chính trị , Luật phòng chống rửa tiền 2012

According to Article 13 of the Law on prevention of money laundering 2012 of Vietnam, the foreign client as an individual of political influence is the person who holds the senior position in foreign agencies and organizations concerned. Concurrently, the State Bank of Vietnam announced the list of foreign Clients who are individuals with political influence stipulated in this clause specified on the basis of recommendation of the international organizations on the prevention of money laundering.

Besides, the reporting subjects must have risk management system to identify the foreign clients with political influence and apply the following measures:

- Developing the internal control regulations for the opening of accounts or setting of the transactions when the clients or the beneficial owners are determined to have the political influence;

- Taking the measures in order to identify the origin of clients’ property;

- Strengthening client supervision and business relations with the clients.

Note: The reporting subjects must apply the above-mentioned measures for the clients as a father, mother, wife, husband, son, sibling brother and sister of the persons holding senior positions in foreign agencies and organizations concerned.

Besides, the reporting subjects when establishing the banking agent relation with the foreign banking partner must apply the following measures:

1. Gathering information about the banking partner to fully know the nature of business, the partner bank's reputation and ensure the partner bank must be subject to supervision and management of the foreign competent management agencies;

2. Assessing the implementation of measures on prevention of money laundering of the partner bank;

3. Must be approved by the General Director (Director) or authorization persons of the reporting subjects before setting up the banking agent relations;

4. In case the partner bank’s clients can make payment through the partner bank’s accounts opened at the reporting subjects, the report subjects must ensure the partner bank has fully implemented the identification, update of client information and is able to provide client identification information as required by the reporting objects.

View more details at the Law on prevention of money laundering 2012 of Vietnam, effective from January 01, 2013.

Ty Na


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