New: Anti-Money Laundering Law 2022 available in Vietnam

New: Anti-Money Laundering Law 2022 available in Vietnam (Internet image)

Anti-Money Laundering Law 2022 was passed by the National Assembly on November 15, 2022, replacing the Anti-Money Laundering Law 2012.

Amendments to a number of articles of laws related to Anti-Money Laundering in Vietnam

Article 64 of the Anti-Money Laundering Law 2022 stipulates amendments to a number of articles of laws related to Anti-Money Laundering in Vietnam as follows:

- Amending and supplementing clause 1 of Article 49 in the Law on State Bank of Vietnam 2010 as follows:

“1. Bank Supervision and Inspection Agency is a unit under the structure of the State Bank, performing the task of banking inspection and supervision.".

- Amending and supplementing several Articles of the Law on Anti-Money Laundering 2013 as follows:

+ Amending and supplementing Article 34 as follows:

“Article 34. Implementation of terrorist financing countermeasures and application of provisional measures; national risk assessment regarding prevention and combat of terrorist financing

1. Financial institutions, relevant non-financial businesses and professions shall apply the provisions of Article 9 through Article 40 in the Law on prevention and combat of money laundering to identify customers, collect, update and verify customer identification data; develop internal rules and regulations, report, provide and store information, records, documents and reports on the prevention and combat of terrorist financing.

2. Immediately when there is a suspicion that a customer or a customer's transaction is related to terrorist financing, or that a customer is on the Blacklist, financial institutions, relevant non-financial businesses and professions shall report to the counter-terrorism forces of the Ministry of Public Security, the State Bank of Vietnam, and shall be required to apply provisional measures in accordance with the law on prevention and combat of money laundering.

3. Every 5 years, the Ministry of Public Security shall lead and/or cooperate with relevant Ministries and central authorities in conducting the national assessment of money laundering risks in Vietnam and seeking the Government’s approval of the assessment results and post-assessment action plans.”;

+ Amending and supplementing Article 35 as follows:

“Article 35. Control of cross-border transportation of cash, precious metals, jewels and negotiable instruments

Entities and persons having jurisdiction over control of cross-border transportation of cash, precious metals, jewels and negotiable instruments from Vietnam as specified in Article 24 herein and Article 35 in the Law on Anti-Money Laundering shall be responsible for promptly detecting, preventing and handling acts of abusing these activities to finance terrorism.”.

Application of regulations of Anti-Money Laundering Law 2022 to prevention and combat of financing for proliferation of weapons of mass destruction in Vietnam

Article 65 of the Anti-Money Laundering Law 2022 stipulates the application of regulations of Anti-Money Laundering Law 2022 to prevention and combat of financing for proliferation of weapons of mass destruction in Vietnam as follows:

FFinancial institutions, relevant non-financial businesses and professions shall apply the provisions of Article 9 through Article 40 of the Anti-Money Laundering Law 2022 to identify customers, collect, update and verify customer identification data; develop internal rules and regulations, report, provide and store information, records, documents and reports on the prevention and combat of financing of proliferation of weapons of mass destruction.

Amendments on regulations on Categorizing Customers by Levels of Money Laundering Risk in Vietnam

Specifically, Article 16 of the Anti-Money Laundering Law 2022 stipulates that based on the results of money-laundering risk assessment and update defined in Article 15 herein, reporting entities shall develop the procedures for management of money laundering risk.

Procedures for management of money laundering risks shall cover classification of customers by low, medium and high level of risk, and risk management methodologies in response to specific levels of money laundering risk from customers.

Each reporting entity may apply measures according to the level of risk of money laundering represented by any customer subject to the following regulations:

- For the customer representing a low risk of money laundering, the reporting entity may collect, update and verify customer identification data to a mitigated degree when starting a relationship with that customer;

- For the customer representing a medium level of money laundering risk, the reporting entity may apply CDD measures specified in Article 9 herein to that customer;

- For the customer representing a high level of money laundering risk, in addition to the CDD measures applied as specified in point b of this clause, the reporting entity shall apply enhanced CDD measures, including the intensified collection, updating and verification of customer identification data and close monitoring of that customer’s transactions.

(Currently, the reporting subjects must develop regulations on Clients classification on the basis of risk by type of Clients, product, used Clients service, place of residence or location of headquarter of the Clients.)

Anti-Money Laundering Law 2022 takes effect on March 1, 2023.

Nhu Mai

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