Reporting of electronic funds transfer in anti-money laundering activities in Vietnam

Reporting of electronic funds transfer in anti-money laundering activities in Vietnam (Internet image) 

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

1. Reporting of electronic funds transfer in anti-money laundering activities in Vietnam

Specifically, according to Clause 1, Article 9 of Circular 09/2023/TT-NHNN, reporting entities are responsible for collecting information under Clause 3 of Article 9 of Circular 09/2023/TT-NHNN and reporting to AML authority via electronic means according to Clause 1 Article 10 of Circular 09/2023/TT-NHNN when executing electronic funds transfer which falls under any of the cases below:

- Electronic funds transfer where all participating financial organizations under Clause 1 Article 8 of Circular 09/2023/TT-NHNN are located in Vietnam (hereinafter referred to as “domestic electronic funds transfer”) and minimum transfer value is 500.000.000 VND or in equivalent value in foreign currency.

- Electronic funds transfer where at least one participating financial organization under Clause 1 Article 8 of Circular 09/2023/TT-NHNN are located outside of Vietnam (hereinafter referred to as “international electronic funds transfer”) and minimum transfer value is 1.000 USD or in equivalent value in other foreign currency.

2. Contents of report on electronic funds transfer in Vietnam

Pursuant to Clauses 3 and 4, Article 9 of Circular 09/2023/TT-NHNN, Report on electronic funds transfer must contain:

- Information on transmitting organizations and destination organization, including: business name of the organizations or trading branches; address of head office (or bank identification code for domestic electronic funds transfer or swift code for international electronic funds transfer); destination and transmitting countries;

- Information on customers that are individuals engaging in electronic funds transfer: full name, date of birth; ID Card or Citizen ID Card or Personal Identification or passport number; visa number (if any); permanent resident registration or current residence (if any) address; nationality (according to transaction documents);

- Information on customers that are organizations engaging in electronic funds transfer: full business name and abbreviations (if any); head office address; establishment license or enterprise identification or tax identification number; countries where head office of these organizations are located;

- Information on transactions: account number (if any): amount; type of currency; amount converted to VND (if the money transferred is in foreign currency); reason and purpose of transactions; code of transaction; date of transaction;

- Other information requested by AML authority for the purpose of AML from time to time.

Note: Information regarding date of birth, ID Card or Citizen ID Card or Personal Identification or Passport or visa (if any) number under Point b Clause 3 of Article 9 of Circular 09/2023/TT-NHNN; establishment license or enterprise identification or tax identification number under Point c Clause 3 of Article 9 of Circular 09/2023/TT-NHNN is not required for:

- Beneficiaries in international electronic funds transfer where money is transferred from Vietnam to other countries;

- Transmitting individuals in international electronic funds transfer where money is transferred to Vietnam from other countries.

3. Electronic funds transfer that is not required to be reported in Vietnam

According to Clause 5, Article 9 of Circular 09/2023/TT-NHNN, electronic funds transfer that is not required to be reported include:

- Transactions originating from services that involve the use of debit cards, credit cards, or pre-paid cards to pay for goods and services;

- Transactions and payments between financial institutions where both transmitters and beneficiaries are financial institutions.

4. Financial organizations engaging in electronic funds transfer in Vietnam

According to Clause 1, Article 8 of Circular 09/2023/TT-NHNN, financial organizations engaging in electronic funds transfer include:

- Transmitting organizations mean financial organizations that create electronic funds transfer order and transfer on behalf of requesting individuals;

- Intermediary organizations mean financial organizations that receive and relay electronic funds transfer order on behalf of transmitting organizations and destination organizations or on behalf of other intermediary organizations;

- Destination organizations mean financial organizations that receive electronic funds transfer from transmitting organizations or via intermediary organizations and transfer to beneficiaries.

More details can be found in Circular 09/2023/TT-NHNN effective as of July 28, 2023, except for the cases specified in Clause 2, Article 5, Article 6, Article 9 and suspicious transaction report forms in Appendix II promulgated together with Circular 09/2023/TT-NHNN effective as of December 1, 2023.

Ho Quoc Tuan

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE