The National Assembly of Vietnam passes the amended Law on Prevention and Combat of Money Laundering

The National Assembly of Vietnam passes the amended Law on Prevention and Combat of Money Laundering​ - Photo: VGP/Hai Lien

The amended Law on Prevention and Combat of Money Laundering consists of 4 chapters and 66 articles governing preventive measures, detection, prevention, and handling of organizations and individuals involved in money laundering; responsibilities of agencies, organizations, and individuals in the fight against money laundering; international cooperation on anti-money laundering.

The prevention and combat of money laundering activities by organizations and individuals aimed at financing terrorism and the proliferation of weapons of mass destruction shall be carried out in accordance with this Law, the legal provisions of criminal law, and the law on preventing and combating terrorism and the proliferation of weapons of mass destruction.

Applicable subjects: Financial institutions; organizations and individuals engaging in businesses and professions outside the financial sector; Vietnamese organizations and individuals, foreign organizations, foreigners, and international organizations that conduct transactions with financial institutions, organizations, and individuals engaging in relevant non-financial businesses and professions; other organizations, individuals, and relevant agencies involved in anti-money laundering.

Principles in anti-money laundering: The Law stipulates that the prevention and fight against money laundering must comply with the law on the basis of ensuring sovereignty and territorial integrity, national security, and national interests; ensuring normal economic and investment activities; protecting the lawful rights and interests of organizations and individuals; preventing abuse and the misuse of anti-money laundering activities to infringe upon the lawful rights and interests of related organizations and individuals. Money laundering acts must be handled in accordance with the law. Anti-money laundering measures must be implemented simultaneously and promptly.

National risk assessment on money laundering: The Law explicitly stipulates that every 5 years, the State Bank of Vietnam shall take charge and cooperate with related ministries and central authorities to conduct a national risk assessment on money laundering and submit the results to the Government of Vietnam for approval, along with the post-assessment implementation plan. The national risk assessment on money laundering shall also cover new activities that may pose money laundering risks.

The ministries and central authorities are responsible for disseminating the national risk assessment results within their own departments and to the reporting entities under their management, and simultaneously implementing measures to mitigate the identified risks.

Risk updates on money laundering, based on the implementation of the post-assessment plan or the emergence of risks within the management scope of the ministries and central authorities shall be sent to the State Bank of Vietnam. Based on the updated risk results from the ministries and central authorities, the State Bank of Vietnam shall compile and submit the updated national risk assessment results on money laundering to the Government of Vietnam for approval, along with the post-update implementation plan.

The Government of Vietnam shall stipulate principles, criteria, and methods for the national risk assessment on money laundering.

Prohibited acts in anti-money laundering: Organizing, participating in, or facilitating and assisting in the execution of money laundering acts. Establishing or maintaining anonymous accounts or accounts under false names. Establishing or maintaining business relationships with shell banks. Illegally providing services to receive cash, checks, other monetary instruments, or value storage devices, and performing payments to beneficiaries. Exploiting positions and powers in the fight against money laundering to infringe upon the lawful rights and interests of organizations and individuals. Obstructing the provision of information for anti-money laundering purposes. Threatening or retaliating against individuals who detect, provide information, report, or denounce money laundering acts.

Vote results passing the the amended Law on Prevention and Combat of Money Laundering in Vietnam - Photo: VGP/Hai Lien

The Government of Vietnam maintains unified state management on anti-money laundering

The Law clearly defines the responsibilities of state agencies in anti-money laundering, including specifying the responsibilities of the Government of Vietnam, the Prime Minister of the Government of Vietnam.

To be specific:, the Government of Vietnam maintains unified state management on anti-money laundering. The Government of Vietnam issues normative legal documents within its competence on anti-money laundering.

The Prime Minister of the Government of Vietnam directs ministries, ministry-level agencies, and agencies under the Government of Vietnam to cooperate with the Supreme People’s Court and the Supreme People's Procuracy in anti-money laundering; directs coordination in anti-money laundering and the fight against terrorist financing and the proliferation of weapons of mass destruction.

Hai Lien

According to the Vietnam Government Portal

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