Vietnam: 04 suspicious signs in the area of real estate business

According to Article 37 of the Law on prevention of money laundering 2012 of Vietnam, the suspicious signs in the area of real estate business related to money laundering or assets in a transaction of criminal origin include:

- The real estate transactions are authorized transaction but there are no legal grounds;

- The client does not pay attention to the price of real estate and the transaction fees to be paid.

- The client can not provide information related to real estate or does not want to provide additional personal information;

- The price agreed between the parties to the transaction does not match the market price.

Note: The reporting subject has the responsibility to report to the State Bank of Vietnam when there are doubts or reasonable grounds to suspect that the assets in the transaction are of criminal origin with or related to money laundering. Suspicious transaction reports are made according to the form prescribed by the State Bank of Vietnam.

Besides, this Law also stipulates suspicious signs in the areas of securities, including:

- Purchasing or selling securities with abnormal signs in one day or several days done by an organization or individual;

- The client makes the transfer of securities outside the system without any plausible reasons;

- The securities company transfer money not in accordance with the securities trading activities;

- The resident transfers a large amount from the securities trading account out of Vietnam;

- The client often sells his portfolio and requires the securities company to make payment by cash or check;

- The client invests abnormally in many types of securities in cash or checks in a short period or is willing to invest in the securities portfolio of no benefit;

- The client’s securities account does not work in a long time but suddenly is invested by a huge investment not in accordance with the financial capacity of the client;

- Purchase and sell securities with money from the investment funds opened in the territories that the international organizations classified as high risk for money laundering.

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

Ty Na

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