Vietnam: Which act will be suspected to be involved in money laundering for the purpose of terrorism?

According to Clause 1 Article 18 of Decree No. 116/2013/ND-CP of Vietnam’s Government, act of money laundering with the aim to finance terrorism is act of organization or individual aiming to perform origin legalization of assets acquired from criminal activity in order to finance terrorist organizations and individuals or to finance terrorist act.

According to Clause 10 Article 1 of Decree No. 87/2019/ND-CP of Vietnam’s Government, an organization or individual will be suspected to be involved in money laundering for the purpose of terrorism financing if:

- The organization or individual has conducted or intends to conduct a transaction related to an organization or individual listed in a relevant resolution of the United Nations Security Council;

- The organization or individual has conducted or intends to conduct a transaction related to an organization or individual specified in lists of terrorist and terrorism financing organizations and individuals compiled by other international organizations or countries and warned by the State Bank of Vietnam;

- The organization or individual has conducted or intends to conduct a transaction related to an organization or individual convicted of terrorism and/or terrorism financing in Vietnam;

- The organization or individual has conducted or intends to conduct a transaction related to a terrorist or terrorism financing organization or individual whose information is acquired from other information sources by the reporting entity.

Notably, as soon as detecting that organizations or individuals conducting transactions lay in black list or as soon as having grounds to assume that organization or individual conducting act related to crime of money laundering with the aim to finance terrorism, the reporting entities must apply the prevention measures stated in Article 3, Article 4, Article 5, Article 6, Article 8, Article 10, Article 13, and Article 14 of Decree No. 116/2013/ND-CP so as to ensure timely report as prescribed in clause 1, Article 30 of the Anti-Money Laundering Law.

View other provisions at Decree No. 87/2019/ND-CP of Vietnam’s Government, effective from November 14, 2019, which replaces Decree No. 116/2013/ND-CP.

Thu Ba

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