What are the suspicious signs in the banking area in Vietnam?

According to Clause 3 Article 22 of the Law on prevention of money laundering 2012 of Vietnam, suspicious signs in the banking area including:

- There was a sudden change in the transaction turnover on the account; money deposited into and withdrawn quickly from accounts; high transactions turnover but account balance is very small or zero;

- The transfer transaction of money of small value from many different accounts to an account or vice versa in a short time; money is transferred through multiple accounts; the parties concerned are not interested in trading fees; doing multiple transactions, each transaction is near the large value rate that must be reported;

- Using letters of credit and other trade financing methods of great value, the discount rate with the higher value than normal;

- Clients who open multiple accounts at foreign credit organization, bank branches in other geographical areas different from the place where clients are residing, working or doing business activities;

- The client’s account is not traded over a year, and is traded back without plausible reasons; client’s account without any transaction suddenly gets a cash deposit or money transfer of great value;

- Transfer of money from account of enterprise overseas after receiving a lot of small amounts of money transferred by electronic money transfer, checks or drafts;

- Enterprises with foreign investment capital transfer money overseas immediately after receiving the investment capital or transfer money overseas not in accordance with the business activities; foreign enterprises transferring money overseas immediately after receiving money from abroad transferred into accounts opened at foreign credit organization, bank branches operating in Vietnam;

- The clients often change money with small denominations into larger denominations;

- Transaction of deposit, withdrawal or transfer of money made ​​by organizations or individuals associated with the crimes creating illegal property published on mass media;

- The client requests to borrow the maximum amount allowed based on the contracts of single-premium right after the premium payment, except for the case required by the credit organization;

- Information about the origin of property used for financing, investment, loan, financial leasing or investment trust of clients is not clear and transparent;

- Information about the origin of the security property of the clients asking for capital loan is not clear and transparent.

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.

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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