Criteria for identification of beneficial owners in anti-money laundering in Vietnam

Criteria for identification of beneficial owners in anti-money laundering in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is beneficial owner?

According to Clause 7 Article 3 of the Anti-Money Laundering Law 2022, beneficial owner refers to the natural person(s) who ultimately owns one or several asset(s), or controls a customer on whose behalf a transaction relating to asset(s). It also includes those persons who exercise control over a legal person or arrangement.

2. Criteria for identification of beneficial owners in Vietnam

Criteria for identification of beneficial owners in anti-money laundering in Vietnam are specified as follows:

(1) A reporting entity shall identify the beneficial owner if the customer is a natural person in the following manner:

- In case the customer opens an account, the reporting entity needs to identify the natural person who actually owns an account or takes control of that account;

- In case the customer establishes a relationship with the reporting entity, the reporting entity needs to identify the natural person establishing that relationship and the fact that governs that relationship.

(2) A reporting entity shall identify the beneficial owner if the customer is a legal person (or a non-person entity) in the following manner:

(i) The reporting entity shall identify the natural person who, essentially, directly or indirectly holds at least 25% of the charter capital of that legal person, or the natural person who is the final holder of the right to control the customer that is a legal person;

(ii) In case of failing to identify the natural person as prescribed in point a of this clause, the reporting entity shall identify at least one legal representative of the legal person, except for the natural person acting as the representative of state capital invested in a legal person;

(iii) In case a legal person is an enterprise that has been listed on domestic and foreign stock exchanges, and has their beneficial owner’s information published, the reporting entity shall determine that beneficial owner that is a natural person.

(3) Reporting entities shall identify beneficial owners of legal arrangements in accordance with point a of clause 1 of Article 22 in the Anti-Money Laundering Law 2022.

(4)  Reporting entities shall identify beneficial owners of life insurance policies that are natural persons who essentially enjoy benefits as the insured in these life insurance policies.

(Article 7 of Decree 19/2023/ND-CP)

3. What is the information about the beneficial owner?

Pursuant to Clause 2, Article 10 of Anti-Money Laundering Law 2022, information about the beneficial owner, including relevant customer identification data specified in point a, b, c, d or dd of clause 1 of Article 10 of Anti-Money Laundering Law 2022 as follows:

(i) For an individual customer adopting Vietnam as his/her only one citizenship:

- His/her full name;

- Birth date;

- Nationality;

- Profession, job position;

- Contact phone number;

- Number of ID card, Citizen ID card, personal identification, passport, date and place of issuance;

- Permanent residence address and other present residence (if any);

(ii) For an individual customer with only one citizenship who is a foreign resident in Vietnam:

- His/her full name;

- Birth date;

- Nationality;

- Profession and job position;

- Contact phone number;

- Number, date and place of issuance of the passport;

- Reference number of the entry visa, except when he/she is granted visa exemption permitted by law;

- Residence address in his/her home country and registered residence address in Vietnam;

(iii) For an individual customer with only one citizenship who is a foreign nonresident in Vietnam:

- His/her full name;

- Birth date;

- Nationality;

- Profession, job title;

- Number of passport or identity issued by a foreign competent authority, date or place of issuance;

- Residence address in his/her home country;

(iv) For the individual customer having dual or multiple citizenship:

- The same as those prescribed in  (i), (ii) and (iii) section 3;

- Nationality(ies), residence address(es) in the country(ies) of the other citizenship;

(v) For the individual customer who is a nonnational:

- His/her full name;

- Birth date;

- Profession and job position;

- Reference number of laissez passer (if any);

- Reference number of visa;

- The authority issuing entry visa, except if he/she is granted visa exemption permitted by law;

- Residence address in his/her home country and registered residence address in Vietnam;

Nguyen Thi Hoai Thuong

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