Reporting entities in anti-money laundering in Vietnam

Reporting entities in anti-money laundering in Vietnam (Internet image)

1. Reporting entities in anti-money laundering in Vietnam

Reporting entities in anti-money laundering include:

- Reporting entities are financial institutions licensed to conduct one or more of the following activities or operations:

+ Acceptance of deposits;

+ Lending;

+ Financial leasing;

+ Payment services;

+ Payment intermediary services;

+ Issuing negotiable instruments/transferable securities, bank cards, fund/money transfer/wire transfer orders;

+ Bank guarantees and financial commitments;

+ Providing foreign exchange services, money market instruments;

+ Securities brokerage; advice to security investment, provision of security for securities issues;

+ Investment fund and portfolio management;

+ Life insurance business;

+ Money and currency changing.

- Reporting entities are relevant non-financial businesses and professions subject to law that conduct one or more of the following activities or operations:

+ Prize-awarding games, including electronic games; telecommunications network-based games, Internet-based games; casinos; lottery tickets; betting;

+ Real estate business, except leasing or subleasing of real property and real estate consulting;

+ Dealing in precious metals, jewels;

+ Supply of accounting services; provision of notarial services; provision of legal services rendered by lawyers, legal professional organizations;

+ Providing business formation, management and administration services; providing services of acting as (or arranging for another person to act as) a director or secretary of a company to third parties;

-  The Government shall promulgate regulations on new activities at risk of money laundering conducted by reporting entities not referred to above after receiving approval from the Standing Committee of the National Assembly of Vietnam.

(Article 4 of the Anti-Money Laundering Law 2022)

2. High value transactions must be reported to the SBV in anti-money laundering in Vietnam

The value of a large transaction that must be reported is VND 300,000,000 (three hundred million). (According to Decision 20/2013/QD-TTg)

From December 1, 2023, the transaction level with large value to be reported is from VND 400,000,000 (four hundred million) or more. (According to Decision 11/2023/QD-TTg)

3. International Cooperation in Anti-Money Laundering in Vietnam

-  International cooperation in the prevention and combat of money laundering shall be carried out according to the principle of respecting independence, sovereignty and territorial integrity, national security, mutual benefits, and compliance with Vietnamese laws and international treaties to which the Socialist Republic of Vietnam is a contracting party, and international agreements between the Vietnamese contracting party and the foreign contracting party.

In case where there is no international treaty or agreement between Vietnam and a foreign country, the exchange, provision and transfer of information in international cooperation in AML shall be conducted subject to the principle of reciprocity without being in contravention of Vietnam’s domestic law, and conforming to international law and practices.

- Competent regulatory authorities shall, based on their range of functions and duties, conduct international cooperation regarding AML in:

+ Identification and freezing of property or assets of money-laundering criminals;

+ Execution of mutual legal assistance requests;

+ Communication, provision and transfer of AML information with foreign competent authorities;

+ Research, training, information support, technical assistance, financial aid and AML experience exchange;

+ Other AML cooperation activities prescribed by law.

- During the process of international cooperation in AML, competent state authorities may refuse to communicate, provide and transfer AML information if:

+ The requested information may prejudice national independence or autonomy, sovereignty, territorial integrity, national security and other essential interests of Vietnam;

+ The requested information are inconsistent with international treaties of which the Socialist Republic of Vietnam is a member state; international agreements between the Vietnam signatory and the other foreign signatories; or regulatory provisions of national law of Vietnam;

+ The request for communication, provision or transfer of information is not fully complete as required by law;

+ The requesting competent authority in foreign jurisdictions fails to either undertake or protect the confidentiality of the information requested to be communicated, provided or transferred by the competent authority in Vietnam under the secrecy or confidentiality mechanism or regime in line with Vietnam’s regulatory provisions on protection of state secrets.

- Processes, procedures and methods of international cooperation in AML shall comply with international treaties of which the Socialist Republic of Vietnam is a member state, international agreements between the Vietnam signatory and other signatories in foreign jurisdictions, and other regulatory provisions of relevant law.

- On an annual basis, or at the request of the State Bank of Vietnam, competent state authorities of Vietnam shall be responsible for administering international cooperation in AML with foreign competent authorities to the State Bank of Vietnam.

(Article 6 of the Anti-Money Laundering Law 2022)

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