What is money laundering? Provisional measures in Anti-Money Laundering in Vietnam

What is money laundering? Provisional measures in Anti-Money Laundering in Vietnam (Internet image)

1. What is money laundering?

Money laundering refers to the act that a natural or legal person performs to legalize the origin of the property derived from any offence(s).

Property derived from any offence(s) refers to the property obtained directly or indirectly from criminal activity; part of the income, proceeds, gain or profits generated from the property obtained from any illegal act(s).

(Clause 1, 2, Article 3 of Anti-Money Laundering Law 2022)

2. Provisional measures in Anti-Money Laundering in Vietnam

Provisional measures in Anti-Money Laundering include:

(1) Postponement of Transactions

- Each reporting entity shall be required to promptly take a transaction postponement measure when:

+ There are any reasonable grounds to suspect that a transaction is on the Blacklist, or it is discovered that parties are related to a transaction on the Blacklist;

+ There are grounds to believe that the requested transaction is related to criminal activity in such a way that: the transaction is performed at the request of a convictee defined the law on criminal procedures, and the property involved in the transaction is owned by that convictee, or stems from that convictee's ownership or control; the transaction is related to an entity or person conducting an act of terrorism financing crime;

+ Requested by competent state authorities in accordance with relevant laws.

- When needing a transaction postponement measure to be taken, the reporting entity shall immediately report to the competent state authority and the State Bank of Vietnam.

- The time limit for application of a transaction postponement measure shall not be more than 03 working days from the date on which it commences.

- Reporting entities shall be excluded from legal liability for any consequence following application of a transaction postponement measure as provided in this Article.

 (Article 44 of Anti-Money Laundering Law 2022)

(2) Freezing of Accounts, Seizure or Confiscation of Assets

Reporting entities shall execute decisions on freezing, seizure or confiscation of assets of entities or persons issued by competent state authorities in accordance with law.

(Article 45 of Anti-Money Laundering Law 2022)

3. Anti-money laundering principles in Vietnam 

- Prevention and combat of money laundering shall be conducted under the regulatory provisions of law on condition that sovereignty and territorial integrity, national security and interests are not prejudiced; the normal conduct of economic and investment activities is not interrupted; the legitimate rights and interests of legal or natural persons are protected; abusing public powers or AML activities to infringe upon the legitimate rights and interests of a natural or legal person concerned.

- All acts of money laundering shall be legally sanctioned.

- AML countermeasures shall be taken in a timely and consistent manner.

(Article 5 of Anti-Money Laundering Law 2022)

4. Prohibited acts in anti-money laundering in Vietnam

Prohibited acts in anti-money laundering include:

- Organize, participate in or facilitate, assist in the conduct of money laundering.

- Create and maintain anonymous or pseudonymous accounts (or accounts in obviously fictitious names).

- Create and maintain business relationships with shell banks.

- Illegally provide services that involve the acceptance of cash, cheques, other monetary instruments and other stores of value and the payment to a beneficiary.

- Abuse public positions and power over AML activities to prejudice the legitimate rights and interests of a natural or legal person.

- Hinder the provision of information necessary for AML purposes.

- Intimidate and take revenge on the persons detecting and reporting money laundering offences.

(Article 8 of Anti-Money Laundering Law 2022)

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