On April 28, 2023, the Government issued Decree 19/2023/ND-CP detailing a number of articles of the 2022 Law on Anti-Money Laundering ("Decree 19") replacing Decree 116/2013/ND-CP ("Decree 116"). Decree 19 introduces many new regulations in the implementation of anti-money laundering measures. As follows:
1. Increasing the amount of large-value transactions that must be reported to the State Bank of Vietnam ("SBV")
A large-value transaction must be reported as a transaction in cash or foreign currency cash made one or more times in a day, with a total value equal to or exceeding the specified amount. Article 25 of the 2022 Law on Anti-Money Laundering stipulates that reporting subjects are responsible for reporting to the SBV when conducting large-value transactions. This will help control transactions, detect transactions with signs of spikes, abnormalities, prevent money laundering activities from taking place.
Accordingly, on April 27, 2023, the Prime Minister issued Decision No. 11/2023/QD-TTg stipulating the amount of large-value transactions to be reported ("Decision 11"). Specifically, from December 01, 2023, transactions with a value of VND 400 million or more must be reported to the SBV. In fact, the reported value of large-value transactions of VND 300 million has been applied since June 10, 2013 according to Decision 20/2013 /QD-TTg dated April 18, 2013. Up to now, the socio-economic situation has changed, the value of money has also changed, so the value of customers' transactions in one time has increased many times. Therefore, raising the limit of the value of large-value transactions to be reported to VND 400 million is completely in line with the practical situation, creating favorable conditions for organizations and individuals in conducting transactions.
Based on this transaction threshold, Decree 19 has increased the transaction threshold for some customers when participating in transactions in accordance with Decision 11. Details are set out in section 2 below.
2. Customer identification measures in anti-money laundering
Compared to Decree 116, Decree 19 amended a number of cases in which reporting subjects must apply measures to identify customers. As follows:
|
Subjects |
Decree 116 |
Decree 19 |
|
Financial institutions |
When customers make irregular transactions of great-value transactions without an account or with a current account but not transacted within 6 months or more with a total value of VND 300 million or more in a day. |
- Specify transactions to be identified, including: deposit, withdrawal or transfer; except for transactions of settlement or withdrawal of savings interest, credit card repayment, repayment of credit grants to financial institutions, periodic payments registered with financial institutions, etc transactions to withdraw interest from securities investment and bond investment activities; - Increase the transaction amount within a day to VND 400 million or in a foreign currency of equivalent value. |
|
Organizations and individuals trading in gambling games |
When customers get financial transactions with a total value of VND 60 million or more in a day. |
- Clarify gambling games including: electronic games with prizes; games on telecommunications networks, internet networks; casino; lotteries; bets; - Increase the transaction amount within a day to VND 70 million or in foreign currency of equivalent value. |
|
Organizations and individuals trading in precious metals and precious stones |
When customers get cash transactions to buy and sell precious metals and gemstones valued at VND 300 million or more in a day. |
Increase the transaction amount within a day to VND 400 million or in foreign currency cash of equivalent value. |
- For the above-mentioned cases, the time for the reporting subjects to apply starts from December 1, 2023. Thus, in the period from now until the end of November 30, 2023, the reporting entity still applies the regulation on the level of transactions during the day of customers according to Decree 116.
- For the remaining cases, the reporting subjects continue to take measures to identify customers as stipulated in Decree 116.
- Reporting subjects are organizations and individuals providing services to provide representatives to shareholders that have been abolished under Decree 19. Therefore, organizations and individuals providing this service are not required to apply customer identification measures to shareholders and their representatives.
In addition, Decree 19 also clarifies transactions of unusually large or complex value in order to help reporting subjects have a reasonable basis to monitor customer transactions. In case of doubt, the reporting subject will review, analyze, report the suspicious transaction and may reject it.
Decree 19 takes effect from April 28, 2023.
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