On July 28, 2023, the Governor of the State Bank of Vietnam ("SBV") issued Circular No. 09/2023/TT-NHNN guiding the implementation of certain provisions of the Anti-Money Laundering Law ("Circular 09"). Circular No. 09 guides criteria and methods for assessing money laundering risks of reporting entities; risk management procedures for money laundering and customer classification by money laundering risk levels; internal regulations on Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF); reporting requirements for large-value transactions; suspicious transaction reporting regime; electronic funds transfer transactions; reporting requirements for electronic funds transfer transactions; forms and timelines for electronic data reporting.
According to Article 4, Section 1 of the AML Law 2022, reporting entities include financial institutions and non-financial organizations and individuals engaged in the following activities:
a. Operating prize-winning games, including electronic games with prizes, games over telecommunications networks, Internet networks, casinos, lotteries, and betting activities.
b. Real estate business, excluding property leasing, property sub-leasing, and real estate consulting services.
c. Precious metal and gemstone trading.
d. Accounting services; notary public services; legal services provided by lawyers or law firms;
e. Establishment, management, and operation of enterprises; director and company secretary services for third parties; legal agreement services.
In this update, ATA will provide information about mandatory AML/CTF obligations that reporting entities must take into consideration during the financial year or when events occur.
1. Responsibility to establish internal AML/CTF regulations
According to the provisions of Circular 09, reporting entities must establish internal AML/CTF regulations and send them to the functional agency responsible for AML/CTF tasks at the State Bank of Vietnam (hereinafter referred to as the functional agency) within 30 days from the date of issuance or amendment.
2. Responsibility to register information about the person responsible for AML/CTF at the organization
Organizations must register information about the full name, work address, telephone number, and email address for necessary contact of the person responsible for AML/CTF or the head of the department as stipulated. The email address of the department responsible for AML/CTF at the organization must also be provided to the functional agency, and any changes must be updated within 15 days from the date of appointment, assignment, or information change. According to Section 11, Article 5 of Circular 09, micro-enterprises and individuals are exempt from this registration requirement.
3. Responsibility to submit internal AML/CTF audit reports
Organizations must submit internal AML/CTF audit reports for their organization to the functional agency within 60 days from the end of the financial year.
This obligation does not apply to enterprises or individuals who are not required to conduct internal audits as stipulated.
4. Reporting responsibility for electronic funds transfers within Vietnam valued at VND 500 million or more
a. Electronic funds transfer transactions involving all financial institutions participating in domestic electronic funds transfers in Vietnam with a value of VND 500 million or more, or equivalent in foreign currency.
b. Electronic funds transfer transactions involving at least one financial institution participating in international electronic funds transfers outside Vietnam with a value of USD 1,000 or more, or equivalent in other foreign currencies.
However, the following transactions are not subject to reporting:
a. Electronic funds transfers arising from transactions using debit cards, credit cards, or prepaid cards for payment of goods and services.
b. Electronic funds transfers and payments between financial institutions where both the initiator and the beneficiary are financial institutions.
5. Reporting responsibility for suspicious transactions
Circular 09 stipulates the reporting responsibility for suspicious transactions by entities and individuals providing specific services, including:
- Entities and individuals engaged in accounting services.
- Entities and individuals providing notary public services.
- Entities and individuals providing legal services.
When providing accounting services; performing notarization procedures; acting on behalf of clients to prepare conditions for transactions or conducting transactions on behalf of clients involving the transfer of land use rights, property ownership, or other assets attached to land; managing money, securities, or other assets of clients; managing client accounts at banks, securities companies; managing companies; participating in the purchase and sale of businesses on behalf of clients, entities, or individuals providing the aforementioned specific services are responsible for examining, collecting, and analyzing information to report suspicious transactions to the competent authorities.
Circular 09 takes effect from July 28, 2023.
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