The Law on Anti-Money Laundering No. 14/2022/QH15 was approved by the National Assembly on November 15, 2022 (the “Law 2022”), replacing the Law on Anti-Money Laundering No. 07/2012/QH13 (the “Law 2012”).
The Law 2022 has supplemented classification provisions for individual customers and regulations on customer identity information to be collected by the reporting subjects.
1. Classification of individual customers
For individual customers, the Law 2012 only divided individual customers into two categories: Vietnamese individual customers and foreign individual customers. However, the Law 2022 has divided individual customers into 5 different categories, including:
- Individuals having one nationality as Vietnamese;
- Individuals having one foreign nationality residing in Vietnam;
- Individuals having one foreign nationality not residing in Vietnam;
- Individuals having multiple nationalities;
- Stateless individuals.
Accordingly, the classification of individual customers pursuant to the Law 2022 is clearer, more detailed, and more specific than those of the Law 2012. The Law 2022 classified individual customers based on their nationality, which has fully covered all cases that may arise in practice. The determination of an individual’s nationality shall be pursuant to the Law on Nationality, the Law on Residence and other relevant regulations. The transparency of the Law 2022 shall assist not only the reporting subjects in collecting information of customers adequately and precisely, but also state management agencies in providing basis for inspection and supervision.
2. Supplementation of information about customer identity to be collected
- For individual customers
Relying on the classification of individual customers, the Law 2022 has supplemented types of information about customer to be collected by the reporting subjects as follows:
- For individual customers having one foreign nationality residing in Vietnam, in addition to personal information, personal legal documents, and address, the reporting subject must collect information about their “contact phone number”.
- For individual customers having one foreign nationality not residing in Vietnam, in addition to personal information and personal legal documents, the reporting subject must collect information about their nationality, occupation, and position.
- For individual customers having multiple nationalities and stateless individuals, in addition to personal information and personal legal documents, the reporting subject must collect information about their nationality, occupation, position, address of residence abroad and in Vietnam.
- For organization customers
- In addition to information about legal information, legal papers, and legal representative, the reporting subject must collect information about website (if any), Director/General Director (in case this person is not simultaneously the legal representative), Chief Accountant or accountant in charge (if any) of the organization.
- Information about Director/General Director, Chief Accountant includes full name, date of birth, nationality, occupation, position, passport number, date of issuance, place of issuance, address of residence abroad (if any), registered address of residence in Vietnam.
3. Supplementation of regulations on customer identity information verification
The Law 2022 has supplemented regulations which allow reporting subjects to exploit information in national databases as per the law through competent state agencies, other organizations or third parties specified in the Law 2022 in order to compare and verify information provided by customers.
The national population database has been being improved and put into use by the Government to facilitate the search, comparision and verification of information. However, the reporting subjects are diverse with various organizations and individuals doing business in imesurable different fields. Therefore, the empowerment of reporting subjects to exploit information in the national database is required to be specifically and strictly regulated, in order to ensure that they shall not take advantage of searching information to disclose personal confidential information.
The Law 2022 shall take effect from March 1, 2023.
Comment: