As part of ongoing efforts to combat money laundering and illicit financial activities, Vietnam is preparing to implement a new set of regulations specifically targeting high-value transactions. This article will delve into the key provisions of the new anti-money laundering regulation in Vietnam and examine the potential implications it may have on high-value transactions within the country.

1. Background

The AML Law 2022 introduced additional provisions regarding know-your-customer (KYC) procedures, including the option to verify KYC information through outsourced services, allowing KYC via third parties, and expanding the entities responsible for conducting KYC procedures and the individuals obligated to report anti-money laundering activities to the State Bank of Vietnam.

2. Know Your Customer (KYC) 

Consequently, the AML Law 2022 has created a new service industry for businesses in Vietnam. As per this regulation, service providers involved in “verifying customer identification information” only need to establish and operate under Vietnamese laws to take advantage of these provisions. However, it is important to note that Decision No. 27/2018/QD-TTg, which introduces the Vietnam Standard Industrial Classification System (VSIC), does not have specific regulations for this service.
– Third parties can also carry out the KYC procedure, provided they meet certain requirements and criteria
– Reporting high-value and suspicious transactions

3. Conclusion

In conclusion, the implementation of new anti-money laundering regulations regarding high-value transactions marks a significant step towards strengthening financial transparency and combating illicit activities. The AML Law 2022 introduces stricter reporting requirements for financial institutions, ensuring that transactions above a certain threshold are closely monitored and reported to the appropriate authorities. By raising the minimum threshold and providing clearer guidelines on suspicious activities, this regulation aims to enhance the detection and prevention of money laundering and terrorist financing. 
#antimoneylaundering #vietnam

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