Anti-money laundering, no impact on businesses

Transactions of 400 million VND or more must be reported to the State Bank.

According to Decision 11/2023/QD-TTg of the Prime Minister, from December 1, 2023, transactions with a value of VND 400 million or more must be reported to the State Bank.

This Decision stipulates the level of large-value transactions that must be reported to the State Bank of Vietnam according to the provisions of Clause 2, Article 25 of the Law on Anti-Money Laundering (The Prime Minister decides the level of large-value transactions that must be reported in accordance with socio-economic conditions in each period).

Transactions from 400 million must be guaranteed against money laundering without affecting the business, image 1 — From December 1, 2023, transactions of VND400 million or more must be reported to the State Bank. This decision is considered appropriate, contributing to anti-money laundering and not affecting business operations. Illustrative photo

Reporting entities are financial institutions, organizations and individuals doing business in related non-financial sectors as prescribed in Clauses 1 and 2, Article 4 of the Law on Anti-Money Laundering 2022, including:

Financial institutions are licensed to perform one or more of the following activities: Receiving deposits; Lending; Financial leasing; Payment services; Payment intermediary services; Issuing transfer instruments, bank cards, money transfer orders; Bank guarantees, financial commitments;

Providing foreign exchange services, monetary instruments in the money market; Securities brokerage; securities investment consulting, securities underwriting; Securities investment fund management; securities investment portfolio management; Life insurance business; Currency exchange.

Organizations and individuals doing business in relevant non-financial sectors and professions as prescribed by law carry out one or several activities: Business of prize-winning games, including: prize-winning electronic games; games on telecommunications networks, the Internet; casino; lottery; betting;

Real estate business, except for real estate leasing, sub-leasing and real estate consulting services; Trading in precious metals and gemstones; Accounting services; providing notary services; providing legal services of lawyers and law practice organizations; Providing services for establishing, managing and operating enterprises; providing director and company secretary services to third parties; providing legal agreement services.

Contribute to anti-money laundering without affecting businesses

Dr. Can Van Luc, Chief Economist of BIDV and Director of BIDV Training and Research Institute; Member of the National Financial and Monetary Policy Advisory Council and Member of the National Committee for Pacific Economic Cooperation (VNCPEC) said that this Decision was implemented in accordance with the Law on Anti-Money Laundering passed by the National Assembly.

Mr. Luc assessed that this Decision does not affect the business's operations and the figure of 400 million VND is appropriate.

“Before the Law was passed, the appropriate number was discussed very carefully. Now that there are specific instructions, we are ready to apply them,” said Mr. Luc.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, assessed that the effective date of Decision 11/2023/QD-TTg is in the right direction.

“The previous Anti-Money Laundering Law stipulated that transactions over VND300 million must be reported. Raising this level to VND400 million is also normal. This is not tightening but loosening,” Mr. Chau commented.

According to Mr. Chau, the amounts that may pose risks in money laundering must be reported. As for reporting, the State Bank will use artificial intelligence and statistical risk assessment. This is if according to current regulations.

In terms of the real estate industry, when deciding to make a transaction of 400 million VND or more, it must be reported to the State Bank, which does not affect businesses.

Mr. Chau said that Vietnam is a member of the United Nations Convention on Anti-Money Laundering, so it has issued the Law on Anti-Money Laundering in 2020 and has just been amended. Real estate is one of the areas with high risks of money laundering, so there must be regulations.

However, this provision applies not only to real estate but also to all other valuable transactions.

Source