Banks are allowed to stop transactions when they suspect the source of money is illegal.

SGGPO 07/10/2023 15:06

For payment accounts suspected of illegal money transfers, banks need to ask customers to come to the counter to verify the information. If there is sufficient evidence, commercial banks can stop the customer's transaction.

Banks can stop transactions when they suspect the source of money is illegal.

In order to prevent and limit the exploitation of opening and using payment accounts for fraudulent, deceptive and illegal purposes, the State Bank of Vietnam (SBV) has just requested banks, foreign bank branches and credit institutions (CIs) to strengthen risk management measures in opening and using payment accounts.

Accordingly, for payment accounts suspected of illegal money transfers, banks need to ask customers to go to the counter to verify information; at the same time, stop providing services on Mobile Banking, or ask customers to authenticate electronic payment transactions using biometrics and digital signatures. In cases where there is sufficient evidence, commercial banks can stop customers' transactions.

In addition, the State Bank also requested credit institutions to review their internal procedures and regulations for opening and using payment accounts. At the same time, it directed officers and employees in all credit institutions to strictly follow the procedures and order for opening payment accounts according to regulations.

The State Bank also requires credit institutions not to open payment accounts based on a pre-made customer list and to keep the information of customers opening accounts confidential. Along with that, banks must speed up the progress of deploying connections to exploit population data to clean data, accurately verify customers; ensure checking and matching the information of customers opening payment accounts with the information stored in the National Population Database to limit the opening of payment accounts using fake identification documents, leasing payment accounts, etc.

In addition, the State Bank also requires credit institutions to proactively research, develop and apply risk management measures in the opening and use of payment accounts to detect and prevent fraudulent acts and the use of payment accounts for illegal purposes. Every month, banks must provide information on payment accounts with signs of suspicion related to fraudulent transactions to the State Bank. The monetary management agency will review, synthesize and build a common database of payment accounts with signs of suspicion of fraud and will research to have a mechanism to share information with credit institutions, contributing to the prevention of fraudulent activities through payment accounts.

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