HANOI - Starting December 1, 2023, Vietnam will implement a new policy that raises the threshold for mandatory transaction reporting in a bid to reinforce its anti-money laundering measures. As per Prime Minister's Decision 11/2023/QĐ-TTg and updates to the Anti-Money Laundering Law, reports for transactions exceeding 400 million Vietnamese Dong (VND) must be submitted to the State Bank of Vietnam (SBV).
The new directive signifies an increase from the former reporting requirement of 300 million VND and covers a wide range of financial and non-financial entities. Financial institutions involved in financial leasing, payment services, life insurance, securities brokerage, and foreign exchange services are obligated to comply with this regulation.
In addition to these financial institutions, the updated reporting standards also target significant non-leasing real estate transactions and casino operations. Providers of business formation services have been included as well under this regulation.
The SBV's broader mandate now involves notary service providers and lawyers offering legal services, ensuring a comprehensive range of professionals are helping in monitoring and preventing money laundering activities. Entities engaged in payment intermediary services, which include money remittance agencies as well as those supervising prize-winning games like casinos and lotteries, are also required to report transactions above the revised threshold.
By raising the transaction reporting floor, Vietnam aims to fortify its financial system's integrity and align with global standards in combating illicit financial flows. This step is anticipated to heighten transparency across numerous sectors and contribute significantly to the worldwide fight against money laundering.
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