KYC.IO

Global Regulations and Requirements for KYC Onboarding
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KYC to onboard domestic persons

namedate of birthnationalityoccupationpositionpassport numberaddress

KYC to onboard international persons

namedate of birthnationalityoccupationphone numberidentity cardpassport numberpermanent address

corporate requirements

full namedate of birthnationalityoccupationpositionpassport numberdate&place of issue

National ID card name

Giấy chứng minh nhân dân

National ID Photo

back of national id photo back

Does the country have Esignature Laws?

THE ELECTRONIC SIGNATURE LAW IN VIETNAM: A NOTE

E-sig law files

What year did the relevant AML laws and regulations become effective?

2013

Further details on AML regime

Criminal Law issued in 1999 (effective on 01 Jul 2000). Law No. 37/2009/QH12 amending and supplementing some articles of the Criminal Law issued in1999) issued in 2009 (effective on 01 Jan 2010). Law on Credit Institutions issued in 2010 (effective on 01 Jan 2011). Law on anti-money laundering No. 07/2012/QH13 issued in 2012 (effective on 01 Jan 2013). Decree 116/2013/ND/CP issued on 04 Oct 2013. Circular 35/2013/TT-NHNN issued on 31 Dec 2013.

Who is the regulator for AML controls for Banking

Anti-Money Laundering Information Centre under the State Bank of Vietnam (“SBV”)

Link to site

http://www.sbv.gov.vn

Practical Guidance for AML

The new Decree 116/2013 and Circular 35/2013 provide some guidance regarding AML requirements (such as e.g. on customer identification, reporting).

Is there a requirement to verify the identity of customers retroactively?

Retroactive details

No. The Law on anti-money laundering however requests clients’ information must be updated regularly

Has the country been the subject of FATF mutal evaluation in the last 3 years?

The assessment body ‘Asia Pacific Group on Money Laundering (“APG”)’ performed an assessment in 2009

PDF of FATF review

www.apgml.org

Are there minimum transaction thresholds (Y/N)

Yes

More details on minimum transaction thresholds.

Financial institutions must verify clients’ information in certain circumstances such as: when clients open accounts, make transactions of high value, make suspicious transactions or if there is any doubt regarding the client’s identification information. Certain non-financial institutions are required to identify customers: a) casino/gaming businesses; b) real estate management or property services companies, if brokerage services in relation to purchase, sale and management of properties is provided; c) organisations trading in precious metals and gemstones if they carry out transactions in relation to purchase/sale of precious metals/gemstones with large value of cash; d) notaries, accounting and legal services companies, if they carry out certain transactions, e.g. if they act on their customers behalf to make transactions, such as transfer of land use rights, or management of customer’s bank accounts; and e) organisations providing trust services if they carry out certain transactions, such as providing services such as establishment of companies.

What are the requirements for customer identification information for individuals

Article 9 of the Law on anti-money laundering stipulates that the clients’ information must include: a) for individual Vietnamese clients: full name, date of birth, nationality, occupation, position; phone number, identity card number or passport number, date and place of issue and permanent/current address; b) for individual foreign clients: full name, date of birth, nationality, occupation, position; passport number, date and place of issue, visa, overseas/Vietnam address; for corporate clients: full and abbreviated trading name, address of head office, phone number, fax number, areas of operations and business, information on the founder and representatives; and c) information regarding beneficiary. In case of corporate beneficiary: information regarding ownership and control rights.

Details to be Collected on Corporates

Article 9 of the Law on anti-money laundering stipulates that the clients’ information must include: b) for individual foreign clients: full name, date of birth, nationality, occupation, position; passport number, date and place of issue, visa, overseas/Vietnam address; for corporate clients: full and abbreviated trading name, address of head office, phone number, fax number, areas of operations and business, information on the founder and representatives; and c) information regarding beneficiary. In case of corporate beneficiary: information regarding ownership and control rights.

What are the high level requirements around beneficial ownership (identification and verification)?

Under Article 9.2 of the Law on anti-money laundering, it is required to verify the beneficial ownership and apply necessary measures in order to know and update information of beneficial ownership. For corporate clients, it is required to collect information on ownership and control structure to determine the individual with the controlling interest and who has the control of the corporate.

What circumstances are enhanced customer due diligence measures required?

None stated in local regulations or guidance.

How should FI's deal with Politically exposed persons

Article 13 of the Law on anti-money laundering requests financial/specified non-financial institutions to have internal systems to control account opening/transactions with foreign PEPs (including their related persons) and to take measures to identify sources of clients’ assets and to enhance monitoring business relationship/transactions with clients.

What enhanced due diligence must be performed for correspondent banking relationships?

Article 14 of the Law on anti-money laundering requests the following measures upon establishment of agent bank relationships: a) collecting information about the banking partner to identify the nature of business, the partner bank's reputation and ensure the partner bank is subject to supervision and management of the foreign competent management agencies; b) assessing the implementation of measures on prevention of money laundering at the partner bank; c) must be approved by the General Director (Director) or authorised persons before setting up the agent bank relationship; and d) in case the partner bank’s clients can make payment through the partner bank’s accounts opened at the institution, the institution must ensure the partner bank has fully implemented the identification process, updated the client information and that they are able to provide client identification information as required by the institutions.

Are relationships with banks who might be considered a 'shell' and without substance permitted?

Not stated in local regulations.

In what circumstances is additional due diligence required for non face-to-face transactions and/or relationships?

Not specifically mentioned in the regulations. However the Law on anti-money laundering refers in Article 17 to business through “introduction” by a third party.

To whom are SAR's made? (suspicious activity reports)

SBV

Link to website of SAR reporting

http://www.sbv.gov.vn/portal/faces/vi/vim/vipages_trangchu

Other Suspicious or unusual transactions obligations.

Under the Law on anti-money laundering, in addition to suspicious transactions, the following transactions should be reported: a) high value transactions (level of value to be stipulated by the Prime Minister); b) electronic money transfer with value exceeding the threshold stated by the SBV; and c) individuals bringing in currency/gemstones/valuable papers exceeding the threshold stated by the SBV. Based on the Prime Minister’s Decision 20/2013/QD-TTg dated 18 Apr 2013, the value of high value transactions subject to reporting is VND300m (approx. USD14,000). Decree 116/2013, article 3 stipulates that irregular transactions with great value means transactions with the total value of VND 300m or more in a day, conducted by customers who have no account, or who have a settlement account but do not carry out transactions within six months or more.

Are there any de-minimis thresholds below which transactions do not need to be reported?

VND300m

Are there any penalties for non compliance with reporting requirements e.g. tipping off?

Yes, there are penalties for administrative violations.

Are there any requirements (legal or regulatory) to use automated Suspicious Transaction monitoring technology?

No. The Law on anti-money laundering however requires the reporting entity to exercise special supervision of certain transactions, such as transactions with high value or transactions with individuals in countries or territories included in the list published by FATF.

Is there a requirement to obtain authority to proceed with a current/ongoing transaction that is identified as suspicious?

No. The Law on anti-money laundering requests the related institutions to delay the suspicious transaction and report immediately to the authorities.

Does the local legislation allow transactions to be monitored outside the jurisdiction?

Is there a legal requirement for a bank’s external auditor/other external organisation to report on the bank’s AML systems and controls?

No legal requirements. However, within the auditors' responsibility, the auditors may report any material AML issues in the management letter which is mandatory reported to the SBV by the bank.

If an external report on the bank’s AML systems and controls is required: a) how frequently must the report be provided?

N/A

To whom should the report on AML systems be submitted?

N/A

Is an AML system part of the financial statement audit?

N/A

What are the requirements for the content of this external report on a bank’s AML systems and controls? Does it require: a) sample testing of KYC files? b) sample testing of SAR reports? c) examination of risk assessments?

N/A

Data Protection Laws And Personal Data

Vietnam has regulations on “personal data protection", but no clear definition of “personal data”

Data Protection for Corporate Data

no regulation on “corporate data protection”.

Data protection for "sensitive Data" and additional protections.

no definition of “sensitive data”

Do any restrictions on the transfer of credit reports exist?

The Civil Code provides that the use of a personal image and information/data of a person by an organisation(s)/other individual(s) must be agreed by such person in advance. An organisation that unlawfully discloses such image/information as referred above may be taken to court and may be required to pay compensation to the complainant. However, there are no criminal sanctions in this case.

Regulator Acronym

SBV

Year of last FATF mutual evaluation

2016

Verification of docs (domestic individual)

Certified

Field 67

intro from 3rd party

National ID card details

it is compulsory for all Vietnamese citizens over 14.

Compulsory?

National ID source

https://vi.wikipedia.org/wiki/Ch%E1%BB%A9ng_minh_nh%C3%A2n_d%C3%A2n

Passport Photo

practical Guidance yes / no

Is there a risk based approach

Legal Requirement

Requirement to proceed

requirement to use automated suspicious transaction tools

Who are SARS made to?

SBV

shell banks

EDD for correspondent banking

Yes

Personal Data protection

If the AML laws and/or regulations became effective in the last 2 years, what were the requirements of the previous AML regime?

N/A. It is the first time regulations on anti-money laundering have been issued in the form of a law.

Does the country have a risk based approach?

Yes

Where copies of identification documentation are provided, what are the requirements around independent verification or authentication?

Article 11 of the Law on anti-money laundering allows engagement of other organisations to conduct the verification

Is there case law, other constitutional law or any other laws or regulations that may impact upon the transfer of information to this jurisdiction?

List of case law, constitutional law or any other laws or regulations that may impact upon the transfer of information.