Circular No. 12/2011/TT-BXD dated September 01, 2011 of the Ministry of Construction guiding some provisions of the Government’s Decree No. 74/2005/ND-CP of June 7, 2005, on prevention and combat of money laundering in real estate business

GUIDELINES ON PREVENTION AND COMBAT OF MONEY LAUNDERING IN REAL ESTATE BUSINESS

On September 01, 2011, the Ministry of Construction issued the Circular No. 12/2011/TT-BXD guiding some provisions of the Government’s Decree No. 74/2005/ND-CP of June 7, 2005, on prevention and combat of money laundering in real estate business.

In this Circular, the Ministry of Construction requests reporting organizations to elaborate and issue their own internal anti-money laundering regulations in pursuance to Decree No. 74/2005/ND-CP, this Circular and relevant legal documents so as to detect and prevent organizations and individuals from conducting money laundering activities via their organizations.

Internal anti-money laundering regulations include: Processes and procedures for identifying and updating information on customers and beneficiaries, measures for verifying information on customers and beneficiaries in case of suspicious transactions; Processes for reviewing, detecting, handling and reporting on suspicious transactions to competent state agencies; Regulations on provisional measures to be applied in money laundering prevention and combat and principles of handling cases of delaying or rejecting transactions…

Based on their operational scope, ambit and characteristics, reporting organizations shall decide to assign some staff members (or their leaders) or set up specialized sections to take charge of money laundering prevention and combat. Reporting organizations shall register their addresses, telephone and fax numbers; names, addresses and positions of staff members or sections in charge of money laundering prevention and combat with competent state agencies for contact in case of necessity.

Reporting organizations’ staff members or sections in charge of money laundering prevention and combat have the following major functions and tasks: To receive and verify information on suspicious transactions reported by related staffs, divisions or sections; To make, sign and take responsibility for the contents of reports on suspicious transactions; To make and sign reports on anti-money laundering activities of their organizations as required by law and competent state agencies; To elaborate and implement anti-money laundering programs, policies and strategies within their organizations…

When detecting a suspicious transaction, reporting organizations shall report it in to the Anti-Money Laundering Office under the Banking Inspection and Supervision Agency - the State Bank of Vietnam and the House and Real Estate Market Management Department - the Ministry of Construction. When necessary, reporting organizations may report it to these agencies via fax or telephone but they shall send a written report later.