Circular No. 20/2019/TT-NHNN dated November 14, 2019 of the State Bank of Vietnam on amending and supplementing a number of articles of Circular No. 35/2013/TT-NHNN of December 31, 2013, guiding a number of provisions on anti-money laundering

CIRCULAR

Amending and supplementing a number of articles of Circular No. 35/2013/TT-NHNN of December 31, 2013, guiding a number of provisions on anti-money laundering^[1]

Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;

Pursuant to the June 18, 2012 Anti-Money Laundering Law;

Pursuant to the June 12, 2013 Counter-Terrorism Law;

Pursuant to the June 23, 2014 Customs Law;

Pursuant to the Government’s Decree No. 116/2013/ND-CP of October 4, 2013, detailing a number of articles of the Anti-Money Laundering Law;

Pursuant to the Government’s Decree No. 87/2019/ND-CP of November 14, 2019, amending and supplementing a number of articles of Decree No. 116/2013/ND-CP of October 4, 2013, detailing a number of articles of the Anti-Money Laundering Law;

Pursuant to the Government’s Decree No. 122/2013/ND-CP of October 11, 2013, prescribing circulation suspension, freezing, sealing, temporary seizure and disposal of money and assets related to terrorism and terrorism financing; and compilation of the list of organizations and individuals involved in terrorism or terrorism financing;

Pursuant to the Government’s Decree No. 16/2017/ND-CP of February 17, 2017, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Chief of the Banking Supervision Agency;

The Governor of the State Bank of Vietnam promulgates the Circular amending and supplementing a number of articles of Circular No. 35/2013/TT-NHNN of December 31, 2013, guiding a number of provisions on anti-money laundering.

Article 1.To amend and supplement a number of articles of Circular No. 35/2013/TT-NHNN of December 31, 2013, guiding a number of provisions on anti-money laundering

1. To amend and supplement Article 1 as follows:

“Article 1. Scope of regulation

This Circular provides measures of intensive assessment of high-risk customers; update of customer information; notification of the list of foreigners with political influence; terrorism financing prevention and combat; contents and forms of reports; high-value transactions, suspicious transactions, electronic money-transfer transactions and acts of money laundering for terrorism financing; and value of foreign-currency cash, Vietnam-dong cash, precious metals, gems and negotiable instruments subject to customs declaration, and papers to be produced to border-gates customs offices by persons on exit or entry who carry foreign-currency or Vietnam-dong cash, precious metals and gems.”

2. To add the following Article 3a:

“Article 3a. Assessment of money laundering and terrorism financing risks

Reporting subjects shall:

1. Base themselves on results of assessment of money laundering or terrorism financing risks in their countries, sectors and fields to assess money laundering and terrorism financing risks in order to thoroughly understand money laundering and terrorism financing risks (for customers, countries or geographic areas, products, services, transactions or distribution channels). Assessment results shall be approved and signed for issuance by Boards of Directors or Directors General.

2. Base themselves on results of assessment of money laundering and terrorism financing risks to develop a policy and process of management of risks found through risk assessment reports. Such policy and process shall be approved and signed for issuance by Boards of Directors or Directors General.

3. Annually update, amend or supplement results of assessment of money laundering and terrorism financing risks and issued policy and process of risk management.

4. Send results of assessment or update of money laundering and terrorism financing risks and policies and processes of risk management to the State Bank of Vietnam (the Anti-Money Laundering Agency) and state agencies directly managing them within 30 days after they are signed, issued or amended or supplemented and, at the same time, announce and publicize them in their systems.

5. Policies and processes of risk management include measures of intensive control applicable to high risks of money laundering and terrorism financing, and simple control measures applicable to low risks of money laundering and terrorism financing.

6. For international electronic money transfer transactions, based themselves on results of assessment of money laundering and terrorism financing risks, beneficiary-serving reporting subjects and intermediary organizations shall base themselves on risks to develop policies and procedures to determine:

a/ Eligible transactions;

b/ Appropriate handling measures, including transaction rejection or suspension, or post-transaction supervision in case of lack of information on remitters and beneficiaries prescribed at Point c, Clause 2, Article 7 of this Circular.”

3. To add the following Article 3b:

“Article 3b. Responsibility to update customer information

Based on know-your-customer measures, reporting subjects shall regularly update collected information, data, risks and business relationship of customers into their databases.”

4. To amend the title and Point c, Clause 2, of Article 7 as follows:

“Article 7. Electronic money transfer transactions”

“c/ Individuals and institutions being money transferrers or beneficiaries:

(i) For an individual: full name; people’s identity card or citizen’s identity card or valid passport number; account number (if any); transaction code; transacted amount and currency used in the transaction; contact address; permanent residence address or temporary residence address; and country;

(ii) For an institution: name; tax identification number; enterprise registration certificate number; account number; transaction code; transacted amount and currency used in the transaction; contact address; headquarters address; and country;

(iii) For domestic electronic money transfer: If remitters and beneficiaries are foreigners, in addition to the information specified at Points c(i)  and c(ii) of this Clause, information on entry visa number (if any) and residence address abroad and in Vietnam are required;

(iv) For money transfer from Vietnam to foreign countries: Information on individual beneficiary (people’s identity card or citizen’s identity card or valid passport number) or institutional beneficiary (tax identification number and enterprise registration certificate number) is not required;

(v) For money transfer from foreign countries to Vietnam: Information on  the transferring individual (people’s identity card or citizen’s identity card or valid passport number) or transferring institution (tax identification number and enterprise registration certificate number) is not required.”

5. To add the following Clauses 5, 6 and 7 to Article 7:

“5. For an international electronic money transfer transaction valued at USD 1,000 or more, beneficiary-serving reporting subjects shall verify and identify beneficiaries under Article 11 of the Anti-Money Laundering Law and store information under regulations.

6. During and after transactions, beneficiary-serving reporting subjects shall take supervisory measures to detect international electronic money-transfer transactions which lack information on creators and beneficiaries as specified at Point c, Clause 2 of this Article and apply the measures prescribed at Point b, Clause 6 of Article 3a to handle them.

7. Reporting subjects shall apply measures of circulation suspension, freezing of accounts, sealing, and temporary seizure of money and assets, and comply with regulations on prohibited transactions involving designated entities and individuals on the list under the United Nations Security Council’s resolutions related to terrorism and terrorism financing or on the blacklist made by the Ministry of Public Security in accordance with law.”

6. To amend and supplement Clause 1, Article 8 as follows:

“1. When detecting or having grounds to believe that an entity or individual is on the list of designated entities and individuals under the United Nations Security Council’s resolutions or on the blacklist made by the Ministry of Public Security in accordance with law, or that another entity or individual commits an act related to terrorism financing or money laundering for terrorism financing, reporting subjects shall report such to the counter-terrorism force under the Ministry of Public Security and Anti-Money Laundering Agency under Article 10 of this Circular.”

7. To amend and supplement Point c, Clause 2, Article 8 as follows:

“c/ For an entity or individual committing an act related to terrorism financing or money laundering for terrorism financing: name; nationality; and other information such as people’s identity card or citizen’s identity card or valid passport number, business registration certificate or enterprise registration certificate number, tax identification number, address, account number, and transaction code;”

8. To amend the title of, and add the following Clause 4 to, Article 9:

“Article 9. Value of foreign-currency or Vietnam-dong cash, precious metals, gems and negotiable instruments subject to customs declaration and papers to be produced to border-gate customs offices by persons on exit or entry who carry foreign-currency or Vietnam-dong cash, precious metals and gems”

“4. Papers to be produced to border-gate customs offices by persons on exit or entry, including residents or non-residents, who carry foreign-currency or Vietnam-dong cash, precious metals and gems subject to customs declaration:

a/ In case of carrying along precious metals and gems (except gold) on exit or entry:

(i) Invoices of enterprises or organizations licensed to trade in precious metals and gems; and other papers proving the lawful origin of precious metals and gems in case of having no invoices;

(ii) Papers to be produced to border-gate customs offices must be originals or certified copies in accordance with law;

b/ In case persons on exit or entry carry foreign-currency or Vietnam-dong cash or gold, relevant papers to be produced to customs offices must comply with the State Bank’s regulations on carrying of foreign-currency and Vietnam-dong cash and gold by persons on entry or exit;

c/ For foreign-language invoices or papers proving the origin:

(i) For a person on exit: certified Vietnamese translation in accordance with law, unless he/she has produced the original or certified copy upon entry;

(ii) For a person on entry: the original or certified copy.”

9. To add the following Article 10b:

“Article 10b. Counter-terrorism financing

1. Reporting subjects shall regularly update the designated list under the United Nations Security Council’s resolutions and the blacklist made by the Ministry of Public Security in accordance with law posted on the portal of the Ministry of Public Security and review customers, relevant parties and transactions against such lists.

2. Reporting subjects shall apply the measures provided in Articles 3 thru 14 and Articles 16 thru Article 18 of the Government’s Decree No. 116/2013/ND-CP of October 4, 2013, detailing a number of articles of the Anti-Money Laundering Law, which was amended and supplemented, to identify customers and apply preventive measures related to terrorism financing and money laundering for terrorism financing.

3. When suspecting that customers or their transactions are related to terrorism financing and money laundering for terrorism financing, reporting subjects shall apply the measure to delay such transactions in accordance with the anti-money laundering law or impose circulation suspension, freezing of accounts, sealing, or temporary seizure of money and assets in accordance with the counter-terrorism law; report suspicious transactions involving terrorism financing and money laundering for terrorism financing to the Anti-Money Laundering Agency; report transaction delay or circulation suspension, freezing of accounts, sealing, or temporary seizure of money and assets to the Ministry of Public Security and Anti-Money Laundering Agency under Article 10 of this Circular.

4. Contents of reports and time limit for sending reports must comply with Clauses 2 and 3, Article 8 of this Circular.”

10. To add the following Article 10c:

“Article 10c. Update of information on customers involved in legal agreements

1. Legal agreement means an agreement established in writing between domestic and foreign institutions and individuals on entrustment and authorization for management and use of money and assets.

2. In addition to the customer information to be collected and updated under Articles 9 and 10 of the Anti-Money Laundering Law, reporting subjects shall request customers who open accounts, establish business relationship or conduct high-value transactions to provide information for determining their participation in a legal agreement, including:

a/ Name of the authorizing or entrusting organization or individual (if any);

b/ Date on which the entrustment or authorization document is issued;

c/ Contents of entrustment or authorization, including value of money or assets entrusted or authorized for transactions;

d/ Country where the entrusting or authorizing organization or individual is established and regulated by law;

dd/ Identification number of the entrustment or authorization issued by a competent state agency (if any);

e/ Identification information on beneficiaries and information on related individuals and organizations (if any).

3. Reporting subjects shall identify, verify and preserve records related to entrustment and authorization, including at least the information specified in Clause 2 of this Article.”

11. To amend and supplement Article 12 as follows:

“Article 12. Implementation responsibility

The Banking Supervision Agency (the Anti-Money Laundering Agency) shall:

1. Report to the Governor on dissemination of national risk assessment results and national action plan to address money laundering and terrorism financing risks to the Ministry of Public Security, Ministry of Finance, Ministry of Construction, Ministry of Natural Resources and Environment, Ministry of Planning and Investment, Ministry of Justice, Ministry of Industry and Trade, Ministry of Information and Communications, Ministry of Home Affairs, Ministry of Foreign Affairs, Ministry of National Defense, Ministry of Transport, Ministry of Science and Technology, Government Inspectorate of Vietnam, Committee for Foreign Non-Governmental Organizations Affairs, and reporting subjects under the state management of the State Bank; and post national risk assessment results and national action plan to address money laundering and terrorism financing risks on the State Bank’s portal.

2. Assume the prime responsibility for, and coordinate with related units in, studying, developing and submitting to the Governor for issuance criteria to assess money laundering and terrorism financing risks for implementation by reporting subjects.

3. Propose the Governor to prescribe the application of measures of intensive assessment appropriate to the degree of money laundering risk in business relationship and transactions by institutions and individuals from countries and territories at high risks of money laundering and terrorism financing made and announced by the Finance Action Task Force (FATF) for implementation by reporting subjects.

4. Propose the Governor to send the list of countries and territories at high risks of money laundering and terrorism financing to the agencies specified in Clause 1 of this Article and reporting subjects after 7 (seven) days from the date on which the FATF makes and announces such list for the application of appropriate measures of intensive assessment.

5. Based on the degree of money laundering and terrorism financing risks to the nation, fields and reporting subjects, advise the Governor to develop plans on inspection, examination and supervision and conduct the inspection, examination and supervision and handling of violations committed by reporting subjects according to its competence.”

Article 2.Implementation responsibility

The Chief of the Office, Chief  of the Banking Supervision Agency, heads of related units of the State Bank of Vietnam, directors of provincial-level branches of the State Bank of Vietnam and reporting subjects defined in Clause 1, Article 2 of Circular No. 35/2013/TT-NHNN shall organize the implementation of this Circular.

Article 3.Implementation provisions and effect

1. This Circular takes effect on November 14, 2019.

2. To annul Clause 5, Article 1 of the Governor of the State Bank of Vietnam’s Circular No. 31/2014/TT-NHNN of November 11, 2014, amending and supplementing a number of articles of the Circular No. 35/2013/TT-NHNN of December 31, 2013, guiding a number of provisions on anti-money laundering.-

For the Governor of the State Bank of Vietnam
Deputy Governor
NGUYEN KIM ANH