Decree No. 116/2013/ND-CP of October 4, 2013, detailing a number of articles of the Anti-Money Laundering Law

THE GOVERNMENT

Decree No. 116/2013/ND-CP of October 4, 2013, detailing a number of articles of the Anti-Money Laundering Law

Pursuant to the December 25, 2001 Law on Organization of the Government;

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

At the proposal of the Governor of the State Bank of Vietnam,

The Government promulgates the Government detailing a number of articles of the Anti-Money Laundering Law,

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree details a number of articles of the Anti-Money Laundering Law regarding measures to prevent and combat money laundering; collection, processing and transfer of anti-money laundering information; responsibilities of state agencies for money laundering prevention and combat and international cooperation on anti-money laundering.

Article 2. Subjects of application

1. This Decree applies to the subjects specified in Clauses 1, 2 and 3, Article 2 of the Anti-Money Laundering Law.

2. Other organizations and individuals involved in anti-money laundering activities, including foreign organizations and individuals or stateless persons that neither carry out activities nor reside in the Vietnamese territory but conduct transactions with organizations and individuals mentioned in Clause 1 of this Article.

Chapter II

MEASURES TO PREVENT AND COMBAT MONEY LAUNDERING

Section 1

IDENTIFICATION, REPORTING AND STORAGE OF CLIENT INFORMATION

Article 3. Client identification

1. A financial institution shall apply measures to identify a client in the following cases:

a/ The client opens for the first time accounts, including payment account, savings account, card account and other accounts;

b/ The client establishes for the first time a relationship with the financial institution in order to use products and services provided by the financial institution;

c/ The client conducts infrequent transactions of large value. Infrequent transactions of large value means transactions of a total value of VND 300,000,000 (three hundred million) or more conducted in a day by a client having no payment account or having a payment account but having conducted no transaction within six months or more.

d/ The client conducts electronic money transfer but lacks information on the name, address or account number of the originator;

dd/ There is a doubt that a transaction or parties to a transaction is/are related to money laundering;

e/ There is a doubt about the accuracy or adequacy of previously collected client identification information.

2. Organizations and individuals doing the business of prize-winning games and casino shall take measures to identify clients that conduct financial transactions of a total value of VND 60,000,000 (sixty million) or more in a day.

3. Organizations and individuals providing real estate management, brokerage and trading floor services shall take measures to identify purchasers and sellers in real estate trading brokerage activities; or identify property owners in providing real estate management service.

4. Organizations and individuals trading in precious metals and gems shall apply measures to identify clients that conduct transactions for trading precious metals or gems in cash valued at VND 300,000,000 (three hundred million) or more in a day.

5. Organizations and individuals providing notarization or accounting services; lawyers and law-practicing organizations providing legal services shall apply measures to identify clients when, on clients’ behalf, preparing conditions for conducting transactions or conducting transactions on transfer of land use rights or house ownership; or when providing the service of managing money, securities or other property of clients, managing client accounts at banks or securities companies, executing or managing operation of clients’ companies; or participating in the purchase and sale of business organizations.

6. Organizations and individuals providing the investment entrustment service are those receive money or property from one or many entrusting organizations and individuals for conducting money- or property-related transactions for the latter. Organizations and individuals providing the investment entrustment service shall apply client identification measures to entrusting parties.

7. Organizations and individuals providing enterprise establishment, management and administration services; providing registry offices, business addresses or places; or providing enterprise representation services, shall apply measures to identify clients that use or request such services.

8. Organizations and individuals providing the service of supplying enterprise directors and director secretaries to third parties shall apply client identification measures to such third parties, directors and director secretaries.

9. Organizations and individuals providing the service of supplying shareholder representatives shall apply client identification measures to such shareholders and shareholder representatives.

Article 4. Client identification information and verification of client identification information

1. Identification information of clients that are Vietnamese organizations and individuals or foreigners must include information specified in Clause 1, Article 9 of the Anti-Money Laundering Law.

2. For clients that are stateless individuals, identification information must include full name; date of birth; occupation, position; visa number; visa-granting agency; and registered addresses of places of residence overseas and Vietnam.

3. For an individual client that bears two (2) or more nationalities, in addition to the information specified in Clause 1 of this Article, the reporting subject shall collect additional information on nationalities, registered addresses of places of residence in countries of which he/she bears nationalities.

4. Reporting subjects shall verify client identification information under Article 11 of the Anti-Money Laundering Law.

Article 5. Beneficial owners

1. A reporting subject shall identify a beneficial owner according to the following criteria:

a/ An individual who actually owns an account or a transaction: The account holder, co-holder or any person who dominates activities of and benefits from such account or transaction;

b/ An individual who controls a legal person: The individual who holds at least 10% of the charter capital of such legal person; the individual who holds at least 20% of the charter capital of organizations contributing more than 10% of capital of such legal person; the owner of a private enterprise; or another individual who actually controls such legal person;

c/ An individual who controls an investment entrustment or authorization agreement; an entrusting or authorizing individual; an individual who controls another individual, a legal person or an entrusting or authorizing organization.

2. Identification and verification of identification information of beneficial owners comply with Article 4 of this Decree. For clients that are foreign organizations or organizations with one or several capital contributors being foreign individuals or organizations, reporting subjects shall additionally verify identification information of such foreign individuals or organizations by using documents and data provided by foreign authorities.

Article 6. Classification of clients by risk level

Reporting subjects shall elaborate regulations on client classification by money laundering risk based on the following grounds:

1. Type of client: Residents or non-residents; organizations or individuals; clients on or not on the blacklist or warning list; operation or business fields and methods.

2. Type of product or service used by clients, including those expected to be used: Cash or account transfer service; payment or money transfer or exchange service; brokerage, entrustment or authorization service; life or non-life insurance service.

3. Place of residence or head office location of client: The countries on the list of countries subject to embargo provided in resolutions of the United Nations Security Council; countries publicly listed as those not complying or insufficiently complying with anti-money laundering and counter-terrorism financing recommendations regularly publicized by the Financial Action Task Force; countries, regions and territories assessed as having many drug-related, corruption or money-laundering activities.

4. Other grounds determined by reporting subjects themselves for client classification to suit practical conditions.

Article 7. Agency banking relationship

1. When establishing an agency banking relation, a reporting subject shall collect information on the partner bank under Point b, Clause 1, Article 9 of the Anti-Money Laundering Law and the following information: Purpose of and reason for establishing the relationship; name of the agency managing the partner bank and evaluations and credit ranking of the partner bank by competent authorities or professional organizations.

2. The application of anti-money laundering measures by the partner bank is assessed through:

a/ Internal regulations on anti-money laundering;

b/ Money laundering risk management system;

c/ Internal control and audit system for anti-money laundering.

Article 8. Transactions related to new technologies

1. Transactions related to a new technology are those using such technology to enable clients to conduct transactions without having to meet face-to-face staff members of reporting subjects.

2. When providing a service under Clause 1 of this Article, a reporting subject shall:

a/ Meet face-to-face the client when establishing for the first time the relationship and request the client to provide information specified in Article 4 of this Decree;

b/ Formulate a process of assessing money laundering risks when providing the service using the new technology. Such a process must at least identify and stimulate money laundering risks which may occur in transactions applying the new technology and introduce suitable measures to prevent and minimize arising risks.

Article 9. Transactions of abnormally large value, complex transactions

Transactions of abnormally large value or complex transactions specified at Point a, Clause 1, Article 16 of the Anti-Money Laundering Law are construed as follows:

1. Transaction of abnormally large value means a transaction that is obviously not proportional with income or inconsistent with the value of regular transactions between the client and reporting subject;

2. Complex transaction means a transaction conducted by a method unsuitable to its nature, e.g. it is conducted through many intermediaries or many accounts in an unnecessary manner; it is conducted between different accounts of the same account holder in different geographical areas; or any transaction regarded by the reporting subject as abnormal and subject to close supervision.

Article 10. Business operations through introduction

1. At the request of a reporting subject, an intermediary shall promptly and sufficiently provide client identification information under Article 4 of this Decree.

2. In case the intermediary is a Vietnamese organization, such organization must be subject to management and supervision by a competent Vietnamese agency and shall apply client identification measures and update client information under Article 3 of this Decree, Article 10 of the Anti-Money Laundering Law and the requirements on preservation of reporting dossiers and documents in Article 27 of the Anti-Money Laundering Law.

3. In case the intermediary is a foreign organization, such organization must be subject to management and supervision by a competent agency and shall apply client identification measures, update client information and preserve dossiers in accordance with law of the country where its head office is located or main business operation is conducted. In case the law of such country fails to satisfy or only partly satisfies requirements in recommendations of the Financial Action Task Force, the reporting subject shall take into account the national risk before deciding to or not to rely on the intermediary.

4. In case the intermediary is a subsidiary of a financial group, which has satisfied the requirements specified in Clauses 2 and 3 of this Article, such intermediary is regarded as having fully satisfied the requirements.

Article 11. Guarantee of transparency of legal persons and authorization agreements

1. The stock exchanges mentioned in Clause 1, Article 18 of the Anti-Money Laundering Law shall store and update the following information on a listed enterprise:

a/ Basic information on the listed enterprise: Full and abbreviated transaction names, address of the head office, tax identification number, telephone and facsimile numbers, business lines;

b/ Charter capital;

c/ List of founders and major shareholders;

d/ At-law representative;

dd/ Beneficial owner;

e/ Other information.

2. The business registration agency mentioned in Clause 2, Article 18 of the Anti-Money Laundering Law, which is the Planning and Investment Department of the province or centrally run city, shall collect and preserve the following information on enterprises established and operating in such province or centrally run city:

a/ Basic information on the enterprise: Full and abbreviated transaction names, address of the head office, tax identification number, telephone and facsimile numbers, business lines;

b/ Legal capital, charter capital and registered capital;

c/ List of founders and major shareholders;

d/ At-law representative;

dd/ Beneficial owner;

e/ Other information.

3. Organizations and individuals mentioned in Clause 3, Article 18 of the Anti-Money Laundering Law shall preserve and update the following client information:

a/ Information on authorizing person and authorized person, including information specified in Clauses 1, 2 and 3, Article 4 of this Decree;

b/ Contents of authorization;

c/ Information on the beneficial owner specified in Clause 2, Article 5 of this Decree.

Article 12. Guarantee for transparency in the operation of not-for-profit organizations

1. Not-for-profit organizations that are legal persons or organizations with main operations of raising or allocating capital for charity, religious, cultural, educational, social or similar not-for-profit purposes include foreign non-governmental organizations, social funds and charity funds established and operating in accordance with Vietnamese law.

2. Not-for-profit organizations shall maintain and update:

a/ Information on sponsoring organizations and individuals, including at least full names, addresses and funding amounts;

b/ Information on benefiting organizations and individuals, including at least full names, addresses, funding amounts, sponsoring method and use purposes of funding amounts.

3. Records mentioned in Clause 1, Article 19 of the Anti-Money Laundering Law include:

a/ Information specified in Clause 2 of this Article;

b/ Documents and materials related to the sponsorship and receipt of funding amounts.

4. Records mentioned in Clause 3 of this Article must be preserved by not-for-profit organizations for at least 5 (five) years after the sponsorship or receipt of funding amounts is completed.

5. In case a not-for-profit organization is dissolved or terminates its operation, the records mentioned in Clause 3 of this Article must be handed over to the agency competent to license the establishment or operation of such not-for-profit organization.

6. A not-for-profit organizations shall provide the dossier mentioned in Clause 3 of this Article to competent state agencies, including: the agency managing non-for-profit organizations in inspection and supervision activities; the anti-money laundering agency of the State Bank of Vietnam; and competent investigation, prosecution and adjudication agencies.

7. State agencies competent to manage not-for-profit organizations specified in Clauses 5 and 6 of this Article include the Ministry of Home Affairs (for domestic not-for-profit organizations) and the Ministry of Foreign Affairs (for foreign not-for-profit organizations).

Article 13. Formulation of internal regulations on money laundering prevention and combat

Internal regulations on money laundering prevention and combat mentioned in Article 20 of the Anti-Money Laundering Law must include the following:

1. Client acceptance policy: Depending on the risk level, approving authority and requirements on account opening or transaction establishment dossiers.

2. Process and procedures for client identification, client information verification and update: Decentralized responsibility to identify, regularly update information and assess clients according to risk levels; decentralized powers for accessing or using general information in the system; regulations on identification of clients having accounts or transactions at many branches in the system.

3. Guidance on the process of reporting on transactions, including transactions of large value, electronic money transfer transactions, suspicious transactions, transactions related to money laundering for terrorism financing, transactions related to crimes, transactions related to lists of terrorist and terrorism-financing individuals and organizations under resolutions of the United Nations Security Council; blacklist and warning list.

4. Process of review, detection, handling and reporting of suspicious transactions: Review and analysis of clients and client-related transactions when there are signs of suspicion specified in Clauses 2 and 8, and reporting under Clause 1, Article 22 of the Anti-Money Laundering Law; decentralization of responsibility to each level; handling of reports on suspicious transactions on the basis of analysis and processing of information in the entire system; method of communicating with clients conducting suspicious transactions to prevent information disclosure.

5. Storage and keeping of confidentiality of information: Methods of information storage and use; level of storage.

6. Application of provisional measures and principles of handling cases of delaying transactions: Specific cases in which provisional measures are applied; specific responsibilities of agencies at all levels for application or approval for implementation of requests of functional agencies.

7. Regime of reporting and provision of information to the State Bank of Vietnam and competent state agencies: Method and process of information reporting and provision within prescribed time limits and with required contents.

8. Training in anti-money laundering operations: Formulation of training program, frequency and contents suitable to trainees (management, policy-making and implementation levels), size and organizational structure (head office, branch, regional office) and fields of operation or provided products or services.

9. Internal control and audit of the observance of policies, regulations, processes and procedures related to anti-money laundering: Organizational structure and methods of control and audit; procedures for reporting to competent state agencies within prescribed time limits and with required contents; regulations on handling and remedying detected errors and violations.

Article 14. Reporting of suspicious transactions

1. Reporting subjects shall report on a suspicious transaction upon having doubt or reasonable grounds to suspect that property in the transaction has been acquired from criminal activities or is related to money laundering:

a/ Reasonable grounds to suspect that the property in the transaction has been acquired from criminal activities include: The transaction is requested to be conducted by the accused, defendant or convict as prescribed in the criminal procedure law and the property in the transaction originates from property owned or controlled by such individual or individuals or organizations related to him/her, during or after the commission of the crime;

b/ Reasonable grounds to suspect that the property in the transaction is related to money laundering may be obtained from the examination and analysis of suspicious signs specified in Clauses 2, 3, 4, 5, 6 and 7, Article 22 of the Anti-Money Laundering Law.

2. Reporting subjects shall detect and report to the State Bank of Vietnam on suspicious signs other than those specified in Clauses 2, 3, 4, 5, 6 and 7, Article 22 of the Anti-Money Laundering Law. Reporting subjects shall update, review and detect suspicious signs additionally stipulated by the Prime Minister under Clause 8, Article 22 of the Anti-Money Laundering Law.

3. The reporting of suspicious transactions does not depend on money amounts involved in transactions of clients, whether such transactions have been completed or just intended for performance.

4. Lawyers, public notaries, accountants and independent legal experts shall report on suspicious transactions only when:

a/ They conduct, on clients’ behalf, transactions on transfer of land use rights, house ownership and enterprise ownership;

b/ They manage money, securities or other property for their clients;

c/ They conduct transactions on or manage accounts of their clients at financial institutions;

d/ They administer or manage the operation of their clients’ companies.

Article 15. Declaration and provision of information on cross-border transportation of cash, precious metals, gems and negotiable instruments

1. Upon their entry or exit, individuals carrying foreign currencies in cash, Vietnam dong in cash, precious metals, gems and negotiable instruments (bills of exchange, promissory notes, checks and other negotiable instruments) in excess of the level prescribed by the State Bank of Vietnam shall declare them to the customs.

2. The General Department of Customs shall set declaration forms and guide individuals in making declarations under Clause 1 of this Article.

3. The General Department of Customs shall provide to the State Bank of Vietnam:

a/ On a monthly basis information declared under Clause 1 of this Article, including: Full name of the individual on entry or exit; serial number of the valid passport or entry or exit paper; nationality; time of entry or exit; name of the border gate of entry or exit; destination (for those on exit) or place of departure (for those on entry); address in Vietnam; and value of foreign currency or Vietnam dong in cash, precious metals, gems or negotiable instruments declared;

b/ Other information prescribed by law.

Article 16. Reporting time limit

1. Reporting time limit is counted as follows:

a/ A daily report is made for the form of sending electronic data files within the day of transaction performance;

b/ The reporting time limit for the form of sending written reports or other forms of reporting, including reporting of suspicious transactions, is counted from the date of transaction performance to the date printed on the report envelope with the mail delivery organization’s stamp or the date when the State Bank of Vietnam receives the report directly from the reporting subject.

2. Reporting subjects may choose to report on transactions of large value and electronic money transfer transactions in either of the two forms specified at Point a or b, Clause 1, Article 26 of the Anti-Money Laundering Law.

3. Reporting subjects that choose a form of reporting other than sending electronic data files shall register this form with the State Bank of Vietnam. The change of the form of reporting transactions of large value and electronic money transfer transactions must be notified to the State Bank of Vietnam. The time of notification is the date printed on the report envelope with the mail delivery organization’s stamp or the date when the State Bank of Vietnam receives the notification directly from the reporting subject. The time limit for sending a report is counted from the date following the date of notification.

4. The time limit for sending a report on a suspicious transaction prescribed in Clause 2, Article 26 of the Anti-Money Laundering Law is counted from the time when the transaction is conducted. In case the reporting subject detects suspicious signs of a transaction which is conducted before the prescribed reporting deadline, it shall still send a report on the suspicious transaction on the date of detection. The date of detection of suspicious signs is the date when the reporting subject takes the initiative or is obliged to detect suspicious signs, given the actual and objective circumstances of such suspicious transaction.

5. A report on a transaction showing signs of being related to a crime must be sent to the State Bank of Vietnam and concurrently to a competent state agency. A competent state agency is a public security office or people’s procuracy at the district or higher level in the locality where such transaction is detected.

6. A crime mentioned in this Article is that of a person who has been convicted by a people’s court. The Ministry of Public Security shall coordinate with the Supreme People’s Procuracy and the Supreme People’s Court in summing up, providing and updating once every six months (within the last 10 days of June and December) a list of criminals who are serving their sentences by the time of provision to the State Bank of Vietnam for warning reporting subjects in accordance with the Anti-Money Laundering Law. The State Bank of Vietnam shall receive the list, devise plans on notification and update of the list, and concurrently guide in detail reporting subjects how to access the list.

7. The time limit for sending a report on a transaction showing signs of being related to a crime is counted in working days from the date the reporting subject detects or is obliged to detect such signs, given the actual and objective circumstances of such transaction.

Article 17. Responsibility to report and provide information

1. Reporting subjects shall provide preserved dossiers and documents and relevant information upon request within prescribed time limits. The State Bank of Vietnam and other competent state agencies shall set time limits when requesting the provision of preserved dossiers and documents and relevant information in accordance with the Anti-Money Laundering Law. Such time limit must be suitable to the urgency of the problem, actual and objective circumstances and ability of requested subjects to provide dossiers, documents and information.

2. The Anti-Money Laundering Agency of the State Bank of Vietnam may request all reporting subjects and related agencies, organizations and individuals to provide preserved dossiers and documents and information relevant to reported transactions in accordance with the Anti-Money Laundering Law.

3. Preserved dossiers and documents and relevant information may be directly provided only to the following competent state agencies:

a/ Public security offices or people’s procuracies at district or higher level, for reported crime-related transactions specified in Clause 2, Article 26 of the Anti-Money Laundering Law;

b/ Public security offices or people’s procuracies at all levels, for reported transactions related to cases and clients against which/whom there are criminal case institution decisions and prosecution decisions. Heads or deputy heads of these agencies shall sign requests for provision of dossiers, documents and relevant information;

c/ Investigative security agencies, for transactions related to persons suspected to have committed crimes against national security. Heads or deputy heads of these agencies shall sign requests for provision of dossiers, documents and relevant information;

d/ Tax offices or agencies with the initial investigation function, for transactions related to individuals and organizations suspected to have violated tax laws, custom laws or other relevant laws. Heads or deputy heads of these offices or agencies shall sign requests for information provision;

dd/ State inspectorates or agencies assigned to perform the specialized inspection function while performing tasks under inspection or examination decisions issued by competent authorities.

4. The provision of preserved dossiers and documents and relevant information must be made only once at the request of competent agencies. In case of necessity, the provision may be made several times provided it is clearly stated in the request for information provision. When requesting multiple provision, competent agencies shall notify the cessation of the provision of dossiers, documents and information to organizations and individuals that no longer need such dossiers, documents and information.

Article 18. Reporting of acts of money laundering for terrorism financing

1. Acts of money laundering for terrorism financing are those committed by organizations and individuals to legalize the origin of property acquired through criminal activities to finance terrorist organizations, individuals or acts.

2. Grounds for believing that an organization or individual commits an act related to money laundering for terrorism financing include:

a/ It/he/she conducts or intends to conduct a transaction related to an organization or individual listed in relevant resolutions of the United Nations Security Council;

b/ It/he/she conducts or intends to conduct a transaction related to an organization or individual on a list of terrorist and terrorism-financing organizations and individuals made by another international organization or country and warned by the State Bank of Vietnam;

c/ It/he/she conducts or intends to conduct a transaction related to an organization or individual that has been convicted for the crime of terrorism or terrorism financing in Vietnam;

d/ It/he/she conducts or intends to conduct a transaction related to a terrorist or terrorism-financing organization or individual known to the reporting subject through other information sources.

3. Prompt reporting under Clause 1, Article 30 of the Anti-Money Laundering Law means reporting upon discovering that organizations or individuals conducting transactions are on the blacklist or upon having the grounds specified in Clause 2 of this Article.

4. The State Bank of Vietnam shall guide reporting subjects in implementing Clause 1, Article 30 of the Anti-Money Laundering Law in accordance with the anti-money laundering law and the counter-terrorism law.

5. Reporting subjects shall apply preventive measures specified in Articles 3, 4, 5, 6, 8, 10, 13 and 14 of this Decree to ensure prompt reporting under Clause 3 of this Article.

Section 2

COLLECTION, PROCESSING AND TRANSFER OF ANTI-MONEY LAUNDERING INFORMATION

Article 19. Collection and processing of information

1. The Anti-Money Laundering Agency of the State Bank of Vietnam shall receive and collect information, documents and dossiers related to reported transactions in accordance with the Anti-Money Laundering Law.

2. The Anti-Money Laundering Agency of the State Bank of Vietnam may request related organizations and individuals (reporting subjects; agencies, organizations and individuals preserving dossiers and documents related to transactions, and parties involved in transactions) to provide information, documents, dossiers and other information necessary for the analysis and transfer of information about money laundering.

Article 20. Transfer of information

1. The Anti-Money Laundering Agency of the State Bank of Vietnam shall transfer information or case files to competent investigative agencies when having reasonable grounds for suspecting that transactions indicated in information and reports are related to money laundering or money laundering for terrorism financing.

2. Grounds for suspecting that a transaction indicated in information or a report is related to money laundering are considered reasonable when:

a/ The transaction is related to an organization or individual on the blacklist;

b/ The transaction is related to an organization or individual that is investigated, prosecuted or tried by a functional agency of Vietnam or another country or territory in the world;

c/ The transaction is related to an organization or individual on the warning list of the State Bank of Vietnam or another country or territory in the world;

d/ The transaction is related to a convict as prescribed by the criminal procedure law;

dd/ The transaction is conducted in a very short time and related to many organizations and individuals in different countries and territories but without any economic basis or with insufficient transaction documents;

e/ Other transactions which are found by the Anti-Money Laundering Agency of the State Bank of Vietnam, based on its practical experience and international experience, to be possibly related to criminal activities.

3. Grounds for identifying acts related to money laundering for terrorism financing:

a/ The provisions of Clause 2, Article 18 of this Decree;

b/ Other transactions which are found by the Anti-Money Laundering Agency of the State Bank of Vietnam, based on its practical experience and international experience, to be possibly related to activities of money laundering for terrorism financing.

4. Competent investigative agencies mentioned in Clause 1 of this Article include:

a/ Investigative agencies of the Ministry of Public Security;

b/ Investigative agencies of the Ministry of National Defense;

c/ Investigative agencies of the Supreme People’s Procuracy;

d/ Agencies competent to conduct initial investigation.

5. When receiving information or case files under Clause 1 of this Article, competent investigative agencies specified in Clause 4 of this Article shall classify and process them in accordance with the provisions of the criminal procedure law on receipt and handling of crime reports and denunciations, preserve received information, reports and documents according to the confidentiality regime, and reply to the Anti-Money Laundering Agency of the State Bank of Vietnam right after obtaining handling results.

Article 21. Exchange of information

1. The State Bank of Vietnam shall coordinate and exchange information with competent agencies under Article 32 of the Anti-Money Laundering Law in the following cases:

a/ At the request of competent investigative agencies;

b/ At the request of people’s procuracies at all levels or military procuracies at all levels;

c/ At the request of people’s courts at all levels or military courts at all levels.

2. Competent agencies mentioned in Clause 1 of this Article shall preserve received information, reports and documents according to the confidentiality regime and notify related handling results to Anti-Money Laundering Agency of the State Bank of Vietnam in accordance with law.

3. The State Bank of Vietnam shall take the initiative in exchanging with related ministries, sectors and units the following information:

a/ Information on transactions, organizations and individuals suspected to have committed illegal acts for the anti-money laundering purposes;

b/ Information on irrationalities in mechanisms, policies and state management for the anti-money laundering purposes.

4. The State Bank of Vietnam, competent agencies mentioned in this Article and related ministries and sectors may jointly issue regulations on coordination and information exchange to ensure the quick and effective coordination and information exchange.

Section 3

APPLICATION OF PROVISIONAL MEASURES

Article 22. Transaction delay

1. Transaction delay prescribed in Article 33 of the Anti-Money Laundering Law means refusal to conduct a transaction for 3 working days at most from the date of commencement of application of this measure, serving as the form of temporary blocking pending an official decision of a competent state agency. After 3 working days from the date of commencing the transaction delay, if the reporting subject receives no reply from the competent state agency, it may conduct the transaction.

2. Reporting subjects shall apply transaction delay upon detecting that parties involved in transactions are on the blacklist.

3. Grounds for believing that a transaction requested to be conducted is related to criminal activities include:

a/ The transaction is requested by a convict under the criminal procedure law to be conducted and property in such transaction originates from property owned or controlled by such individual or property of an organization owned or controlled by such individual during or after the commission of the crime;

b/ The transaction is specified in Clause 2, Article 18 of this Decree.

4. When applying transaction delay, reporting subjects shall promptly report in writing and notify it via telephone to competent state agencies and concurrently report it to the State Bank of Vietnam for coordination.

5. In case of necessity, the State Bank of Vietnam and competent state agencies may request reporting subjects to apply the measure of transaction delay.

6. Competent state agencies mentioned in Clauses 1, 4 and 5 of this Article include:

a/ Investigative agencies at all levels;

b/ People’s procuracies at all levels and military procuracies at all levels.

c/ People’s courts at all levels and military procuracies at all levels.

The above competent state agencies shall promptly process reports on application of the measure of transaction delay in accordance with the anti-money laundering law and the counter-terrorism law.

7. Reporting subjects shall take no legal responsibility for consequences of the application of the measure of transaction delay under this Article.

Article 23. Blocking of accounts

1. Reporting subjects shall block accounts upon having account blocking decisions of competent state agencies.

2. Presidents of people’s courts, presidents of military courts, chairpersons of people’s procuracies, chairpersons of military procuracies, and heads of investigative agencies may issue decisions to request reporting subjects to apply the measure of account blocking and shall take responsibility for such decisions.

3. A decision on account blocking must be in writing and contain at least the following details: Account number or name of the organization or individual concerned; name of the reporting subject required to apply the measure of accounting blocking; time and time limit for account blocking; and reason for requesting account blocking.

4. Reporting subjects shall report to the State Bank of Vietnam upon applying the measure of account blocking under Clause 1 of this Article.

5. The State Bank of Vietnam shall coordinate with related agencies in handling blocked accounts under Clause 1 of this Article.

Chapter III

RESPONSIBILITIES OF STATE AGENCIES IN MONEY-LAUNDERING PREVENTION AND COMBAT

Article 24. Responsibilities of the State Bank of Vietnam

1. To take responsibility before the Government for performing the state management of money laundering prevention and combat through the following measures:

a/ Coordinating with the Ministry of Justice in proposing to the Government the program on elaboration of legal documents on anti-money laundering;

b/ Assuming the prime responsibility for, and coordinating with related ministries and sectors in, periodically assessing money-laundering risks in Vietnam; elaborating and submitting to competent authorities for approval and promulgation national anti-money laundering strategies and plans;

c/ Coordinating with the Ministry of Home Affairs, the Ministry of Finance and other related ministries and sectors in reviewing, summarizing, reporting and proposing plans and measures to ensure organizational structure, human resources, finance and technical foundations of anti-money laundering units;

d/ Assisting the Prime Minister in directing ministries and sectors in coordinating with the Supreme People’s Court and the Supreme People’s Procuracy in money laundering and terrorism financing prevention and combat.

2. To promulgate legal documents guiding the anti-money laundering law.

3. To promptly notify to the competent counter-terrorism agency information on money laundering for terrorism financing under Clause 3, Article 20 of this Decree and the counter-terrorism law.

4. To cooperate, exchange information with and provide information to competent domestic agencies under Articles 20 and 21 of this Decree.

5. To inspect, examine and supervise anti-money laundering activities of reporting subjects under their state management; handle or propose to competent authorities for handling violations of the anti-money laundering law.

6. To implement international cooperation on anti-money laundering:

a/ To propose to competent authorities, assume the prime responsibility for, and coordinate with the Ministry of Foreign Affairs and related ministries and sectors in, negotiation for, conclusion and organization of implementation of treaties and international agreements on anti-money laundering;

b/ To act as the focal point for negotiation for and conclusion of international agreements on exchange of anti-money laundering information; to exchange information with foreign anti-money laundering agencies and other agencies and organizations under Article 27 of this Decree;

c/ To act as the focal point for participating in and organizing the performance of the obligations of Vietnam as a member of the international anti-money laundering organizations;

d/ To act as the focal point for research, training, information and technical assistance, and exchange of experience in anti-money laundering.

7. To perform other responsibilities prescribed in Article 37 of the Anti-Money Laundering Law.

Article 25. Responsibilities of the Ministry of Public Security

1. To receive, collect and process information transferred from the Anti-Money Laundering Agency of the State Bank of Vietnam, information provided by reporting subjects in accordance with the Anti-Money Laundering Law and this Decree; to notify relevant processing results to the Anti-Money Laundering Agency.

2. To annually review money laundering-related cases and exchange review results with the State Bank of Vietnam; to coordinate with the State Bank of Vietnam in elaborating documents for popularization and warning of new methods, tricks and activities of money launderers at home and abroad.

3. To annually send to the State Bank of Vietnam review reports on the performance of its responsibilities for anti-money laundering in the Vietnamese territory for summarization and submission to the Government.

4. To assume the prime responsibility for, and coordinate with related ministries and sectors in, proposing the elaboration and promulgation of, or promulgate according to its competence, legal documents on money laundering prevention and combat.

5. To perform other responsibilities prescribed in Article 38 of the Anti-Money Laundering Law.

Article 26. Responsibilities of other ministries and sectors

1. To coordinate with the State Bank of Vietnam in performing the state management of anti-money laundering activities:

a/ To study and propose improvements of the legal framework on anti-money laundering in the fields under their management;

b/ To periodically assess and propose measures to handle money laundering risks in the fields under their management;

c/ To designate and ensure organizational structure, human resource, finance and technical foundation of their focal points and units in charge of money laundering prevention and combat;

2. To guide and direct units in the system and reporting subjects under their management to apply anti-money laundering measures.

3. To inspect and examine anti-money laundering activities of reporting subjects under their management:

a/ To conduct inspection and examination on a regular basis or at the request of the Anti-Money Laundering Agency of the State Bank of Vietnam; to notify inspection and examination results to the Anti-Money Laundering Agency of the State Bank of Vietnam;

b/ To notify the Anti-Money Laundering Agency of the State Bank of Vietnam of suspicious transactions reported to them or they detect through inspection or examination;

c/ To handle or propose competent authorities for handling violations of the anti-money laundering law.

4. To coordinate and exchange information with the State Bank of Vietnam and related ministries, sectors and units:

a/ To promptly summarize and notify any change in the list of reporting subjects under their management to the Anti-Money Laundering Agency of the State Bank of Vietnam;

b/ To coordinate, exchange and process information specified in Article 21 of this Decree;

c/ To coordinate, exchange, provide and process money laundering-related information in the course of inspection, investigation, prosecution and trial.

5. To annually send review reports on money laundering prevention and combat to the State Bank of Vietnam for summarization and submission to the Government.

6. To perform other responsibilities prescribed in the Anti-Money Laundering Law.

7. Other ministries and sectors mentioned in this Article are those managing reporting subjects specified in Clauses 3 and 4, Article 4 of the Anti-Money Laundering Law, including:

a/ The Ministry of Finance, which manages reporting subjects engaged in one or several of the following operations: securities issuance consultancy or underwriting, securities distribution agency; management of investment capital portfolios; management of cash or securities for other organizations and individuals; provision of insurance and life insurance-linked investment services; provision of accounting services; business of prize-winning games and casino;

b/ The Ministry of Construction, which manages reporting subjects engaged in one or several of the following operations: provision of real estate management and brokerage services; operation of real estate trading floors;

c/ The Ministry of Natural Resources and Environment, which manages reporting subjects engaged in one or several of the following operations: provision of land managements and trading brokerage services; transfer of land use rights;

d/ The Ministry of Planning and Investment, which manages reporting subjects engaged in one or several of the following operations: provision of investment entrustment services; enterprise establishment, management and governance; services of supplying enterprise directors and secretaries to third parties;

dd/ The Ministry of Justice, which manages reporting subjects engaged in one or several of the following operations: provision of notarization services; provision of legal services of lawyers and law-practicing organizations;

e/ The Ministry of Industry and Trade, which manage reporting subjects trading in precious metals and gems.

Chapter IV

INTERNATIONAL COOPERATION ON MONEY LAUNDERING PREVENTION AND COMBAT

Article 27. International cooperation on exchange of anti-money laundering information and documents

1. Types of information and documents which may be exchanged with or provided to foreign partners:

a/ Legal documents, general information on anti-money laundering mechanisms and policies; general information on money laundering prevention and combat in each field; information on international cooperation on money laundering prevention and combat;

b/ Information in official reports on implementation of resolutions of the United Nations Security Council;

c/ Information and reports within the framework of implementation of treaties, international commitments and memoranda of understanding which Vietnam has signed;

d/ General and detailed information to support the handling of suspicious transactions;

dd/ General and detailed information to support the investigation, prosecution and trial of criminals;

e/ Other information summarized and submitted by the State Bank of Vietnam to the Government for decision.

2. Forms of exchange and provision of information and documents:

a/ Information and documents and requests for provision of information and requests specified at Points a, b and c, Clause 1 of this Article must be in writing or sent via e-mail, facsimile or other electronic media;

b/ Information and documents and requests for provision of information and requests specified at Points d, dd and e, Clause 1 of this Article must be in writing.

3. Contents of requests

a/ A written request for exchange or provision of information and documents must at least contain the following details: name of the requested organization or country, address, telephone number, facsimile number and email address; name of the requesting organization or country, address, telephone number, facsimile number and email address; specific information to be exchanged or provided; grounds and reasons for requesting information exchange or provision; users and use purposes of provided information and documents; time limit for information exchange or provision; characteristics and details of cases to support the identification of the place of storage of information and documents to be exchanged or provided; copies of documents, evidences or final decisions of competent agencies of the requesting country; name and title of the competent person signing the written request or the seal of the requesting organization (if any);

b/ Letters or facsimiles requesting information exchange or provision must contain the following details: name of the requested organization or country; name of the requesting organization or country, address, facsimile and email address; specific information to be exchanged or provided; grounds and reasons for requesting information exchange or provision; users and use purposes of provided information and documents; name and title of the competent person signing the written request.

4. Requests for information exchange or provision may be rejected in the following cases:

a/ Information requested to be exchanged or provided may cause harms to the national sovereignty and security or other important interests of Vietnam;

b/ Information requested to be exchanged or provided is not conformable with treaties to which the Socialist Republic of Vietnam is a contracting party or international agreements which Vietnam has signed and other Vietnamese laws;

c/ The requests do not fully contain the details specified in Clause 3 of this Article.

5. Agencies and organizations which may undertake international cooperation on exchange and provision of anti-money laundering information:

a/ The State Bank of Vietnam may exchange and provide information or act as the focal point for exchange and provision of information specified in Clause 1 of this Article;

b/ The Ministry of Foreign Affairs shall assume the prime responsibility for, and coordinate with related agencies in, providing or guiding related agencies in providing information specified at Points b and c, Clause 1 of this Article;

c/ The Ministry of Public Security and the Ministry of Justice shall, depending on their functions and tasks, coordinate with the Supreme People’s Procuracy and Supreme People’s Court in exchanging and providing information specified at Point dd, Clause 1 of this Article;

d/ Ministries, sectors and other agencies attached to the Government shall, depending on their functions and tasks, exchanging and providing information specified at Point a, Clause 1 of this Article, and at the same time promptly notify in writing the contents, time, involved parties and other international cooperation programs to the State Bank of Vietnam or the agencies mentioned at Point c of this Clause.

Article 28. International cooperation on identification and blocking of property of money launderers

1. The process and procedures for identifying and blocking property of money launderers comply with the Law on Legal Assistance, treaties to which the Socialist Republic of Vietnam is a contracting party, the Criminal Procedure Code and other relevant laws.

2. Requests for identification and blocking of Vietnam-based property of overseas money launderers must comply with the provisions of Point a, Clause 3, Article 27 of this Decree and be sent to the Ministry of Justice together with court rulings or judgments that persons having Vietnam-based property requested to be identified and blocked are money launderers.

Article 29. Provision of legal assistance and cooperation in the extradition of money laundering criminals

1. The process, procedures and method of legal assistance in anti-money laundering comply with the Law on Legal Assistance and the Criminal Procedure Code, treaties to which the Socialist Republic of Vietnam is a contracting party, and agreements on legal assistance between Vietnam and other countries.

2. The process, procedures and method of cooperation in the extradition of money laundering criminals comply with the Law on Legal Assistance and the Criminal Procedure Code, treaties to which the Socialist Republic of Vietnam is a contracting party, and agreements on legal assistance between Vietnam and other countries. The Ministry of Public Security shall act as the focal point for implementing and making requests for cooperation in the extradition of money laundering criminals.

Chapter V

IMPLEMENTATION PROVISIONS

Article 30. Effect

1. This Decree takes effect on October 10, 2013.

2. This Decree replaces the Government’s Decree No. 74/2005/ND-CP of June 7, 2005, on money laundering prevention and combat.

Article 31. Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG