Directive 02/CT-NHNN on control of virtual currency-related transactions, activities

DIRECTIVE

On measures to enhance control of virtual currency-related transactions and activities

In furtherance of the Prime Minister’s Directive No. 10/CT-TTg of April 11, 2018, on increasing the management of activities related to Bitcoin and other similar virtual currencies (below referred to as virtual currencies), the Governor of the State Bank of Vietnam requests units at the headquarter of the State Bank of Vietnam, provincial-level branches of the State Bank of Vietnam; credit institutions and foreign bank branches (below referred to as credit institutions); and organizations providing intermediary payment services to strictly implement measures to enhance control and handling of virtual currency-related transactions as follows:

I. GENERAL REQUIREMENTS

1. To effectively implement anti-money laundering solution, increase risk control and management measures in order to prevent the abuse of the banking and payment systems for virtual currency trading or exchange or use of virtual currencies as a payment instrument.

2. To increase inspection and examination of anti-money laundering; credit extension; account opening and use; payment, money transfer and other related activities which may be abused for virtual currency transactions so as to ensure credit institutions operate in a safe and sound manner in accordance with law.

II. FOR CREDIT INSTITUTIONS AND ORGANIZATIONS PROVIDING INTERMEDIARY PAYMENT SERVICES

1. Credit institutions and organizations providing intermediary payment services may not provide payment services, perform card transactions, extend credit through cards, support the processing of payment, money transfer, clearing, settlement and currency exchange transactions; and effect cross-border payment and money transfer transactions related to virtual currencies for clients as such activities may give rise risks regarding money laundering, terrorist financing, and tax fraud and evasion.

2. Credit institutions and organizations providing intermediary payment services shall further review and timely report on suspicious transactions related to virtual currencies; review lists of organizations and individuals engaged in virtual currency trading and exchange and organizations processing virtual currency trading and exchange transactions and work out handling measures to ensure compliance with the laws on prevention and combat of money laundering and terrorist financing and foreign exchange management.

III. FOR UNITS AT THE HEADQUARTER OF THE STATE BANK OF VIETNAM

1. On the basis of their assigned functions and tasks, to proactively propose and organize the implementation of solutions for increasing control and handling of virtual currency-related transactions and activities under Points 2 and 3, Section III of this Directive.

2. To proactively coordinate with related ministries and sectors in proposing and formulating a legal framework for managing and dealing with different types of virtual currencies and virtual assets and preventing abuse of the banking and payment systems for virtual currency trading or exchange or illegal use of virtual currencies as a payment instrument.

3. The Banking Supervision Agency shall act as the focal point and coordinate with the Payment Department and other related units under the State Bank of Vietnam in advising and proposing the State Bank Governor on inspection of credit institutions and organizations providing intermediary payment services when deeming necessary or upon occurrence of risks or signs of law violations concerning virtual currencies.

IV. FOR PROVINCIAL-LEVEL BRANCHES OF THE STATE BANK OF VIETNAM

1.  Based on their assigned functions and tasks, to proactively provide information on the Government’s and the State Bank’s policies and instructions and laws concerning virtual currency-related activities to credit institutions and organizations providing intermediary payment services in their localities for knowledge and implementation.

Click download to see the full text