Law on Anti-Money Laundering, No. 07/2012/QH13

THE PRESIDENT

Order No. 05/2012/L-CTN of July 2, 2012, on the promulgation of law

THE PRESIDENT OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to Articles 103 and 106 of the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10 of December 25, 2001, of the X^thNational Assembly, the 10^thsession;

Pursuant to Article 91 of the Law on Organization of the National Assembly;

Pursuant to Article 57 of the Law on Promulgation of Legal Documents,

PROMULGATES

The Anti-Money Laundering Law,

which was passed on June 18, 2012, by the XIII^thNational Assembly of the Socialist Republic of Vietnam at its 3^rdsession.

President of the Socialist Republic of Vietnam
TRUONG TAN SANG

Anti-Money Laundering Law

(No. 07/2012/QH13)

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10;

The National Assembly promulgates the Anti-Money Laundering Law.

Chapter 1

GENERAL PROVISIONS

Article 1.Scope of regulation

1. This Law provides measures to prevent, detect, stop and handle organizations and individuals committing acts of money laundering; responsibilities of agencies, organizations and individuals for anti-money laundering; and international cooperation on anti-money laundering.

2. The prevention and combat of acts of money laundering for the purpose of financing terrorism comply with this Law, the Penal Code and the anti-terrorism law.

Article 2.Subjects of application

1. Financial institutions.

2. Organizations and individuals that conduct relevant non-financial businesses.

3. Vietnamese organizations and individuals; foreigners living in Vietnam or foreign organizations, international organizations and non-governmental organizations operating in the Vietnamese territory that have financial transactions and other property transactions with organizations and individuals referred to in Clauses 1 and 2 of this Article.

4. Other organizations and individuals related to anti-money laundering activities.

Article 3.Application of the Anti-Money Laundering Law, relevant laws and treaties

The prevention, detection, stoppage and handling of acts of money laundering comply with the provisions of this Law and other provisions of relevant laws, unless otherwise provided by treaties to which the Socialist Republic of Vietnam is a contracting party.

Article 4.Interpretation of terms

In this Law, the terms below are construed as follows:

1. Money laundering means acts of individuals or organizations aiming to legalize the origin of property acquired from crime, including:

a/ Acts prescribed in the Penal Code;

b/ Assisting organizations and individuals related to crime in shirking their legal liability by legalizing the origin of property acquired from crime;

c/ Possessing a property, if at the time of receipt of the property such individual or organization clearly knows that the property is acquired from crime, in order to legalize the origin of the property.

2. Property includes objects, money, valuable papers and property rights as provided in the Civil Code, which may exist in material or immaterial form; may be movable or immovable property, tangible or intangible property; documents or legal instruments evidencing the ownership or the interests of such property.

3. Financial institution means an organization licensed to carry out one or several of the following operations:

a/ Receiving deposits;

b/ Making loans;

c/ Financial leasing;

d/ Providing payment services;

e/ Issuing negotiable instruments, credit cards, debit cards, money transfer orders and electronic money;

f/ Providing banking guarantees and financial commitments;

g/ Providing foreign exchange services and monetary instruments on the monetary market;

h/ Securities issuance consulting and underwriting and securities distribution agency;

i/ Managing investment capital portfolios;

j/  Managing cash or securities for other organizations and individuals;

k/ Providing insurance services or investment operations related to life insurance;

l/ Money exchange.

4. Organizations and individuals conducting relevant non-financial businesses are those carrying out one or several of the following operations:

a/ Doing business in prize-winning games and casino;

b/ Providing services of real estate management, brokerage and trading floor;

c/ Trading in precious metals and gems;

d/ Providing notary and accounting services, and legal services of lawyers and law practice organizations;

e/ Providing investment entrustment services, services of establishment, management and administration of enterprises; services of supplying enterprise directors and director secretaries for third parties.

5. Reporting subjects means organizations and individuals defined in Clauses 3 and 4 of this Article.

6. Suspicious transaction means a transaction with abnormal signs or reasonable grounds to suspect that the property in the transaction has derived from criminal activity or related to money laundering.

7. High-value transaction means a transaction in cash in Vietnam dong or foreign currency or gold with a total value equal to or exceeding the level prescribed by a competent state management agency, which is conducted once or more than once in a day.

8. Clients include organizations and individuals that are using and intend to use the services or products provided by a financial institution or an individual or organization conducting relevant non-financial businesses.

9. Beneficial owner means an individual having actual ownership of an account and having the dominating right when a client performs a transaction for this individual, or an individual having the right to dominate a legal person or an investment entrustment agreement;

10. Agency banking relationship means the provision of banking services, payment and other services by a bank in a country or territory for a partner bank in another country or territory.

11. Originator means the account holder or the person who requests a financial institution to transfer electronic money in case of having no account.

12. Blacklist is a list of organizations and individuals linked to terrorism and terrorism financing made by the Ministry of Public Security in accordance with law.

13. Warning list is a list of organizations and individuals made by the State Bank of Vietnam to warn about organizations and individuals having high risk of money laundering.

14. Business operations through introduction is a business with clients through the introduction of an intermediary that is another financial institution in the same group or corporation or through a brokerage service provider.

15. The Financial Action Task Force is an inter-governmental organization promulgating standards and promoting the effective enforcement of legal measures, management and actions to combat money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction and other related dangers threatening the integrity of the global financial system.

16. Authorization agreement is an agreement of authorization by an organization or individual to another to perform transactions related to the property owned or managed by the authorizer.

Article 5.Principles of prevention and combat of money laundering

1. The prevention and combat of money laundering must comply with the provisions of law on the basis of ensuring the national sovereignty and security and normal economic and investment activities, protection of the lawful rights and interests of organizations and individuals; combat abuse of power and taking advantage of anti-money laundering activities to infringe upon the lawful rights and interests of related organizations and individuals.

2. Anti-money laundering measures must be implemented in a coordinated and timely manner; acts of money laundering must be stringently handled.

Article 6.State policy on prevention and combat of money laundering

1. Prevention and combat of money laundering is the responsibility of the State and other state agencies. The State encourages organizations and individuals at home and abroad to participate and cooperate in and finance the prevention and combat of money laundering.

2. Protecting the rights and legitimate interests of organizations and individuals participating in the prevention and combat of money laundering.

3. Promulgating policies to promote international cooperation in the prevention and combat of money laundering.

4. Commending and rewarding organizations and individuals that make achievements in the prevention and combat of money laundering.

Article 7.Prohibited acts

1. Organizing, taking part in or creating conditions for committing acts of money laundering.

2. Opening or maintaining anonymous accounts or accounts using false names.

3. Establishing and maintaining business relationships with banks established in a country or territory without tangible presence in that country or territory and not subject to the management and supervision by competent management agencies.

4. Illegally providing the service of receiving cash, checks and other currency instruments or value storage instruments and making payments to the beneficiaries at another location.

5. Abusing position and power in the prevention and combat of money laundering to infringe upon the rights and legitimate interests of organizations and individuals.

6. Obstructing the provision of information for the prevention and combat of money laundering.

7. Intimidating or taking revenge on persons who detect, provide information on, report or denounce acts of money laundering.

Chapter II

ANTI-MONEY LAUNDERING MEASURES

Section 1

CLIENT IDENTIFICATION AND UPDATE OF CLIENT INFORMATION

Article 8.Client identification

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

a/ A client opens an account or establishes a transaction with the financial institution;

b/ A client makes infrequent transactions of high value or carries out a transaction of electronic money transfer lacking information on the name, address and account number of the originator;

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

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

2. Organizations and individuals conducting relevant non-financial businesses shall apply measures to identify clients in the following cases:

a/ Organizations and individuals conducting business operations specified at Point a, Clause 4, Article 4 of this Law shall take all measures to identify clients conducting high-value transactions;

b/ Organizations and individuals conducting business operations specified at Point b, Clause 4, Article 4 of this Law shall apply measures to identify clients with whom they provide the services of brokerage, purchase, sale or management of real estate;

c/ Organizations and individuals conducting business operations specified at Point c, Clause 4, Article 4 of this Law shall apply measures to identify clients that perform transactions of purchase and sale of precious metals and gems of great value in cash;

d/ Organizations and individuals conducting business operations specified at Point d, Clause 4, Article 4 of this Law shall apply measures to identify clients when they, on behalf of clients, prepare the conditions for conducting the transactions to transfer land use rights or house ownership; manage money and securities or other property of the clients; manage the clients’ accounts at banks or securities companies; administer and manage the operation of the clients’ companies; or participate in the purchase and sale of business entities;

e/ Organizations providing the services specified at Point e, Clause 4, Article 4 of this Law shall apply measures to identify clients when providing services of company establishment; supply of enterprise directors and director secretaries; supply of registration offices, addresses or places of business; services of company representation and investment entrustment; and supply of representatives for shareholders.

Article 9.Client identification information

Client identification information must have the following main details:

1. Client identification information:

a/ For Vietnamese individual clients: full name; date of birth; nationality; occupation, position; phone number, identity card number or passport number, date and place of issue; and address of permanent residence and current residence.

For foreign individual clients: full name; date of birth; nationality; occupation, position; passport number, date and place of issue, entry visa; address of registered residence abroad and address of registered residence in Vietnam;

b/ For institutional clients: full and abbreviated transaction names; address of head office; phone number, fax number; areas of operation and business; information on the founder and representative as specified at Point a of this Clause.

2. Beneficial owner information:

a/ The reporting subject shall identify the beneficial owner and apply measures to identify and update information on the beneficial owner;

b/ For clients being legal persons or upon provision of the authorization agreement service, the reporting subject shall collect information on the ownership and control structure to identify individuals with interests controlling and dominating the operation of that legal person or authorization agreement.

3. The purpose of the client in relation to the reporting subject.

Article 10.Update of client identification information

Reporting subjects shall regularly update client identification information throughout the period of establishing relations with clients; ensure that the transactions that the clients are conducting through the reporting subjects match the information already known about the clients, about the business operations, risks and the origin of the property of the clients.

Article 11.Measures to verify client identification information

1. Reporting subjects may use materials and data to verify client identification information including:

a/ For individual clients: identity card, valid passport and other papers issued by competent agencies;

b/ For institutional clients: establishment license or decision; decision on the name change, separation, splitting or merger; certificate of business registration; decisions of appointment or contracts on hiring of the general director (director) and chief accountant.

2. Reporting subjects may, through other organizations or individuals who had or currently have relations with clients; or through management agencies or other competent state agencies, collect information and compare with that provided by the clients.

3. Reporting subjects may hire other organizations to verify client identification information. In this case, the reporting subjects shall ensure that the hired organizations comply with the provisions of Articles 9 and 10 of this Law on identification and update of client information,  and take responsibility for such identification and update.

Article 12.Classification of clients by risk level

1. Reporting subjects shall formulate regulations on client classification on the basis of risk by type of client, product, service used by client, place of residence or place of head office of client.

2. For clients with low risk levels, reporting subjects can apply measures to identify clients at a lower level but shall ensure full collection of client information specified in Article 9 of this Law.

3. For clients performing transactions with a high risk level specified in Articles 13, 14, 15, 16 and 17 of this Law, in addition to the measures for identification specified in Article 9 of this Law, reporting subjects shall apply measures of intensive assessment in accordance with this Law.

4. For clients performing other transactions with a high risk level but not falling into any case referred to in Clause 3 of this Article, in addition to the measures for identification specified in Article 9 of this Law, reporting subjects shall apply the measures of intensive assessment in accordance with regulations of the State Bank of Vietnam.

Article 13.Foreign clients being individuals with political influence

1. Foreign clients being individuals with political influence are persons who hold senior positions in concerned foreign agencies or organizations.

The State Bank of Vietnam shall announce the list of foreign clients who are individuals with political influence stipulated in this Clause on the basis of recommendations of the anti-money laundering international organization.

2. Reporting subjects must have a risk management system to identify foreign clients who are individuals with political influence, and apply the following measures:

a/ Developing the internal control regulations for the opening of accounts or establishment of transactions when the clients or beneficial owners are determined to have political influence;

b/ Taking measures in order to identify the origin of the clients’ property;

c/ Intensifying client supervision and business relations with the clients.

3. Reporting subjects shall apply the measures specified in Clause 2 of this Article for clients who are parents, spouses, children or blood siblings of the persons specified in Clause 1 of this Article.

Article 14.Agency banking relation

Reporting subjects, when establishing the agency banking relation with a foreign partner bank, shall apply the following measures:

1. Collecting information about the partner bank to fully know the nature of business and reputation of the partner bank and ensure the partner bank be subject to supervision and management by competent foreign management agencies;

2. Assessing the application of anti-money laundering measures of the partner bank;

3. Obtaining the approval of the director general (director) or authorized person of the reporting subject before establishing the agency banking relation;

4. In case the partner bank’s clients can make payment through the partner bank’s accounts opened at the reporting subject, the reporting subject shall ensure the partner bank have fully implemented the client information identification and update and be able to provide client identification information at the request of the reporting subject.

Article 15.Transactions related to new technology

1. Reporting subjects shall issue a process for the following purposes:

a/ Detection and prevention of the use of new technology in money laundering;

b/ Management of money laundering risks upon establishing transactions with clients who use new technology and do not meet face-to-face.

2. The process stipulated in Clause 1 of this Article must ensure the update of client information be effective as the update of information on clients meeting face-to-face.

Article 16.Special supervision for a number of transactions

1. Reporting subjects shall perform special supervision for the following transactions:

a/ Transactions of abnormally large value or complex transactions;

b/ Transactions with organizations and individuals in the countries and territories in the list announced by the Financial Action Task Force for the anti-money laundering purpose or in the warning list.

2. Reporting subjects shall check the legal grounds and purposes of transactions; in case of having any doubt about the honesty and purpose of a transaction, the reporting subject shall make a report on suspicious transaction and send it to the State Bank of Vietnam and may reject such transaction.

Article 17.Business operations through introduction

1. Upon conducting business operations through introduction, reporting subjects may identify clients through an intermediary and ensure that:

a/ The intermediary collects, stores and provides timely and sufficient client identification information to the reporting subject upon request;

b/ The intermediary complies with the requirements of client identification and information update as prescribed in Articles 9 and 10 of this Law or as recommended by the Financial Action Task Force in case the intermediary is a foreign organization;

c/ The intermediary is subject to the management and supervision by competent authorities.

2. The client identification through an intermediary does not exclude the responsibility of the reporting subjects in the client identification and information update.

Article 18.Guarantee of transparency of legal persons and authorization agreements

1. The stock exchanges shall maintain and update basic information on organizational structures, founders and beneficial owners of listed enterprises.

2. The business registration agency shall keep and update basic information on organizational structures, founders and beneficial owners of unlisted enterprises.

3. Organizations and individuals providing legal services of drafting authorization agreements for clients shall keep, maintain and update information about the authorization agreements and the beneficial owners under these agreements.

4. The State Bank of Vietnam and other competent state agencies defined by law may, in the process of performing the anti-money laundering functions and tasks, request organizations and individuals referred to in Clauses 1, 2 and 3 of this Article to provide information.

Article 19.Guarantee of transparency in the operation of not-for-profit organizations

1. Not-for-profit organizations established or operating in Vietnam shall maintain and update records with full information about sponsoring organizations and individuals and benefiting organizations and individuals, funding amounts and purposes.

2. The records referred to in Clause 1 of this Article must be fully kept and provided to competent state agencies upon request.

Article 20.Formulation of internal regulations on the prevention and combat of money laundering

1. Pursuant to this Law and other relevant laws, reporting subjects shall issue internal regulations on the prevention and combat of money laundering with the following principal contents:

a/ Client acceptance policy;

b/ Processes and procedures to identify clients and verify and update client information;

c/ Transactions which must be reported;

d/ The process of review, detection, handling and reporting of suspicious transactions; the way to communicate with clients who perform suspicious transactions;

e/ Information preservation and confidentiality;

f/ Application of temporary measures and the principles of handling cases of transaction delay;

g/ Reporting and provision of information to the State Bank of Vietnam and competent state agencies;

h/ Training in anti-money laundering operations;

i/ Internal control and audit of the compliance with policies, regulations, processes and procedures related to anti-money laundering activities; responsibilities of each person or division for implementing internal regulations on the prevention and combat of money laundering.

2. The contents of internal regulations must ensure prevention, detection, stoppage and effective handling of suspicious activities related to money laundering; be appropriate to the organizational structure, operational scale and extent of risk of money laundering in the operation of the reporting subject, and be disseminated to every related person or division of the reporting subject.

3. Reporting subjects shall regularly assess their internal regulations on the prevention and combat of money laundering for appropriate revision.

Section 2

RESPONSIBILITY TO REPORT, PROVIDE AND KEEP INFORMATION

Article 21.Reporting of high-value transactions

1. Reporting subjects shall report to the State Bank of Vietnam when implementing high-value transactions.

2. At the proposal of the State Bank of Vietnam, the Prime Minister shall prescribe the value level of high-value transactions that must be reported, which is suitable to the situation of socio-economic development of the country in each period.

Article 22.Reporting of suspicious transactions

1. Reporting subjects shall report to the State Bank of Vietnam upon having doubt or reasonable grounds to suspect that the property in a transaction has been acquired from criminal activity or is related to money laundering. Suspicious transaction reports must be made according to a form set by the State Bank of Vietnam.

2. The basic suspicious signs include:

a/ The client provides incorrect, incomplete and inconsistent client identification information;

b/ The client persuades the reporting subject not to report on the transaction to a competent state agency;

c/ It is impossible to identify the client by the information provided by the client or the transaction is related to an unidentifiable party;

d/ The individual or agency phone number provided by the client is not contactable or this phone number does not exist after opening the account or performing the transaction;

e/ The transactions are performed by the order or under the authorization of an organization or individual in the warning list;

f/ The transactions that, based on the client identification information or through the consideration of their economic and legal grounds, can determine the relationship between the parties taking part in the transactions and criminal activities or are related to organizations or individuals in the warning list;

g/ An organization or individual takes part in transactions with large amounts of money inconsistent with its/his/her income and business activities;

h/ A client’s transaction conducted through the reporting subject does not go through the process and procedures prescribed by law.

3. The suspicious signs in the banking field include:

a/ There is a surge in the transaction turnover on an account; money is deposited into and withdrawn quickly from an account; transaction turnover is high in a day but the account balance is very small or zero;

b/ Small sums of money are transferred from many different accounts to a single account or vice versa within a short time; money is transferred through multiple accounts; the related parties do not care about transaction fees; multiple transactions are performed, each  involving a value close to the large value level that must be reported;

c/ Letters of credit and other commercial financing methods of great value and with discount rates higher than normal are used;

d/ Clients open multiple accounts at credit institutions and foreign bank branches in  geographical areas outside the places where they reside, work or do business;

e/ The client’s account has no transaction for over a year and has transactions again without plausible reasons; the client’s account having no transaction suddenly receives a cash deposit or transfers money of great value;

f/ A large sum of money is transferred from the account of an enterprise overseas after receiving a lot of small sums of money transferred by electronic money transfer, checks or drafts;

g/ A foreign-invested enterprise transfers money overseas immediately after receiving investment capital or transfers money overseas not in accordance with its business activities; a foreign enterprise transfers money overseas immediately after receiving money transferred from overseas into an account opened at a credit institution or foreign bank branch operating in Vietnam;

h/ A client frequently changes money of small denominations into money of larger denominations;

i/ A transaction of depositing, withdrawal or transfer of money is performed by organizations or individuals associated with the crimes creating illegal property and already published in the mass media;

j/ The client requests to borrow the maximum amount allowed based on an insurance contract with one-off premium payment immediately after the premium payment, unless it is required by the credit institution;

k/ Information about the origin of property used for financing, investment, loan, financial leasing or investment entrustment of a client is not clear and transparent;

l/ Information about the origin of the security property of a client asking for loan is not clear and transparent.

4. The suspicious signs in the insurance business field include:

a/ A client requests to purchase an insurance policy of great value or the package payment of the one-off premium for insurance products to which the method of package payment does not apply, while his/her current insurance policies only have small value and periodic payments;

b/ A client requests to sign an insurance policy with periodic premiums not matching his/her current income or  to purchase an insurance policy related to a business outside his/her normal business activities;

c/ The buyer of an insurance policy makes payment from an account that is not his/her account or by bearer negotiable instruments;

d/ A client requests to change the beneficiary already designated or by a person who has unclear relationship with the buyer of the insurance policy;

e/ A client accepts all unfavorable conditions not related to his age and health; a client requests to buy insurance for unclear purpose and reluctantly provides the reason for  buying insurance; the conditions and value of the insurance policy are contrary to the client’s need;

f/ A client cancels the insurance policy right after buying insurance and asks for transfer of money to a third party; a client regularly participates in insurance and assigns the insurance policies to a third party;

g/ A client being an enterprise has an abnormally increased number of insurance policies for its employees or premium of the one-off premium policy;

h/ An insurance enterprise regularly pays large insurance sums to the same client.

5. The suspicious signs in the securities field include:

a/ Purchase or sale of securities by an organization or individual shows abnormal signs in a day or several days;

b/ A client transfers securities outside the system without any plausible reasons;

c/ A securities company transfers money not in accordance with its securities trading activities;

d/ A non-resident transfers a large sum of money from its securities trading account out of Vietnam;

e/ A client regularly sells his/her investment portfolio and requests the securities company to make payment in cash or checks;

f/ A client invests abnormally in many types of securities in cash or checks in a short time or is willing to invest in unprofitable securities portfolios;

g/ A client’s securities account does not operate for a long time but suddenly receives a huge investment not matching his/her financial capacity;

h/ Purchasing or selling securities with money from investment funds opened in territories that are classified by international organizations as highly vulnerable to money laundering.

6. The suspicious signs in prize-winning games and casino include:

a/ A client shows a sign of intentional constant loss at the casino;

b/ A client exchanges a number of tokens of great value at a casino or prize-winning electronic game place but does not play or play with a very small amount then converts such tokens back into cash, check or bank draft or transfers such money to another account;

c/ A client requests to transfer the game winning or prize winning to a third party that has unclear relationship with the client or when the third party does not have the same permanent residence with the client;

d/ A client adds cash or a check to the game or prize winning amount and requests the casino or the prize-winning electronic game place to convert it into a check of great value;

e/ A client requests many times a day the casino or the prize-winning electronic game place to exchange a number of tokens into cash;

f/ A client requests many times a day a third party to exchange on his/her behalf the number of tokens of great value and asks the third party to play the game for him/her;

g/ A client purchases many times a day lottery tickets or bet tickets or exchanges tokens near the limit of high-value transactions;

h/ A client re-purchases the winning lottery ticket with great value from others.

7. The suspicious signs in the real estate business field include:

a/ The real estate transactions are authorized ones without legal grounds;

b/ A client does not care about the real estate price and transaction fees to be paid.

c/ A client is unable to provide information about real estate or does not want to provide additional personal information;

d/ The price agreed between the parties to the transaction does not match the market price.

8. In actual operation, if detecting any suspicious signs other than the above basic signs, reporting subjects shall report them to the State Bank of Vietnam. Based on the requirements of anti-money laundering work, the State Bank of Vietnam shall submit additional suspicious signs in Clauses 2, 3, 4, 5, 6 and 7 of this Article to the Prime Minister for stipulation.

Article 23.Reporting of electronic money transfer transactions

Reporting subjects shall, upon providing the service of electronic money transfer, report to the State Bank of Vietnam on transactions of electronic money transfer of value exceeding the value level prescribed by the State Bank of Vietnam.

Article 24.Declaration and provision of information on cross-border transport of cash, precious metals, gems and negotiable instruments

1. Individuals carrying foreign currencies in cash, Vietnam dong in cash, precious metals, gems and negotiable instruments in excess of the level prescribed by the State Bank of Vietnam upon their entry or exit shall make customs declaration.

2. Customs offices shall provide the collected information specified in Clause 1 of this Article to the State Bank of Vietnam.

Article 25.Form of report

1. Reporting subjects shall send electronic data files or written reports when they have not yet established a compatible information technology system to serve the requirement of sending electronic data files for the reports specified in Articles 21, 22 and 23 of this Law under the guidance of the State Bank of Vietnam.

2. In case of necessity, reporting subjects may report via fax, phone or e-mail, but shall ensure safety and confidentiality of the reported information and confirm in either of two forms specified in Clause 1 of this Article.

3. For suspicious transaction reports, reporting subjects shall attach account-opening documents for transactions made via account, client identification information, documents and other materials related to the suspicious transactions, and the preventive measures that have been applied.

Article 26.Reporting time limit

1. For high-value transactions and transactions of electronic money transfer, reporting subjects shall:

a/ Make daily reports, for the form of electronic data file report;

b/ Make reports within 2 working days from the date the transaction concerned is performed,  for the form of written report or other forms of report.

2. For suspicious transaction reports, reporting subjects shall make a report within 48 hours from the time the transaction concerned is performed; in case of detecting that a transaction requested by a client shows crime-related signs, the reporting subject shall promptly report it to the State Bank of Vietnam and competent state agencies.

Article 27.Time limit for preserving records and reports

Reporting subjects shall preserve records of clients’ transactions for at least 5 years from the date the transactions are performed; and records of client identification, accounting documents and reports specified in Articles 21, 22 and 23 of this Law together with relevant documents and materials for at least 5 years from the date the transactions complete or the closing date of the accounts or the reporting date.

Article 28.Responsibilities for reporting and information provision

1. Reporting subjects shall promptly provide the preserved records and materials and relevant information to the State Bank of Vietnam and competent state agencies in accordance with this Law or upon request.

2. Agencies, organizations and individuals performing the reporting obligation or information provision as prescribed by this Law shall not be regarded as having violated the law on assurance of confidentiality of deposits, consigned property and information about accounts and client transactions.

Article 29.Assurance of confidentiality of reported information and documents

1. Information, documents and other materials related to the transactions to be reported under this Law must be preserved under the confidentiality regime and only be provided to competent agencies in accordance with law.

2. Reporting subjects may not disclose information about reporting suspicious transactions or relevant information to the State Bank of Vietnam.

Article 30.Reporting of acts of money laundering for terrorism financing

1. Reporting subjects are obliged to promptly report to competent anti-terrorism agencies, and at the same time send reports to the State Bank of Vietnam upon discovering that organizations and individuals conducting transactions are in the blacklist or when having grounds to believe that other organizations and individuals commit acts related to the money laundering crime for terrorism financing.

2. Pursuant to this Law and the anti-terrorism law, the State Bank of Vietnam shall stipulate the implementation of the reporting obligation prescribed in Clause 1 of this Article.

Section 3

COLLECTION, PROCESSING AND TRANSFER OF INFORMATION ABOUT PREVENTION AND COMBAT OF MONEY LAUNDERING

Article 31.Collection and processing of information

1. Related organizations and individuals shall provide the State Bank of Vietnam with information about and documents and records of transactions and other information prescribed by this Law to serve the analysis and transfer of information.

2. Information obtained from the information processing prescribed in Clause 1 of this Article is confidential for anti-money laundering work.

Article 32.Transfer and exchange of information

1. When there are reasonable grounds to suspect that the transaction mentioned in the information or report is related to money laundering, the State Bank of Vietnam shall transfer the information or the case file to a competent investigation agency.

2. The State Bank of Vietnam shall coordinate and exchange information with competent agencies in the investigation, prosecution and trial of the crime of money laundering.

3. The State Bank of Vietnam shall exchange information with related ministries and sectors for anti-money laundering purposes.

Section 4

APPLICATION OF PROVISIONAL MEASURES AND HANDLING OF VIOLATIONS

Article 33.Transaction delay

1. Reporting subjects shall apply the measure to delay a transaction when the parties related to the transaction are in the blacklist or there are grounds to believe that the transaction required to be performed is related to criminal activity, and shall immediately report in writing to a competent state agency.

2. The duration of applying the measure of delaying a transaction is 3 working days at most from the starting date of application.

3. Reporting subjects shall report to the State Bank of Vietnam on the implementation of the provisions of Clause 1 of this Article.

Article 34.Blocking of accounts, sealing or temporary seizure of property

Reporting subjects shall block accounts or apply the measure of sealing or temporary seizure of the property of individuals and organizations upon having decisions of competent state agencies in accordance with law and shall report on the implementation to the State Bank of Vietnam.

Article 35.Handling of violations

Organizations that violate the provisions of this Law shall be sanctioned for administrative violations.

Individuals that violate the provisions of this Law shall, depending on the nature and seriousness of their violations, be disciplined, administratively sanctioned or examined for penal liability in accordance with law.

A violator of this Law that causes damage shall pay compensation in accordance with law.

Chapter III

RESPONSIBILITIES OF STATE AGENCIES IN THE PREVENTION AND COMBAT OF MONEY LAUNDERING

Article 36.State management responsibilities for prevention and combat of money laundering

1. The Government uniformly performs the state management of the prevention and combat of money laundering.

2. The Government shall promulgate legal documents according to its competence and the anti-money laundering strategy.

3. The Prime Minister shall direct the governmental agencies to coordinate with the Supreme People’s Court and the Supreme People’s Procuracy in the prevention and combat of money laundering; and coordinate the prevention and combat of money laundering and terrorism financing.

Article 37.Responsibilities of the State Bank of Vietnam

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

2. To develop and submit to competent authorities for promulgation or promulgate according to its competence legal documents, strategies and plans on the prevention and combat of money laundering.

3. To organize a focal point under the Government’s regulations to collect, process and transfer information on acts of money laundering to competent state agencies; to request related organizations and individuals to provide information and records of transactions and other information prescribed by this Law to serve the analysis and transfer of information about money laundering.

4. To promptly notify the competent anti-terrorism agency of information about money laundering for the purpose of financing terrorism in accordance with this Law and the anti-terrorism law.

5. To inspect and supervise anti-money laundering activities of reporting subjects under the responsibility of state management of monetary, banking and foreign exchange operations.

6. To cooperate, exchange and provide information with competent agencies in the inspection, supervision, investigation, prosecution, trial and enforcement of judgments related  to money laundering; to exchange information with foreign anti-money laundering agencies and other foreign agencies and organizations in accordance with law.

7. To implement international cooperation in the prevention and combat of money laundering according to its competence, acting as the focal point to participate in and deploy the fulfillment of Vietnam’s obligations in the capacity as a member of the international anti-money laundering organizations.

8. To train staffs of the State Bank of Vietnam and other governmental agencies and employees of credit institutions and foreign bank branches and other individuals and organizations in anti-money laundering work.

9. To organize research and application of scientific and technical advances and information technology in anti-money laundering work.

10. To assume the prime responsibility for, and coordinate with relevant agencies in, disseminating and educating in the anti-money laundering law.

11. To summarize information and annually report to the Government on anti-money laundering activities in the territory of Vietnam.

Article 38.Responsibilities of the Ministry of Public Security

1. To collect, receive and process informa-tion about money laundering-related crimes.

2. To assume the prime responsibility for, and coordinate with related agencies, organiza-tions and individuals in, detecting, investigating and handling crimes of money laundering.

3. To regularly exchange information and documents on new methods and tricks of money laundering criminals in the country and abroad with the State Bank of Vietnam.

4. To assume the prime responsibility for drawing up a blacklist of organizations and individuals referred to in Clause 12, Article 4 of this Law.

5. To implement international cooperation on the prevention and combat of money laundering according to its competence.

Article 39.Responsibilities of the Ministry of Finance

1. To assume the prime responsibility for, and coordinate with related agencies in, deploying anti-money laundering measures in the fields of insurance business, securities, and prize-winning games and casino.

2. To inspect and supervise anti-money laundering activities of the reporting subjects in the fields of insurance business, securities, and prize-winning games and casino.

3. To direct customs offices to provide the collected information on the cross-border transportation of cash, precious metals, gems and negotiable instruments under Article 24 of this Law.

Article 40.Responsibilities of the Ministry of Construction

1. To assume the prime responsibility for, and coordinate with related agencies in, deploying anti-money laundering measures in the field of real estate business.

2. To inspect and supervise anti-money laundering activities of the reporting subjects in the field of real estate business.

Article 41.Responsibilities of the Ministry of Justice

1. To assume the prime responsibility for, and coordinate with related agencies in, deploying anti-money laundering measures applicable to the reporting subjects being lawyers, law practice organizations, notaries and notary service-providing organizations.

2. To coordinate with the State Bank of Vietnam in implementing the program on dissemination of and education about the anti-money laundering law.

Article 42.Responsibilities of other governmental agencies

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

2. To direct, guide and inspect their subordinate units in implementing the anti-money laundering law.

Article 43.Responsibilities of People’s Procuracies and People’s Courts

The People’s Procuracies and People’s Courts shall, within the scope of their functions, duties and powers, promptly and strictly handle acts of money laundering and coordinate with other agencies and organizations in the prevention and combat of money laundering.

Article 44.Responsibilities of People’s Committees at all levels

1. To perform and direct the dissemination of and education about the anti-money laundering law in their localities.

2. To coordinate with other competent state agencies in implementing, and urge the implementation of, anti-money laundering guidelines, policies, strategies and plans.

3. To detect and promptly and strictly handle acts in violation of the anti-money laundering law according to their competence.

Article 45.Information confidentiality

The state agencies defined in Articles 36 through 44 of this Law shall implement the information confidentiality regime provided by law.

Chapter IV

INTERNATIONAL COOPERATION ON PREVENTION AND COMBAT OF MONEY LAUNDERING

Article 46.General principles of international cooperation

1. International cooperation on the prevention and combat of money laundering is implemented on the principle of respect for independence, sovereignty, territorial integrity, equality and mutual benefit and compliance with the laws of Vietnam and treaties to which the Socialist Republic of Vietnam is a contracting party.

2. The State facilitates the exchange of information and legal assistance on the prevention and combat of money laundering.

Article 47.Contents of international cooperation on prevention and combat of money laundering

1. Exchanging information and documents on the prevention and combat of money laundering.

2. Identifying and blocking property of persons committing the crime of money laundering.

3. Providing legal assistance and cooperation on extradition of money laundering criminals.

4. Other contents of cooperation on the prevention and combat of money laundering.

5. The processes, procedures and methods of international cooperation on the prevention and combat of money laundering in Clauses 1, 2, 3 and 4 of this Article comply with the treaties to which the Socialist Republic of Vietnam is a contracting party, the international agreements which Vietnam has signed and other relevant provisions of law.

Article 48.Responsibilities of state agencies in international cooperation on prevention and combat of money laundering

1. The State Bank of Vietnam shall, within the scope of its tasks and powers, coordinate with the Ministry of Foreign Affairs and other related ministries and sectors in proposing and presiding over the negotiation and conclusion and implementation of treaties and international agreements on the prevention and combat of money laundering; international cooperation in research, training, information assistance, technical and financial assistance and exchange of experiences on the prevention and combat of money laundering.

2. The State Bank of Vietnam shall exchange information on the prevention and combat of money laundering with foreign anti-money laundering agencies and other foreign agencies and organizations in accordance with law; have the right to refuse to provide information to foreign anti-money laundering agencies and other foreign agencies and organizations in case of necessity and in accordance with Vietnamese law.

3. The Ministry of Justice, the Ministry of Public Security and the Supreme People’s Procuracy shall, within the scope of their tasks and powers, perform the task of international cooperation on legal assistance in the prevention and combat of money laundering.

4. Upon request for international cooperation in the prevention and combat of money laundering, competent state agencies shall promptly notify in writing the content, time, related parties and other international cooperation programs to the State Bank of Vietnam, or the Ministry of Justice if the content is related to legal assistance, for coordinated implementation.

Chapter V

IMPLEMENTATION PROVISION

Article 49.Effect

This Law takes effect on January 1, 2013.

Article 50.Implementation detailing and guidance

The Government shall detail and guide articles and clauses as assigned in this Law.

This Law was passed on June 18, 2012, by the XIIIthNational Assembly of the Socialist Republic of Vietnam at its 3rdsession.

Chairman of the National Assembly
NGUYEN SINH HUNG