In a significant move to combat financial crime, Vietnam is set to enforce stringent anti-money laundering measures beginning December 1, 2023, following the issuance of Decision 11/2023/QĐ-TTg by the Prime Minister. These regulations are grounded in the newly adopted Law on Anti-Money Laundering, which legally took effect on March 1, 2023, alongside Decree 19/2023/NĐ-CP and Circular 09/2023/TT-NHNN. The State Bank of Vietnam (SBV) is tasked with overseeing compliance.
According to the new rules, financial institutions must report various transactions exceeding specific thresholds. Notable among these are cash transactions totaling 400 million VND (approximately $16,000) or more in a single day, which are subject to mandatory reporting. Additionally, domestic electronic transfers exceeding 500 million VND (around $20,000) for each transaction must be flagged, as must any international electronic transfer of $1,000 or more or its equivalent in foreign currency.
Financial institutions are required to file electronic reports daily to the SBV's Anti-Money Laundering Department using a standardized reporting format that includes:
- CTR (Cash Transaction Report): Tracks cash transactions over 400 million VND.
- PTR (Production Transaction Report): Monitors cash payments for high-value goods and services, including precious metals and real estate.
- DWT (Domestic Wired Transfer Report): Logs electronic transfers exceeding 500 million VND.
- EFT (Electronic Fund Transfer Report): Oversees cross-border transactions of $1,000 or more.
The regulations also require financial institutions to undertake customer verification in specific situations. These include opening new accounts, transactions that suddenly exceed the 400 million VND threshold after six months of inactivity, and significant transactions within gambling and gaming sectors where customers are involved in transactions of 70 million VND ($2,800) or more per day. Additionally, businesses engaged in gold, silver, or diamond trading must verify customers who purchase or sell amounts of 400 million VND or more in cash daily.
On March 13, 2025, a police operation successfully dismantled a considerable money laundering organization in Lam Dong Province, which was believed to handle approximately 30 billion VND ($1.2 million) per day. In this operation, authorities arrested 23 individuals linked to the scheme, which had been operating from rented accommodation in Da Lat. This organization, led by a suspect referred to as "Billy" in Cambodia, had opened over 100 bank accounts to facilitate its illicit transactions.
Le Van Diep, a significant figure within the criminal network, confessed to being involved in the creation of numerous accounts that processed between 20 billion and 30 billion VND daily, equivalent to approximately $800,000 to $1.2 million. This highlights not only the prominent scale of financial crime in Vietnam but also the ongoing challenges that authorities face in tackling such criminal activities.
This crackdown, coupled with the new regulations, illustrates Vietnam's commitment to strengthening its financial monitoring and compliance mechanisms in an increasingly interconnected global economy. As countries worldwide become vigilant against money laundering practices, Vietnam aligns itself with international standards, thereby enhancing its financial security.
The effectiveness of these new regulations will depend heavily on the diligence of financial institutions and their commitment to adhering to compliance measures. In the wake of global financial crimes, countries including Vietnam are rising to the challenge by implementing robust mechanisms to ensure transparency and accountability within their financial systems.
In conclusion, as the deadline for the new regulations approaches, financial institutions and customers alike must prepare for the upcoming changes in how financial transactions are monitored and reported.
