The State Bank of Vietnam (“SBV”) issued Circular No. 31/2014/TT-NHNN (“Circular 31”)1 , dated 11 November 2014 regarding amendments and additions to Circular No. 35/2013/TT-NHNN dated 31 December 2013 guiding implementation of a number of provisions on prevention of money laundering.

  1. Circular 31 amends Circular 35 on collecting additional information for “Know Your Customers” checks on individual and corporate customers:
    a. Individuals: Financial institutions (“FIs”) have to obtain information about an individual’s monthly- average income in the latest 3 months (instead of six months);
    b. Corporates: FIs have to obtain information about corporate customers’ total revenues in the latest 2 years (instead of providing financial statements for the previous two years).
  2. Circular 31 provides more accurate guidance on the reporting responsibility of FIs:
    a. FIs have to report the following electronic remittance transactions to the Anti-Money Laundering Department of the SBV (“AML Department”):

    • Local electronic remittance transactions worth more than 500 million VND, or the equivalent in other currencies;
    • International electronic remittance transactions worth more than 1,000 USD, or the equivalent in other currencies.

    b. FIs are exempted from reporting the following transactions to the AML Department:

    • Transactions through credit cards, debit cards and prepaid cards;
    • Transactions between FIs.
  3. FIs have to:
    • Assign officers in charge of prevention of money laundering and register the officers’ information in writing with the AML Department.
    • Make an annual internal audit report on AML compliance and submit the result of such audit report to the AML Department within 60 days after the end of the fiscal year; and
    • Provide regular trainings to their employees regarding AML regulations.

(1)Circular 31 took effect on 26 December 2014.