In recent years, the State Bank of Vietnam has issued new financial crime prevention laws after a series of high-profile money laundering and fraud cases.
The first was the Anti-Money Laundering Law 2022, which came into effect on March 1, 2023, and enhances all AML monitoring processes.
The second is the Law on Credit Institutions 2024, which aims to improve banking operations, transparency, and reduce risk, and came into effect on July 1, 2024, with additional laws on real estate coming into effect on January 1, 2025.
Vietnam has introduced a new anti-money laundering (AML) law that brings significant changes for financial institutions and other reporting entities. Here are the main points:
The new AML law defines money laundering as ‘an act of an individual or an organization to legitimize the origin of property obtained from a crime.’ By defining money laundering in legal documentation, Vietnam is taking significant steps to ensure that its law is as robust as possible.
The AML law has expanded the reporting list of entities to now include:
The government can add more specific high-risk activities that pose money laundering risks to reporting entities after obtaining the consent of the Standing Committee of the National Assembly.
All institutions cited above must ensure that they can meet the State Bank of Vietnam’s standards by having AML software in place to ensure compliance.
In line with many other financial laws and regulations around the world, Vietnam has enhanced its CDD requirements, with entities now having to:
The law also allows for the verification of identification information through other organizations under certain conditions.
Vietnam is requiring that all reporting entities (financial institutions, payment facilitators, etc.) must complete money laundering risk assessments. They must:
Just a month after the AML Law 2022 became operational on March 1, 2023, Vietnam outlined the mandatory reporting requirements for a range of high-value transactions and issued guidance on the implementation of the law. As such, detailed provisions on know-your-customer (KYC) processes were introduced. These allowed for:
All banks must review the SBV list of foreign PEPs and:
AML transaction screening is now more important than ever, with all large value and suspicious transactions having to be reported to the SBV. The law provides sector-specific indicators for suspicious transactions.
Reporting entities must delay transactions for up to three working days and report to authorities if:
The anti-money laundering law significantly boosts Vietnam's AML framework, bringing it closer to international standards and requiring financial institutions to implement more robust financial crime compliance measures. There is hope within Vietnam that such efforts help move it from the Financial Action Task Force’s grey list.
In addition to the AML Law 2022, Vietnam passed a law on credit institutions in 2024. From July 1, 2024, the law aims to strengthen banking operations and increase transparency in the financial sector, helping to minimize the risks of financial crime. Here are the key changes to be aware of:
Vietnam is gradually lowering credit limits for bank clients to ensure the diversification of portfolios and minimize risks.
Credit institutions and foreign bank branches, and their employees, are now prohibited from bundling non-obligatory insurance products with banking services. This addresses past issues of the granting of loans only in exchange for customers also purchasing insurance at the same time.
Commercial banks can now act as third-party security agents for international financial institutions, domestic and foreign credit institutions, and foreign bank branches. This allows banks to serve as security agents in syndicated loans without being co-lenders, reducing the risk to which they were previously exposed.
Starting on January 1, 2025, credit institutions and foreign bank branches (as well as debt management and asset management companies) can transfer all or part of real estate projects used as collateral to recover debts. This provision aims to help banks and real estate firms reduce risk by helping them manage debt and generate cash flow more easily. It is also expected to allow banks to more easily exit large projects that are mired in legal issues.
The law on credit institutions is expected to significantly impact banking operations in Vietnam. Because of the stringent requirements, credit institutions need to adapt quickly to ensure compliance.
With Vietnam’s AML law and law on credit institutions, all reporting entities need to make sure that they have software for AML transaction monitoring, CDD, KYC, name screening, and transaction screening.
SymphonyAI offers powerful, AI-led financial crime prevention tools across all these areas that allow financial institutions and other reporting entities the peace of mind to do business in the country while remaining compliant with all laws and regulations. A SaaS platform that can work with existing software, banks and financial institutions can ensure that they are taking advantage of the latest technology without needing to throw out their current transaction monitoring system or other financial crime compliance solutions.
Find out more about SymhponyAI’s financial crime prevention software.
As of February 2025, Vietnam is on the Financial Action Task Force (FATF) grey list, which highlights countries with weak measures to counter money laundering and terrorist financing (AML/CTF).
In Vietnam, penalties for money laundering include imprisonment ranging from one to five years (rising to up to fifteen years for aggravating circumstances such as organized crime), substantial fines (VND 20 million to VND 100 million), confiscation of all or part of his or her property, and prohibition from certain job roles for one to five years. Legal entities involved in money laundering may face fines of up to VND 20 billion, suspension of operations, and be prohibited from raising funds for up to five years.
High-risk countries for AML typically include those identified by the FATF as having significant deficiencies in their anti-money laundering and counter-terrorism financing measures. These countries are often placed on the FATF grey or black list due to inadequate regulatory frameworks or enforcement.
Vietnam has been considered high risk due to challenges in its regulatory frameworks and enforcement related to financial crimes, including money laundering and corruption. Issues such as limited transparency, insufficient regulatory oversight, and vulnerabilities in the financial sector contribute to this perception.
Henry Fosdike is Content Manager at SymphonyAI’s financial services division, bringing 10+ years of expertise in crafting compelling B2B, B2C, and D2C content to the world of AI-driven financial crime prevention technology. With a rich background, Henry excels at translating complex AI, finance, and SaaS concepts into clear, engaging narratives. His insightful articles and whitepapers demystify cutting-edge anti-financial crime solutions, providing readers with valuable knowledge and offering readers a deeper understanding of this rapidly evolving field.
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