Chương II Luật Phòng, chống rửa tiền 2012: Biện pháp phòng, chống rửa tiền

Chapter II

MONEY LAUNDERING COUNTERMEASURES (OR AML MEASURES)

Section 1. IDENTIFYING CUSTOMERS, COLLECTING, UPDATING AND VERIFYING CUSTOMER IDENTIFICATION DATA AND INFORMATION

Article 9. Identifying customers

1. Customer identification shall cover the range of activities, such as collecting, updating and verifying information specified in Article 10, 11, 12, 13 and 14 herein.

2. A financial institution should be required to undertake customer due diligence (CDD) measures when:

a) that customer first opens an account or establishes a business relation with the financial institution;

b) that customer conducts occasional transactions that equal or exceed the designated threshold; that are wire transfers that do not contain information, such as the name, address, account number of the originator, or the transaction reference number required in the absence of the originator's account;

c) there is a suspicion that a transaction or interested parties to a transaction involves/are involved in any money laundering offence;

d) the financial institution has doubts about the veracity or adequacy of previously obtained customer identification data.

3. Customer due diligence (CDD) or customer identification measures shall be applied to relevant non-financial businesses and professions as follows:

a) Those referred to in point a of clause 2 of Article 4 herein shall be required to identify any customer with whom the transaction equals or exceeds the designated threshold;

b) Those referred to in point b of clause 2 of Article 4 herein shall be required to identify any customer when providing real estate business services;

a) Those referred to in point c of clause 2 of Article 4 herein shall be required to identify any customer with whom the value of transaction involving trading of precious metals or jewels in cash or foreign-currency cash equals or exceeds the designated threshold;

d) Those referred to in point d of clause 2 of Article 4 herein shall be required to conduct customer identification when providing their customers with an accountant’s services; notary public’s services, acting on behalf of their customers to prepare for or carry out the transactions involving buying and selling of the rights to use land, own house and other property associated with land; providing their customers with the safe custody of money, securities or other assets for their customers; managing bank, saving or securities accounts for their customers; managing and directing companies; participating in purchase and sale of business entities;

dd) Those specified in point dd of clause 2 of Article 4 herein shall be required to apply customer due diligence measures when providing them with business formation, management and administration services; services of acting as (or arranging for another person to act as) a director or secretary of a company for third parties; legal arrangement services.

4. The Government shall elaborate on this Article.

Article 10. Customer Identification Data

The reporting entities shall collect customer identification data, including:

1. Customer’s identity, including information about a representative of an individual customer (if any):

a) For an individual customer adopting Vietnam as his/her only one citizenship: His/her full name; birth date; nationality; profession, job position; contact phone number; number of ID card, Citizen ID card, personal identification, passport, date and place of issuance; permanent residence address and other present residence (if any);

b) For an individual customer with only one citizenship who is a foreign resident in Vietnam: His/her full name; birth date; nationality; profession and job position; contact phone number; number, date and place of issuance of the passport; reference number of the entry visa, except when he/she is granted visa exemption permitted by law; residence address in his/her home country and registered residence address in Vietnam;

c) For an individual customer with only one citizenship who is a foreign nonresident in Vietnam: His/her full name; birth date; nationality; profession, job title; number of passport or identity issued by a foreign competent authority, date or place of issuance; residence address in his/her home country;

d) For the individual customer having dual or multiple citizenship: the same as those prescribed in point a, b or c of this clause; nationality(ies), residence address(es) in the country(ies) of the other citizenship;

dd) For the individual customer who is a nonnational: His/her full name; birth date; profession and job position; reference number of laissez passer (if any); reference number of visa; the authority issuing entry visa, except if he/she is granted visa exemption permitted by law; residence address in his/her home country and registered residence address in Vietnam;

e) For an institutional customer: Its full and abbreviated transaction name; main office; reference number of the incorporation permit, business reference number or tax identification number; contact phone number; facsimile number, website (if any); scope of activities or lines of business; information about the founder, duly authorized representative, Director or General Director, Chief Accountant or staff member in charge of accounting tasks (if any), including the corresponding information specified in point a, b, c, d and dd of this clause, and the information prescribed in this point required if the founder is an organization;

2. Information about the beneficial owner, including relevant customer identification data specified in point a, b, c, d or dd of clause 1 of this Article. The reporting entities shall identify the beneficial owner and apply due diligence measures to identify and update information about that beneficial owner. The Government shall elaborate on criteria for identification of beneficial owners;

3. Purposes and nature of business relationships between customers and reporting entities.

Article 11. Customer Identification Updates

Reporting entities shall update customer identification data during the period of building of relationships with customers in order to ensure that transactions carried out by customers are consistent with information about customers available in the existing files, known information about customers, business activities, levels of money laundering risk and origin of assets of customers.

Article 12. Verification of Customer Identification Data

1. Reporting entities shall use data and documents necessary for verifying customer identification data, including:

a) For an individual customer: His/her ID card/Citizen ID card/Passport remaining in use; other papers issued by a competent authority;

e) For an institutional customer: Its incorporation permit, establishment decision or business registration certificate; decision on reorganization, dissolution, bankruptcy, termination of business (if any); statutes; appointment decision or agreement for engagement of Director or General Director, Chief Accounting or staff member in charge of accounting tasks (if any); data and documents relating to the founder or legal representative of that institutional customer, beneficial owner.

2. Reporting entities may obtain information from the national database defined by law, or through competent state agencies or other legal persons defined in Article 13 or third parties defined in Article 14 herein for the purposes of comparison and verification of information that customers have provided.

Article 13. Verification of Customer Identification Data by Outsourcing Other Entities

1. Reporting entities may outsource other entities instituted and operated in accordance with law to verify customer identification data, unless otherwise defined in Article 14 herein. Outsourcing other entities or legal persons to verify customers of principals shall be as agreed upon between parties concerned and in accordance with relevant laws.

2. Reporting entities shall undertake that outsourced entities will protect confidentiality and security for customer identification data in accordance with law, and shall be held accountable for results of verification of customer identification data received from the outsourced entities.

Article 14. Customer Identification by Third Parties

1. Reporting entities may identify customers with the help of third parties provided that these third parties satisfy the following requirements:

a) They must be financial institutions or relevant non-financial businesses or professions engaged into relationships with customers. This requirement does not apply to outsourcing or agency relationships;

b) They must identify customers under the provisions of this Law or FATF’s recommendations if the third party is a foreign legal person;

c) They must deposit customer identification data and provide them on time and in full to reporting entities as requested; execute privacy and information security practices in accordance with law;

d) They are supervised or monitored by competent authorities.

2. Where both the third party and its parent company are financial institutions, the reporting entity shall ensure that the third party satisfies the requirements specified in clause 1 of this Article, and the third party's parent company satisfies the requirements concerning identification of customers, politically exposed persons, storage or depositing of information, documents, records and reports as specified in Article 9, 17, 38 and 40 herein or FATF’s relevant recommendations that are applicable to parent companies of financial institutions that are foreign entities, and need to be put to use, as well as monitored in the entire systems of these entities; shall apply risk mitigation policies to sectors at high risks of money laundering.

3. Reporting entities shall take responsibility for third parties’ performance toward customer identification.

Article 15. Assessment of Money Laundering Risks by Reporting Entities

1. Each reporting entity shall conduct the assessment of money laundering risks. Assessment results shall be updated on a yearly basis. Where the reporting entity is a legal person, approval of results of money laundering risk assessment and update shall be subject to that reporting entity’s internal rules and regulations.

2. Reporting entities shall be required to submit money-laundering risk assessment and update reports the State Bank of Vietnam, Ministries or central authorities managing their activities within 45 days after the completion date if these reporting entities are natural persons, or the approval date if these reporting entities are legal persons. Money-laundering risk assessment and update results shall be disseminated in the entire system of each reporting entity.

3. The Governor of the State bank of Vietnam shall decide criteria or methodologies for assessment of money laundering risks incurred by reporting entities.

Article 16. Categorizing Customers by Levels of Money Laundering Risk

1. Based on the results of money-laundering risk assessment and update defined in Article 15 herein, reporting entities shall develop the procedures for management of money laundering risk. Procedures for management of money laundering risks shall cover classification of customers by low, medium and high level of risk, and risk management methodologies in response to specific levels of money laundering risk from customers.

2. Each reporting entity may apply measures according to the level of risk of money laundering represented by any customer subject to the following regulations:

a) For the customer representing a low risk of money laundering, the reporting entity may collect, update and verify customer identification data to a mitigated degree after starting a relationship with that customer;

b) For the customer representing a medium level of money laundering risk, the reporting entity may apply CDD measures specified in Article 9 herein to that customer;

c) For the customer representing a high level of money laundering risk, in addition to the CDD measures applied as specified in point b of this clause, the reporting entity shall apply enhanced CDD measures, including the intensified collection, updating and verification of customer identification data and close monitoring of that customer’s transactions.

3. The Governor of the State Bank of Vietnam shall elaborate on this Article.

Article 17. Responsibilities of Reporting Entities Relating to Foreign PEPs

1. Reporting entities shall check all available sources of information, including those comprising the list of foreign PEPs announced by the State Bank of Vietnam, in order to compile the list of customers that are foreign PEPs for their use.

2. The reporting entity shall satisfy the following requirements:

a) Have the risk management system appropriate for identification of the customer or the beneficial owner that is a foreign PEP; the beneficiary or the beneficial owner of the beneficiary of the life insurance policy that is a foreign PEP;

b) Obtain approval from the senior management in accordance with internal rules and regulations before starting a relationship with the customer that is a foreign PEP;

c) Carry out relevant CDD measures to verify the origin of the property of the customer and the beneficial owner that is a foreign PEP or any person related to a foreign PEP specified in clause 3 of this Article, and conduct the monitoring of business relationships during the period of doing business with the reporting entity; closely monitor any business relationship with a holder of the life insurance policy under which the beneficiary or the beneficial owner of the beneficiary is a foreign PEP, and consider reporting any suspicious transaction where necessary.

3. Reporting entities shall apply the requirements specified in point b and c of clause 2 of this Article if an individual customer:

a) is the parent, spouse, son/daughter, single elder/younger brother/sister of any natural person appearing in the list defined in clause 1 of this Article;

b) shares ownership or control of one or more legal person(s) or arrangement(s) with any natural person on the list defined in clause 1 of this Article;

c) is the beneficial owner of one or more legal person(s) or arrangement(s) owned by any natural person appearing on the list defined in clause 1 of this Article.

Article 18. Correspondent Banking Relationship

1. As a correspondent bank, the reporting entity shall be required to satisfy the following requirements when starting a counterpart relationship for the purposes of providing banking, payment and other services to a respondent bank:

a) Gather sufficient information about the respondent bank in order to fully grasp the nature and reputation of the respondent bank’s business, including whether it has been subject to any money laundering investigation or regulatory action in response to money laundering offences;

b) Assess the respondent bank's AML controls;

c) Clearly understand the respective responsibilities that the respondent bank assumes in a correspondent banking relationship.

2. When a respondent bank's customers are permitted to pay through the accounts that the respondent bank applies to open at a reporting entity, the reporting entity shall be satisfied that the respondent bank has conducted the required CDD on these customers and is capable of providing customer identification data at the request of the reporting entity.

Respondent banks shall not permit their accounts opened at the reporting entity to be used by shell banks.

3. Starting or entering into correspondent banking relationships by reporting entities shall be subject to the approval from Directors or General Directors or persons authorized by Directors or General Directors of the reporting entities.

Article 19. Responsibilities of Reporting Entities for New Products or Services; Existing Products or Services Using Innovative Technologies

1. Reporting entities shall issue policies and procedures for identification and assessment or measurement of money-laundering risks before providing new products or services; existing products or services using innovative technologies to serve the following purposes:

a) Detect and prevent the use of new products or services; existing products or services using innovative technologies for money laundering activities;

b) Manage money-laundering risks when entering into transactions with customers using new products or services; existing products or services using innovative technologies.

2. Reporting entities shall apply measures when providing new products or services; existing products or services using innovative technologies with the aim of reducing money-laundering risks.

Article 20. Special Attention Paid to Unusual Transactions

1. Reporting entities shall pay attention to the following unusual transactions:

a) Complex or unusual large transactions subject to the Government's regulations;

b) Transactions with natural or legal persons in the countries or territories appearing on the FATF’s list or the Greylist.

2. In order to exercise special attention to unusual transactions, reporting entities shall apply the enhanced measures prescribed in point c of clause 2 of Article 16 herein; check the background and purpose of unusual transactions; where there is any suspicion as to any unusual activity, reporting entities shall conduct examination, analysis and reporting of the suspicious transaction and may reject such transaction.

Article 21. Transparency of Information Regarding Legal Persons

1. The company registry, or the authority granting incorporating permits or licenses to legal persons, shall be required to update and keep or maintain basic information about a legal person, including name and category of the legal person in question, incorporation decision, permit or license relating to its business, its legal status, head office’s address, control or organization structure; list of directors or managers, company statutes; its beneficial owner(s) (if any). Such information shall be kept for at least five years after the date on which the legal person is dissolved or otherwise ceases to exist in accordance with law.

2. The legal person shall be obligated to obtain, update, record and keep its basic information, including its name and category of business, incorporation decision, permit or license relating to business, legal status, head office’s address, control or organization structure; list of directors or managers, company statutes; its beneficial owner(s).

3. When performing the regulatory functions and duties regarding AML, or conducting investigation, prosecution, trial or legal procedure, the State Bank of Vietnam and competent state authorities shall exercise their right to request entities, institutions and legal persons to provide information specified in clause 1 and 2 of this Article.

Article 22. Transparency of Information Regarding Legal Arrangements

1. The trustee under a legal arrangement shall assume the following responsibilities:

a) Collect and update identities of the settlor/grantor, trustee, beneficiary, parties concerned (if any), the natural person(s) who exercise ultimate control(s) over the trust.

Such information should be kept for at least five years after the date on which the trustee ceases to participate in trust activities;

b) Provide the information specified in point a of this clause to competent authorities at their request; enable financial institutions, or relevant non-financial businesses and professions involved in the process of starting and maintaining relationships involving the asset(s) between customers and these natural or legal persons to put that/these asset(s) in trust upon request.

2. When identifying customers as trustees through the customer due diligence process, financial institutions or relevant non-financial businesses or professions may request the trustees to provide the pieces of information specified in clause 1 of this Article, and trust literature or texts.

3. When performing the regulatory functions and duties regarding AML, or conducting investigation, prosecution, trial or legal procedure or action, the State Bank of Vietnam and competent state authorities shall exercise their right to request natural or legal persons to provide information specified in clause 1 and 2 of this Article.

Article 23. Transparency Regarding Activities of Non-profit Organizations

1. Non-profit organizations shall be required to obtain, update and record information, documents and records as follows:

a) Information about financing non-person entities or persons, including full name, address, amount of financing, financing method and others (if any);

b) Information about non-person entities or persons receiving financing, including full name, address, amount received through financing activity, method of receipt, functionalities of the amount received and others (if any);

c) Documents, records and documentary evidence related to financing and acceptance of financing.

2. Non-profit organizations shall be required to keep information, documents and records specified in clause 1 of this Article for at least five years after the date on which financing activity or acceptance of financing ends.

3. Where a non-profit organization is dissolved or terminated, the information, documents and records specified in clause 1 of this Article shall be handed over to the authority having competence in managing that non-profit organization.

4. When performing the regulatory functions and duties regarding AML, or conducting investigation, prosecution, trial or legal procedure or action, the State Bank of Vietnam and competent state authorities shall exercise their right to request non-profit organizations to provide the information, documents and records referred to in clause 1 of this Article.

Section 2. RESPONSIBILITIES FOR FORMULATION OF INTERNAL RULES AND REGULATIONS, REPORTING, PROVISION AND SAFEKEEPING OF INFORMATION AND DOCUMENTS OR RECORDS REGARDING PREVENTION AND CONTROL OF MONEY LAUNDERING

Article 24. Internal Rules and Regulations regarding AML

1. Institutional reporting entities shall be required to publish internal rules and regulations on AML, mainly including:

a) Customer acceptance policy that covers stipulations about denial of account opening, establishment of business relationships, conduct of transactions, or termination of business relationship with customers that may be allowed if any reporting entity fails to identify customers due to these customers’ refusal to provide their information or inadequate provision of information;

b) Customer identification procedures and processes;

c) Risk management policies and procedures that encompass the matters prescribed in clause 1 of Article 16, clause 1 of Article 19 and clause 2 of Article 34 herein;

d) Procedures for reporting of should-be-reported transactions;

dd) Steps in examining, detecting, handling and reporting suspicious transactions; methods of contact with customers performing suspicious transactions;

e) Storage, security and confidentiality of information;

g) Application of provisional measures, principles of application of action in case of the postponement of transactions;

h) Regimes for reporting or providing information to the State Bank of Vietnam and other competent state authorities;

i) Recruitment and training of personnel specializing in AML activities;

k) Internal control, audit of compliance with policies, regulations, regulatory processes and procedures relating to AML activities; responsibilities of each natural person or department for implementation of internal rules and regulations on AML.

2. A reporting entity that is an extra-small enterprise, or a natural person, shall be required to publish internal rules and regulations on AML, containing the matters prescribed in point a, b, c, dd, e and g of clause 1 of this Article.

3. Internal rules and regulations shall enable prevention, detection, combat and handling of suspicious activities relating to money laundering; shall be consistent with the organization structure and size of business and level of risk of money laundering of the reporting entity, and should be applied and disseminated in the entire system and at its agencies.

4. Each year, reporting entities shall be required to review their internal AML rules and regulations and modify or amend them as appropriate.

5. The Governor of the State Bank of Vietnam shall elaborate on this Article.

Article 25. Reporting of Should-be-reporting Large Transactions

1. Reporting entities shall be responsible for reporting to the State Bank of Vietnam when conducting should-be-reported large transactions.

2. The Prime Minister shall decide the range of values of which transactions are classified as should-be-reported large transactions, depending on the socio-economic condition existing over time.

3. The Governor of the State bank of Vietnam shall enact regulations on regimes for reporting of should-be-reported large transactions.

Article 26. Reporting of Suspicious Transactions

1. A reporting entity shall be responsible for reporting any suspicious transaction to the State Bank of Vietnam where:

a) it has known that such transaction is conducted at the request of a suspect, defendant or convictee, and has had reasonable grounds to suspect that the property involved in that transaction is owned, or stems from the one owned or controlled by that suspect, defendant or convictee. Determining whether a person is a suspect, defendant or convictee shall be subject to the notices of competent state authorities;

b) there is no plausible ground to suspect that the property involved in a transaction is related to the money laundering offence determined after examining, collecting and analyzing information when the customer or transaction show one or more signs of suspicious activity specified in Article 27, 28, 29, 30, 31, 32 and 33 herein, or otherwise determined by the reporting entity.

2. When detecting any sign of suspicious activity other than those specified in Article 27, 28, 29, 30, 31, 32 and 33 herein, reporting entities, relevant Ministries and central authorities shall be required to notify it to the State Bank of Vietnam.

3. Subject to the AML requirements likely to change over time, the State Bank of Vietnam shall seek the Government’s insertion of more signs of suspicious activity specific to sectors or industries other than those specified in Article 27, 28, 29, 30, 31, 32 and 33 herein.

4. The Governor of the State Bank of Vietnam shall enact regulations on regimes for reporting of suspicious transactions.

Article 27. Common Signs of Suspicious Activity

1. The customer refuses to provide information or provide inaccurate, inadequate and inconsistent identities.

2. The customer induces the reporting entity not to report the transaction to the competent state authority.

3. It is unlikely to identify a customer based on the information provided by the customer or a transaction relating to an anonymous party.

4. The phone number provided by a customer does not work or exist after an account is created or a transaction is performed.

5. The transaction is performed by order or according to the authorization obtained from entities and persons defined in the Greylist.

6. The transaction can, based on the customer’s identification information or through examination of economic and legal concepts thereof, determine the connection between the parties involved and criminal activities or the association with the entities or persons appearing on the Greylist.

7. The natural or legal person participates in a transaction at great expense, which is deemed as incommensurate with their business situation and income.

8. The customer requests the reporting entity to carry out a transaction without conforming to the procedures and processes required by law.

Article 28. Signs of Suspicious Activity in Banking Sector

1. There is a dramatic change in the volume of transactions performed on an account; money flowing in or out from an account quickly; despite the great volume of transactions in a day, the balance remaining in an account is tiny or equals zero.

2. A small amount of money is transmitted for a short while from different accounts to an account or vice versa; money is transmitted from or to multiple accounts; parties involved do not care about transaction fees; a lot of transactions, each of which is close to the great value requiring to be reported, are performed.

3. A letter of credit and other trade finance facilities of which value is unusually great, and the proportion(s) of discount to value is high, are used.

4. A customer has access to multiple accounts opened by credit institutions or foreign bank branches in a geographic area different from the place where he/she resides, works or does business.

5. A customer’s account suddenly records a usually large amount of funds that are deposited or transferred.

6. A large amount of funds are transmitted overseas from a company’s account after that account receives multiple small amounts that are wired or in form of cheques or drafts.

7. A foreign-invested economic entity transmits money abroad after receipt of investment capital, or remits money overseas despite not allowed to do so according to its scope of business; a foreign investor transmits money abroad promptly after receiving funds from abroad to the account opened at any credit institution or foreign bank branch doing business in Vietnam.

8. A customer frequently converts low-value banknotes into high-value ones.

9. A transaction involving depositing or withdrawal of funds is performed by an entity or person creating illegal assets as a result of criminal activity that has been named on the mass media.

10. A customer requests the lending of a permissible maximum amount for which it/he/she may provide security by using a life insurance policy of which total premium is paid on a lump sum basis promptly after payment of insurance costs.

11. Information about the origin(s) of asset(s) used as financing, investment(s), lending or entrusted investment of a customer is not clear or transparent.

12. Information about the origin of property put up as collateral of a customer requesting the lending of funds is incomplete and inaccurate.

13. There is a suspicion that a customer uses a personal account for conducting a transaction relating to the structure of a legal person, or acting on behalf of other natural person to perform a transaction.

14. Online transactions are performed through accounts that frequently change in terms of login devices or internet protocol (IP) addresses abroad.

Article 29. Signs of Suspicious Activity in Payment Intermediary Sector

1. There is a dramatic change in the volume of transactions performed on an e-wallet; money flowing in or out from an e-wallet quickly; despite the great volume of transactions performed a day, the balance remaining in an e-wallet is tiny or equals zero.

2. A customer frequently tops up or recharges an e-wallet with a lot of small replenishments, then carries out a transaction involving transferring a large amount of money to an e-wallet or withdrawing a large amount of money to its/his/her bank checking account or debit card or vice versa.

3. Transactions involving transfer of small amounts of money from various e-wallets to an e-wallet or vice versa occur in a short while; a transaction involves transfer of an amount of money to different e-wallets; parties concerned in a transaction do not care about transaction fees; a lot of transactions, each of which is close to the great value requiring to be reported, are performed; an e-wallet records a lot of transactions involving transfer of funds to another e-wallet in a unusually short time of origination of each transaction.

4. A customer’s e-wallet unexpectedly is credited with an unusually great top-up amount.

5. A transaction involving crediting or debiting money to or from an e-wallet account or transferring money between e-wallets is performed by an entity or person obtaining illegal assets as a result of criminal activity that has been named on the mass media.

6. There is a suspicion that a customer uses a personal account for conducting a transaction relating to the structure of a legal person, or acting on behalf of other natural person to perform a transaction.

7. A customer is the merchant that still records any transaction even though the inspection proves that its official website or office has been closed.

8. Online transactions performed through e-wallets change constantly in terms of login devices or IP addresses.

9. A customer regularly uses login devices or IP addresses abroad to have access to an e-wallet or perform transactions on an e-wallet; frequently uses a login device or IP address to carry out transactions on various e-wallets of which holders are different.

Article 30. Signs of Suspicious Activity in Life Insurance Business Sector

1. A customer requests the purchase of an insurance policy of unusually great value, or demands a lump-sum payment of insurance premiums if such payment is not permitted for the requested insurance product, despite the fact that its/his/her existing insurance policies are of low value and require the payment of insurance premiums in instalments.

2. A customer requests the underwriting of an insurance contract for which each instalment of insurance premium paid does not match its/his/her current income.

3. An insurance buyer pays the insurance premium through an account other than its/his/her account or the account of its/his/her authorized entity or person, or by bearer negotiable instruments.

4. An insurance buyer requests replacement of the nominee beneficiary by a natural person who does not have a clear relationship with him/her.

5. A customer accepts all unfavorable conditions not relating to his/her age, health condition; a customer requests the purchase of insurance for indefinite purposes; conditions and value of an insurance contract are contradictory to his/her needs.

6. An insurance buyer waives the insurance contract promptly after purchase and requests transfer of paid insurance premiums to a third party; a customer regularly participates in insurance and transfers the insurance contract to a third party.

7. A customer is a company where the number of insurance contracts for its employees or the amount of insurance premium in an insurance contract under which insurance premiums are paid on a lump-sum basis is unusually increased.

8. An insurance company frequently pays a large amount of money for insurance to the same customer.

Article 31. Signs of Suspicious Activity in Securities Sector

1. Suspicious transactions involving unusual purchase and sale of securities that occur within one or several days are performed by an entity or person.

2. A securities company conducts money transfers unfit for securities business activities.

3. A nonresident transfers a large amount of money from a securities trading account or discharges an investment entrustment agreement to move funds out of Vietnam.

4. A customer regularly sells all stocks on the portfolio and requests a securities company to sign a payment order to enable its/his/her cash withdrawals from a commercial bank.

5. A customer makes unusual investments in various types of securities that are not favorable in a short while.

6. A customer's securities trading account unexpectedly is credited with a large amount of money unfit for the customer’s financial capability.

7. A transaction involving the purchase or sale of securities is funded by an investment fund set up in a country or territory at high risk of money laundering.

8. A foreign investor residing in a country or territory (or jurisdiction) at high risk of money laundering contributes capital to set up an investment fund or investment company in Vietnam.

Article 32. Signs of Suspicious Activity in Prize-awarding Game Business Sector

1. A customer is suspected of keeping on losing games played at a prize-awarding business (or amusement arcade).

2. After buying an unusually large number of coins or tokens at a casino or prize-awarding game center (or amusement arcade), a customer does not play or plays with a very small portion of the bought coins or tokens, and then redeem them for cash, cheques, bank drafts, or money transferred to other accounts.

3. A customer requests the transfer of a winning or prize to the third party with whom he/she does not have any clear relationship.

4. A customer adds more cash or cheques to the winning or prize, and requests a prize-awarding game center to change them into a cheque that has an unusually large value.

5. A customer repeatedly requests a casino or prize-awarding game center to redeem a large amount of coins or tokens for cash within a day.

6. A customer repeatedly requests a third party to buy an unusually large amount of coins or tokens and place a bet on his/her behalf within a day.

7. A customer repeatedly buys lottery tickets, betting tickets or coins or tokens to the extent that they almost reach the permissible maximum limit of a large transaction that should be reported.

8. A customer buys a winning lottery ticket of great value from other person.

Article 33. Signs of Suspicious Activity in Real Estate Business Sector

1. Real estate transactions are the authorized transactions performed without reference to any legal basis.

2. A customer does not care about the price of the real property or transaction fees payable.

3. A customer fails to provide information relating to the real property in question or does not wish to provide further information about his/her personal background.

4. The price involved in a transaction between parties does not match the market price.

Article 34. Wire Transfer or Electronic Funds Transfer

1. Reporting entities shall be obligated to report transactions involving transfer of electronic money to the State Bank of Vietnam if value of each of these transactions exceeds the value limit determined under the regulations signed by the Governor.

2. When a reporting entity participates in a transaction involving transfer of electronic money, it shall adopt risk management policies and procedures to carry out, reject, temporarily suspend a transaction, or conduct post-transaction control; check whether a transaction involving the transfer of electronic money contains required information which is inaccurate or incomplete, and report such transaction as a suspicious activity.

3. The Governor of the State Bank of Vietnam shall impose regulations relating to wire transfer or electronic funds transfer against money laundering; regimes for reporting of wire transfer or electronic funds transfer.

Article 35. Declaration and Provision of Information about Cross-border Transportation of Cash, Precious Metals, Jewels and Negotiable Instruments

1. Upon entry or exit, if a natural person carries foreign-currency or Vietnamese-dong cash, precious metals, jewels and negotiable instruments in excess of the quotas or allowances imposed by competent state authorities, he/she must declare these items to customs authorities, or to border guards on duty at the places where no customs authority is on assignment.

2. Customs authorities or border guards shall be responsible for collecting and storing declared information specified in clause 1 of this Article and providing such information to the State Bank of Vietnam upon request or when there is any suspicion relating to money laundering, terrorist financing or financing of proliferation of weapons of mass destruction.

Article 36. Reporting Forms

1. Reporting entities shall send electronic data or physical reports when compatible IT systems have not yet been created to meet the requests for transfer of electronic data with respect to those reports specified in Article 25, 28 and 34 herein.

2. Where necessary, reporting entities may report by facsimile, telephone or email provided that such reporting conforms to report data safety, confidentiality or security requirements, and confirmation is given in either of the forms defined in clause 1 of this Article.

3. When submitted reports on suspicious transactions, reporting entities shall be required to enclose records on opening of accounts used for transactions, customer identification data, documentary evidence and other documents relating to suspicious transactions, and preventive measures that have been taken.

Article 37. Reporting Deadlines or Time Limits

1. Reporting entities shall report the should-be-reported large transactions specified in Article 25 and the wire transfer transaction specified in Article 34 herein within 01 working day following the date on which each transaction occurs with respect to electronic reports; within 02 working days following the date on which each transaction occurs with respect to physical reports.

2. Reporting entities shall report the suspicious transactions specified in Article 26 herein within 03 working days following the date on which each transaction occurs, or within 01 working day following the date on which the reporting entity detects the suspicious transaction.

3. Where it is discovered that a suspicious transaction requested by a customer is associated with a criminal act, the reporting entity shall be required to report it to the competent state authority and the State Bank of Vietnam within 24 hours following the date of such discovery.

Article 38. Retention and Safekeeping of Information, Documents, Records and/or Reports

1. Each reporting entity shall be responsible for safekeeping of information, documents, records and/or reports, including the following:

a) Information, documents, records relating to customer identification;

b) Results of the reporting entity’s analysis and assessment of customers and/or should-be-reported transactions;

c) Other information, documents and records associated with customers or should-be-reported transactions;

d) Report on the transaction specified in Article 25, 26 or 34 herein; information, documents or records attached to the should-be-reported transaction.

2. Retention time limit shall be set as follows:

a) 05 years as from the date on which a transaction is completed or the account-closing date or the report date with respect to information, documents or records specified in point a, b and c of clause 1 of this Article;

b) 05 years as from the date on which a transaction occurs with respect to the reports specified in point d of clause 1 of this Article.

Article 39. Responsibilities for Reporting and Provision of Information, Documents, Records and Reports

1. Reporting entities shall be required to provide information, documents, records and reports specified in clause 1 of Article 38 herein to the State Bank of Vietnam and competent state authorities under the Government's regulations.

2. Discharging the obligations to report or provide information by reporting entities, other entities or persons to competent authorities under this Law shall not be deemed as an act of violation against law on information confidentiality or security.

Article 40. Protection of Confidentiality or Security of Information, Documents, Records and Reports

1. Reporting entities, other entities and persons concerned shall be required to comply with law on protection of state secrets and confidentiality or security for customer identification data with respect to those information, documents, records or reports related to should-be-reported transactions in accordance with this Law.

2. Reporting entities, management or employees of reporting entities shall be prohibited from tipping-off by divulging the act of reporting a suspicious transaction or information relating to a suspicious transaction to the State Bank of Vietnam.

Section 3. GATHERING, HANDLING, ANALYSIS, EXCHANGE, PROVISION AND TRANSFER OF AML INFORMATION

Article 41. Gathering, Handling and Analysis of AML Information

1. The State Bank of Vietnam shall be authorized to request entities and persons concerned to provide information, documents or records necessary for conduct of analysis and transfer of information about AML and international cooperation in AML activities.

2. Entities and persons concerned shall be responsible for providing the State Bank of Vietnam with the information, documents or records specified in clause 1 of this Article.

3. The Government shall elaborate on this Article.

Article 42. Relationship involving Exchange, Provision and Transfer of AML Information with Domestic Competent Authorities

1. When there is any reasonable ground to suspect that the transaction specified in the information or report relates to money laundering, within 07 working days, the State Bank of Vietnam shall be responsible for referring information or case file to the competent authority for use in the verification, investigation, prosecution, trial or proceeding.

Information about the suspicious transaction transferred by the State Bank of Vietnam to the competent authority shall be classified as the state secret.

2. The State Bank of Vietnam shall be responsible for cooperating in and exchanging information about prevention and combat of money laundering with competent authorities during the process of investigation, prosecution, trial or proceeding.

3. The State Bank of Vietnam shall assume responsibility for information exchange and provision to Ministries and central authorities concerned to serve the AML purposes.

4. The Government shall elaborate on this Article.

Article 43. Relationship involving Exchange, Provision and Transfer of AML Information with Foreign Competent Authorities

1. The State Bank of Vietnam shall send a request to an AML agency and relevant competent authority abroad to collect and complete information needed for the handling, analysis and transfer of AML information; shall receive responses or feedback and information provided by the AML agency and relevant competent authority abroad, and process or handle the received information in accordance with this Law.

2. The State Bank of Vietnam shall receive the request for provision of information from a competent authority abroad for use in AML activities, and send responses or feedback.

3. The State Bank of Vietnam shall provide and transfer information to a competent authority abroad in accordance with this Law.

4. Any information about a suspicious transaction exchanged, provided or transferred by the State Bank of Vietnam to a competent authority abroad shall be classified as the state secrets.

Section 4. APPLICATION OF PROVISIONAL MEASURES AND SANCTIONS

Article 44. Postponement of Transactions

1. Each reporting entity shall be required to promptly take a transaction postponement measure when:

a) there are any reasonable grounds to suspect that a transaction is on the Blacklist, or it is discovered that parties are related to a transaction on the Blacklist;

b) there are grounds to believe that the requested transaction is related to criminal activity in such a way that: the transaction is performed at the request of a convictee defined the law on criminal procedures, and the property involved in the transaction is owned by that convictee, or stems from that convictee's ownership or control; the transaction is related to an entity or person conducting an act of terrorism financing crime;

c) requested by competent state authorities in accordance with relevant laws.

2. When needing a transaction postponement measure to be taken, the reporting entity shall immediately report to the competent state authority and the State Bank of Vietnam.

3. The time limit for application of a transaction postponement measure shall not be more than 03 working days from the date on which it commences.

4. Reporting entities shall be excluded from legal liability for any consequence following application of a transaction postponement measure as provided in this Article.

5. The Government shall elaborate on point a of clause 1 and clause 2 of this Article.

Article 45. Freezing of Accounts, Seizure or Confiscation of Assets

Reporting entities shall execute decisions on freezing, seizure or confiscation of assets of entities or persons issued by competent state authorities in accordance with law.

Article 46. Sanctions or Penalties

Entities and persons committing violations against law on AML shall be subject to administrative sanctions or penalties or criminal prosecution, depending on the nature and degree of violation; if such violation causes any damage or loss, compensation shall be paid in accordance with law.

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