Law on Prevention and Combating Money Laundering No. 07/2012/QH13

LAW

Anti-Money Laundering

__________

 

BASED ON THE CONSTITUTION OF THE SOCIALIST REPUBLIC OF VIETNAM IN 1992 AS AMENDED AND COMPLEMENTED BY RESOLUTION NO. 51/2001/QH10;

The National Assembly promulgates the Anti-Money Laundering Law.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Law stipulates measures for prevention, detection, blocking, and handling of organizations and individuals engaging in money laundering activities; responsibilities of agencies, organizations, and individuals in anti-money laundering; international cooperation on anti-money laundering.

2. Prevention and combating of money laundering activities aimed at financing terrorism shall be carried out in accordance with this Law, the Criminal Code, and laws on preventing and combating terrorism.

Article 2. Applicability

1. Financial organizations.

2. Organizations and individuals engaged in non-financial business sectors related to money laundering.

3. Vietnamese organizations and individuals; foreigners residing in Vietnam or foreign organizations, international organizations, and non-governmental organizations operating within the territory of Vietnam who have financial transactions or other asset transactions with organizations and individuals specified in Clause 1 and Clause 2 of this Article.

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

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

Prevention, detection, blocking, and handling of money laundering activities shall be carried out in accordance with this Law and other relevant legal provisions, except where international treaties to which the Socialist Republic of Vietnam is a party provide otherwise.

Article 4. Definitions

In this Law, the following terms shall be understood as follows:

1. Money laundering is the act of organizations and individuals aiming to legitimize the origin of assets derived from criminal activities, including:

a) Acts prescribed in the Criminal Code;

b) Assisting organizations and individuals related to criminal activities to evade legal responsibility by legitimizing the origin of assets derived from criminal activities;

c) Possessing assets if, at the time of receiving the assets, it is known that they were derived from criminal activities, with the aim of legitimizing the origin of the assets.

2. Assets include objects, money, negotiable instruments, and property rights as defined in the Civil Code, which may exist in tangible or intangible form; movable or immovable property; tangible or intangible forms; legal documents or instruments proving ownership or interest in such assets.

3. Financial organizations are entities licensed to carry out one or more of the following activities:

a) Accepting deposits;

b) Granting loans;

c) Financial leasing;

d) Payment services;

đ) Issuing transferable securities, credit cards, debit cards, payment orders, electronic money;

e) Bank guarantees and financial commitments;

g) Providing foreign exchange services, monetary instruments on the money market;

h) Advising, guaranteeing the issuance of securities, acting as distributors of securities;

i) Managing investment portfolios;

k) Managing cash or securities for other organizations or individuals;

l) Providing insurance services; investment activities related to life insurance;

m) Currency exchange.

4. Organizations and individuals engaged in non-financial business sectors related to money laundering are those carrying out one or more of the following activities:

a) Operating prize games, casinos;

b) Operating real estate management services, real estate brokerage; real estate trading floors;

c) Trading precious metals and gemstones;

d) Providing notary, accounting services; legal services of lawyers, law firms;

đ) Investment trust services; services for establishing, managing, and operating businesses; providing directorship and secretary services for businesses to third parties.

5. Reporting entities are organizations and individuals specified in Clause 3 and Clause 4 of this Article.

6. Suspicious transactions are transactions showing unusual signs or having reasonable grounds to suspect that the assets involved in the transaction originate from criminal activities or are related to money laundering.

7. Large-value transactions are transactions in cash, gold, or cash foreign currency with a total value equal to or exceeding the threshold set by competent state management authorities, conducted once or multiple times in a day.

8. Customer is an organization or individual currently using or intending to use services or products provided by financial organizations or organizations and individuals engaged in non-financial business sectors related to money laundering.

9. Beneficial owner is an individual who actually owns an account, has control over the account when the customer conducts a transaction for this individual, or has control over a legal entity or a trust investment agreement.

10. Correspondent banking relationship is the provision of banking, payment, and other services by a bank in one country or region to a partner bank in another country or region.

11. Originator is the account holder or the person requesting a financial organization to perform an electronic money transfer in cases where there is no account.

12. Blacklist is a list of organizations and individuals associated with terrorism and terrorist financing compiled by the Ministry of Public Security in accordance with the law.

13. Warning List is a list of organizations and individuals compiled by the State Bank of Vietnam to warn of high-risk organizations and individuals regarding money laundering.

14. Introducing business activity is conducting business with customers through the introduction of an intermediary financial organization within the same group or holding company or through a service provider.

15. Financial Task Force is an intergovernmental organization that issues standards and promotes effective implementation of legal, regulatory, and operational measures to combat money laundering, terrorist financing, and proliferation of weapons of mass destruction and related threats to the integrity of the global financial system.

16. Power of attorney agreement is an agreement by an organization or individual authorizing another organization or individual to conduct transactions related to assets under their ownership or management.

Article 5. Principles for Preventing and Combating Money Laundering

1. The prevention and combating of money laundering must be carried out in accordance with the provisions of the law on the basis of ensuring national sovereignty and security; ensuring normal economic and investment activities; protecting the rights and legitimate interests of organizations and individuals; preventing abuse of power and the misuse of anti-money laundering efforts to infringe upon the rights and legitimate interests of related organizations and individuals.

2. Anti-money laundering measures must be implemented comprehensively and promptly; money laundering acts must be dealt with strictly.

Article 6. State Policy on Preventing and Combating Money Laundering

1. Preventing and combating money laundering is the responsibility of the State and state agencies. The State encourages domestic and foreign organizations and individuals to participate, cooperate, and sponsor activities aimed at preventing and combating money laundering.

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

3. Issuing policies to promote international cooperation in the prevention and combating of money laundering.

4. Organizations and individuals who have achievements in the work of preventing and combating money laundering shall be commended by the State.

Article 7. Prohibited Acts

1. Organizing, participating in, or creating conditions for the implementation of money laundering acts.

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

3. Establishing and maintaining business relationships with banks established in a country or territory but without physical presence in that country or territory and not subject to the management and supervision of competent authorities.

4. Illegally providing cash receipt services, checks, other monetary instruments, or value storage tools and performing payments for beneficiaries at another location.

5. Misusing positions or powers in the prevention and combating of money laundering to harm the rights and legitimate interests of organizations and individuals.

6. Obstructing the provision of information for the purpose of preventing and combating money laundering.

7. Threatening or retaliating against persons who discover, provide information, report, or denounce money laundering acts.

Chapter II

MEASURES FOR PREVENTING AND COMBATING MONEY LAUNDERING

Section 1

CUSTOMER IDENTIFICATION AND UPDATING CUSTOMER INFORMATION

Article 8. Customer Identification

1. Financial organizations must apply customer identification measures in the following cases:

a) When customers open accounts or establish transactions with financial organizations;

b) When customers conduct infrequent large-value transactions or electronic fund transfers lacking information about the name, address, and account number of the initiating party;

c) When there is suspicion of transactions or parties involved in transactions being related to money laundering activities;

d) When there is doubt regarding the accuracy or completeness of previously collected customer identification information.

2. Organizations and individuals engaged in non-financial professions related to money laundering must apply customer identification measures in the following cases:

a) Organizations and individuals engaged in the professions specified in point a, Clause 4, Article 4 of this Law must implement customer identification measures for customers conducting large-value transactions;

b) Organizations and individuals engaged in the professions specified in point b, Clause 4, Article 4 of this Law are responsible for applying customer identification measures when providing brokerage services for buying, selling, and managing real estate for customers;

c) Organizations and individuals engaged in the professions specified in point c, Clause 4, Article 4 of this Law are responsible for applying customer identification measures when customers conduct large-value transactions involving the purchase or sale of precious metals and gems in cash;

d) Organizations and individuals engaged in the professions specified in point d, Clause 4, Article 4 of this Law are responsible for applying customer identification measures when acting on behalf of customers to prepare conditions for transactions or act on behalf of customers to execute transactions transferring land use rights, ownership of houses; manage customers' funds, securities, or other assets; manage customers' bank accounts or securities company accounts; operate and manage customers' company activities; participate in the buying and selling of business organizations;

đ) Organizations providing services specified in point đ, Clause 4, Article 4 of this Law are responsible for applying customer identification measures when providing company formation services; providing directors or secretary directors for businesses; providing registered office, address, or business location services; providing company representation services; investment trust services; services providing shareholders' representatives.

Article 9. Customer Identification Information

Customer identification information must include the following main information:

1. Customer identification information:

a) For individual customers who are Vietnamese citizens: full name; date of birth; nationality; occupation and position; telephone number, national identity card number or passport number, issuance date, issuing authority; registered residence address and current residence address. For individual customers who are foreign nationals: full name; date of birth; nationality; occupation and position; passport number, issuance date, issuing authority, entry visa; registered residence address abroad and registered residence address in Vietnam;

b) For corporate customers: full trading name and abbreviation; headquarters address; telephone number, fax number; field of operation and business; information about the founders and representatives of the organization, including the information specified in point a of this clause.

2. Beneficial owner information:

a) The reporting entity must identify the beneficial owner and apply measures to identify and update information on the beneficial owner;

b) For legal person customers or when providing services under an agency agreement, the reporting entity must collect information on ownership rights and control structure to determine individuals with controlling and influencing interests in the legal person or agency agreement.

3. Purpose of the customer's relationship with the reporting entity.

Article 10. Updating Customer Identification Information

The reporting entity must regularly update customer identification information throughout the duration of the relationship with the customer; ensuring that transactions conducted through the reporting entity are consistent with known information about the customer, their business activities, risks, and the source of the customer’s assets.

Article 11. Measures for Verifying Customer Identification Information

1. The reporting entity uses documents and data to verify customer identification information, including:

a) For individual customers: valid national identity cards, passports, and other documents issued by authorized authorities;

b) For corporate customers: business licenses or establishment decisions; name change, division, merger decisions; business registration certificates; appointment decisions or contracts for hiring General Managers (Directors), Chief Accountants.

2. The reporting entity may obtain information from other organizations or individuals who have or are currently in a relationship with the customer; or through management agencies or other competent state agencies to gather and compare information with the information provided by the customer.

3. The reporting entity may hire other organizations to verify customer identification information. In this case, the reporting entity must ensure that the hired organization complies with the regulations on identifying and updating customer information stipulated in Articles 9 and 10 of this Law and bear responsibility for identifying and updating customer information.

Article 12. Classifying Customers Based on Risk Levels

1. The reporting entity must establish regulations for classifying customers based on risk levels according to customer type, product type, service used, place of residence or headquarters location.

2. For low-risk customers, the reporting entity may apply lower-level customer identification measures but must ensure the collection of all required customer information as stipulated in Article 9 of this Law.

3. For high-risk customers and transactions as defined in Articles 13, 14, 15, 16, and 17 of this Law, in addition to implementing the identification measures stipulated in Article 9 of this Law, the reporting entity must also apply enhanced evaluation measures as prescribed by this Law.

4. For other high-risk customers and transactions not covered by the provisions of paragraph 3 of this Article, in addition to implementing the identification measures stipulated in Article 9 of this Law, the reporting entity must also apply enhanced evaluation measures as prescribed by the State Bank of Vietnam.

Article 13. Foreign individual customers with political influence

1. A foreign individual customer with political influence is a person holding a high-level position in relevant agencies and organizations of a foreign country. The State Bank of Vietnam shall publish the list of foreign individual customers with political influence specified in this clause based on recommendations from international organizations against money laundering.

2. Reporting entities must have a risk management system to identify foreign individual customers with political influence and apply the following measures:

a) Establish internal control regulations for opening accounts or establishing transactions when the customer or beneficial owner is identified as an individual with political influence;

b) Implement measures to identify the source of the customer's assets;

c) Strengthen supervision over customers and business relationships with customers.

3. Reporting entities must apply the measures prescribed in Clause 2 of this Article to customers who are the father, mother, wife, husband, son, daughter, elder brother, elder sister, younger brother, or younger sister of individuals specified in Clause 1 of this Article.

Article 14. Correspondent banking relationships

When establishing correspondent banking relationships with foreign partner banks, reporting entities must apply the following measures:

1. Collect information about the partner bank to fully understand its nature of business and reputation, and ensure that the partner bank is subject to supervision and management by competent authorities abroad;

2. Evaluate the implementation of anti-money laundering measures by the partner bank;

3. Must obtain approval from the General Director (Director) or an authorized representative of the reporting entity before establishing a correspondent banking relationship;

4. In cases where customers of the partner bank can make payments through accounts opened at the reporting entity, the reporting entity must ensure that the partner bank has fully carried out customer identification and updated customer information, and has the ability to provide customer identification information upon request of the reporting entity.

Article 15. Transactions related to new technologies

1. Reporting entities must establish procedures for the following purposes:

a) Detecting and preventing the use of new technology for money laundering;

b) Managing money laundering risks when establishing transactions with customers using new technology without face-to-face meetings.

2. The procedures prescribed in Clause 1 of this Article must ensure effective updating of customer information similar to face-to-face customer updates.

Article 16. Special monitoring of certain transactions

1. Reporting entities must conduct special monitoring of the following transactions:

a) Transactions with unusually large or complex values;

b) Transactions with organizations or individuals located in countries or territories listed by the Financial Action Task Force for anti-money laundering purposes or warning lists.

2. Reporting entities must verify the legal basis and purpose of the transaction; if there is suspicion regarding the authenticity or purpose of the transaction, the reporting entity must submit a suspicious transaction report to the State Bank of Vietnam and may refuse the transaction.

Article 17. Business Activities through Introductions

1. When conducting business activities through introductions, the reporting entity may identify customers through intermediaries and ensure the following requirements:

a) The intermediary must collect, retain, and provide promptly and fully customer identification information to the reporting entity upon request;

b) The intermediary must comply with the requirements for identifying and updating customer information as stipulated in Articles 9 and 10 of this Law or recommendations from the Financial Task Force in cases where the intermediary is a foreign organization;

c) The intermediary must be subject to management and supervision by the competent authority.

2. Customer identification through intermediaries does not exempt the reporting entity from its responsibility to identify and update customer information.

Article 18. Ensuring Transparency of Legal Entities and Power of Attorney Agreements

1. The securities exchange must retain and update basic information on organizational structure, founders, and beneficial owners of listed companies.

2. The business registration agency must retain and update basic information on organizational structure, founders, and beneficial owners of non-listed companies on the securities market.

3. Organizations and individuals providing legal services for drafting power of attorney agreements for clients must retain, maintain, and update information on power of attorney agreements and beneficial owners under such agreements.

4. The State Bank of Vietnam and other state agencies authorized by law during the performance of their functions and tasks related to anti-money laundering may require organizations and individuals specified in Clauses 1, 2, and 3 of this Article to provide information.

Article 19. Ensuring Transparency in the Operations of Non-Profit Organizations

1. Non-profit organizations established or operating in Vietnam must maintain and update files containing full information about sponsors; organizations or individuals receiving sponsorship; amounts of sponsorship and purposes of using the sponsored funds.

2. Files specified in Clause 1 of this Article must be stored fully and provided to competent state agencies when requested.

Article 20. Establishing Internal Regulations on Anti-Money Laundering

1. Based on the provisions of this Law and other relevant laws, the reporting entity must issue internal regulations on anti-money laundering with the following main contents:

a) Customer acceptance policy;

b) Procedures and processes for identifying customers, verifying, and updating customer information;

c) Reportable transactions;

d) Review, detection, handling, and reporting procedures for suspicious transactions; methods of communicating with customers involved in suspicious transactions;

đ) Record retention and information security;

e) Temporary measures and principles for handling situations involving delayed transactions;

g) Reporting and information provision systems to the State Bank of Vietnam and other competent state agencies;

h) Training in anti-money laundering practices;

i) Internal control and audit of compliance with policies, regulations, procedures, and processes related to anti-money laundering activities; responsibilities of each individual and department in implementing internal regulations on anti-money laundering.

2. The content of internal regulations must ensure effective prevention, detection, blocking, and handling of activities suspected of being related to money laundering; be appropriate to the organizational structure, scale of operations, and level of money laundering risk in the reporting entity's activities, and must be disseminated to each individual and department related to the reporting entity.

3. The reporting entity must regularly evaluate internal regulations on anti-money laundering to make necessary amendments and supplements.

Section 2

REPORTING, INFORMATION PROVISION, AND RECORD RETENTION OBLIGATIONS

Article 21. Reporting of Large Value Transactions

1. The reporting subject shall report to the State Bank of Vietnam when implementing large value transactions.

2. At the request of the State Bank of Vietnam,

Article 22. Reporting of Suspicious Transactions

1. The reporting subject shall report to the State Bank of Vietnam when suspecting or having reasonable grounds to suspect that assets in a transaction have a criminal origin or are related to money laundering. Reporting of suspicious transactions shall be carried out according to the form prescribed by the State Bank of Vietnam.

2. Basic suspicious signs include:

a) The customer provides inaccurate, incomplete, or inconsistent information for customer identification;

b) The customer persuades the reporting subject not to report the transaction to the competent state agency;

c) It is impossible to identify the customer based on the information provided by the customer or the transaction involves a party whose identity cannot be determined;

d) The personal or organizational phone number provided by the customer cannot be contacted or does not exist after opening an account or conducting a transaction;

đ) Transactions are conducted at the instruction or authorization of an organization or individual listed in the warning list;

e) Through customer identification information or by reviewing the economic and legal basis of the transaction, it can be determined that there is a connection between the parties involved in the transaction and criminal activities or organizations or individuals listed in the warning list;

g) Organizations or individuals participating in transactions with large amounts of money that are inconsistent with their income or business activities;

h) The customer's transactions conducted through the reporting subject do not follow the procedures and formalities stipulated by law.

3. Suspicious signs in the banking sector include:

a) Sudden changes in transaction volume on accounts; rapid deposits and withdrawals from accounts; large transaction volumes in a day but very small or zero account balances;

b) Small-value fund transfers from multiple different accounts to one account or vice versa within a short period; funds being transferred through multiple accounts; parties involved are indifferent to transaction fees; conducting numerous transactions each close to the threshold requiring reporting;

c) Using letters of credit and other large-value trade financing methods with unusually high discount rates compared to normal;

d) Customers opening multiple accounts at credit institutions or foreign bank branches located in geographic areas different from where they reside, work, or conduct business;

đ) Customer accounts inactive for over a year suddenly become active without a reasonable explanation; customer accounts receiving large deposits or transfers without prior activity;

e) Large sums of money being transferred from corporate accounts abroad after receiving several small transfers via electronic transfers, checks, or drafts;

g) Foreign-invested enterprises transferring money abroad immediately after receiving investment capital or transferring money abroad inconsistent with their business operations; foreign enterprises transferring money abroad immediately after receiving funds from abroad deposited into accounts opened at credit institutions or foreign bank branches operating in Vietnam;

h) Customers frequently exchanging small-denomination currency for larger denominations;

i) Deposit, withdrawal, or transfer transactions conducted by organizations or individuals associated with illegal asset creation reported in the media;

k) Customers requesting maximum loans based on insurance contracts collateralized by single premium payments immediately after paying the insurance premium, except when required by the credit institution;

l) Information about the source of assets used for financing, investment, lending, leasing, or entrusted investment by customers is unclear or opaque;

m) Information about the source of collateral assets requested for borrowing by customers is unclear or opaque.

4. Suspicious signs in the insurance business sector include:

a) Customers requesting to purchase a large-value insurance contract or to pay the full premium in one lump sum for products that do not apply such payment method, while current insurance contracts held by the customer are small and paid periodically;

b) Customers requesting to sign an insurance contract with periodic premiums that are inconsistent with their current income or purchasing an insurance contract related to business activities outside their usual business scope;

c) The buyer of the insurance contract and the payer from an account that is not their own or using unregistered transfer instruments;

d) Customers requesting to change the beneficiary designated or by someone with no clear relationship to the buyer of the insurance contract;

đ) Customers accepting all unfavorable conditions unrelated to age or health; customers proposing to buy insurance with unclear purposes and reluctantly providing reasons for participation in insurance; terms and values of the insurance contract contradict the customer's needs;

e) Customers canceling the insurance contract immediately after purchase and requesting third-party payment; customers frequently engaging in insurance and transferring insurance contracts to third parties;

g) Corporate customers having an unusual increase in the number of employee insurance contracts or single-premium insurance contract fees;

h) Insurance companies frequently making large payouts to the same customer.

5. Suspicious signs in the securities sector include:

a) Abnormal buying and selling of securities in a day or several days conducted by an organization or an individual;

b) Customers conducting securities transfers outside the system without a reasonable explanation;

c) Securities companies transferring funds inconsistent with their securities trading activities;

d) A non-resident transfers a large amount of money from a securities trading account out of Vietnam;

đ) A customer frequently sells their investment portfolio and requests the securities company to pay in cash or by check;

e) A customer abnormally invests in various types of securities with cash or checks within a short period of time or is willing to invest in unprofitable security portfolios;

g) The customer's securities account has been inactive for a long time but suddenly receives a large, unsuitable investment relative to the customer's financial capability;

h) Securities transactions have funds originating from investment funds opened in territories classified by international organizations as having high money laundering risks;

6. Suspicious signs in the field of prize games, casinos include:

a) A customer repeatedly appears to intentionally lose at the casino;

b) A customer exchanges a large amount of casino chips or electronic game tokens but does not participate in playing or plays very little before exchanging them back for cash, bank drafts, or transferring money to another account;

c) A customer requests that winnings or prizes be transferred to a third party with no clear relationship to the customer or when the third party does not reside in the same place as the customer;

d) A customer adds cash or checks to their winnings or prizes and requests the casino or electronic game operator to convert it into a large-value check;

đ) A customer multiple times in a day requests the casino or electronic game operator to exchange a large amount of casino chips or tokens for cash;

e) A customer multiple times in a day requests a third party to exchange a large amount of casino chips or tokens on their behalf and asks the third party to play on their behalf;

g) A customer multiple times in a day buys lottery tickets, betting slips, and exchanges casino chips or tokens close to the large-value transaction limit;

h) A customer repurchases a large-value winning lottery ticket from another person;

7. Suspicious signs in the real estate business include:

a) Real estate transactions are power-of-attorney transactions without legal basis;

b) A customer shows no concern about the price of real estate or transaction fees;

c) A customer cannot provide relevant information about the real estate or does not want to provide additional personal information;

d) The agreed price between the parties in a real estate transaction is inconsistent with market prices;

8. In practice, if suspicious signs other than those mentioned above are discovered, the reporting entity must report to the State Bank of Vietnam. Based on anti-money laundering requirements, the State Bank of Vietnam will submit

Article 23. Reporting of Electronic Money Transfer Transactions

When providing electronic money transfer services, the reporting entity must report to the State Bank of Vietnam about electronic money transfer transactions exceeding the value threshold set by the State Bank of Vietnam;

Article 24. Declaration and Provision of Information on the Transport of Cash, Precious Metals, Precious Stones, and Transfer Instruments Across Borders

1. Individuals entering or exiting the country carrying foreign currency in cash, Vietnamese dong in cash, precious metals, precious stones, and transfer instruments exceeding the threshold set by the State Bank of Vietnam must declare to customs;

2. The Customs Authority is responsible for providing the information collected under Clause 1 of this Article to the State Bank of Vietnam.

Article 25. Forms of Reporting

1. The reporting subject shall submit electronic data files or reports in writing when a compatible information technology system for submitting electronic data files has not been established, in accordance with the guidelines of the State Bank of Vietnam, for the reports prescribed in Articles 21, 22, and 23 of this Law.

2. In cases of necessity, the reporting subject may report via fax, telephone, email, but must ensure the security and confidentiality of the reported information and must confirm again through one of the forms prescribed in Clause 1 of this Article.

3. For suspicious transaction reports, the reporting subject must attach account opening documentation for transactions conducted through accounts, customer identification information, relevant documents and materials related to suspicious transactions, and preventive measures taken.

Article 26. Time Limit for Reporting

1. For large value transactions and electronic fund transfer transactions, the reporting subject must:

a) Report daily for the form of submitting electronic data files;

b) Report within two working days from the date the transaction occurs for the form of submitting reports in writing or other reporting forms.

2. For suspicious transaction reports, the reporting subject must report within a maximum period of 48 hours from the time the transaction occurs; if a transaction requested by a customer shows signs of being related to criminal activity, it must be immediately reported to the State Bank of Vietnam and competent state agencies.

Article 27. Retention Period for Transaction Records and Reports

The reporting subject is responsible for retaining customer transaction records for at least five years from the date the transaction occurs; records on customer identification, accounting vouchers, and reports prescribed in Articles 21, 22, and 23 of this Law, along with related vouchers and documents, for at least five years from the end of the transaction or the closing of the account or the date of the report.

Article 28. Reporting and Information Provision Responsibilities

1. The reporting subject must promptly provide stored records, documents, and related information to the State Bank of Vietnam and competent state agencies as prescribed by this Law or upon request.

2. Agencies, organizations, and individuals fulfilling the obligation to report or provide information under this Law are not considered to have violated laws concerning the protection of deposit secrecy, deposited assets, account information, and customer transaction information.

Article 29. Confidentiality of Information and Documents for Reporting

1. Information, vouchers, and other documents related to transactions that must be reported according to this Law must be kept confidential and only provided to authorized agencies as prescribed by law.

2. The reporting subject must not disclose information about having reported suspicious transactions or related information to the State Bank of Vietnam.

Article 30. Reporting Money Laundering Activities Aimed at Financing Terrorism

1. The reporting subject has the duty to promptly report to authorized anti-terrorism agencies, and simultaneously submit the report to the State Bank of Vietnam when discovering organizations or individuals conducting transactions listed on the blacklist or when there is evidence suggesting that other organizations or individuals are engaging in activities related to money laundering aimed at financing terrorism.

2. Based on the provisions of this Law and laws on preventing and combating terrorism, the State Bank of Vietnam will specify the implementation of reporting as prescribed in Clause 1 of this Article.

Section 3

COLLECTION, PROCESSING AND TRANSFER OF INFORMATION FOR PREVENTING AND COMBATING MONEY LAUNDERING

Article 31. Collection and Processing of Information

1. Organizations and individuals related to the matter shall be responsible for providing the State Bank of Vietnam with information, documents, and files on transactions and other information as prescribed by this Law for the purpose of analysis and transfer of information.

2. Information obtained from processing information as stipulated in Clause 1 of this Article shall be confidential information serving the work of preventing and combating money laundering.

Chapter 4 IMPLEMENTATION OF TEMPORARY MEASURES AND HANDLING OF VIOLATIONS

Article 32. Transfer and Exchange of Information

1. When there is reasonable basis to suspect that transactions mentioned in the information or report are related to money laundering, the State Bank of Vietnam shall be responsible for transferring information or case files to competent investigative authorities.

2. The State Bank of Vietnam shall be responsible for coordinating and exchanging information with competent authorities in the investigation, prosecution, and trial of money laundering crimes.

3. The State Bank of Vietnam shall be responsible for exchanging information with relevant ministries and sectors for the purpose of preventing and combating money laundering.

Section 4 IMPLEMENTATION OF TEMPORARY MEASURES AND HANDLING OF VIOLATIONS

Article 33. Delaying Transactions

1. Reporting entities must apply measures to delay transactions when parties involved in the transaction are listed on the blacklist or have reasons to believe that the requested transaction is related to criminal activities and must immediately report in writing to the competent state authority.

2. The duration of applying the measure to delay transactions shall not exceed three working days, starting from the day the measure is applied.

3. Reporting entities shall be responsible for reporting to the State Bank of Vietnam on the implementation of Clause 1 of this Article.

Article 34. Freezing Accounts, Sealing, or Temporary Detention of Assets

Reporting entities must implement account freezing or apply sealing or temporary detention measures for individuals and organizations' assets upon a decision by the competent state authority as prescribed by law and report the implementation to the State Bank of Vietnam.

Article 35. Handling Violations

Chapter III

Organizations violating the provisions of this Law shall be subject to administrative penalties. Individuals violating the provisions of this Law, depending on the nature and severity of the violation, may be subject to disciplinary actions, administrative handling, or criminal responsibility as prescribed by law. In cases where organizations or individuals violate the provisions of this Law causing damage, they must compensate according to the law.

RESPONSIBILITIES OF STATE AUTHORITIES IN PREVENTING AND COMBATING MONEY LAUNDERING

Article 36. Responsibilities for State Management in Preventing and Combating Money Laundering

1. The Government shall uniformly manage state affairs concerning the prevention and combating of money laundering.

2. The Government shall issue normative legal documents within its authority and strategies for preventing and combating money laundering.

3. The Prime Minister shall direct government agencies to cooperate with the Supreme People's Court and the Supreme People's Procuracy in anti-money laundering work; coordinate anti-money laundering and anti-terrorism financing work.

Article 37. Responsibilities of the State Bank of Vietnam

1. Shall be accountable to the Government for implementing state management over the prevention and combating of money laundering.

2. Develop and submit to the competent authority for issuance or issue within its authority normative legal documents, strategies, and plans for preventing and combating money laundering.

3. Organize a central body as prescribed by the Government to collect, process, and transfer information on money laundering activities to competent state authorities; request organizations and individuals related to provide information and files on transactions and other information as prescribed by this Law for the purpose of analyzing and transferring information on money laundering activities.

4. Timely notify competent anti-terrorism authorities of information on money laundering activities aimed at financing terrorism as prescribed by this Law and laws on preventing and combating terrorism.

5. Inspect and supervise the prevention and combating of money laundering activities for reporting entities under the responsibility of state management over currency, banking operations, and foreign exchange.

6. Cooperate, exchange, and provide information with competent authorities in inspection, supervision, investigation, prosecution, trial, and enforcement of sentences related to money laundering; exchange information with foreign anti-money laundering authorities and other foreign agencies and organizations as prescribed by law.

7. Implement international cooperation in preventing and combating money laundering within its authority, serve as the lead agency to participate and implement Vietnam's obligations as a member of international organizations on preventing and combating money laundering.

8. Train the staff of the State Bank of Vietnam, other government agencies, credit institution employees, foreign bank branches, and other individuals and organizations about preventing and combating money laundering.

9. Organize research and application of scientific and technological progress and information technology in anti-money laundering work.

10. Lead and coordinate with relevant agencies in popularizing and educating the law on preventing and combating money laundering.

Article 38. Responsibilities of the Ministry of Public Security

11. Summarize information and annually report to the Government on the prevention and combating of money laundering on Vietnamese territory.

1. Collect, receive, and process information on crimes related to money laundering.

2. Lead and coordinate with relevant agencies, organizations, and individuals in detecting, investigating, and handling money laundering crimes.

3. Regularly exchange information and materials on new methods and tactics of domestic and foreign money laundering crimes with the State Bank of Vietnam.

4. Lead the establishment of lists of organizations and individuals on the blacklist as prescribed in Clause 12 of Article 4 of this Law.

Article 39. Responsibilities of the Ministry of Finance

1. Take the lead and coordinate with relevant agencies to implement measures to prevent and combat money laundering in the insurance, securities, gambling, and casino sectors.

2. Inspect and supervise the activities of entities subject to reporting in the prevention and combating of money laundering in the insurance, securities, gambling, and casino sectors.

3. Direct customs authorities to provide information collected on the transportation of cash, precious metals, gemstones, and transferable instruments across borders as stipulated in Article 24 of this Law.

Article 40. Responsibilities of the Ministry of Construction

1. Take the lead and coordinate with relevant agencies to implement measures to prevent and combat money laundering in the real estate business sector.

2. Inspect and supervise the activities of entities subject to reporting in the prevention and combating of money laundering in the real estate business sector.

Article 41. Responsibilities of the Ministry of Justice

1. Take the lead and coordinate with relevant agencies to implement measures to prevent and combat money laundering for reporting entities that are lawyers, law firms; notaries, and organizations providing notary services.

2. Coordinate with the State Bank of Vietnam to implement programs to disseminate and educate the public about laws on preventing and combating money laundering.

Article 42. Responsibilities of other government agencies

1. Coordinate with the State Bank of Vietnam to manage state affairs related to preventing and combating money laundering.

2. Direct, guide, and inspect units under their management to comply with laws on preventing and combating money laundering.

Article 43. Responsibilities of People's Procuracy and People's Courts

Within the scope of their functions, tasks, and powers, the People's Procuracy and People's Courts shall promptly and strictly handle acts of money laundering; cooperate with relevant agencies and organizations in the struggle against money laundering.

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

1. Implement and direct the dissemination and education of laws on preventing and combating money laundering in localities.

2. Coordinate with competent state agencies to implement and urge the implementation of policies, strategies, and plans to prevent and combat money laundering.

3. Promptly and strictly handle violations of laws on preventing and combating money laundering within their authority.

Article 45. Confidentiality of Information

State agencies specified in Articles 36 to 44 of this Law shall be responsible for implementing confidentiality regimes in accordance with the provisions of the law.

Chapter IV

INTERNATIONAL COOPERATION IN PREVENTING AND COMBATING MONEY LAUNDERING

Article 46. General Principles of International Cooperation

1. International cooperation in preventing and combating money laundering is carried out based on the principles of respecting national independence, sovereignty, territorial integrity, equality, mutual benefit, compliance with Vietnamese law, and international treaties to which the Socialist Republic of Vietnam is a party.

2. The State creates favorable conditions for the exchange of information and judicial assistance in preventing and combating money laundering.

Article 47. Contents of International Cooperation in Preventing and Combating Money Laundering

1. Exchange of information and materials on preventing and combating money laundering.

2. Identification and freezing of assets of individuals involved in money laundering offenses.

3. Implementation of judicial assistance and cooperation in the extradition of money laundering offenders.

4. Other contents of cooperation in preventing and combating money laundering.

5. Procedures, formalities, and methods of international cooperation in preventing and combating money laundering as stipulated in paragraphs 1, 2, 3, and 4 of this Article shall be implemented according to international treaties to which the Socialist Republic of Vietnam is a party, international agreements to which Vietnam has participated, and other relevant legal provisions.

Article 48. Responsibilities of State Agencies in International Cooperation on Anti-Money Laundering

1. The State Bank of Vietnam within its duties and powers shall coordinate with the Ministry of Foreign Affairs and relevant ministries and sectors to propose, lead negotiations, sign, and implement international treaties and agreements on anti-money laundering; international cooperation in research, training, information support, technical assistance, financial assistance, and exchange of experience in anti-money laundering.

2. The State Bank of Vietnam shall exchange information on anti-money laundering with foreign anti-money laundering agencies and other foreign agencies and organizations in accordance with the law; it has the right to refuse to provide information to foreign anti-money laundering agencies and other foreign agencies and organizations when necessary and in accordance with Vietnamese law.

3. The Ministry of Justice, the Ministry of Public Security, and the Supreme People's Procuracy within their duties and powers shall carry out tasks related to international judicial assistance in anti-money laundering.

4. When there is a request for international cooperation in anti-money laundering, competent state agencies shall promptly notify in writing the content, time, parties involved, and other international cooperation programs to the State Bank of Vietnam or to the Ministry of Justice if the content relates to judicial assistance for coordination in implementation.

Chapter V

IMPLEMENTING PROVISIONS

Article 49. Effective Date

This Law takes effect from January 1, 2013.

Article 50. Detailed Provisions and Guidance on Implementation

The Government shall provide detailed regulations and guidance for the implementation of the provisions assigned in this Law.

This Law was passed by the National Assembly of the Socialist Republic of Vietnam, the third session of the XIIIth term, on June 18, 2012./.