Circular No. 31/2014/TT-NHNN Amending and supplementing certain Articles of Circular No. 35/2013/TT-NHNN dated December 31, 2013 guiding the implementation of certain provisions on anti-money laundering

CIRCULAR

Amending and supplementing certain provisions of Circular No. 35/2013/TT-NHNN dated December 31, 2013 guiding the implementation of certain regulations on anti-money laundering

Pursuant to the Law on Anti-Money Laundering No. 07/2012/QH13 dated June 18, 2012;

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Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Counter-Terrorism No. 28/2013/QH13 dated June 12, 2013;

Pursuant to Decree No. 116/2013/NĐ-CP dated October 4, 2013 of the Government detailing the implementation of certain provisions of the Law on Anti-Money Laundering;

The Governor of the State Bank of Vietnam promulgates this Circular amending and supplementing certain provisions of Circular No. 35/2013/TT-NHNN dated December 31, 2013 guiding the implementation of certain regulations on anti-money laundering (hereinafter referred to as Circular No. 35/2013/TT-NHNN).

Pursuant to Decree No. 156/2013/NĐ-CP dated November 11, 2013, of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of Banking Inspection and Supervision;

Article 1. Amending and supplementing certain provisions of Circular No. 35/2013/TT-NHNN as follows:

1. Clause 2, 3, and 4 of Article 3 are amended as follows:

"2. Collect additional information as follows:

- Average monthly income of the customer for at least the last 3 (three) months;

a) For individual customers:

- Name, address, contact phone number of the organization, institution, or main employer or primary source of income;

- Industry, business, or service generating the main revenue;

b) For corporate customers:

- Total revenue for the last 2 (two) years;

- List (full name, permanent residence address) of members of the Board of Directors or Board of Members, members of the Management Board, Chief Accountant or equivalent position;

- Name, address, legal representative or authorized representative of the parent company (if the customer is a subsidiary) or list of names, addresses, legal representatives or authorized representatives of branches, subsidiaries, representative offices (if the customer is a parent company).

3. Monitor the transactions of customers to ensure that their transactions are consistent with the nature, purpose of establishing the relationship, and activities of the customer; promptly detect unusual transactions and consider reporting suspicious transactions when there is sufficient reasonable basis according to the law.

4. Update information regularly at least once a year or when the reporting entity knows that there has been a change in customer information."

"Article 4. List of foreign individuals with political influence

c) Form No. 09b: Permit for Vietnamese individuals residing abroad to perform artistic performances, fashion shows.

1. The list of foreign individuals with political influence as stipulated in Clause 1, Article 13 of the Law on Anti-Money Laundering shall be provided by the State Bank of Vietnam to the reporting entities in electronic data format.

2. The reporting entities must register in writing with the Banking Inspection and Supervision Authority (through the Anti-Money Laundering Department) the information about the person receiving the List of Foreign Individuals with Political Influence, including: full name, identification card number or passport validity period, position, workplace address, phone number, and email address.

3. The reporting entities may not provide this List to third parties without the written consent of the Banking Inspection and Supervision Authority."

3. Clause 1 of Article 7 is amended as follows:

"1. Reporting obligation:

a) Except for electronic fund transfer transactions under point b of this clause, financial organizations permitted to perform domestic and international payment services must report each domestic electronic fund transfer transaction with a value of VND 500,000,000 (five hundred million) dong or more, or equivalent foreign currency, and international electronic fund transfer transactions entering or exiting Vietnam with a value of USD 1,000 (one thousand) dollars or more, or equivalent foreign currency, to the Anti-Money Laundering Department;

b) Non-reportable electronic fund transfer transactions include:

- Electronic fund transfers originating from debit card, credit card, or prepaid card transactions for purchasing goods or services;

- Electronic fund transfers and payments between financial institutions where both the initiating party and the beneficiary are financial institutions.

c) For domestic electronic fund transfer transactions, the financial organization issuing the transfer order must report and collect complete information about the individual or organization issuing the transfer order. The financial organization serving the beneficiary must collect complete information about the individual or organization receiving the transfer order according to point c of Clause 2 of this Article and report to the Anti-Money Laundering Department upon request. Financial organizations have the responsibility to report to the Anti-Money Laundering Department in electronic data format as prescribed in Article 10 of this Circular,"

4. Supplementing Article 10a as follows:

"Article 10a. Allocation, audit, and training and capacity building for anti-money laundering

1. Allocation of staff and departments responsible for anti-money laundering

a) Financial organizations and non-financial industry businesses related to them must allocate a member of the leadership board or a person authorized by the leadership board to be responsible for organizing, directing, and supervising compliance with laws on anti-money laundering at the unit (hereinafter referred to as the anti-money laundering officer) and register with the Anti-Money Laundering Department along with detailed information such as full name, workplace address, phone number, fax number, email address for communication when necessary. When changing the anti-money laundering officer or information related to this person, financial organizations and non-financial industry businesses related to them must promptly notify in writing the Anti-Money Laundering Department;

b) Depending on the scale, scope, and specific characteristics of operations, financial organizations and non-financial industry businesses related to them must establish a specialized department (team, division, bureau) or designate a department at the headquarters responsible for anti-money laundering; at branch offices (if any), one or several staff members or departments must be allocated to be responsible for anti-money laundering.

2. Internal audit on anti-money laundering

2. Internal audit on anti-money laundering

a) Annually, financial organizations and non-financial business sector organizations related thereto must conduct internal audits on anti-money laundering. The internal audit on anti-money laundering may be conducted independently or combined with other contents. The content of the internal audit includes: reviewing, checking, and independently and objectively evaluating the internal control system, compliance with internal regulations, and recommending measures to enhance the effectiveness and efficiency of anti-money laundering work;

b) Any violations discovered during the internal audit process must be reported to the person responsible for anti-money laundering and the head of the reporting entity for handling;

Within no more than sixty (60) days from the end of the fiscal year, financial organizations and non-financial business sector organizations related thereto must submit the internal audit report on anti-money laundering to the Anti-Money Laundering Department;

3. Training and capacity building on anti-money laundering

a) Annually, financial organizations and non-financial business sector organizations related thereto must train and build the capacity of dedicated or semi-dedicated staff responsible for anti-money laundering and staff assigned tasks related to transactions involving money and assets with customers on anti-money laundering procedures;

b) Financial organizations and non-financial business sector organizations related thereto must train newly recruited employees expected to undertake anti-money laundering responsibilities and other tasks related to transactions involving money and assets with customers on knowledge and anti-money laundering procedures within six (6) months from the date of recruitment;

c) The content of training and capacity building on anti-money laundering procedures must minimally include: legal and internal regulations on anti-money laundering - legal liabilities for failing to comply with legal provisions on anti-money laundering; methods and tactics of money laundering; money laundering risks related to products, services, and tasks assigned to staff;

5. Supplement Article 10b as follows:

"Article 10b. Prevention and Combating of Terrorist Financing

1. Reporting entities must apply preventive and combating measures against terrorist financing as stipulated in Articles 3, 4, 5, 6, 7, 8, 10, 13, and 14 of Decree No. 116/2013/NĐ-CP dated October 4, 2013 of the Government detailing certain provisions of the Law on Anti-Money Laundering;

2. When there is suspicion that an organization or individual is engaging in activities related to terrorist financing, the reporting entity has the responsibility to report suspicious transactions to the Anti-Money Laundering Department in writing or through electronic data files in accordance with Article 10 of this Circular;

3. The content of the report shall be carried out in accordance with Clauses 2 and 3 of Article 8 of this Circular";

Article 2. Implementation clause

This Circular takes effect from December 26, 2014.

This Circular takes effect from December 25, 2025/.

1. Heads of state agencies with authority as prescribed by the Law on Anti-Money Laundering and reporting entities as prescribed in Clause 1 of Article 2 of Circular No. 35/2013/TT-NHNN are responsible for organizing the implementation of this Circular;

2. During the implementation process, if any issues arise or difficulties occur, reporting entities should reflect them to the State Bank of Vietnam (through the Anti-Money Laundering Department) for timely guidance.