Circular No. 35/2013/TT-NHNN guiding the implementation of certain provisions on anti-money laundering

CIRCULAR

H||| Guidelines for implementing certain provisions on anti-money launderingFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.

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Pursuant to the Law on the State Bank of Vietnam number 46/2010/QH12 dated June 16, 2010;1||| Decision No. 0/QH12 dated June 16, 202010;

||| Pursuant to the Anti-Money Laundering LawNo. 07/201||| 2/QH13 dated June 18, 2012;

Decree No. 116/201||| Decision No. 3/NĐ-CP dated October 4, 20201Decree No. 12/2015/NĐ-CP dated February 12, 2015 of the Government detailing the implementation of the Law Amending and Supplementing Certain Provisions of the Tax Laws and Amending and Supplementing Certain Provisions of Decrees on Tax;i tipolicies||| Implementation of certain articles of the Anti-Money Laundering LawNo.||| ;

Pursuant to Decreeand amended and supplemented by certain articles related to conditions for investment and business and administrative procedures in the field of information and communications on November 7, 2018Decree No. 56/2013/NĐ-CP dated 11/11||| /2013 of the Government stipulating functions, tasks, organization structure, and operational mechanisms of the State Bank of VietnamonThis Circular provides detailed guidance on the issuance of treasury bills in accordance with Clause 1, Article 11 of Decree No. 01/2011/NĐ-CP dated January 5, 2011 of the Government on the issuance of government bonds, bonds guaranteed by the Government, and local government bonds (hereinafter referred to as Decree No. 01/2011/NĐ-CP), including:

At the proposal of the Director of the Inspectorate and Supervision Department,

THENo.managementNo.||| Circular guiding the implementation of certain provisions on anti-money laundering issued by the State Bank of VietnamNo. stipulating onon for flood and storm prevention and mitigation, emergency response to accidents and natural disasters, and search and rescue operationsNo.money laundering.

Article 1. Scope of Regulation

||| This Circular stipulates matters concerning enhanced due diligence for high-risk customers; notification of lists of foreign individuals with political influence; contents and forms of reports on large-value transactions, suspicious transactions, electronic fund transfers, and money laundering activities aimed at financing terrorism; thresholds of precious metals, gemstones, and transferable securities that must be declared to customs.

Article 2. Applicability

||| Article 1. Reporting entities as prescribed in Clause 1 and 2, Article 2 of the Anti-Money Laundering Law.

||| Article 2. Vietnamese organizations and individuals; foreigners or stateless persons residing or not residing in Vietnam; foreign organizations, international organizations, and non-governmental organizations operating or not operating in Vietnam but conducting financial transactions or other asset transactions with organizations and individuals specified in Clause 1 of this Article.

||| Article 3. Enhanced Due Diligence Measures for High-Risk Customers

||| For high-risk customers who do not fall under the cases prescribed in Articles 13, 14, 15, 16, and 17 of the Anti-Money Laundering Law, in addition to applying customer identification measures as prescribed in Article 9 of the Anti-Money Laundering Law, reporting entities must apply the following enhanced due diligence measures:

||| 1. Approval from a higher management level by at least one level above the approval level applied for ordinary customers when establishing a relationship for the first time or when existing customers are assessed as high-risk customers. For existing customers, when reassessed and classified as high-risk customers, reporting entities must submit to the competent authority for approval or reapproval of the relationship with such customers and implement enhanced measures as prescribed in Clauses 2, 3, and 4 of this Article.

||| 2. Collect additional information as follows:

a) For individual customers:

||| - The average monthly income of the customer in the last six months; name, address, contact phone number of the agency, organization, or main employer where the customer works or earns income;

||| - Name, address, occupation of the customer's spouse, children;

b) For corporate customers:

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

||| - Financial statements for the last two years;

||| - List (name, address, representative) of board members or board of directors, executive members, chief accountant or equivalent;

||| - List (name, address, representative) of parent company, subsidiary, representative office (if any);

||| 3. Closely monitor transactions of high-risk customers.

||| 4. Update information periodically at least once every six months or whenever the reporting entity becomes aware of changes in customer information.

||| Article 4. Lists of Foreign Individuals with Political Influence

||| 1. The list of foreign individuals with political influence as prescribed in Clause 1, Article 13 of the Anti-Money Laundering Law shall be published on the website of the State Bank of Vietnam at http://www.sbv.gov.vn.

||| 2. Accessing and utilizing the list of foreign individuals with political influence shall follow the guidance of the Banking Inspection and Supervision Authority under the State Bank of Vietnam (hereinafter referred to as the Banking Inspection and Supervision Authority); reporting entities may not provide information about this list to third parties without the consent of the Banking Inspection and Supervision Authority.

||| 3. Reporting entities must register in writing with the Banking Inspection and Supervision Authority (through the Anti-Money Laundering Department) information about individuals accessing and utilizing the list of foreign individuals with political influence, including: full name, valid ID card or passport number, position, phone number, workplace address, email.

Article 5. Report on Large Value Transactions

1. When conducting large value transactions, the reporting entity shall be responsible for reporting to the Anti-Money Laundering Department in writing according to Form No. 02 attached to this Circular or by electronic data file as prescribed in Article 10 of this Circular.

2. In cases where customers deposit foreign currency cash in large amounts to purchase Vietnamese dong or deposit Vietnamese dong cash in large amounts to purchase foreign currency cash, only the cash deposit transaction shall be reported.

3. Contents of the report on large value transactions:

a) Customer information:

- For individual customers: full name, date of birth, citizen identification number or passport number, nationality (if the customer has multiple nationalities, all nationalities and registered addresses in countries of nationality must be recorded), residential address in Vietnam;

- For corporate customers: company name, address, country, tax code; in cases where the corporation does not have a tax code, it is mandatory to have the business license number or establishment decision or business registration certificate.

b) Transaction information:

- For large value cash transactions (Vietnamese dong or foreign currency): transaction date, account number (if available), type of transaction, transaction code (unique reference number for each transaction), transaction amount, type of currency, converted amount in Vietnamese dong (according to the exchange rate applicable at the time of transaction occurrence), reason, purpose of the transaction, name and location of the place where the transaction occurred;

- For large value gold buying and selling transactions: transaction date, type of transaction, transaction code (unique reference number for each transaction), quantity (unit: kilogram; listed by each type of goods), value of each transaction, total daily transaction value converted to Vietnamese dong, reason, purpose of the transaction, name and location of the place where the transaction occurred;

c) Other information specified in the forms issued together with this Circular.

4. The reporting entity must review and screen large value cash transactions in a timely manner to detect suspicious transactions.

Article 6. Report on Suspicious Transactions

1. Upon discovering suspicious transactions as stipulated in Article 22 of the Law on Prevention and Combating Money Laundering and Article 14 of Decree No. 116/2013/NĐ-CP dated October 4, 2013 detailing certain provisions of the Law on Prevention and Combating Money Laundering, the reporting entity shall be responsible for reporting to the Anti-Money Laundering Department in writing according to Form No. 01 attached to this Circular or by electronic data file as prescribed in Article 10 of this Circular.

2. The Anti-Money Laundering Department shall be responsible for confirming receipt of the suspicious transaction report and responding to the reporting entity regarding any issues that arise if necessary.

Article 7. Report on Electronic Fund Transfer Transactions

1. When providing electronic fund transfer services exceeding the value limit as prescribed, the reporting entity shall be responsible for reporting to the Anti-Money Laundering Department in writing or by electronic data file as prescribed in Article 10 of this Circular.

2. The contents of the report shall include the following information:

a) Issuing organization for the fund transfer: trading name of the organization or branch; contact address; country.

b) Serving organization for the beneficiary: trading name of the organization or branch; contact address; country.

c) Individual or organization transferring funds and individual or organization receiving funds:

- Individual: full name; valid citizen identification number or passport number; account number (if available); transaction code; transaction amount, type of currency; contact address; country.

- Organization: name; account number; tax code; business registration number; transaction code; transaction amount, type of currency; contact address; country.

3. Intermediary organizations must retain transaction records including the information as prescribed in Clause 2 of this Article for at least five years from the date of transaction occurrence and are responsible for providing such records to competent state authorities upon request and are not required to report electronic fund transfer transactions to the Anti-Money Laundering Department.

4. Reporting entities permitted to conduct international electronic fund transfers must establish appropriate information technology systems to serve reporting by electronic data file as prescribed in Article 10 of this Circular and must have software systems to filter and analyze transactions for the purpose of preventing money laundering and other risks.

Article 8. Report on Money Laundering for Terrorist Financing

1. When discovering organizations or individuals conducting transactions listed in the blacklist or when there is evidence to suggest that other organizations or individuals are engaging in activities related to money laundering for terrorist financing, the reporting entity shall be responsible for reporting such money laundering activities to the Counter-Terrorism Force of the Ministry of Public Security, and simultaneously report in writing or through electronic data files to the Anti-Money Laundering Department in accordance with Article 10 of this Circular.

2. In cases where the reporting entity reports in writing, the content of the report shall include the following information:

a) The reporting entity: name, address, phone number;

b) The receiving agency: name, address;

c) Organizations or individuals listed in the blacklist or engaging in activities related to money laundering for terrorist financing: name; nationality; other information such as identification card number or passport number, tax code, business registration number, address, account number, transaction reference number (if applicable);

d) Other relevant organizations or individuals: name; nationality; relationship with the organizations or individuals mentioned in point c of this clause; other information such as identification card number or passport number, tax code, business registration number, address, account number, transaction reference number (if applicable);

đ) For electronic fund transfers, it includes information as prescribed in Clause 2, Article 7 of this Circular;

e) Temporary measures already applied and information about transactions and assets related to the measures already applied;

g) Name, signature of the authorized person and stamp of the reporting entity (if applicable).

3. The deadline for submitting the report shall be carried out in accordance with the reporting of transactions suspected of being related to criminal offenses as stipulated in Clause 7, Article 16 of Decree No. 116/2013/NĐ-CP dated October 4, 2013 detailing the implementation of certain provisions of the Law on Prevention and Combating Money Laundering.

Article 9. Value Thresholds for Foreign Currency Cash, Vietnamese Dong Cash, Precious Metals, Gemstones, and Transfer Instruments to be Declared to Customs

1. The value threshold for precious metals and gemstones (excluding gold) is VND 300,000,000 (three hundred million), including:

a) Precious metals (excluding gold) include: silver, platinum, silver and platinum jewelry and artworks; alloys containing silver and platinum.

b) Gemstones include: diamonds, rubies, sapphires, and emeralds.

2. The value threshold for transfer instruments is VND 300,000,000 (three hundred million).

3. The value thresholds for foreign currency cash, Vietnamese Dong cash, and gold to be declared to customs shall be implemented in accordance with the regulations of the State Bank of Vietnam.

Article 10. Form of Reporting Through Electronic Data Files

1. Reporting through electronic data files is a report presented in the form of a data file transmitted via the network of the State Bank of Vietnam.

2. Reports through electronic data files must comply with the format, symbols, transmission codes, and file structure as guided by the Banking Inspection and Supervision Authority.

3. The reporting entity must transmit information according to the procedure prescribed by the State Bank of Vietnam and take measures to secure information in accordance with Article 29 of the Law on Prevention and Combating Money Laundering.

4. The reporting entity must install software for transmitting files provided by the Anti-Money Laundering Department.

5. Deadline for submission of reports: at the end of each working day, the reporting entity must compile the data for the report and submit it as prescribed. The latest submission time is 16:00 on the next working day immediately following the day the transaction occurred. If the next day coincides with a public holiday, Tet holiday, or weekend, then the submission date will be the next working day immediately following the holiday or weekend. In case of late or missing reports for two (two) days or more, the reporting entity must explain the delay or absence of reports to the Anti-Money Laundering Department. Upon discovery of errors in previously submitted reports, the reporting entity must promptly send a letter or email explaining the errors to the Anti-Money Laundering Department.

6. The reporting entity must register in writing with the Anti-Money Laundering Department regarding the staff member responsible for reporting through electronic data files, including the following information: name, position, workplace address, phone number, email address, and must notify in writing any changes to the information of the responsible staff member or replacement of the responsible staff member.

Article 11. Effective Date

1. This Circular takes effect from February 14, 2014.

2. This Circular replaces Circular No. 22/2009/TT-NHNN dated November 17, 2009 of the State Bank of Vietnam guiding anti-money laundering measures, and Circular No. 41/2011/TT-NHNN dated December 15, 2011 of the State Bank of Vietnam on guidelines for customer due diligence based on risk assessment for anti-money laundering purposes.

Article 12. Responsibility for Implementation

1. Heads of state agencies with authority as prescribed by the Law on Prevention and Combating Money Laundering and reporting entities as prescribed in Clause 1, Article 2 of this Circular 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.