Decree No. 87/2019/ND-CP amends and supplements certain articles of Decree No. 116/2013/NĐ-CP dated October 4, 2013, of the Government detailing the implementation of certain provisions of the Law on Prevention and Combating Money Laundering.

DECREE

AMENDMENTS AND SUPPLEMENTS TO CERTAIN ARTICLES OF DECREE NO. 116/2013/ND-CP DATED OCTOBER 4, 2013 OF THE GOVERNMENT GUIDING THE IMPLEMENTATION OF CERTAIN PROVISIONS OF THE LAW ON PREVENTION AND COMBATING MONEY LAUNDERING

WHEREAS, the Law on Organization of People's Committees, People's Councils dated June 18, 2012;36/2016/NĐ-CP dated May 15, 2016 of the Government on medical equipment management.

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to Decree No. 88/2020/NĐ-CP dated July 28, 2020 of the Government detailing and guiding the implementation of some provisions of the Labor Safety and Health Law on mandatory work injury and occupational disease insurance;Decree on anti-money laundering dated June 18, 2012;

On the basis of WHEREAS, the Law on Prevention and Combating Terrorism dated June 12, 2013;Decree on terrorism dated June 12, 2013;

Pursuant to the Criminal Procedure Code dated November 27, 2015;

Based on the Inspection Law dated November 15, 2010;

WHEREAS, the Criminal Procedure Code dated June 17, 2010; Criminal Procedure Code dated June 17, 2010;

WHEREAS, the Criminal Procedure Code dated June 17, 2010; WHEREAS, the Civil Enforcement Code dated November 14, 2008; Law Amending and Supplementing Certain Provisions of the Civil Enforcement Code dated November 25, 2014; sửa đổi một số Article of the Law on Criminal Procedure Civil Enforcement Decree dated November 25, 2014;

WHEREAS, the Law on Organizing Investigative Agencies dated November 26, 2015;

Based on the Enterprise Law dated November 26, 2014;

At the proposal of the Governor of the State Bank of Vietnam;

the Government detailing certain provisionsTHE GOVERNMENT ISSUES THE DECREE AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. 116/2013/ND-CP DATED OCTOBER 4, 2013 OF THE GOVERNMENT GUIDING THE IMPLEMENTATION OF CERTAIN PROVISIONS OF THE LAW ON PREVENTION AND COMBATING MONEY LAUNDERING16/2013/NĐ-CP dated October 4, 2013 of the Governmentdetailed implementation of certain provisions of the Labor Law regarding unemployment insurance Detailed Rules for Implementation of some Articles of the Anti-Money Laundering Law.money laundering.

Article 1. Amendments and supplements to certain provisions of Decree No. 116/2013/ND-CP dated October 4, 2013 of the Government guiding the implementation of certain provisions of the Law on Prevention and Combating Money Laundering

1. Clause 2, Article 2 shall be amended and supplemented as follows:

"2. Other organizations and individuals related to prevention and combating money laundering, including:

a) Organizations providing payment intermediary services;

b) Foreign organizations or individuals without nationality not operating or residing in the territory of Vietnam but having financial transactions or other asset transactions with organizations and individuals specified in Clause 1 of this Article."

2. Add Clause 3 to Article 2 as follows:

"3. Organizations providing payment intermediary services must apply anti-money laundering measures as prescribed by laws on prevention and combating money laundering for reporting entities which are financial organizations as specified in Clause 3, Article 4 of the Law on Prevention and Combating Money Laundering."

3. Article 5 shall be amended and supplemented as follows:

"Article 5. Beneficial Owner

1. Reporting entities must identify the ultimate beneficial owner of customers and apply measures to recognize and update information about the beneficial owner through the following criteria:

a) Actual individual owning a bank account or transaction: Account holder, joint account holder, or any person controlling the operation of the account or benefiting from the transaction;

b) Individual with control rights over a legal entity: Individual directly or indirectly holding 25% or more of the charter capital of that legal entity; private business owner; other individual actually controlling or supervising that legal entity;

c) Individual with control rights over a trust investment or authorization agreement: Entruster, authorizer; individual with control rights over individuals, legal entities, or organizations entrusting or authorizing.

2. Identification and verification of identification information of the beneficial owner shall be carried out according to the provisions of Article 4 of this Decree, except in cases where the beneficial owner is an individual representing state capital in organizations."

4. Add Clause 5 to Article 6 as follows:

"5. Based on the results of assessing money laundering and terrorist financing risks at reporting entities, reporting entities may apply simplified customer due diligence measures for customers identified as having low money laundering or terrorist financing risk, including one or all of the following measures:

a) Not collecting information on purpose and nature of business relationship if there is a basis for recognizing the purpose and nature from existing transactions or established business relationships;

b) Verifying customer identity and beneficial owner identity after establishing a business relationship;

c) Reducing the frequency of updating customer identity;

d) Reducing the level of monitoring and controlling transactions.

Reporting entities shall not apply simplified customer due diligence measures in cases of suspicion of involvement in money laundering or terrorist financing.

The State Bank of Vietnam shall take the lead and coordinate with relevant ministries and sectors to guide risk assessment criteria for money laundering and terrorist financing for reporting entities to implement."

5. Point a of Clause 2 of Article 8 is amended and supplemented as follows:

"a) Requesting customers to provide information as prescribed in Article 4 of this Decree and deciding whether to meet customers face-to-face or not when first establishing a business relationship. In cases where face-to-face meetings are not conducted, reporting entities must ensure appropriate methods, forms, and technologies to recognize and verify customers."

6. Points b and c of Clause 2 of Article 11 are amended and supplemented as follows:

"b) Charter capital;

c) List of founding shareholders and list of authorized representatives for foreign organizational shareholders (if any);"

7. Point a of Clause 1 of Article 14 is amended and supplemented as follows:

"a) Reasonable grounds to suspect that assets in a transaction have a criminal origin include: Transactions requested to be performed by persons under investigation, persons recommended for prosecution, defendants, or convicted persons as prescribed by criminal procedure laws, and assets in the transaction are assets or originate from assets owned or controlled by such individuals or related individuals during or after committing the crime;"

8. Point d of Clause 3 of Article 17 is amended and supplemented as follows:

"d) Tax authorities, agencies assigned to conduct certain investigative activities if the transaction is related to individuals or organizations suspected of violating tax laws, customs laws, or other related laws. Requests for information must be signed by the head or deputy head of the Tax Authority or agency assigned to conduct certain investigative activities;"

9. Add Clause 5 to Article 17 as follows:

"Reporting entities are responsible for providing information upon request of investigative agencies at all levels from the time of handling reports of crimes, recommendations for prosecution, including information classified as state secrets. Investigative agencies receiving classified information must store, preserve, and use them in accordance with the law on protecting state secrets."

10. Clause 2 of Article 18 is amended and supplemented as follows:

"2. Organizations and individuals suspected of being involved in money laundering offenses aimed at financing terrorism if they engage in acts intended to:

a) Carry out or intend to carry out transactions related to individuals or organizations listed in relevant resolutions of the United Nations Security Council;"

b) Engaging in or intending to engage in transactions related to organizations or individuals listed on the terrorist organization and terrorist financing watchlists established by international organizations or other countries and warned by the State Bank of Vietnam;

c) Engaging in or intending to engage in transactions related to organizations or individuals who have been convicted of terrorism offenses or terrorist financing offenses in Vietnam;

d) Engaging in or intending to engage in transactions related to terrorist organizations or individuals involved in terrorist financing, where such information is known from other sources of information.

11. Point e Clause 2 Article 20 shall be amended and supplemented as follows:

“e) Other transactions that the anti-money laundering agency under the State Bank of Vietnam, based on verified documents and work experience, considers potentially related to criminal activities.”

12. Point b Clause 3 Article 20 shall be amended and supplemented as follows:

“b) Other transactions that the anti-money laundering agency under the State Bank of Vietnam, based on verified documents and work experience, considers potentially related to money laundering activities aimed at financing terrorism.”

13. Point d Clause 4 Article 20 shall be amended and supplemented as follows:

“d) Agencies assigned the task of conducting certain investigative activities.”

14. Point d shall be added to Clause 1 Article 21 as follows:

“d) At the request of inspection agencies, enforcement agencies, tax agencies, and customs agencies.”

15. Clause 5 Article 20 shall be amended and supplemented as follows:

“5. Competent authorities shall be responsible for receiving suspicious transaction information transferred by the State Bank of Vietnam. If there are signs of crime and sufficient grounds, competent authorities shall classify and handle the information according to the provisions of criminal procedure law regarding the acceptance and handling of reports and tips about crimes. For information without clear signs of crime, they shall proceed to classify and verify the suspicious transaction contents transferred by the State Bank of Vietnam.”

16. Clause 4 Article 22 shall be amended and supplemented as follows:

“4. When applying the delayed transaction measure, the reporting entity must immediately report in writing and notify by telephone the competent state authority, and simultaneously report to the State Bank of Vietnam.”

17. Article 23 shall be amended and supplemented as follows:

“Article 23. Freezing accounts, sealing or temporarily holding assets

1. The reporting entity shall implement account freezing or apply measures to seal or temporarily hold assets upon decision by the competent state authority.

2. The competent state authority, in accordance with criminal procedure law, enforcement law, and inspection law, has the authority to issue decisions requiring the reporting entity to apply account freezing measures or seal or temporarily hold assets and is responsible for such decisions.

3. Account freezing or sealing and temporary holding of assets must be documented in writing, including at least the following contents: Name of the reporting entity required to implement account freezing or sealing and temporary holding of assets; full name of the account holder or individual or organization related to sealed or temporarily held assets; account number being frozen or list of sealed or temporarily held assets; amount frozen; start and end date of account freezing or sealing and temporary holding of assets; reason for requesting implementation of account freezing or sealing and temporary holding of assets; or according to the form in criminal proceedings.

4. The reporting entity must report in writing to the State Bank of Vietnam immediately after implementing the account freezing or sealing and temporary holding of assets as stipulated in Clause 1 of this Article.

5. The State Bank of Vietnam, within its functions and responsibilities, shall coordinate with competent state authorities during the process of account freezing or sealing and temporary holding of assets as stipulated in Clause 1 of this Article.”

Article 2. Responsibility for Implementation

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial and centrally-administered city People's Committees, and relevant organizations and individuals are responsible for implementing this Decree.

Article 3. Implementation Provisions

This Decree takes effect from the date of issuance./.