State Bank of Vietnam clarifies AML supervision rules

The State Bank of Vietnam (SBV) has issued clarifications regarding a draft circular on anti-money laundering (AML) supervision procedures. The SBV addressed public misconceptions suggesting that the new regulations target VIP customers, high-net-worth individuals, or bank executives for individual monitoring.

The SBV emphasized that the subjects of supervision under the draft circular are reporting entities, which include credit institutions, foreign bank branches, and payment intermediary organizations. These are legal entities, not individual customers or bank leaders. The SBV clarified that the collection of data regarding organizational structures, management models, and control mechanisms is intended to assess the overall risk profile of these reporting entities, rather than to create individual watchlists for specific persons.

This transition toward risk-based supervision aligns with international standards and recommendations from the Financial Action Task Force (FATF). The SBV noted that the proposed regulations aim to modernize the legal framework and enhance the effectiveness of AML efforts to protect the stability of the banking system and improve Vietnam's standing in international financial integration.