Banks can stop suspicious-seeming transactions

In order to prevent the use of bank accounts for fraudulent and illegal purposes, the State Bank of Vietnam (SBV) has just requested banks and credit institutions to increase management measures in opening and using payment accounts - a bank account that allows you to make daily payment transactions including depositing funds, making cash withdrawals and card transactions.

Accordingly, following a suspicion of illegal source of money into payment accounts, banks need to ask customers to go to transaction counters to verify their personal information; at the same time banks stop providing services on Mobile Banking, or require customers to authenticate electronic payment transactions by biometric factors, digital signature.

If commercial banks have enough valid grounds that transactions are illicit, they can stop customers' transactions. Suspicious transactions are any event within a financial institution that could be possibly related to fraud, money laundering, or other illegal activities. Banks, being the backbone of the financial sector, need a sharp eye to detect illegal transactions.

In addition, the SBV also requested credit institutions to review internal processes and regulations for opening and using payment accounts. Officials and employees in commercial banks and credit institutions were asked to strictly follow the order and procedures for opening a payment account as per the present law.

The State Bank also required credit institutions not to open payment accounts according to a pre-made list of customers to keep information of customers opening accounts confidential.

Along with that, banks must accelerate the deployment of residential data mining connections to clean data and accurately verify customers with the aim to compare the correct information of customers opening payment accounts and information on the National Population Database in order to limit the opening of payment accounts with fake identity documents or lease payment account.

In addition, the State Bank also requires credit institutions to apply risk management practices in the operation of opening and using payment accounts to prevent fraudulent acts including using payment accounts for illegal purposes.

Every month, banks must provide information on payment accounts with suspicious signs related to fraudulent transactions to the State Bank of Vietnam which will develop a common data warehouse on payment accounts with signs of suspected fraud. The common data warehouse on payment accounts with signs of suspected fraud will be transferred to all credit institutions in an efforts to prevent frauds through payment accounts.

Source: SGGP