Starting January 1, 2025, under the Law on Identification 2023; Circular 17/2024/TT-NHNN, and Circular 18/2024/TT-NHNN, banks will suspend or limit transactions for account holders who have not updated their biometric information or whose identification documents have expired.

As the December 31, 2024 deadline approaches, banks are employing every method to remind customers to update their biometric data and chip-based citizen identification card (CCCD) information. Failure to comply will result in customers being unable to perform certain transactions starting in 2025.

Banks are actively assisting customers in updating their biometric data and personal identification information before the deadline.

Mandatory biometric verification for high-value transactions

Under Decision 2345/QD-NHNN issued by the Governor of the State Bank of Vietnam, effective July 1, 2024, bank accounts must be biometrically verified to make online transfers exceeding 10 million VND per transaction or a total of 20 million VND per day.

After three months of implementation, over 38 million accounts have been biometrically verified.

Additionally, Circular 17/2024/TT-NHNN and Circular 18/2024/TT-NHNN, issued on June 28, 2024, mandate financial institutions to verify the validity of identification documents, authenticate biometric information, and update customers’ residency details.

Transactions impacted by non-compliance

Starting January 1, 2025, account holders who have not updated their biometric information or whose identification documents are no longer valid will face the following limitations:

Online transactions and QR-based withdrawals at ATMs will be suspended.

All card transactions will be suspended if the customer’s identification documents are expired.

However, physical cardholders can still withdraw cash from ATMs and make payments using POS machines.

Biometric verification requirements

The 2023 Law on Identification stipulates that all 9-digit and 12-digit ID cards will become invalid on December 31, 2024, requiring individuals to switch to chip-based CCCD cards. This necessitates customers updating their new CCCD information with their bank records to avoid transaction disruptions.

These requirements aim to enhance the security of online payments, promote a safe digital environment, and foster the sustainable growth of cashless transactions, ultimately protecting customers’ rights.

To accommodate the surge in demand for biometric updates, some banks have extended their working hours, even on weekends.

For example, Vietcombank has extended operating hours from November 23, 2024, to January 15, 2025, opening from 8:00 AM to 6:30 PM on weekdays and 8:00 AM to 5:30 PM on weekends. This effort has significantly increased the number of successful biometric updates.

Steps to avoid transaction disruptions

Online Update: Customers can update their biometric data through banking apps, provided their devices support NFC.

In-person Update: Customers can visit any branch of their bank nationwide to update their biometric and identification information.

Banks emphasize that once updated, customers only need to perform this process again if their biometric data changes or their identification documents expire.

Under the 2023 Law on Identification and Circulars 17 and 18, the following apply:

Suspended transactions: Online payments. QR-based ATM withdrawals. All other card transactions conducted electronically.

Permitted transactions: Cash withdrawals using physical cards at ATMs. POS-based card payments.

Per the latest directive 9913/NHNN/TT, issued on December 3, 2024, “card transactions using electronic methods” include online payments and QR-based withdrawals but exclude physical card transactions at ATMs and POS systems.

This means customers who fail to update their biometric information by January 1, 2025, can still withdraw cash from ATMs using physical cards and make payments at POS systems but will face suspension of all online and QR-based transactions.

Tuan Nguyen