Governor of the State Bank of Vietnam Pham Duc An, authorized by the Prime Minister, presented to the National Assembly on Wednesday a draft law amending the Law on the State Bank of Vietnam, the Law on Anti-Money Laundering and the Law on Credit Institutions.

According to the central bank governor, the amendments prioritize urgent legal issues arising from government restructuring, gaps in the anti-money laundering (AML) framework and difficulties related to the financial mechanism of the State Bank of Vietnam.

Crypto asset services added to AML reporting regime

A key proposal is the inclusion of crypto asset services as reporting entities under Vietnam's anti-money laundering law.

The draft also introduces suspicious transaction indicators specifically tailored to crypto asset activities while assigning the Ministry of Finance responsibility for implementing anti-money laundering measures, conducting inspections when assigned by the government and supervising reporting entities operating in the crypto asset sector.

The proposed amendments also revise the legal definition of a beneficial owner.

Under the draft, a beneficial owner is defined as "one or more individuals who directly or indirectly own or exercise actual control over a customer or legal arrangement, or who ultimately control or benefit from transactions carried out on their behalf."

Ministry of Finance to oversee crypto sector

Under the proposal, the Government Inspectorate would be responsible for inspecting anti-money laundering compliance among reporting entities under ministries that do not have their own inspectorates, except for areas under the Ministry of Finance.

The Ministry of Finance would be responsible for inspecting anti-money laundering compliance in the securities and crypto asset sectors when assigned by the government.

It would also supervise anti-money laundering compliance across businesses operating in life insurance, securities, crypto assets, accounting services, prize-winning electronic games, casinos, lotteries, betting activities and other sectors under its management.

The draft stipulates that inspections and supervisory activities should be based on Vietnam's national money laundering risk assessment as well as sector-specific risk assessments.

Stronger reporting and record-keeping requirements

The proposed amendments also require reporting entities to submit suspicious transaction reports to the State Bank of Vietnam and maintain customer records and transaction data in either paper or electronic form.

Presenting the National Assembly's review, Phan Van Mai, Chairman of the National Assembly's Committee for Economic and Financial Affairs, called for clearer guidance on identifying beneficial owners and assessing the practicality of collecting, updating and verifying such information, including the compliance costs for businesses.

The committee also recommended further clarification of reporting requirements for suspicious transactions involving crypto asset services, including procedures for collecting, verifying, updating and storing relevant information.

Lawmakers additionally urged the government to clearly define the respective supervisory responsibilities of the Government Inspectorate, the State Bank of Vietnam Inspectorate, the Ministry of Finance and other relevant ministries involved in anti-money laundering enforcement.

Review proposed for foreign currency regulations

Separately, amendments to the Law on the State Bank of Vietnam would codify existing regulations governing the use of foreign currencies within Vietnam based on Article 22 of the Foreign Exchange Ordinance.

The draft also revises internal audit provisions to reflect the current organizational structure of the State Bank.

In addition, it removes the Ministry of Finance's responsibility for inspecting banknote printing, minting and destruction operations, as well as oversight of Vietnam's foreign exchange reserves.

The National Assembly's Committee for Economic and Financial Affairs recommended reviewing the circumstances under which foreign currencies may legally be used within Vietnam, while seeking clarification on the independent oversight mechanism that would replace the Ministry of Finance's current inspection role.

The committee also called for clearer criteria governing situations in which authorities may permit financial institutions to apply prudential safety ratios different from those prescribed by law, including applicable conditions, duration, disclosure requirements and reporting obligations.

Thu Hang