Under Decision 11/2023/QĐ-TTg issued by the Prime Minister, financial institutions in Vietnam must report transactions exceeding specific thresholds as part of anti-money laundering regulations effective December 1, 2023.

The Law on Anti-Money Laundering, which took effect on March 1, 2023, along with Decree 19/2023/NĐ-CP and Circular 09/2023/TT-NHNN, outlines strict financial monitoring measures. The State Bank of Vietnam (SBV) is responsible for overseeing compliance.

Thresholds for reportable transactions

Cash transactions: Any cash transaction totaling 400 million VND ($16,000) or more in a single day must be reported.

Domestic electronic transfers: Transfers within Vietnam from 500 million VND ($20,000) or more per transaction require reporting.

International electronic transfers: Any cross-border transfer of $1,000 or more (or equivalent in foreign currency) must be flagged for monitoring.

Financial institutions must submit electronic reports daily to the Anti-Money Laundering Department (SBV) using standardized reporting formats:

CTR (Cash Transaction Report): Reports cash transactions over 400 million VND.

PTR (Production Transaction Report): Tracks cash payments for high-value goods and services, such as gold, real estate, or casino transactions.

DWT (Domestic Wired Transfer Report): Logs electronic transfers within Vietnam exceeding 500 million VND.

EFT (Electronic Fund Transfer Report): Monitors cross-border transactions of $1,000 or more.

Identifying suspicious customers

According to Article 6 of Decree 19, financial institutions must verify customers in the following cases:

New account openings: Including bank accounts, e-wallets, or any financial services requiring customer identification.

Inactive accounts: If a customer has not transacted for six months and suddenly conducts transactions exceeding 400 million VND in one day (excluding pre-registered transactions such as credit card payments or investment withdrawals).

Gambling and gaming businesses: Casinos, online betting platforms, and lottery companies must verify customers who conduct transactions from 70 million VND ($2,800) or more per day.

Real estate transactions: Buyers, sellers, and property managers must undergo identity verification for major real estate transactions.

Precious metals and gemstones trade: Businesses dealing in gold, silver, or diamonds must verify customers purchasing or selling 400 million VND or more in cash per day.

Crackdown on money laundering operations

On March 13, police in Lam Dong Province dismantled a money laundering ring that handled 30 billion VND ($1.2 million) per day. Authorities arrested 23 suspects involved in the scheme, which operated out of rented houses in Da Lat.

The group opened multiple bank accounts to facilitate money laundering operations for a suspect known as “Billy” in Cambodia. Le Van Diep, a key figure in the network, admitted to creating over 100 bank accounts for illicit transactions.

Authorities reported that the network processed between 20 billion and 30 billion VND daily ($800,000–$1.2 million), highlighting the scale of financial crime in Vietnam.

Tuan Nguyen