On 1 March 2023, the Law on Anti-Money Laundering No. 14/2022/QH15 ("AML Law"), which was passed on 15 November 2022, came into effect. The recommendations from the Financial Action Task Force (FATF) drove much of the changes introduced by the AML Law.
The AML Law expands the list of reporting subjects that are required to comply with the Know-Your-Customer ("KYC") requirements, including identify verification and transaction reporting. It now includes payment intermediary service providers and certain categories of securities companies. The AML Law also includes revisions to the scope of customers for which KYC must be conducted, as well as KYC information.
The AML Law requires reporting subjects to develop procedures for managing money laundering risks, including customer classification by risk levels, and risk management methods in response to such customer risk levels.
The AML Law also enables reporting subjects to collect information from national databases and undertake KYC procedures through "third parties". These third parties would need to meet certain operational conditions.
