Hanoi (VNA) - Vietnam will start enforcing a new anti-money laundering supervision regime for the monetary and banking sector on December 1, under a circular issued by the State Bank of Vietnam (SBV).
The rules are designed to sharpen state oversight of anti-money laundering, boost supervisory capacity, and identify and control risks more proactively.
The circular lays out the order and procedures for supervision of reporting entities that fall under the SBV’s state management, in line with the Law on Anti-Money Laundering and related amended rules.
A central plan is the mix of compliance and risk-based supervision, calibrated to each group’s risk profile, resources and supervisory reality. The regime also mixes off-site and on-site monitoring, while pushing the inspection bodies to coordinate and share information when drafting and following annual working plans.
It sets a three-step supervision process: collecting, consolidating and processing documents, information and data; conducting compliance and risk-based supervision; and preparing supervision reports and proposing supervisory measures.
Under compliance supervision, the supervisory unit focuses on whether entities follow information and reporting requirements, issue and follow internal anti-money laundering rules, and comply with directions and demands from competent state agencies.
Under risk-based supervision, assessments cover structural risk tied to operational scale and organisational model; inherent risk tied to customers, products and services, distribution channels and geographic exposure; and risk controls tied to governance and management. The supervisory unit then evaluates, analyses, scores and ranks money laundering risk levels using methods and tools set by the SBV Governor.
The circular also issues recommendations and warnings to supervised entities when anti-money laundering risks, shortcomings or weaknesses are found. Supervised entities must report promptly, explain and draw up remediation plans. If they fail to act or act insufficiently, fines may be considered in line with regulations.
It also spells out responsibilities of SBV units and supervised entities for supplying information, coordinating supervision and fixing detected shortcomings and limitations./.
