SBV proposes reporting for international transfers over $1,000

The SBV is drafting a decree regulating the licensing for establishment and operations of banks, foreign exchange management, anti-money laundering (AML), counter-terrorism financing, and prevention of financing the proliferation of weapons of mass destruction in international financial centres (IFCs) in Vietnam.

The draft decree specifically outlines responsibilities for implementing anti-money laundering measures by reporting entities in IFCs, as well as related organisations and individuals. It also defines the roles of supervisory authorities of the IFCs, including the SBV, the Ministry of Public Security, the Ministry of National Defence, and other relevant ministries and agencies, to ensure compliance with Law on AML.

The draft introduces several preferential and exceptional policies for reporting entities at IFCs, including allowing them to apply AML measures already in use by their owners or parent banks, even if such measures are not yet regulated under Vietnamese law, provided they do not violate existing laws. It also imposes a requirement to report international electronic fund transfers exceeding a threshold of $1,000.

According to the SBV’s proposal, Vietnam’s Law on AML requires all AML efforts to be in accordance with legal regulations while safeguarding national sovereignty, territorial integrity, national security, and interests. It also aims to ensure normal economic and investment activities, protect legal rights and interests of individuals and organisations, and prevent abuse of AML policies to infringe on legitimate rights.

Given the higher degree of financial openness within IFCs, especially in terms of capital flow and cross-border transactions, and the presence of major international financial institutions across various sectors, there must be stringent mechanisms in place. This is to prevent entities from exploiting the IFC or its special policies to launder or legitimise questionable funds.

The draft decree also outlines the use of foreign currencies by members of the IFC, including commercial banks, branches of the SBV, and other participants. To mitigate policy misuse risks and ensure a clear distinction between foreign currency transactions within the IFC and those with the rest of Vietnam, it mandates that all such payments and transfers must go through foreign currency payment accounts held at member commercial banks or branches of the SBV.

Minister of Finance Nguyen Van Thang held a meeting with Ben Zhou, co-founder of Bybit Technology. on April 17 to discuss the digital asset market.

At a conference with small and medium-sized enterprises in early 2025, Prime Minister Pham Minh Chinh tasked the Ministry of Finance (MoF) and the Ministry of Science and Technology (MoST) with exploring the piloting of a cryptoasset exchange via a controlled testing mechanism. The establishment of such a digital asset exchange must be placed within a suitable legal framework to enable effective management, maximise resources, and mitigate risks.

Vietnamese financial institutions are exploring digital assets with growing seriousness, positioning the banking sector at a critical juncture where innovation, regulation, and risk management must converge.