HCMC – The State Bank of Vietnam (SBV) has proposed that financial institutions in the financial center be required to report international money transfers of US$1,000 or more, aimed at monitoring capital flows and curbing money laundering.
The SBV is drafting a Government decree on licensing the establishment and operation of banks in the international financial center, covering regulations on foreign exchange management, anti-money laundering, and counter-terrorism financing, according to the Vietnam News Agency.
The draft outlines the anti-money laundering responsibilities of organizations and individuals, as well as the supervisory role of the SBV and other relevant ministries and agencies.
Institutions in the financial center will be subject to separate regulations.
Specifically, they must implement anti-money laundering measures in line with the standards of their parent banks or owners, even if such standards are not yet in place in Vietnam, and report international money transfers starting from US$1,000.
These institutions are required to safeguard security and legal rights while preventing the misuse of policies for money laundering.
In terms of foreign exchange management, payments and money transfers in foreign currencies between members must go through accounts opened at commercial banks or the SBV branches that are members, ensuring a clear separation from transactions conducted outside the country.
The draft also sets out a special risk-handling mechanism, under which the SBV will not intervene early or apply extraordinary measures such as restructuring or special lending to member banks of the financial center.
These banks will not participate in Vietnam’s deposit insurance scheme. In the event of incidents such as accumulated losses exceeding 15% of charter capital, breaches of capital adequacy ratios, or insolvency, the revocation of licenses, dissolution, bankruptcy, and asset liquidation will be handled by a specialized court within the financial center.
The SBV has proposed that the Government issue a decree under a fast-track process to provide the legal basis for banking operations, foreign exchange transactions, inspection, supervision, and anti-money laundering measures at the financial center.
Under the action plan for the establishment of the financial center, ministries and agencies are expected to submit guiding decrees for Resolution 222 to the Government, with completion targeted for this August.
