A bank teller counts cash at a transaction office in Hà Nội. Banks will have to report transactions whose value is VNĐ400 million or more to the central bank. — Photo tienphong.vn

Transactions with a value of VNĐ400 million or more must be reported to the State Bank of Vietnam (SBV) from December 1, 2023, according to a new policy.

Under Prime Minister’s Decision 11/2023/QĐ-TTg, the new regulation is applied to financial institutions; and organisations and individuals engaged in related non-financial businesses as prescribed in Clauses 1 and 2, Article 4 of the Anti-Money Laundering Law.

Specifically, financial institutions that are licensed to conduct one or more of the following activities or operations: acceptance of deposits; lending; financial leasing; payment services; payment intermediary services; issuing negotiable instruments/transferable securities, bank cards, fund/money transfer/wire transfer orders; bank guarantees and financial commitments; providing foreign exchange services, money market instruments; securities brokerage; advice to security investment, provision of security for securities issues; investment fund and portfolio management; life insurance business; and money and currency changing.

Organisations and individuals engaged in related non-financial businesses subject to law that conduct one or more of the following activities or operations: prize-awarding games, including electronic games; telecommunications network-based games, Internet-based games; casinos; lottery tickets; betting; real estate business, except leasing or subleasing of real property and real estate consulting; dealing in precious metals, jewels; supply of accounting services; provision of notarial services; provision of legal services rendered by lawyers, legal professional organisations; and providing business formation, management and administration services; providing services of acting as (or arranging for another person to act as) a director or secretary of a company to third parties.

According to the Anti-Money Laundering Law, large-value transactions must be reported to the SBV. In which, a large-value transaction must be reported as a cash transaction or a cash foreign currency transaction performed one or more times in a day with a total value equal to or exceeding the prescribed limit.

The law regulates the Prime Minister will decide the range of values of which transactions are classified as should-be-reported large transactions, depending on the socio-economic conditions in each period.

Currently, the value of large-value transactions to be reported to the SBV is VNĐ300 million. — VNS