LEGAL PROVISIONS ON ANTI-MONEY LAUNDERING

According to the provisions of Clause 1, Article 3 of the Law on Money Laundering Prevention and Fighting 2022, money laundering is an act committed by organizations and individuals in order to legalize the origin of assets resulting from crime.

According to the provisions of Clause 2 Article 3 of the Law on Anti-Money Laundering 2022, assets resulting from crimes include assets obtained directly or indirectly from criminal acts; share of income, profits, income, profits derived from property derived from criminal acts).

I. Principles in the prevention and fighting of money laundering

Pursuant to the provisions of Article 5 of the Law on Money Laundering Prevention and Fighting 2022, principles in the prevention and fighting of money laundering, Anti-money laundering includes:

- First, the prevention and fighting of money laundering must comply with the provisions of law on the basis of ensuring sovereignty and territorial integrity, national security and national interests; ensuring normal economic and investment activities; protect the legitimate rights and interests of organizations and individuals; anti-abuse of power, abusing the prevention and fighting of money laundering to infringe upon the legitimate rights and interests of relevant organizations and individuals.

- Second, money laundering must be handled in accordance with Vietnamese law.

- Third, anti-money laundering measures must be implemented synchronously and promptly.

II. Prohibited acts in the prevention and fighting of money laundering

Pursuant to the provisions of Article 8 of the Law on Money Laundering Prevention and Fighting 2022 and Article 7 of Decree 19/2023/ND-CP, prohibited acts in the prevention and fighting of money laundering include:

- Organizing, participating, or facilitating, helping in money laundering.

- Set up and maintain anonymous accounts or accounts using fake names.

- Establish and maintain business relations with shell banks.

- Unauthorized provision of services for receiving cash, checks, other monetary instruments or stores of value and making payments to beneficiaries.

- Abusing positions and powers in money laundering prevention and fighting to infringe upon the legitimate rights and interests of organizations and individuals.

- Obstructing the provision of information in service of money laundering prevention and fighting.

- Intimidating, retaliating against those who discover, provide information, report and denounce money laundering.

III. Sanctions for money laundering

Pursuant to the provisions of Article 324 of the Penal Code 2015, amended and supplemented in 2017, sanctions for money laundering offenses may be punished with imprisonment up to 15 years if they fall under money cases, criminal assets worth VND 500,000,000 or more; illicit profits of VND 100,000,000 or more; adversely affecting the safety of the national financial and monetary system.

In addition, offenders may also be fined from VND 20,000,000 to VND 100,000,000, banned from holding office, banned from practicing or doing certain jobs from 01 year to 05 years or confiscated part or all of their assets.

Note: Pursuant to the provisions of Article 14 of the Penal Code 2015, amended and supplemented in 2017, those who prepare to commit money laundering crimes will still be examined for criminal liability. Penalties for those who prepare to commit money laundering crimes can be imprisonment from 06 months to 03 years.

Above is an article that provides basic information about Vietnamese legal regulations governing the prevention and fighting of money laundering crimes.

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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Attention: This legal update is not an advice and should not be treated as such.