All transactions related to real estate purchase or leasing, mergers, and acquisitions (M&A) should be conducted via banks to prevent money laundering.

Overview of the session. Source: quochoi.vn

Chairman of the National Assembly (NA)’s Economic Committee Vu Hong Thanh made the proposal during a NA session on October 20, discussing the draft revised Law on Anti-money laundering.

Presenting the draft law, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong noted this shows the country’s efforts in addressing legal loopholes pinpointed by the Financial Action Task Force (FATF), an inter-governmental policymaking body to combat money laundering and financing of terrorism.

According to Hong, one of the changes in this revision the legalisation of regulations on reporting suspicious transactions and the definition of suspicious signs of money laundering in the fields of banking, securities, insurance, and real estate.

Hong added the draft law also provides the responsibilities of organizations taking part in the transactions of e-currency with clear procedures of risk management, to supervise dubious transactions.

Reviewing the draft law, the Chairman of NA’s Economic Committee Vu Hong Thanh called for the Government to tighten the management and use of data from the national database on population, as well as standardize data to identify suspicious activities.

He stressed the necessity to have clear guidance on the implementation of the law, to avoid power abuse, as well as measures on data privacy and information disclosure on preventing money laundering.

“It is important to avoid misinterpretation when implementing the law and ensure clarity and transparency,” Thanh said.

Vietnam is among the top 10 countries with the highest number of cryptocurrency holders, which poses a high risk for money laundering and is a route for criminals to exploit for terrorist activities.

The draft revise Law on Anti-money laundering is set for further discussion by NA deputies in groups on October 24, before a plenary discussion on November 1 and subject to approval at the end of the fourth session, scheduled to end on November 15 after 21 working days.