MUST APPLY MEASURES TO IDENTIFY CLIENTS OPENING ACCOUNTS FOR THE FIRST TIME
On October 4, 2013, the Government issued the Decree No. 116/2013/ND-CP detailing a number of Articles of the Law on prevention and combat of money laundering. One of the most significant points under this Decree is the regulation on cases that must apply the measures to identify clients.
Accordingly, financial organizations must apply the measures of client identification when opening account for the first time; establishing the relation with financial organizations for the purposes of using products and services provided by financial organizations for the first time; conducting electronic funds transfer but lacks information about name, address or account number of the originator; conducting transactions with the total value of VND 300,000,000 or more in a day but having no account or having account but there is no transaction conducted within 6 months... Organizations, individuals doing the business of prize-winning games, casinos must take measures to identify clients that conduct the transactions with the total value of VND 60,000,000 or more in a day. Organizations, individuals doing the business of precious metals and gems with the value of VND 300,000,000 in a day…
In addition, under this Decree, lawyers, notaries, accountants, legal specialists must report suspicious transactions when: Being on behalf of clients to conduct the transactions to transfer the land use right, house ownership, management of money and securities or other assets of the Clients; managing the Clients’ accounts at banks, securities companies; administrating and managing the operation of the Clients’ companies. The Decree also stressed that subjects having the responsibility to report suspicious transactions must report but not depend on the amount of money transacted of clients, that transaction has completed or not, or just having intention to conduct transactions.
This Decree takes effect on October 10, 2013.
