Overseas transactions above $1,000 to be subjected to mandatory reporting, as suggested by SBV
Vietnam is set to establish a digital asset exchange within its International Financial Centres (IFCs), with a draft decree outlining the regulatory framework for the new venture. The State Bank of Vietnam (SBV), the central bank, is spearheading the drafting of this decree, which aims to ensure effective management, maximise resources, and mitigate risks.
The draft decree applies to banks, foreign exchange management, and anti-money laundering (AML) within the IFCs. It emphasises the importance of compliance with the Law on AML, with the supervisory authorities of the IFCs, including the SBV, the Ministry of Public Security, the Ministry of National Defence, and other relevant ministries and agencies, playing a crucial role in enforcement.
Foreign currency payments and transfers within the IFC must go through foreign currency payment accounts held at member commercial banks or branches of the SBV. The draft also requires reporting international electronic fund transfers exceeding a threshold of $1,000. Given the presence of major international financial institutions across various sectors in IFCs, stringent mechanisms are needed to prevent money laundering and financing of illegal activities.
The draft decree outlines responsibilities for implementing AML measures by reporting entities in IFCs, as well as related organisations and individuals. It also introduces preferential and exceptional policies for reporting entities at IFCs, allowing them to apply AML measures already in use by their owners or parent banks.
Vietnam's banking sector is at a critical juncture where innovation, regulation, and risk management must converge. In early 2025, Prime Minister Pham Minh Chinh tasked the Ministry of Finance (MoF) and the Ministry of Science and Technology (MoST) with exploring the piloting of a cryptoasset exchange via a controlled testing mechanism.
The draft decree addresses the use of foreign currencies by members of the IFC, including commercial banks, branches of the SBV, and other participants. It is also worth noting that Minister of Finance Nguyen Van Thang held a meeting with Ben Zhou, co-founder of Bybit Technology, to discuss the digital asset market.
The aim of the draft is to ensure normal economic and investment activities, protect legal rights and interests of individuals and organisations, and prevent abuse of AML policies to infringe on legitimate rights. Vietnamese financial institutions are exploring digital assets with growing seriousness, recognising the potential benefits and the need for robust regulations to mitigate risks.
The SBV's proposal states that Vietnam's Law on AML requires all AML efforts to be in accordance with legal regulations while safeguarding national sovereignty, territorial integrity, national security, and interests. Given the higher degree of financial openness within IFCs, stringent mechanisms are needed to prevent entities from exploiting the IFC or its special policies to launder or legitimise questionable funds.
In conclusion, the draft decree is a significant step towards regulating the digital asset exchange in Vietnam's IFCs, aiming to foster innovation while ensuring compliance with AML regulations and maintaining the integrity of the financial system.
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