Vietnam Tightens Anti-Money Laundering Rules for Banks and Companies

Financial institutions must now maintain records showing due diligence steps taken to verify beneficial ownership

Vietnam has introduced temporary measures to strengthen its anti-money laundering framework, requiring financial institutions to collect and clarify how they identify beneficial owners. The rules, announced in mid-2026, apply to banks and other financial entities operating within the country and aim to close gaps in ownership transparency. They work in tandem with Decree No. 296/2026/ND-CP, which took effect on July 23, 2026, and mandates that companies identify and declare their own beneficial owners. How Banks Must Verify Ownership Structures Under the new temporary measures, banks are required to go beyond simply collecting names and instead document the methods they use to determine who ultimately owns or controls a customer account. This includes tracing ownership chains that may extend across international borders, particularly when dealing with corporate clients or complex legal structures.

Financial institutions must now maintain records showing due diligence steps taken to verify beneficial ownership, even when the owner resides outside Vietnam. The State Bank of Vietnam oversees implementation, emphasizing that the goal is to prevent illicit funds from entering the financial system through opaque ownership arrangements. What Challenges Do Companies Face in Compliance? Companies operating in Vietnam must now actively identify their beneficial owners—defined as individuals who ultimately own or control more than 25 percent of the entity—or who exercise significant influence—and formally declare this information to authorities. This requirement applies to both domestic firms and foreign-invested enterprises. Many businesses, especially those with layered ownership or nominee arrangements, face difficulties in gathering accurate data, particularly when owners are reluctant to disclose their involvement.

Authorities have warned that non-compliance could result in fines or restrictions on business operations

Authorities have warned that non-compliance could result in fines or restrictions on business operations, though temporary leniency is being applied during the initial rollout phase. Frequently Asked Questions What is a beneficial owner under Vietnam’s new rules? A beneficial owner is any individual who ultimately owns or controls more than 25 percent of a company’s shares or voting rights, or who otherwise exercises significant influence over the company’s actions.

How long will the temporary measures for banks remain in place? The measures are described as temporary but no specific end date has been provided; they will remain in effect until further notice from the State Bank of Vietnam, pending evaluation of their effectiveness.

Are foreign companies required to declare beneficial owners in Vietnam? Yes, foreign-invested enterprises operating in Vietnam must comply with the same beneficial owner identification and declaration requirements as domestic companies under Decree No. 296/2026/ND-CP.