The State Bank of Vietnam (“SBV”) has recently released a draft circular (“Draft Circular”) proposing key amendments to Circular No. 17/2024/TT-NHNN dated 28 June 2024, which governs the opening and use of payment accounts at institutions providing payment services (“Circular 17”). The Draft Circular is part of the SBV’s broader initiative to strengthen anti-fraud mechanisms, streamline banking procedures, and facilitate investment—particularly from foreign investors. Below are the key proposed changes:
1. Opening accounts for State Treasury Units via SBV Regional branches
Article 7.2 of the Draft Circular shifts the authority to open payment accounts for State Treasury units from provincial branches to 15 designated Regional Branches of the SBV. These Regional Branches will be empowered to open accounts for credit institutions and foreign bank branches. This change reflects Vietnam’s ongoing restructuring of its local government model and institutional responsibilities.
2. New naming and numbering standards for Payment Accounts
An additional clause (Point c1, Article 13.1) introduces standardized rules for assigning payment account names based on the account holder’s identity. The new rules distinguish between individual, organizational, and joint accounts, requiring account names to match official identification or registration documents. This change aims to improve consistency across institutions and enhance Know-Your-Customer (KYC) procedures.
3. Enhanced customer verification obligations
The Draft Circular’s revisions to Article 15.2 of Circular 17 bolster pre-opening identity verification requirements, including:
- Biometric authentication for individuals using chip-based ID cards or electronic identification documents;
- Mandatory in-person verification for individuals and organizational representatives, subject to limited exceptions;
- Verification of phone number ownership against ID information; and
- Alternative procedures for verifying foreign individuals not physically present in Vietnam (e.g., through authorized third parties).
These measures are intended to mitigate identity fraud risks and support compliance with anti-money laundering (“AML”) regulations.
4. New framework for foreign indirect investors’s payment account
The Draft Circular inserts Article 15a into Circular 17, establishing a dedicated legal regime for foreign investors making indirect investments in Vietnam:
- Foreign investors may authorize financial institutions to open and operate payment accounts on their behalf;
- Foreign documents notarized within the past 12 months are exempt from consular legalization; and
- SWIFT-based agreements for account operation are permitted as an alternative to domestic forms.
SBV has also proposed conditional exemptions from certain verification obligations under Articles 16 and 21 of Circular 17. This reflects a pragmatic approach to facilitating foreign portfolio investment while retaining safeguards via licensed custodians.
5. Expanded reporting requirements for suspicious accounts
Article 22.2 of the Draft Circular introduces new monthly reporting duties for banking institutions into Circular 17:
- By the 10th of each month, domestic and foreign bank branches must report suspicious accounts (e.g., suspected scams or fraud) to the SBV via electronic submissions;
- Reports must use newly revised templates (Appendices 02 and 03), which include additional data fields such as device MAC addresses and IMEI numbers; and
- Institutions are responsible for regularly updating and ensuring the accuracy of the reported data.
This is part of the SBV’s broader strategy to counter online financial fraud and enhance oversight of potentially high-risk accounts.
Key insights
The proposed amendments to Circular 17 signal Vietnam’s continued alignment with global AML standards, including those of the Financial Action Task Force (FATF), and a commitment to improving the ease of doing business for foreign investors. Notably, the new Article 15a (on payment accounts for foreign indirect investors) is proposed to take effect on 1 January 2026, suggesting a phased implementation roadmap.
The Draft Circular is currently under public consultation and has not yet been formally enacted.
Should you require further insights into the Amended Circular or have any questions regarding its implications, please feel free to contact the DFDL team.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.