Vietnam to tighten transaction reporting in major AML overhaul

By Vriti Gothi

Vietnam’s central bank, the State Bank of Vietnam (SBV), has unveiled a sweeping new framework requiring banks to report all domestic transfers of $20,000 and above from November 2025. The measures, set to take full effect from January 1, 2026, mark one of the country’s most significant steps yet toward aligning its financial sector with international anti-money laundering and counter-terrorism financing standards.

The regulations extend beyond domestic payments to cover cross-border transactions as well. Any international transfer of $1,000 or more must now be reported to regulators, reflecting Vietnam’s increasing vigilance over both internal and external money flows. Banks and financial service providers have been given until the end of December to adapt their systems and processes, ensuring that compliance is fully embedded before the new year.

A central feature of the framework is the requirement for institutions to deploy automated monitoring software capable of screening transactions against global watchlists, blacklists, and databases of politically exposed persons. This move underscores a decisive shift away from manual oversight toward a more technologically driven approach, one that promises to flag suspicious activity more effectively and reduce the risk of illicit transactions slipping through the system.

In addition to banking transactions, the SBV has revised rules on customs declarations. Travellers carrying negotiable instruments, platinum, gemstones or other precious metals, except gold, worth $15,100 or more will be required to declare them at customs. While the existing thresholds for cash and gold declarations remain unchanged, the inclusion of other high-value assets reflects Vietnam’s determination to close gaps in the monitoring of wealth flows across borders.

The SBV has framed these changes as essential to strengthening financial transparency and improving oversight of high-value transactions. By tightening reporting thresholds and demanding more sophisticated compliance tools, Vietnam is seeking to meet the recommendations of international bodies such as the Financial Action Task Force. Over the past decade, the country has emerged as a rapidly growing economy with a vibrant financial services sector, but regulatory gaps have left it exposed to risks associated with money laundering, terrorism financing, and the illicit movement of funds linked to trade or organised crime.

For banks and FinTechs operating in the country, the implications are significant. Institutions will need to invest in RegTech solutions to ensure monitoring and reporting capabilities meet the new requirements. This will involve upgrading core systems, enhancing transaction surveillance, and providing staff with training to spot and escalate suspicious activity. While compliance costs are expected to rise in the near term, the long-term benefits include improved credibility with international partners and investors, as well as a stronger foundation for Vietnam’s integration into the global financial system.

As the January 2026 deadline approaches, the SBV’s framework represents not only a regulatory adjustment but also a signal of intent. Vietnam is positioning itself as a market that takes financial integrity seriously, balancing its ambition for economic growth with the responsibilities that come with global financial participation. Institutions that can adapt quickly and embrace smart compliance technologies will be better placed to thrive in this new regulatory environment.