At a seminar recently held by the Department of Business Registration under the Ministry of Planning and Investment, participants emphasized that Vietnam must intensify efforts to monitor and manage information on business owners and beneficiaries.
Đỗ Nhật Hoàng, the director of the department, highlighted that Vietnam has signed a commitment with the Financial Action Task Force (FATF), which outlines specific actions the country must undertake.
In February this year, the Prime Minister’s Office issued a national action plan, instructing the Ministry of Planning and Investment to “establish a mechanism that allows authorities to rapidly access complete, accurate, and up-to-date information on the owners of legal entities and legal arrangements, and to take appropriate, effective, and proportional measures against violations.”
The department stated that the aim is to identify the individuals controlling and benefiting from businesses, a key step in improving the nation’s business environment, enhancing financial transparency, and attracting investment.
Legal requirements for collecting information on business owners and beneficiaries are also included in the World Bank’s new Business Environment Index, as well as criteria used by major international organizations such as the United Nations and the International Monetary Fund.
A representative from the anti-money laundering department under the central bank expressed concerns from FATF regarding Vietnam’s lack of progress in fulfilling its commitments.
Failure to meet these obligations could result in Vietnam being downgraded from FATF’s “grey list” to the “blacklist,” significantly impacting the country’s appeal to global investors. Such a scenario would primarily affect the private sector, as Vietnam’s financial system and broader economy would face considerable challenges.
The Ministry of Planning and Investment acknowledged numerous obstacles in the implementation process. A representative explained that the government must await the National Assembly’s approval before revising existing laws. Additionally, the ministry requires time to categorize and standardize the information requirements that business owners must meet.
The seminar brought together representatives from the State Bank of Vietnam, the Ministry of Public Security, the Ministry of Finance, the Ministry of Justice, the Ministry of Home Affairs, the Supreme People’s Procuracy, the Vietnam Bar Federation, and several commercial banks.
FATF is an intergovernmental organization dedicated to combating money laundering, terrorist financing, the proliferation of weapons of mass destruction, and other threats to the integrity of the global financial system. Over 200 countries and territories, including Vietnam, have committed to implementing FATF’s recommendations.
