Vietnam Tightens Financial Oversight as Suspicious Transaction Reports Surge

Vietnamese authorities have stepped up supervision of the country’s financial system after suspicious transaction reports filed with the State Bank of Vietnam recorded a sharp year-on-year increase of around 30 per cent. The tougher approach includes the enforcement of Decree No. 329/2025/ND-CP, which is designed to closely monitor capital movements within the newly created international financial centre and curb illicit financial activity. Particular attention is being paid to digital assets and cross-border transactions, areas that officials say have previously been exploited by criminal groups attempting to conceal proceeds from illegal activities.

The regulatory environment has evolved substantially since the introduction of the country’s core legal framework aimed at preventing illicit funds from being absorbed into the formal economy. Supervisory authorities have noted a steady rise in reports of unusual or suspicious financial behaviour, a trend that reflects both an increase in criminal attempts and greater vigilance among domestic financial institutions. The Anti-Money Laundering Department now handles thousands of such reports each year, underscoring how the scale and complexity of the challenge have grown alongside the rapid modernisation of Vietnam’s economy. Law enforcement agencies have already circulated hundreds of analytical reports derived from thousands of alerts in order to investigate potential offences involving the layering and movement of funds across multiple sectors. This growing volume of data has highlighted the need for more sophisticated investigative tools and a deeper understanding of how modern financial instruments can be misused for criminal purposes.

The establishment of an international financial centre has introduced a distinct set of risks that lawmakers are seeking to address through tailored regulatory measures. Under recent administrative directives, banks operating within this designated zone are required to function as the first line of defence against the circulation of illicit capital. These institutions are expected to balance the provision of advanced wholesale financial services with strict due diligence obligations covering every client and transaction. Regulations require both foreign investors and domestic participants to provide clear explanations for all movements of funds, ensuring that the origin and destination of capital remain transparent to oversight bodies. This specialised regulatory setting is intended to serve as a model for controlled financial innovation, where new products and services are permitted only if they do not undermine the integrity of the national monetary system. Banks must keep comprehensive records and verify the authenticity of all documentation related to currency exchange activities, creating an audit trail that can be examined by state authorities at any time.

At the same time, regulators acknowledge that the rapid growth of digital asset markets presents new challenges that are not easily addressed through traditional banking controls. With an estimated 26 million digital asset accounts held by users in Vietnam, authorities are increasingly concerned about the potential for these platforms to enable the transfer of untraceable wealth. Criminal networks are known to favour decentralised systems, which allow value to be moved quickly across borders without relying on conventional financial intermediaries. The Ministry of Public Security has identified that many of these underground markets operate largely outside the scope of legislation introduced in 2022, effectively creating a parallel financial system that is difficult to monitor. In response, the government has issued new circulars to clarify how existing laws should be applied to emerging technologies, with the aim of bringing these grey-market activities under regulatory scrutiny and obliging virtual asset service providers to meet the same reporting standards imposed on commercial banks.

Looking ahead, officials say the intersection of new physical financial hubs and expanding virtual trading platforms will require a more agile and forward-looking enforcement strategy. As the volume of suspicious transaction data continues to rise, the effectiveness of the State Bank of Vietnam in transforming these reports into actionable intelligence will be critical to the success of the country’s anti-money laundering efforts. The emphasis remains on reinforcing the gatekeeper role of financial institutions and ensuring that no transaction, regardless of its technological form, escapes regulatory oversight. By closing gaps between existing laws and the evolving realities of digital finance, the government aims to foster an environment in which legitimate investment can flourish while criminal activity is systematically excluded. Authorities stress that preserving financial integrity is vital to the long-term stability of the international financial centre and to Vietnam’s broader economic ambitions, with ongoing cooperation between economic security agencies and the central bank forming the backbone of this defensive framework.

By fLEXI tEAM