Publication of the President’s Decree on the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam, the Law on the Prevention and Combating of Money Laundering, and the Law on Credit Institutions

Pursuant to the Constitution of the Socialist Republic of Vietnam, as amended and supplemented by Resolution No. 203/2025/QH15, and Article 43 of the Law on the Enactment of Legal Documents, on August 26, 2026, the President of the Socialist Republic of Vietnam signed a Decree promulgating the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam, the Law on the Prevention and Combating of Money Laundering, and the Law on Credit Institutions (Law No. 23/2026/QH16).

Focusing on Addressing Urgent Issues in Practice

Introducing Law No. 23/2026/QH16, Deputy Governor (Permanent) of the State Bank of Vietnam (NHNN) Doan Thai Son, stated that the Law consists of four articles and was enacted to address issues arising from organizational restructuring that must be resolved by March 1, 2027; to address gaps in anti-money laundering legislation in accordance with the recommendations of the FATF/APG/OECD; to resolve difficulties and obstacles in the State Bank’s financial mechanisms; to establish a foundation for the State Bank to fully fulfill its obligations as a member of the International Monetary Fund; promptly institutionalize the Party’s policies on socioeconomic development and codify regulations related to restrictions on citizens’ rights.

Amendments and Supplements to Certain Provisions of the Law on the State Bank of Vietnam

Regarding the Law on the State Bank of Vietnam, the amendment law amends and supplements five main provisions:

First, it adds provisions regarding Vietnam’s international investment position, aiming to establish a basis for the State Bank of Vietnam to fully fulfill its obligations as a member of the International Monetary Fund. At the same time, the Law adds provisions authorizing the Government to define the scope, types of information, deadlines, reporting periods, and methods for providing information necessary for compiling Vietnam’s balance of payments and international investment position, ensuring feasibility and transparency in the implementation process.

Second, provisions are added regarding restrictions on the use of foreign exchange within Vietnam’s territory, except in cases permitted by law, National Assembly resolutions, or regulations issued by the Governor of the State Bank of Vietnam. This provision codifies the content of Article 22 of the Foreign Exchange Ordinance, ensuring that restrictions on citizens’ rights are prescribed by law; while also clarifying the cases in which the use of foreign exchange within the territory of Vietnam is permitted in accordance with the provisions of the law, resolutions of the National Assembly, or regulations issued by the Governor of the State Bank of Vietnam.

Third, amend the regulations on the State Bank of Vietnam’s financial mechanisms to align with the operations of a central bank and the State Bank of Vietnam’s operational practices. In addition, the Law on the Transfer of Authority transfers certain provisions related to the State Bank of Vietnam’s financial regime from the Prime Minister to the Government, in accordance with the provisions of the Law on the Organization of the Government.

Fourth, provisions are added regarding the State Bank of Vietnam’s authority to apply safety reserve ratios different from the prescribed levels, in order to serve socio-economic development objectives based on an assessment of the risk level of each credit institution (CI). Credit institutions subject to this measure must develop and implement a roadmap to ensure compliance with the prescribed levels. The State Bank of Vietnam is responsible for inspecting and supervising the entities subject to inspection and supervision in accordance with the law.

Fifth, amend regulations to ensure alignment with the organizational structure of the State Bank of Vietnam and the operation of the two-tier local government system; while removing the Ministry of Finance’s responsibility for inspecting the State Bank of Vietnam’s tasks related to printing, minting, and destroying currency, as well as managing the State’s foreign exchange reserves, in order to minimize overlap with the inspection and audit activities of the Government Inspectorate and the State Audit Office.

Improving regulations on anti-money laundering

Regarding the Law on Anti-Money Laundering, the amended law supplements two main groups of provisions:

First, it amends and supplements certain provisions to address deficiencies in anti-money laundering efforts in accordance with the recommendations of the FATF/APG, specifically:

Amending the definition of “beneficial owner” to ensure comprehensive coverage of all cases of beneficial ownership;

Adding reporting entities and suspicious activity indicators; adding responsibilities for inspection, audit, and supervision of anti-money laundering activities related to the cryptocurrency sector, to ensure regulatory authorities have the tools to monitor and prevent activities posing a high risk of cross-border money laundering;

Refine regulations on customer due diligence, information, and verification of customer identification information; amend regulations on the transparency of legal agreements; Establish the responsibilities of reporting entities in reporting suspicious transactions to the State Bank of Vietnam, including an exemption from liability for reporting entities when they fulfill their reporting obligations under this Law in good faith; and establish provisions regarding the responsibility to retain information, records, and documents.

Second, amending, supplementing, and repealing certain provisions to address issues related to the structure and organization of government agencies, including changes to the names and responsibilities of ministries and agencies at the ministerial level.

Establishing a legal basis for commercial banks to engage in the activity of managing collateral assets

Regarding the Law on Credit Institutions, the amendment in Clause 2 of Article 114 stipulates “Agency Management of Collateral for Corporate Bonds,” creating a legal basis for commercial banks to carry out this activity. This is a necessary condition for commercial banks to carry out agency activities related to the management of collateral for corporate bonds.

However, to provide a comprehensive legal basis for commercial banks to carry out this activity, securities and corporate bond laws must include provisions regarding the rights and responsibilities of the parties, as well as the conditions, criteria, and scope of collateral management agency activities.

The Law Amending and Supplementing Certain Articles of the Law on the State Bank of Vietnam, the Law on Anti-Money Laundering, and the Law on Credit Institutions will take effect on December 1, 2026.

At the same time, the Law repeals Article 22 and paragraph 2 of Article 34 of the Foreign Exchange Decree to ensure consistency with regulations on the principles governing the use of foreign exchange within Vietnamese territory and removes the Ministry of Finance’s responsibility for overseeing the management of the State’s foreign exchange reserves under the Law on the State Bank of Vietnam.

Deputy Governor (Permanent) of the State Bank of Vietnam Doan Thai Son stated that, to ensure the Law’s provisions are implemented in a timely, coordinated, and consistent manner, the State Bank of Vietnam has coordinated with the Ministry of Justice to draft a Prime Ministerial Decision promulgating a list and assigning agencies to draft detailed regulations for the laws and resolutions passed by the 16th National Assembly at its First Extraordinary Session.

At the same time, in accordance with the provisions of the Law on the Enactment of Legal Documents, the guiding documents for its implementation, and based on the provisions of the Law, the State Bank of Vietnam has drafted a Prime Ministerial Decision to issue the Implementation Plan for Law No. 23/2026/QH16 and is currently seeking feedback from relevant ministries and agencies before submitting it to the Prime Minister for signature and promulgation.

In the coming period, based on the Prime Minister’s Decisions, the State Bank of Vietnam will coordinate with relevant ministries, sectors, and agencies to implement Law No. 23/2026/QH16, ensuring consistency, coherence, and effectiveness.

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