AML/CTF – FATCA

In order to provide customers with modern and safe banking and financial services, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has constantly consolidated its relationship with foreign financial institutions. In the context of globalization, money laundering/terrorism financing (ML/TF) risk is considered a challenge for banking industry in general and for BIDV in particular. 

With the aim of identifying, mitigating and managing effectively ML/TF risk that might arise when serving customers, BIDV implements a comprehensive Anti-Money Laundering & Counter-Terrorism Financing (AML/CTF) program on the following areas: (i) establishing a compliance structure in accordance with “three lines of defense model”; (ii) developing the AML/CTF regulation framework, supervising  implementation of AML/CTF policies and promptly updating them to ensure their compliance with all governmental legal requirements and international practices; (iii) investing in modern information systems supporting AML/CTF.

AML/CTF program in BIDV has always been highly appreciated by local regulatory authorities and international organizations. BIDV has assigned the Head of Legal, Supervision and Compliance Group to be in charge of AML/CTF and has adopted a uniform compliance structure from Head Office to branches. All transactions at BIDV must comply with both internal customer acceptance policies and sanctions policies with no violation. In particular, BIDV does not establish relationship with a number of specific customers/transactions. BIDV has built up specific requirements on know your customer (KYC); enhanced due diligence (EDD); detecting, reporting and handling suspicious transactions. Furthermore, BIDV has also developed and implemented risk-based assessment approach at bank-wide level on different factors including customers, products, delivery channels, countries/geographical areas, which are the basis to propose methods/actions preventing ML/TF risk level in an effective and timely manner.

BIDV pays special attention to training high quality human resources through a variety of programs including in-class/online courses. All employees, especially front-line staff must be trained and updated about AML/CTF policies annually. Newly recruited employees must be trained within 6 months.

BIDV commits to comply with the highest standards on AML/CTF of Vietnamese legal requirements and international practices, implementing appropriate methods to detect and prevent ML/TF risks effectively. 

Statement on AML&CTF Compliance

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USA Patriot Act Certification

FATCA (Foreign Account Tax Compliance Act) was passed and came into force in March, 2010 in order to assist US Internal Service Revenue (IRS) in preventing the tax evasion behaviors of US individuals, corporates with regard to the US-sourced income from investment in assets and financial instruments in non-US financial institutions and financial entities. The non-compliant financial institutions and financial entities outside the United States shall be subject to 30% withholding income applicable to income derived from the United States, including interest, dividends, income from the sale or liquidation of the earning assets/dividends in the United States started from July 1st, 2014 and subject to 30% withholding tax on intermediate/transition payments from any compliant financial institutions since January 1st, 2017.

The enforcement of FATCA has affected all global financial institutions, the customers of these financial institutions and the correspondent banking relationship. In BIDV, for the benefits of customers, to protect our reputation and to keep our relationship with foreign financial institutions (especially the United States’ financial institutions), in 2014, BIDV proactively registered for FATCA compliance in due course and received the GIIN (Global Intermediary Identification Number). BIDV and our subsidiaries and foreign branches including BSC, LVB, Yangon branch registered FATCA compliance under EAG model, which was approved by IRS. On June 30th, 2014, BIDV was accepted as the Participating Foreign Financial Institution (PFFI). Since August, 2016, after the government of Vietnam and the government of the United States successfully signed Intergovernmental Agreement, BIDV has been recognized as a foreign financial institution complying with FATCA under IGA1 model (in which financial institutions shall report to State Bank of Vietnam (SBV) and SBV shall report to IRS).

BIDV has developed relevant internal policies and procedures, utilized the available resources to collect and monitor customer information and report, ensuring that FATCA compliance is consistently and thoroughly implemented.

BIDV commits to fully comply with all the FATCA requirements as prescribed in IGA1 between Vietnamese government and US government. 

Statement on FATCA Compliance

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