No online money transfer without verifying the owner's account from 2025

Account owner authentication is required

Circular 17/2024/TT-NHNN (Circular 17) regulating the opening and use of payment accounts at credit institutions providing payment services was issued by the State Bank on June 28, 2024, effective from July 1, 2024. However, some provisions take effect later.

Notably, the regulation at Point c, Clause 5, Article 17 of Circular 17 applies to personal payment accounts, effective from January 1, 2025.

Accordingly, customers using payment accounts (bank accounts) are only allowed to withdraw money and make payment transactions by electronic means (online money transfer) on the payment account after completing the verification of identity documents and biometric information of the account owner or representative (for individual customers) or legal representative (for organizational customers).

The account holder's biometric data must match the biometric data stored in the encrypted information storage of the chip-embedded citizen identification card or the citizen identification card of the account holder that has been accurately authenticated by the police agency or through authentication of that person's electronic identification account created by the electronic identification and authentication system; or:

Biometric data is collected through a face-to-face meeting with the person in the case of foreigners who do not use electronic identities, people of Vietnamese origin whose nationality is undetermined, or:

Biometric data has been collected and verified (ensuring the correct match between the person's biometric data and the biometric data in the encrypted information storage of the citizen identification card or the citizen identification card has been accurately authenticated as being issued by the police agency or with the person's biometric data through the authentication of the electronic identification account created by the electronic identification and electronic authentication system); or:

The person's biometric data is stored in the National Population Database in case of using a citizen identification card without an encrypted information storage unit;

Apply authentication measures to each type of transaction in electronic payments according to the State Bank's regulations on safety and security for providing banking services by electronic means.

The use of VND payment accounts by non-residents, foreign individual residents and foreign currency payment accounts must comply with the provisions of this article and legal regulations on foreign exchange management.

Thus, from January 1, 2025, all bank account holders must register biometrics if they want to withdraw or transfer money online. This is an improvement compared to the regulation requiring biometric authentication when transferring money from 10 million VND/transaction and 20 million VND/day according to Decision 2345 of the State Bank, effective from July 1, 2024.

This regulation aims to completely eliminate illegitimate bank accounts, as well as increase the level of safety for people when using electronic banking services.

However, it should be noted that biometric registration for all accounts does not mean that all transactions must be biometrically authenticated. Transactions requiring biometric authentication when transferring money are still subject to the provisions of Decision 2345 of the State Bank.

Account is suspended when ID card expires

Circular 17 also details the responsibilities of banks in ensuring safety and security in opening and using payment accounts.

Accordingly, Article 19 of the Circular stipulates that banks must issue internal regulations on risk management in opening and using accounts for customers, including the following contents:

Measures to check, compare and verify customer identification information during the process of opening and using payment accounts. Some specific regulations include:

Measures to check the legality, validity and comparison to ensure the correctness and accuracy of customer information and data;

Apply measures to prevent impersonation, interference, editing, and falsification of customer identification information verification during the process of opening and using customer payment accounts;

Measures to ensure the use of payment accounts are taken by the payment account owner himself or by an authorized person or representative.

Banks are responsible for monitoring the validity period of customers' identification documents, notifying customers at least 30 days before the expiry date of the identification documents; temporarily suspending payment transactions and withdrawals from payment accounts in cases where customers' identification documents have expired...