Circular 12/2011/tt-Bxd: Guidelines For Implementation Of Some Of The Content Of The Decree 74/2005/nd-Cp Dated 7 June 2005 By The Government On Prevention Of Money Laundering For Estate Business S. ..

Original Language Title: Thông tư 12/2011/TT-BXD: Hướng dẫn thực hiện một số nội dung của Nghị định 74/2005/NĐ-CP ngày 07 tháng 06 năm 2005 của Chính phủ về phòng, chống rửa tiền đối với hoạt động kinh doanh bất động s...

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Pursuant to the law of real estate business 63/2006/QH11 on June 29, 2006;

Pursuant to the law No. 56 House/2005/QH11 on November 29, 2005;

Pursuant to the law amending and supplementing Article 126 Housing Law and article 121 of the law of the land;

Pursuant to Decree No. 74/2005/ND-CP dated 7 June 2005 by the Government on prevention of money laundering (Decree No. 74/2005/ND-CP);

Pursuant to Decree No. 153/2007/ND-CP dated 15 October 2007 of the Government detailing and guiding the implementation of the law on real estate business;

Pursuant to Decree No. 71/2010/ND-CP dated 23 June 2010 of the Government detailing and guiding the implementation of the Housing Law;

Pursuant to Decree No. 17/2008/ND-CP DATED April 2, 2008 of the Government functions, tasks, powers and organizational structure of the Ministry of construction;

The Build Guide implementing the measures for prevention of money laundering with regard to real estate business activities as follows: chapter I GENERAL PROVISIONS article 1. Scope this circular guides implementation of the measures for prevention of money laundering in the area of real estate business activities.

Article 2. The object application this circular applies to the individual, organization, Vietnam; individuals, organizations have engaged in the real estate business, including: 1. Organization, business personal property and real estate services business;

2. organizations and individuals related to the real estate business and the real estate services business.

Article 3. Explanation of terms In this circular, the terms below are interpreted as follows: 1. "suspicious transaction" is the unusual transaction, the transaction is not yet consistent with the provisions of law specified in article 9 of this circular and in article 10, Decree No. 74/2005/ND-CP.

2. "the report organization" includes the real estate trading; organizations, business personal property brokerage services; organizations, business personal property management services.

3. "suspicious transaction report" is a report by the reporting organization created to send to the competent State agencies about suspicious transactions.

4. "large-value transactions to report" is the transaction in cash (or in foreign currency, the equivalent value in gold) have value are reported in accordance with paragraph 1 article 9, Decree No. 74/2005/ND-CP.

5. "The benefit" is the Organization, individuals actually have control or ownership of real property; Organization of individuals involved in the sale, transfer, raising capital to invest in real estate projects; the owner of the real estate project.

6. "competent State bodies" is the Department, money laundering in the inspection agencies, monitoring of Bank-State Bank of Vietnam; The House Administration and the real estate market-Ministry of construction; Department of construction of the central cities,.

Chapter II MEASURES for prevention of MONEY LAUNDERING article 4. Internal regulations on prevention of money laundering based on the provisions of Decree No. 74/2005/ND-CP, this circular and the text of the relevant law, the Organization must report building and issued internal rules on prevention of money laundering in order to detect and restrict the Organization personal, through the reporting organization to perform acts of money laundering.

1. the internal regulation content include: a) processes, procedures to identify and update customer information and the benefit, measures to verify information about the customer and the benefit in case of suspicious transactions arise;

b) of your processes, detection, treatment and reporting of suspicious transactions to the competent State agencies;

c temporary measures) regulations apply in the prevention of money laundering and handling principles in cases of delay, does not make the transaction;

d) provisions on control and internal audit for compliance with the rules, processes and procedures related to money laundering prevention activities;

e) provisions on the functions, powers and responsibilities of the person or the Department in charge of the prevention of money laundering;

g) regulations on training to increase awareness and prevention, anti money laundering;

h) Regulation on storage and information security.

2. the internal regulations on prevention of money laundering must be common to each individual, the Department is responsible for prevention of money laundering in the Organization report, including with regard to the partners are related to real estate transactions.

3. The organization must submit a report to the internal regulation on prevention of money laundering for money laundering prevention Directorate Department of the inspection agency, the bank supervision-the State Bank of Vietnam; The House Administration and the real estate market-Ministry of construction; Local building departments where is headquartered.

Article 5. Report layout organization officer or the Division responsible for the prevention of money laundering 1. Based on the scale, scope and characteristics of their activities, the Organization decided to report the deployment Officer (or as leaders of the Organization) or the establishment of departments responsible for the prevention of money laundering. The reporting organisation must be registered with the competent State agencies about the information related to your name, address, title of the officer or the Division responsible for the prevention of money laundering and the information about the address, telephone, and fax numbers of the Organization to contact when necessary. When there are any changes in the above information, the reporting organisation must notify in writing the competent State bodies.

2. The officers or the Department responsible for the prevention of money laundering of the organisation had reports the function, the following main tasks: a) to receive and verify information about suspicious transactions by employees, departments, the relevant parts of the report;

b) Established, (signed) and responsible for the content of the suspicious transaction reports;

c) Formed, (signed) the report on money laundering prevention activities of the Organization as required by the law and by competent State agencies;

d) build, deploy the policy, program, strategy, money laundering apply in the Organization;

e) regularly reviewing, evaluating and adjusting the internal regulations on prevention of money laundering in order to ensure conformity with the provisions of the law, the changes and growth in the Organization's business activities.

Article 6. Get to know the client and updated information on client 1. The cases recognize the customer: a customer) established the first trading relationships with the reporting organisation;

b) clients perform property transactions in cash has great value as defined in paragraph 1 of article 8 of this circular;

c) customers make suspicious transaction as defined in clause 1 article 9 of this circular;

d) clients perform property transactions number from 2 or more transactions in a day; customers who bought, sold from 2 upwards in a property (including customer purchase and sale of real estate);

e) cases reporting organizations consider about property records, records of real estate projects, see the customer profile has cast doubt on the integrity of the record.

2. The content of the information to get to know clients: self organization of the report model design to identify customers but must ensure the following minimum information: a) information about the client: – for personal customers who Vietnam: last, first; day, month, year of birth; identity card number or passport number; where the registration of permanent residence; the present accommodation; occupation, position; the phone; the task unit, task unit address;

-For the client are foreign individuals (who have foreign citizenship, who settled overseas that Vietnam still Vietnam nationality): last, first; nationality; day, month, year of birth; Passport number; immigration visas, immigration reasons; address staying in Vietnam; where to stay in foreign countries within 6 months prior to entry into Vietnam and permanent address abroad; occupation, position; the phone; the task unit, task unit address;

The case of the account or property due to many customers stand owner name must provide complete information outlined above for each customer.

-For the client is held: the full transaction unit name and abbreviation; the address is headquartered; phone number, fax number; on number of licensed establishment, investment certificates, certificate of business registration; the Agency established; information about business activity sector, investment sector; summary information about the organizational structure and leadership; information on the legal representative for the Organization (including information such as customer is personally mentioned above).

b-day, month, year) to open the account (if any); day, month, year;

c) of the original amount of account or transaction value charged in the local currency or the value calculated by the Exchange and conversion rates (if necessary);

d) the purpose and value of an account or transaction;

DD) information about the benefit:-for the benefit of individual people is Vietnam: last, first; day, month, year of birth; identity card number or passport number; where the registration of permanent residence; the present accommodation; occupation, position; the phone; the task unit, task unit address;

-For the benefit of foreign individuals (who have foreign citizenship, who settled overseas that Vietnam still Vietnam nationality): last, first; nationality; day, month, year of birth; Passport number; immigration visas, immigration reasons; address staying in Vietnam; where to stay in foreign countries within 6 months prior to entry into Vietnam and permanent address abroad; occupation, position; the phone; the task unit, task unit address;

-For the benefit is held: the full transaction unit name and abbreviation; the address is headquartered; phone number, fax number; on number of licensed establishment, investment certificates (if any), the business registration certificate; the Agency established; information about business activity sector, investment sector; summary information about the organizational structure and leadership; information on the legal representative for the Organization (including information as to the benefit the individual mentioned above).

e) information on the owner of real estate projects, information on real estate projects;


f) the name and signature of the employee is responsible for reporting organization browse to open an account or process a transaction with the customer.

3. customer identification measures: a) use the materials, the original reliable data to identify and verify the identity of customers such as:-for individual clients: paper identity card, visas-immigration, passport expiry or other valid identification with photo and have stamped up photo by mechanics jurisdiction level.

-For the client is held: licence or decision established, decided to change the name, splits, mergers, business registration certificate, certificate of tax registration, financial statements audited; the decision to appoint the Director-General (Executive Director), Chief Accountant.

b) organized the report may use third parties to verify the identity of customers as follows: – through individuals, organizations (including other reporting institutions) have or are in a relationship with the customer and collate information provided with the information provided by customer.

-Through the governing body or competent State agencies (such as the land registry office, the local tax authorities, State administration on land ....).

-Reporting organizations can hire, in partnership with other institutions to verify the identity of customers.

c) where there are many relevant client organizations must report measures to verify identity for each customer;

d) held the additional self report measures and get to know other guests based on the nature of the activity, the Organization's business report and based on the level of risk of money laundering associated with each type of customer. However, the ultimate responsibility of getting to know, update customer information in the report about the organization.

Article 7. Review the information about the customer and transaction 1. The organization reported having to regularly scrutinize information about customers, especially customers who have questionable conduct money laundering activities or the customers named in the warning list of the Ministry of public security and the State Agency has the authority under the provisions of this circular.

2. the reporting organization should examine the records, documents related to real estate transactions there are suspicious signs and large value (the source property creation, change the owner, legal profile status...).

3. organizations reported having to regularly update information on the client was reported in the suspicious transaction previously (the Organization's report).

Article 8. Cash transaction worth 1. The transaction in cash (or in foreign currency, the equivalent value in gold) is the largest value of the transaction as specified in clause 1 article 9 of Decree No. 74/2005/ND-CP.

2. Organize monthly reports are created and stored (in text and electronic file) reports large-value transactions as defined in article 12 of Decree No. 74/2005/ND-CP dated (according to the model in annex 1a and 1b of this circular).

The Organization must submit a report transaction report has great value to the competent State agencies when requested in writing by the competent State bodies.

3. The organization must report reviewing, screening large-value transactions to detect suspicious transactions.

Article 9. Suspicious transactions and reporting of suspicious transactions 1. Signs of suspicious transaction: in addition to the signs of suspicious transactions is specified in item 1 article 10 of Decree No. 74/2005/ND-CP, additional signs of suspicious trading in the real estate sector as follows: a) cannot identify the customer according to the information provided or a transaction involving a party does not determine identity;

b) sales transactions on your account does not match the financial status or with the information and the normal business activities of the clients or change of mutation in the sales transactions on the customer's account;

c) transaction is conducted by a client are related to illegal activities were posted on the mass media report that the organization knew or in the list of warning by the Ministry of public security and the State bodies are competent to deliver;

d) transaction records or records of real estate signs (for example: fake seals, fake signatures, false identity papers, passport, property address not correct fact ...);

e) property transactions are authorized transactions but has no legal basis;

f) the address of the parties to the transaction is incorrect (for example: address at the County B, the A but on the fact the County A no B...) and address changes than the previous transaction. Information on the same client is declared differently in the different trading times;

g) clients expressed no interest in real estate prices, transaction costs are charged;

h) customer transactions without authorization but do not provide the information related to real estate, do not want to provide additional information about themselves;

I) price agreed between the parties to the transaction did not match the market price.

The reporting organization can add other suspicious signs in real estate transactions.

2. report suspicious transaction: When detecting suspicious transactions, reporting organizations must report in writing (according to the model in annex 2 of this circular) for money laundering prevention Directorate Department of the inspection agency, the bank supervision-the State Bank of Vietnam; The House Administration and the real estate market-Ministry of construction. In case of necessity organize the report can report to the Agency on by means of fax or telephone but then must submit the report in writing.

The reporting organizations are responsible to follow the transaction reports, update new information arises.

3. The time limit for reporting: the reporting organisation must report to the Bureau of prevention of money laundering in the inspection agencies, monitoring of Bank-State Bank of Vietnam; The House Administration and the real estate market-Ministry of construction within 48 hours for suspicious transactions since the time of detection of suspicious signs.

The case uncovered transactions related to criminal activity, the reporting organizations must report the competent State agencies within 24 hours from the time of discovery.

Article 10. Application of interim measures 1. The principle of applying interim measures: temporary measures to be taken in the right jurisdiction, the provisions of the law and not to influence the business activities of the business as well as the implementation of real estate projects.

2. interim measures: do not execute trades.

3. the reporting organization has the right to apply the provisional measures do not make real estate transactions and to report to the competent State agencies for the following cases: a) the transactions are related to the Organization (including the Organization of real estate business functions) individuals in the list of warnings related to criminal activities by the Ministry of public security provides to the prevention and fight against money laundering as defined in point b of paragraph 1 article 10, Decree No. 74/2005/ND-CP;

b) When there is reason to believe the requested transaction made is related to criminal activity;

c) the transaction is related to money-laundering activities at the request of the competent State agencies;

4. the reporting organization does not incur liability for the damage arising from the failure to perform a transaction under the provisions of the law.

5. other temporary measures be taken according to the provisions of the law.

Article 11. Retention of records and information security 1. reporting organizations are responsible for retention of information, documents and get to know the client and information, documents related to the transaction must be reported under the provisions of Decree No. 74/2005/ND-CP and this circular is at least 5 years from the date of closing the account or from the end date of the transaction;

2. Organize reports informing clients and stakeholders know about made to report suspicious transactions and the content of the report as well as the information provided to the competent body;

3. Documents and records related to these transactions are reported under this circular is documented in the "Suite" level, the Organization reports are provided only for authorized State agencies as prescribed by law. The State Agency has the authority to manage documents, records according to the confidential document management mode;

4. Individuals, organizations make responsible reports or provide information about the client that are related to the transaction must be reported under the provisions of Decree No. 74/2005/ND-CP and this circular are not considered to violate the provisions of the law on secret information about the customer and the activities that are related to customers.

Article 12. Training on prevention of money laundering in real estate business areas 1. The annual report, the Organization must build and implement training programmes and raise awareness of the money laundering prevention measures for all officers and staff related to the real estate transaction. At the same time have priority policy training, additional training for the knowledge of employees dealing directly with customers and the officers, employees responsible for the prevention of money laundering as defined in paragraph 3 of this article.

2. Organize self report options form with appropriate training on the Organization and its activities; actively coordinating with the competent State bodies and relevant units of training organizations, fostering knowledge on the prevention of money laundering for staff, employees of professional service, money laundering in real estate sector.

3. Within 6 months from when recruiting staff to perform the tasks related to real estate transactions, the reporting organizations must train new employees, fostering of basic knowledge to serve prevention of money laundering in real estate sector.


4. The institution of the real estate broker, real estate appraiser, managing and operating the trading floor additional property on "prevention of money laundering in real estate sector" on the knowledge base of the training program, the duration of this specialty is 4 with the main content as follows : a) the rule of law and the internal regulations on prevention of money laundering; the responsibility to implement the provisions of the law on prevention of money laundering in the area of the real estate business;

b) methods, tricks money laundering in real estate business and money laundering trends in the coming period;

c) measures for prevention of money laundering in real estate sector;

d) suspicious transactions and identify suspicious transactions in the field of real estate;

e) Guide information update method, reporting and handling measures for suspicious transactions.

The institution must submit the content of the "prevention of money laundering in real estate sector" and the faculty list on the Home Management Department and the real estate market-Ministry of construction to check, if the Home Management Department and the real estate market have written answer, the new training facility to be used as teaching material.

5. The person who has been issued a certificate of real estate brokerage, real estate valuation, management and administration of real estate trading floor before the day this circular effect doesn't have to learn again ", money laundering in real estate sector" at the base have previous training. The reporting organisation must coordinate with the training facilities or competent State agencies to organize training, fostering knowledge on prevention of money laundering for the officials and employees who have certified property broker, real estate appraiser and a certificate on the management and administration of real estate trading , but have yet to be studied ", money laundering in real estate sector" in his unit within a period of 3 months from the date of this circular are enforceable.

Article 13. Control and report money laundering prevention 1. organizations reported having to regularly perform internal control, ensure compliance with the laws and internal regulations on prevention of money laundering during the real estate business. Any violation is detected must promptly report to the person in charge of the prevention of money laundering to handle.

2. Any breach is detected in the control process must be reported to the person in charge of the prevention of money laundering and the head of the organization reported to handle.

3. Every year, the organization reported to conduct internal control prevention, anti money laundering, reviews compliance with internal regulations have been established and proposed measures to improve the efficiency, the effect of the work on prevention of money laundering.

4. Before 30 November each year, the organization reported aggregate reporting on activity, money laundering has made in years (according to the model in annex 3 to this circular) to send the local building Department and sent to the Department of management and the real estate market home-built to aggregate.

Article 14. The responsibility of the Department of construction of the central cities, 1. Organizing Guide, check out the Organization, business personal property, real estate service businesses and organizations to the report taken seriously the content of this circular;

2. the local construction Departments are responsible for implementing the provisions of article 18 of Decree No. 74/2005/ND-CP and in coordination with the competent State organs in the process of handling suspicious transaction reports;

3. Urge, check out the training base of the brokerage, valuation, management and administration of real estate transaction fulfills the additional training programme on prevention of money laundering in real estate sector;

4. Before 31 tháng12 annually, is responsible for aggregate reporting of money laundering prevention activities were undertaken during the year at local (according to the model in annex 3 to this circular) to send the Home Management Department and the real estate market-Ministry of construction to General Government reports.

Article 15. International cooperation on prevention of money laundering in real estate sector report organizations is responsible for the international cooperation on prevention of money laundering in real estate sector when required by the competent State bodies.

Article 16. Handle violation of individual organizations are responsible for the prevention of money laundering operations in property, violation of the provisions of Decree No. 74/2005/ND-CP and this circular but not to the extent of the criminal processing of administrative processing as defined in paragraph 2 and paragraph 3 article 24 of Decree No. 74/2005/ND-CP dated 7 June 2005 by the Government on prevention of money laundering and the other legal texts concerned.

Chapter III article 17 ENFORCEMENT TERMS. Effective enforcement of this circular are enforceable after 45 days from the date of signing.

In the process, if there are difficulties and obstacles, the proposal reflects on The building to solve.

Article 18. Implementation Committee the province, central cities are responsible for directing the Department to build the implementation of this circular.

The House Administration and the real estate market, the Ministry of construction and the institutions responsible for reporting the implementation of this circular.