Starting in 2025, Vietnam will tighten its KYC (Know Your Customer) requirements for corporate bank account registration at local banks. Historically, these processes have been quite lenient, allowing business owners and investors to open corporate bank accounts remotely without physically appearing at the bank. This has made it possible for many to set up and operate businesses entirely from abroad, without visiting Vietnam. However, with the upcoming changes, the physical presence of account holders or their representatives will likely become mandatory, potentially reshaping how foreign investors approach business operations in the country.
According to Circulars 17/2024/TT-NHNN và 18/2024/TT-NHNN issued by the State Bank of Vietnam, starting from January 1, 2025, corporate clients will only be able to perform withdrawals and electronic payment transactions on their bank accounts once the legal identification and biometric information of the authorized representative have been verified. This regulation aims to prevent and curb the misuse of payment accounts for illegal purposes by individuals using fake identification documents to open such accounts.
In this article, we will cover all the critical points regarding the biometric information update process for corporate accounts to help you prepare for the upcoming changes.
What is biometric information?
Currently, the biometric information that banks will collect is the scanned facial image of the company’s legal representative(s). This information will be linked to the company’s bank accounts and used for transaction verification or other services in the future.
Additionally, the bank will verify and collect identity document data, including Citizen Identification (CCCD) information for legal representatives who are Vietnamese nationals and valid passport information for foreign representatives. Once the person changes their ID or passport, he must also update new information to the bank accordingly.
Why do you need to update the biometric information?
Updating biometric information is essential for several important reasons. Firstly, it significantly enhances security by ensuring that only authorized individuals can access and manage corporate accounts, thereby minimizing the risk of fraud and unauthorized transactions. Additionally, complying with these new regulations helps prevent potential legal issues and ensures the smooth operation of corporate accounts. Moreover, by updating biometric information, banks are better equipped to identify and prevent fraudulent activities, such as using fake IDs to open accounts for illegal transactions.
In fact, this action follows the introduction of biometric verification for individual customers began on July 1, 2024. However, there have been instances of bypassing this regulation by opening corporate accounts to avoid biometric verification for fraudulent purposes. This new requirement aims to enhance security for payment accounts, reduce fraud, and minimize financial losses for customers in case of information theft.
Who Needs to Update the Biometric Information?
There are two main components to this update: identity document updates and biometric information updates. If the identity documents were already provided when the account was opened and remain valid, no further updates are needed. However, updating biometric information is mandatory for the legal representative and authorized individuals using the company’s corporate card.
This update is required even for those who completed account opening procedures at local banks (such as Vietcombank, ACB, Viettinbank, etc.) before July 1, 2025. While international banks (such as UOB, Standard Chartered, etc.) require updates only for accounts opened after January 1, 2025.
It is imperative to ensure that the identity documents (IDs) of the following individuals are up-to-date and valid before the deadline:
- The legal representative of the company
- The Chief Accountant or the person in charge of accounting
- Authorized users of the payment account, including those who use digital banking services
On the other hand, all authorized individuals and legal representatives of the company must register their biometric information by July 1, 2025.
How is Biometric Information Collected?
Step 1: Prepare the identification documents you used to register your business. If you are a Vietnamese national, bring your Citizen Identification (CCCD). If you are a foreigner, bring your valid passport to the bank.
Additionally, when registering biometric information, you need to prepare a Vietnamese phone number to receive the OTP activation code from the bank.
Step 2: Visit the nearest bank branch and inform the bank staff that you wish to register or verify your biometric information.
Step 3: Follow the instructions provided by the bank staff. You may need to fill out and sign forms and activate the information via a phone message sent by the bank.
What if you miss the deadline to register the biometric with the bank?
Failing to complete biometric verification, will result in the suspension of all electronic transactions on the corporate account. This applies to both debit and credit cards. Banks will suspend all transactions on corporate accounts if the account holder or authorized user does not update their legal identification or biometric information. This includes the suspension of transactions if any authorized user’s legal identification has expired.
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