Transferring money from 10 million or more, who must do biometric authentication?

Biometric authentication for money transfers from 10 million VND from 1/7/2024, but not applicable to all transactions.

When is biometric authentication required?

According to Decision No. 2345/QD-NHNN dated December 18, 2023 of the Governor of the State Bank of Vietnam (SBV) on implementing safety and security solutions in online payments and bank card payments, from July 1, 2024, all money transfer transactions worth VND 10 million or more must go through biometric authentication for the sender.

Decision 2345 was issued by the State Bank of Vietnam in December 2023 and will not be implemented until July 2024. This is to give banks more time to prepare facilities and be ready to meet new regulations in transactions, in order to ensure the rights and safety of users.

In fact, as early as April 2023, when the State Bank and the Ministry of Public Security implemented Plan No. 01, they raised the issue of the direction of the State Bank to use biometrics to authenticate payment transactions. The deadline from July 1, 2024 will be effective for commercial banks, and for "0 dong" banks, it will be 1 year later.

Regarding the above regulation, Mr. Pham Anh Tuan - Director of Payment Department, State Bank of Vietnam - said that in the context of many forms of fraud as present, many people are not aware of protecting personal data, so there has been a situation of buying/selling/renting/borrowing accounts, allowing other subjects to use them.

“We must be responsible for people’s deposits. We cannot allow accounts to be opened and used arbitrarily, without ensuring ownership,” the Director of the Payment Department emphasized.

Transfer money from 10 million or more, those who need biometric authentication — *Mr. Pham Anh Tuan - Director of Payment Department, State Bank of Vietnam.*

Clarifying this regulation, Mr. Pham Anh Tuan said that the regulation only applies to normal money transfer transactions, not to payment transactions where the recipient is the clear destination.

“Here I want to clarify that it is a money transfer transaction,” Mr. Pham Anh Tuan emphasized. “As for all payment transactions that have been authenticated by payment acceptance units, credit institutions, and payment intermediaries, biometric authentication is not required. For example, paying electricity, water bills, paying taxes, paying transportation fees, etc., all transactions with a clear destination do not require biometric authentication.”

For transactions under 10 million VND/transaction, Decision 2345 also clearly states that the total value of transactions in a day under 20 million VND will not have to be authenticated by biometrics.

If the total transaction value of the day exceeds 20 million VND, the next transaction will require the sender to authenticate biometrics, but only one biometric authentication is required when exceeding 20 million VND.

“This has created extremely favorable conditions for users because we identify money transfer as different from payment,” said Mr. Pham Anh Tuan.

Clean data, prevent fraud in online transactions

Recently, the State Bank of Vietnam has regularly issued documents directing the review and inspection of all account records that do not match identity documents, researched solutions to use national population data and exploit data on chip-embedded ID cards.

By the end of 2023, the State Bank of Vietnam (SBV) had coordinated with the Department of Administrative Police for Social Order (C06) to clean up data on 42 million accounts related to the CIC database.

There are 53 credit institutions (CIs) that have coordinated with enterprises licensed by the Ministry of Public Security to research, coordinate, and provide solutions and equipment to authenticate users.

43 credit institutions have been implementing data cleaning plans through the use of the national population database, of which 9 credit institutions have put it into practice, 13 credit institutions are building business processes to apply VNEID. This is the content being researched for testing with C06.

In addition, 26 credit institutions are coordinating with C06 to implement the identification of fake citizen identification cards. 14 credit institutions have contacted C06 to seek information and implement feasible scoring solutions.

This is one of the very important goals. At the end of 2023, the State Bank sent a dispatch to all credit institutions requesting them to review and deploy the use of this solution.

According to vietnamnet.vn

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