Vietnam is implementing comprehensive biometric verification requirements for banking and payment services as part of broader initiatives to combat high-tech fraud. The new measures, coordinated between the Ministry of Public Security (MoPS), State Bank of Vietnam (SBV), and Ministry of Information and Communications (MIC), will make biometric authentication mandatory for certain online transactions starting January 1, 2025. The initiative builds upon Vietnam’s growing digital identity infrastructure, which includes the ISO-certified facial recognition system developed by Viettel.
Under guidelines outlined in State Bank Circulars 17 and 18/2024, banks and payment intermediaries must complete customer identification processes to eliminate anonymous and incorrectly identified accounts. Commercial banks will temporarily suspend online transactions, including money transfers and bill payments, for customers who have not updated their biometric data and valid identification documents.
To facilitate the transition, banks are providing multiple authentication options, including in-branch verification, digital platform authentication, and 24/7 support for facial biometric installation. For Vietnamese citizens working abroad, remote authentication options are available through the national VNeID electronic identification application for those with level 2 electronic identification accounts. The digital authentication framework uses similar technology to that previously deployed in Vietnam’s telecommunications sector, where providers like Vinaphone have implemented advanced mobile authentication solutions.
Deputy Governor Pham Tien Dung highlighted the importance of implementing biometric authentication to verify account holders against Ministry of Public Security identification records, describing it as crucial for eliminating fraudulent accounts and enhancing customer safety.
The initiative includes extensive public awareness campaigns through state media outlets and educational programs. The Ministry of Finance is developing legal frameworks for virtual assets and services, while local police are intensifying fraud investigation efforts and expanding international cooperation.
A database of suspicious payment accounts and e-wallets is scheduled for completion in the first quarter of 2025. The system will include warning mechanisms and procedures for asset recovery. Commercial banks are expected to notify and assist customers who have not completed their biometric updates by the end of the year.
The comprehensive approach includes involvement from multiple government agencies, with the Ministry of Education and Training incorporating fraud prevention into curricula, and the Ministry of Foreign Affairs coordinating responses to cases involving Vietnamese citizens abroad. The multi-agency collaboration represents one of Southeast Asia’s most ambitious efforts to integrate biometric authentication into national banking infrastructure.
Sources: Vietnam News, SGGP News, ID Tech Wire
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