When transferring more than 10 million yuan, who needs biometric authentication?

From July 1, 2024, biometric authentication will be required for transfer transactions above VND 10 million, but it will not be applicable to all transactions. For financial banks, who must perform biometric authentication for remittances of 10 million or more? Tuan Nguyen • {Publication Date} Biometric authentication will be implemented for transfer transactions of VND 10 million starting from July 1, 2024, but not applicable to all transactions.

When is biometric authentication required?

In accordance with Decision No. 2345/QD-NHNN of the Governor of the National Bank (SBV) of December 18, 2023 on the implementation of safe and reliable solutions in online and card payments, from July 1, 2024, all transfer transactions Remittances worth VND 10 million or more must undergo biometric authentication of the remitter.

The SBV will issue Decision 2345 from December 2023 and will not be implemented until July 2024. This is to give banks more time to prepare their facilities and be ready to meet new transaction regulations to ensure the rights and safety of their users.

In fact, as early as April 2023, when the State Bank of Vietnam and the Ministry of Public Security implemented Plan 01, they raised the issue of the State Bank’s targeted use of biometric technology for payment transaction authentication. The deadline will take effect for commercial banks from July 1, 2024, and for “0 shield” banks one year later.

Speaking of the above regulations, Mr. Pham Anh Tuan, Director of the Payment Department of the State Bank of Vietnam, said that in today’s context of many forms of fraud, many people are not aware of personal data protection, so a situation arises for buying/selling/renting/ Borrow accounts, allowing users to use them.

“We must be responsible for people’s deposits. We cannot open and use accounts at will without ensuring the integrity of the owner.” The director of the payment department emphasized.

Mr. Pham Anh Tuan – Director of Payment Department, State Bank of Vietnam. Further clarifying the regulation, Mr. Pham Anh Tuan said that the regulation only applies to regular remittance transactions and does not apply to payment transactions where the recipient has a clear destination.

“I want to clarify here that this is a transfer transaction,” Mr. Fan Yingjun emphasized. “For all payment transactions certified by payment acceptance units, credit reporting agencies, and payment intermediaries, biometric authentication is not required. For example, payment of water and electricity bills, tax payments, communication volume fees… All transactions with a clear destination do not require biometric authentication. .

For transactions with an amount of less than VND10 million per transaction, Decision No. 2345 also clearly stipulates that biometric authentication will not be accepted for transactions with a total daily transaction amount of less than VND20 million.

If the total transaction amount in a day exceeds 20 million VND, the next transaction will require the remitter to undergo biometric authentication, but only once if the transaction exceeds 20 million VND.

“This creates very favorable conditions for users because we define transfers as different from payments,” said Mr. Pham Anh Tuan.

Clean data and prevent online transaction fraud

In recent years, the State Bank of Vietnam has regularly issued documents to guide the review and inspection of all account records that are inconsistent with identity documents, researching solutions using national population data, and utilizing data on chip-installed CCCDs.

As of the end of 2023, the State Bank of Vietnam coordinated with the Social Order Administration Police (C06) to clean up the data of 42 million accounts related to the CIC database.

There are 53 credit institutions (CIs) coordinating with enterprises licensed by the Ministry of Public Security to research, coordinate and provide solutions and equipment for authenticating users.

43 credit institutions have implemented data cleansing plans by using the national population database, of which 9 credit institutions have put it into practice and 13 credit institutions are building business processes to apply for VNEID. This is what is being studied for C06 testing.

In addition, 26 credit reporting agencies are cooperating with C06 in deploying fake citizen ID identification work. 14 credit agencies contacted C06 to gain information and implement possible scoring solutions.

This is one of the goals so important that at the end of 2023, the National Bank sent a formal notification to all credit institutions to review and deploy this solution.