Transfer Money Vietnam: Implementation of Biometric Authentication

Transfer Money Vietnam: Implementation of Biometric Authentication

2 min.

Effective from 1 July 2024, in accordance with Decision No. 2345 of the State Bank of Vietnam, all direct money transfers or deposits into e-wallets with a value equal to or exceeding 10 million VND will require biometric authentication. This article aims to provide insights into this process and its impact on the operations of organizations and businesses in Vietnam.

1. What is biometric authentication?

Biometric authentication is a method of identifying and verifying individuals based on biological features such as facial images, fingerprints, iris patterns and voice. This technology maximizes identity theft prevention and offers the highest level of security by relying on unique physical characteristics that are nearly impossible to replicate or forge. Currently, most banks implement biometric authentication through facial recognition and fingerprint identification, as data on eye patterns and voice are not widely collected and stored.

2. Which money transfer transactions require biometric authentication?

For individual customers, biometric authentication is mandatory when:

  1. Transferring money via money transfer software or depositing into an e-wallet over 10 million VND or when the total value of money transferred within a day exceeds 20 million VND.
  2. Conducting transactions through online banking for the first time or performing transactions on a device that is different from the one used for the initial login.

In addition to biometric authentication, banks are required to implement additional authentication methods such as One Time Password (OTP) sent via message/voice or Soft OTP/Token OTP.

For businesses, biometric authentication is not a mandatory method when conducting money transfers; rather, it is one of the optional authentication methods. This method is only applicable when the business transfers money within the same bank, with the same account owner, without limitations on the amount and number of transactions within the same day. This process is carried out by the legally authorized representative and/or the person who manages the accounts (if applicable) for the client.

3. How does the application of biometric technology affect organizations and businesses?

In general, biometric authentication is primarily applied to individual clients to maximize identity theft prevention and account security. However for organizations and businesses, who are a customer base often involved in high-value transactions which cannot be personalized, applying this method may not be optimal.

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Vu Manh Quynh
Nguyen Nhuan
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Phone: +84 898 120 121