Vietnam Mandates Biometric Authentication for Online Banking by 2025

Vietnam is implementing a comprehensive biometric verification requirement for online banking transactions beginning January 1, 2025, expanding on its initial biometric authentication mandate that began in July 2024. The initiative, coordinated by multiple government agencies including the Ministry of Public Security, State Bank of Vietnam, and Ministry of Information and Communications, aims to enhance security in the banking sector following the successful implementation of the country’s national biometric identification system.

Under 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.

Banks are providing multiple authentication options to facilitate the transition. Customers can update their biometric data in person at bank branches equipped with NFC readers for verification using chip-based identification cards. Digital platform authentication is available through banking applications, while Vietnamese citizens working abroad can use the national VNeID electronic identification application if they have level 2 electronic identification accounts.

Deputy Governor Pham Tien Dung emphasized the necessity of implementing biometric authentication to verify account holders against Ministry of Public Security identification records. The State Bank’s Payment Department has reported a 50 percent decrease in fraudulent transactions since implementing biometric authentication in July 2024, demonstrating the effectiveness of the initial rollout despite some early implementation challenges.

The expanded verification system is supported by Decree 163, which establishes a legal framework for modernizing telecom services, including data centers, cloud computing, and internet-based telecommunications services. The decree requires secure handling of user data and promotes safe service adoption by government entities, supporting Vietnam’s broader efforts to digitize its financial infrastructure.

Banks are conducting public awareness campaigns through state media outlets and educational programs to inform citizens about the new requirements. Dedicated support teams are providing 24/7 guidance for installing facial biometrics. Customers, particularly elderly individuals and those less familiar with technology, are visiting bank branches for in-person verification to ensure uninterrupted banking services.

Sources: Mobile ID World, Telecom Review Asia, SGGP News, Vietnam News

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December 31, 2024 – by the ID Tech Editorial Team