Mr. Duong Van Khanh, a Vietnamese citizen living and working in South Korea, has encountered a challenge due to the recent implementation of biometric authentication requirements for online transactions in Vietnam. Mr. Khanh has not been able to obtain the new chip-based National ID Card (Căn cước công dân) because of his overseas residence. As per the Decision No. 2345/QĐ-NHNN, effective from July 1, 2024, transactions exceeding a certain limit require biometric authentication. This has left Mr. Khanh and potentially many other Vietnamese expatriates wondering about their options.
The State Bank of Vietnam provides the following clarification on this matter:
According to Decision No. 2345/QĐ-NHNN dated December 18, 2023, issued by the Governor of the State Bank regarding the deployment of safety and security measures for online and card payments, effective from July 1, 2024, individual customers making transfers of over VND 10 million per transaction or a total daily value of more than VND 20 million (Category C and D transactions) must be authenticated using their biometric data as follows:
– Match the biometric data stored in the chip of the customer’s National ID Card issued by the police;
– Or authenticate through the customer’s electronic identification account established by the electronic identification and authentication system;
– Or match the biometric data stored in the customer’s biometric database that has been collected and verified.
For transfers of up to VND 10 million per transaction or a total daily value of less than VND 20 million (Category A and B transactions), customers do not need to update their biometric authentication immediately, and transactions can continue as normal without facial recognition.
On June 25, 2024, the State Bank issued Official Letter No. 5262/NHNN-CNTT to guide the implementation of Decision No. 2345/QĐ-NHNN. According to this letter, for customers who do not have a National ID Card or a chip-based ID Card (those holding only a temporary ID Card or a non-chip ID Card that is still valid according to the law), the biometric authentication measure for Category C and D transactions as stipulated in Article 1 of Decision No. 2345/QĐ-NHNN can be fulfilled by matching the biometric data stored in the customer’s biometric database that has been collected and verified. This verification process involves a one-time face-to-face meeting.
Banks are actively supporting customers in collecting biometric information. In the case of Mr. Khanh, who does not have a chip-based National ID Card, he is advised to contact his payment account-holding bank for guidance and assistance in providing his biometric information as per the regulations.
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