Vietnam closes 86 million bank accounts over missing biometric verification

The government in Hanoi has ordered the closure of bank accounts lacking biometric verification, affecting over 86 million accounts.

Starting September 1, Vietnam has decided to permanently close more than 86 million bank accounts that did not comply with the new facial biometric authentication requirements. The remaining 113 million accounts have been subjected to verification under the new anti-fraud and anti-money laundering regulations.

The situation has particularly impacted foreigners residing in the Asian country. A Reddit user, a former international contractor, reported being forced to return to Vietnam in person to avoid the closure of his HSBCaccount, as remote solutions for biometric verification were not available.

“This is a very insidious way to do a bail-in while also increasing the surveillance state,”commented Marty Bent.

According to Daniel Batten, researcher and co-founder of CH4 Capital, these measures give the Vietnamese central bank “next-gen financial surveillance ability.”

The Hanoi government justified the introduction of the new rules by citing the increased use of generative AI and sophisticated spoofing techniques to bypass banking security systems. Last May, local police dismantled a laundering network that used fake facial scans and had moved approximately 1,000 billion Vietnamese dong ($39 million).

The new regulations require facial biometric authentication for first-time registration and online transfers over 10 million dong ($379), while combined transactions exceeding 20 million dong ($758) always require biometric verification.