Vietnam Closes 43% of Bank Accounts Amid Strict Biometric Compliance Crackdown

Vietnam Shuts Down Millions of Bank Accounts Over Biometric Rules As of September 1, 2025, banks across Vietnam have begun closing accounts deemed inactive or non-compliant with new biometric rules. According to the State Bank of Vietnam, more than 86 million accounts out of roughly 200 million are at risk if users fail to update their identity verification. This move is part of the central bank's broader "cashless" strategy aimed at combating fraud, identity theft, and deepfake-enabled scams. The new policy requires facial authentication for online transfers above 10 million VND (about $379 USD), as well as cumulative daily transfers over 20 million VND ($758) that also require biometric approval. While many Vietnamese citizens have updated their biometric data without issue, the measure has disproportionately affected foreign residents and expatriates who cannot easily return to local branches. "This is a wake-up call for those who haven't been keeping up with the times," said Marty Bent, founder of TFTC.io, in a post on X. "If users don't comply by the 30th, they'll lose their money. This is why we bitcoin." The State Bank of Vietnam has emphasized that the policy is designed to enhance security and prevent financial crimes. However, critics argue that it may inadvertently exclude vulnerable populations from accessing essential financial services. "The biometric requirements are a significant barrier for many people, especially those living in rural areas or with limited access to technology," said Nguyen Thi Thanh, a financial inclusion expert at the World Bank. "We need to ensure that these measures do not exacerbate existing inequalities." Background and context: Vietnam has been actively promoting digital payments and reducing cash usage as part of its economic development strategy. The country aims to become a leader in fintech innovation and reduce reliance on physical currency. In recent years, Vietnam has implemented various biometric authentication systems for financial transactions, including facial recognition and fingerprint scanning. However, the new policy marks a significant escalation in the use of biometrics for online banking. Additional perspectives: The move has sparked debate among experts about the balance between security and accessibility. Some argue that stricter biometric requirements are necessary to prevent financial crimes, while others caution against over-reliance on technology. "The use of biometrics is a double-edged sword," said Dr. Le Thi Thanh, an expert in cybersecurity at Vietnam National University. "While it can enhance security, it also raises concerns about data protection and potential biases in the authentication process." Current status and next developments: As of September 1, banks have begun notifying account holders who are at risk of having their accounts closed. The State Bank of Vietnam has set a deadline of September 30 for users to update their biometric data. In the coming months, experts will closely monitor the impact of this policy on financial inclusion and security in Vietnam. As the country continues to push forward with its "cashless" strategy, it remains to be seen whether the benefits of increased security outweigh the potential costs for vulnerable populations. *Reporting by News.*