Vietnam announced in July 2025 that more than 86 million bank accounts would be frozen and later deleted after failing to meet new biometric identity verification requirements introduced by the country’s banking regulator.
The decision was made by the State Bank of Vietnam (SBV) as part of a nationwide effort to modernize the financial system and tackle rising cyber fraud and financial crime. The policy requires all bank account holders to verify their identity using biometric authentication, such as facial recognition or fingerprints, linked to Vietnam’s national digital ID system.
According to the SBV, Vietnam had about 200 million bank accounts nationwide.
However, after implementing the biometric verification requirement, only around 113 million personal accounts and more than 711,000 organizational accounts were confirmed as valid and active. This meant nearly 86 million accounts were inactive, unverified, or potentially linked to fraudulent activities.
Authorities said many of the accounts had no biometric verification, had been inactive for long periods, or were created using false identities to facilitate scams such as money laundering, fake transfers, or receiving fraud proceeds. As part of the cleanup effort, banks were instructed to freeze and eventually delete these accounts starting from September 1, 2025.
The biometric requirement is connected to Vietnam’s broader national digital transformation program, often linked to Project 06, which aims to integrate banking services with the country’s national digital identity database. The initiative seeks to create a more secure digital financial ecosystem and improve oversight of electronic payments.
Officials say the measure has already helped reduce fraud.
In the first half of 2025, reported cases of individuals losing money to scams dropped by about 57%, while the number of bank accounts receiving fraud proceeds decreased by around 47% compared with the same period in 2024.
Despite these improvements, the policy has sparked debate.
Critics warn that strict biometric requirements could lead to financial exclusion, particularly for elderly citizens, rural residents, foreign workers, or individuals without access to smartphones or digital identification tools.
Concerns have also been raised about data privacy and government access to sensitive biometric information.
Vietnamese authorities, however, argue that the move is necessary to strengthen the banking sector, combat cybercrime, and support the country’s long-term goal of expanding digital payments and ensuring that 90% of citizens over age 15 have bank accounts by 2030.
