BIDV, Vietcombank, VietinBank, Agribank Freeze Accounts Under New SBV Circulars 17 and 18

Overview

The State Bank of Vietnam (SBV) has implemented Circulars 17 and 18, mandating stricter identity verification for bank accounts. Major banks including BIDV (BID), Vietcombank, VietinBank, and Agribank have begun freezing accounts that do not meet the new standards, affecting both individual and corporate customers. This regulatory change is designed to enhance security and combat high-tech fraud, but it may temporarily impact transaction volumes for affected banks.

Key Facts

• SBV issued Circulars 17 and 18 requiring biometric data (facial recognition, fingerprints) and valid ID documents for all bank accounts.
• From early 2026, major banks including BIDV, Vietcombank, VietinBank, and Agribank have frozen accounts that fail to comply.
• Six categories of accounts are affected: expired ID for individuals; incomplete biometric data; Vietnamese citizens using passports (from 2026); foreigners with expired residency documents; corporate representatives with expired IDs; and authorized users with expired IDs.
• The freeze applies to all transaction channels: in-branch, online banking, ATMs, and POS terminals.
• BIDV is one of the four largest state-owned commercial banks in Vietnam, with a long history dating back to 1957.
• BID shares closed at VND 40 on April 15, 2026, down 0.12% with volume of 6,041,900 shares.

What Happened

The State Bank of Vietnam issued Circulars 17 and 18 to tighten account security and protect customers from high-tech fraud. In response, major banks such as BIDV, Vietcombank, VietinBank, and Agribank have begun freezing accounts that do not meet the new identity verification requirements. The freeze affects both individual and corporate customers, with six specific categories outlined: expired ID cards, incomplete biometric data, Vietnamese citizens using passports (effective from 2026), foreigners with expired residency documents, and corporate representatives or authorized users with expired IDs.

The banks have implemented the freeze across all transaction platforms, including in-branch services, mobile apps, websites, ATMs, and POS terminals. Customers whose accounts are frozen cannot perform any withdrawal or transfer transactions until they update their information. The move is part of a broader effort to enhance security and prevent fraud, but it may cause temporary inconvenience for customers who have not yet updated their details.

Market Context

BIDV (BID) is listed on HOSE and is one of Vietnam’s largest state-owned banks. The stock closed at VND 40 on April 15, 2026, with a slight decline of 0.12% and volume of 6,041,900 shares. The banking sector has been under regulatory pressure to improve security and compliance, and this new requirement is expected to have a short-term impact on transaction volumes as customers update their information. However, the long-term benefits of reduced fraud and enhanced customer trust may support the sector’s stability.

Strategic Significance

For BIDV and other major banks, the implementation of Circulars 17 and 18 represents a significant step toward modernizing security infrastructure and aligning with international standards. By requiring biometric data and valid ID documents, banks can reduce the risk of identity theft and unauthorized transactions. This regulatory change may also accelerate the adoption of digital banking services, as customers are prompted to update their information through online channels. For investors, the short-term disruption to transaction volumes is likely manageable, and the enhanced security could improve customer confidence and reduce operational risks over the long term.

What to Watch

• Customer compliance rates: The percentage of accounts that have successfully updated their information within the first quarter of 2026.
• Impact on transaction volumes: Quarterly reports from BIDV and other banks showing any decline in transaction activity due to frozen accounts.
• SBV guidance: Any further circulars or clarifications regarding the implementation timeline or exceptions for certain customer groups.
• Competitor response: Whether private banks adopt similar measures or differentiate by offering more flexible verification processes.
• Fraud statistics: Data on fraud incidents before and after the implementation to assess the effectiveness of the new rules.