To uphold transparency and fairness in asset management, clarifying the legal origin of assets is not only a legal obligation but also reflects the integrity and accountability of individuals. This is the foundation for ensuring legitimate ownership rights and strengthening long-standing trust within society. On the other hand, when assets cannot be legally justified, it poses risks of illegality, undermines legal principles, and hinders effective governance and supervision. Therefore, clarifying the legal origin of assets is the first and essential step to ensure fairness and prevent wrongful actions.
1. Legal Definition
According to Article 105 of the 2015 Civil Code:
1. Assets are objects, money, valuable papers, and property rights.
2. Assets include immovable and movable properties. Immovable and movable properties can be existing or expected to form in the future.
Additionally, Article 32 of the 2013 Constitution stipulates: Everyone has the right to lawful ownership of assets and such rights are protected by law.”
It is evident that Vietnamese law recognizes legally acquired assets as an inviolable civil right, which is absolutely protected.
Assets for which the owner cannot explain the legal origin fall under a category where the owner fails to demonstrate that the asset was lawfully derived from income, based on lawful income sources or legal grounds. Such assets often lack documentation, receipts, contracts, or any relevant evidence proving their lawful origin.
2. Obligation to Explain and Declare Assets
According to Articles 45 and 46 of the 2018 Anti-Corruption Law: “Individuals have the obligation to declare their assets and income, and must also explain the origin of any additional assets or income beyond what they have declared.” It is also stipulated that: “Explanation of origin is mandatory when requested by a competent authority.”
According to Article 324 of the Consolidated version No. 01 of the Penal Code:
“Money laundering may involve acts of concealing the origin of assets, but it must be proven that such assets are related to criminal activities.”
In essence, the inability to explain the legal origin of assets does not automatically mean that the assets are illegal. It is only an initial indication for competent authorities to request further verification. The handling of such assets must strictly adhere to due legal process, the principle of presumption of innocence, and the burden of proof belonging to the authority making the accusation. In other words, this is only a legal sign indicating the potential existence of a violation of the law.
3. Applicable Subjects
The group of individuals obligated under Article 34 of the 2018 Anti-Corruption Law includes those who hold official positions or authority within the political system, administrative agencies, public service units, and state-owned enterprises:
- Officials and public employees
- People’s Police officers; People’s Army officers, professional military personnel
- Individuals holding managerial positions equivalent to Deputy Heads of Divisions or higher in public service units, wholly state-owned enterprises, or enterprises with state capital contributions
- National Assembly deputies, People’s Council delegates elected by the people
In addition, other individuals who are not obligated to declare assets must still provide explanations if subject to verification related to money laundering, corruption, etc.
⇒ The legal system has been expanding the scope of individuals required to declare assets in a broader and more inclusive manner.
4. Legal Mechanisms for Asset Handling
Administrative Sanctions
According to Clause 1, Article 20 of Decree No. 130/2020/NĐ-CP on control of assets and income of persons holding positions and powers in agencies, organizations, and units:
“Any obligated person who makes untruthful declarations or fails to honestly explain the origin of additional assets or income shall be sanctioned depending on the nature and severity of the violation, as prescribed in Article 51 of the Anti-Corruption Law.”
Specifically, Article 51 outlines administrative penalties for dishonest declarations or failure to explain the origin of assets and income by officials and public employees, such as:
- Candidates for the National Assembly or People’s Councils who fail to honestly declare their assets and income may have their names removed from the candidate list.
- Individuals proposed for appointment or reappointment who submit untruthful declarations may be disqualified from appointment or approval.
- Obligated persons who make untruthful declarations but do not fall under the above categories shall be disciplined depending on the seriousness of the violation (in the form of reprimand, warning, salary downgrade, removal from position, dismissal, etc.); if under review for promotion, their eligibility may be suspended pending disciplinary action.
Criminal Sanctions – If There Are Signs of Criminal Violations
According to the consolidated version No. 01 of the 2017 Penal Code, handling cases where additional assets show signs of corruption-related legal violations is regulated by the following articles:
Article 353 – Crime of Asset Embezzlement:
If a person holding a position or power appropriates assets of the State or organizations, they shall be subject to imprisonment from 2 years to 20 years, or life imprisonment, depending on the severity of the crime.
Article 354 – Crime of Taking Bribes:
If a person in a position of power receives money or other benefits to perform or not perform an act for the benefit of the briber, they shall face imprisonment from 2 to 20 years, or in serious cases, life imprisonment or death penalty, depending on the bribe amount.
Article 355 – Crime of Giving Bribes:
A person who gives a bribe may be sentenced to up to 20 years of imprisonment, depending on the value of the bribe.
Article 364 – Crime of Money Laundering:
If the assets in question show signs of money laundering, violators may be sentenced to 1 to 15 years of imprisonment, depending on the severity of the offense.
Article 366 – Crime of Concealing Criminal Offenses:
Individuals or organizations concealing the origin of corrupt assets may be sentenced to 6 months to 7 years of imprisonment.
In addition, under Resolution No. 03/2020/NQ-HDTP, the Court is empowered to apply asset declaration and financial account verification measures related to suspected criminal behavior to ensure transparency and fairness during the trial process.
Assets that cannot be legally justified for their origins may only indicate suspicious signs and are not, by themselves, sufficient grounds for concluding a criminal offense. Therefore, handling such assets must be based on a solid legal foundation, in accordance with the relevant provisions of the Law on Anti-Corruption, Law on Anti-Money Laundering, and the consolidated version No. 01 of the Penal Code. At the same time, it is necessary to respect individuals’ right to lawful ownership as guaranteed by the Constitution and the Civil Code.
What is crucial is to develop clear, transparent standards for explanation, ensuring consistency between laws and fair, lawful application. This helps prevent and combat corruption effectively while protecting justice and maintaining public trust in the rule of law.
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