Vietnam to curb money-laundering

Vietnam is considering introducing a decree to combat money laundering and the financing of "terrorism" in a few months.

    Phan Van Khai (R) has to approve the new decree

    Ngo Ba Lai, chief of the State Bank's inspection department, on Monday said the project had been submitted to the government last week and was awaiting formal approval by Prime Minister Phan Van Khai.

      

    "We don't know exactly when it will be approved. It is a brand new (area) in Vietnam," he said in the capital Hanoi.

      

    Lai said the decree would provide guidance for setting up systems for the reporting and investigation of suspicious transactions. It would also stipulate possible sanctions against any money laundering activities.

      

    The international community has pushed Vietnam to act on this matter, especially after the September 11 attacks.

     

    IMF mission

      

    Last December, the International Monetary Fund sent a mission to Vietnam to work on the matter.

      

    "Vietnam is very much a cash economy. Deposit in gold is also possible which makes it potentially easy to launder some money," said Susan Adams, the IMF representative in Vietnam.

     

    "It is precisely countries which believe they are not a target that can easily become targets"

    Unnamed expert

    "From what has been announced, the country is moving in the right direction," she said, adding the IMF would offer technical assistance to help Vietnam strengthen its legal framework should the government desire it.

      

    Several experts say one of the country's challenges is to deal with the large amount of money flowing into the country outside the channels of the banking system.

      

    Last year, a US Congressional intelligence delegation held talks in Hanoi with the government on measures to strengthen bilateral cooperation against "terrorism".

      

    Experts say Vietnam could become a serious destination for money laundering.

      

    "It is precisely countries which believe they are not a target that can easily become targets", one expert said, adding that Vietnam's huge investment opportunities could attract money launderers.

    SOURCE: AFP


    YOU MIGHT ALSO LIKE

    Venezuela in default: What next?

    Venezuela in default: What next?

    As the oil-rich country fails to pay its debt, we examine what happens next and what it means for its people.

    The Muslims of South Korea

    The Muslims of South Korea

    The number of Muslims in South Korea is estimated to be around 100,000, including foreigners.

    What is Mohammed bin Salman's next move?

    What is Mohammed bin Salman's next move?

    There are reports Saudi Arabia is demanding money from the senior officials it recently arrested.