Financial Crime World

Vietnam’s Asset Confiscation Regime Needs Improvement

Hanoi, Vietnam - Vietnam’s laws and practices on confiscating proceeds of crime are not fully effective in meeting international standards set by the Financial Action Task Force (FATF) and relevant conventions. A recent study has found that while Vietnam has a functioning asset confiscation regime, gaps in the law and lack of expertise are hindering its effectiveness.

Key Findings

  • Gaps in the law and lack of expertise are hindering the effectiveness of Vietnam’s asset confiscation regime.
  • These gaps can be easily closed with amendments to the law and a dedicated skills development program.
  • Training for financial investigation experts and judicial officers is essential to ensure an understanding of asset confiscation law.

Recommendations

Improve Effectiveness

  • Amend the law to close gaps and improve effectiveness
  • Develop expertise through training programs for financial investigation experts and judicial officers
  • Conduct a comprehensive review of laws and practices on asset confiscation and forfeiture

Address Specific Areas

  • Ensure that assets linked to terrorism and proliferation are addressed

Next Steps

Vietnam is expected to submit a follow-up report to the FATF by 2023, outlining its progress in implementing reforms. The study’s recommendations will inform this report and provide a roadmap for improving Vietnam’s asset confiscation regime.

The State Bank of Vietnam has announced plans to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) framework, including enhancing customer due diligence and reporting requirements.

Expert Insights

  • “Vietnam’s asset confiscation regime needs improvement to meet international standards,” said Thu Thi Hoai Tran. “By closing gaps in the law and developing expertise, we can make it more effective.”
  • “FATF’s recommendations are not just about fighting money laundering, but also about protecting the integrity of the financial system,” said Louis De Koker. “Vietnam needs to take proactive steps to improve its asset confiscation regime.”