Viet Nam’s Anti-Corruption and Anti-Money Laundering Measures: Overcoming Challenges

In the globally interconnected economy, Viet Nam’s development opportunities have significantly increased. However, this growth has also cast a shadow on the issue of international money laundering, which has become a serious concern in the country. Suspicious transactions have seen an alarming annual increase, highlighting the seriousness of the situation.

Combatting Corruption and Money Laundering

Viet Nam’s government and citizens acknowledge the importance of addressing this issue. The country has implemented strong measures including:

1. Law on Anti-Money Laundering (AML): Effective since January 1, 2013.
2. New Anti-Corruption Law: Effective since July 1, 2019.

Despite these efforts, Viet Nam faces numerous challenges in fully preventing and countering corruption and money laundering.

I. Legal Framework on Anti-Corruption and Money Laundering

Viet Nam has an evolving legal framework focusing on corruption and money laundering. Notable legislation are:

• The amended 2015 Penal Code
• The Anti-Corruption Law of 2018
• The Anti-Money Laundering Law of 2012

II. Methodologies of Concealing Proceeds of Corruption

Understanding common methodologies used to conceal proceeds of corruption is essential in combating money laundering. In Viet Nam, offenders often use:

• Structured transactions
• Non-bank financial services
• Trade-based money laundering
• Gatekeepers
• Third parties

Among these, trade-based money laundering and using third parties are the most popular ways to conceal corrupt money. Offenders often invest illicit funds into other enterprises or buy expensive properties for family members.

III. Challenges in Countering Money Laundering

Despite a strong legal framework, there are several challenges that hinder the effective countering of money laundering in Viet Nam:

• Insufficient legal framework for AML efforts
• Limited capacity of authorities in detecting and dealing with ML offenses
• Finite scientific and technological capacity

IV. Cooperation Among Agencies

To address these challenges, cooperation among domestic and international agencies is crucial in collecting and protecting evidence in corruption and money laundering cases.

• International cooperation and asset recovery play a significant role
• Viet Nam is a member of the Asia/Pacific Group on Money Laundering (APG) but not the Financial Action Task Force (FATF)

V. Role of the Supreme People’s Procuracy

The Supreme People’s Procuracy of Viet Nam plays a central role in international cooperation in corrupt property recovery since January 2019.

VI. Future of Countering Money Laundering

The battle against money laundering is a long-term and complex endeavor that requires consistent efforts and strategic measures.

• Implementing anti-money-laundering measures and cooperation among agencies is essential
• Addressing emerging threats effectively and reversing trends of concealing proceeds of corruption in Viet Nam.

In conclusion, the ongoing challenges in preventing and countering corruption and money laundering in Viet Nam necessitate a strong commitment and collaboration from all stakeholders - the government, private sector, and international partners - to create a more corruption-free and inclusive society.