Financial Crime World

Headline: Vietnam Cracks Down on Money Laundering: New Measures to Combat Financial Crimes and Exit Grey List

The Vietnamese government is taking bold steps to enhance its Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) framework, following its inclusion in the Financial Action Task Force’s (FATF) Grey List. On 23rd February 2024, Deputy Prime Minister of Vietnam signed Decision no. 194/QD-TTg, aimed at swiftly implementing measures that align with FATF’s recommendations and safeguard national interests.

What’s Changing for Companies?

These new measures aim to rectify Vietnam’s AML/CTF deficiencies and demonstrate the country’s commitment to global standards. The decision includes 17 specific actions, focusing on risk assessment, regulatory enhancements, and international cooperation:

  • Regulatory Framework: Improved regulatory framework for virtual assets and Virtual Asset Service Providers (VASPs)
  • Law Enforcement: Enhanced law enforcement and prosecution efforts through priority investigations and prosecutions
  • International Cooperation: Strengthened cooperation with foreign partners (formal and informal)

Key Focus Areas

  1. Virtual Assets: Vietnam is committed to establishing a legal framework regulating virtual assets and their service providers
  2. Law Enforcement: Competent agencies will receive resources to engage in international cooperation and enhance efforts
  3. Priority Investigations and Prosecutions: Enhanced law enforcement and increased focus on priority investigations and prosecutions

Cooperation and Enforcement

International cooperation is vital in effective financial crime prevention. The Vietnamese authorities plan to strengthen relationships with foreign partners through constructive information sharing and proactive assistance. Furthermore, competent agencies will receive the required resources to engage in international cooperation.

Vietnam’s Proactive Approach

The following are some of the proactive measures Vietnam is taking in its ongoing endeavor to ensure a compliance-driven financial sector:

  • Developing effective AML/CTF policies to implement the new measures and ensure alignment with global standards
  • Increased enforcement of these new regulations

For any additional information, contact Nghia Duong Tran, Partner of Tax, Accounting, and Consulting at ECOVIS AFA Vietnam, or sign up to our newsletter for regular updates.

Contact Information: Nghia Duong Tran Partner, Tax, Accounting, and Consulting at ECOVIS AFA Vietnam