Financial Crime World

Title: International Financial Crime: The US$12 Billion Vietnamese Fraud and its Shadows in Hong Kong

Overview

  • A US$12 billion fraud led by Vietnamese businesswoman, Ms. Truong My Lan, and her associates, has surfaced.
  • The criminality could have cost Vietnam’s economy up to 6% of its GDP.
  • Some of the proceeds are suspected to be moving to Hong Kong.

Key Players

  • Ms. Truong My Lan, a Vietnamese businesswoman, and her associates
  • Eric Chu Nap Kee, Truong’s husband and a Cantonese Chinese businessman originally from Hong Kong
  • Dr. Lee George Lam, a former member of Hong Kong’s Chief Executive’s Policy Unit Expert Group with an arrest warrant issued against him in Vietnam

Suspected Assets in Hong Kong

  • Nexxus Building, Central District, sold for approximately US$819 million
  • Hotel project in King’s Road, Tin Hau, sold for around US$14.5 million
  • Commercial/residential site on Finney Street, Quarry Bay, purchased for around US$55 million

Money Laundering Investigations

  • Hong Kong authorities have precedents for initiating money laundering investigations based on crimes committed in another jurisdiction.
  • Financial institutions are required to report any knowledge or suspicion of proceeds of crime to the Joint Financial Investigations Unit (JFIU).

Previous Case Study

  • In 2000, Yeung Chun Pong and his associates were charged with illegal bookmaking in Macau, China, but prosecuted in Hong Kong for handling the proceeds of the crime in 2005.

Impact on Hong Kong’s Financial System

  • Financial institutions should be proactive in identifying and reporting any potentially illicit funds or assets linked to Chu and his associates.
  • Banks and financial institutions must strengthen their financial crime compliance programs to support law enforcement agencies in prosecuting money laundering cases.

Global Implications

  • This fraud requires multiple jurisdictions, many banks, and a diverse range of investments.
  • All financial centers should remain vigilant and investigate any potential links to the case, showcasing their dedication to tackling financial crimes cooperatively on a global scale.

Effectiveness of Vietnam’s Financial Crime Combat System

  • Concerns about the effectiveness of Vietnam’s financial crime combat system, specifically in targeting related money laundering activities or preventing the proceeds from leaving the country.