The risk of money laundering in Vietnam is at “average high” level, and that of terrorist financing at “low” level, according to a recent report released by the State Bank of Vietnam (SBV).
The risk of money laundering in the banking sector is at a “high” level. (Photo: vneconomy.vn)
According to the SBV’s report on national risk assessment on money laundering and terrorist financing in 2012-2017 period, the risk of money laundering was seen in different sectors in the economy like banking, real estate and securities.
Particularly, the risk of money laundering in the banking sector was at a “high” level as it accounted for almost 90 percent of suspicious transactions.
Though not all the crime money was put into the money laundering process, the results showed that compared to other sectors in the economy, there was high possibility that the criminals used the banking sector to legalise their illegal money.
To hide the illegal money earned, criminals tended to use the banking accounts under other people’s names to receive and send the illegal money, the report said.
The real estate sector is considered an attractive channel for money laundering as it can absorb huge money amounts, with transactions carried out by cash or banking transfer and not through property trading floors, making it difficult for competent authorities to identify the source of the money.
Criminals often asked their relatives to buy and then transfer real estate.
Meanwhile, money laundering risk in the insurance sector is classified as “average low”, and that in securities and casino at “average”, and accounting, auditing, law and people credit fund at “low”.
Earlier, Deputy Prime Minister Vuong Dinh Hue recently signed a decision to issue an action plan to handle money laundering and terrorist financing for 2019-2020.
The action plan is also expected to meet international standards on prevention of money laundering and terrorist financing while serving the multi-lateral evaluation of the Asia-Pacific Group on Money Laundering (APG) and terrorism financing prevention.