The growing threat of money laundering to Vietnam. The necessary of intensive countermeasures
| Pages | 321-332 |
| DOI | https://doi.org/10.1108/JMLC-05-2013-0014 |
| Date | 07 October 2013 |
| Published date | 07 October 2013 |
| Author | Chat Nguyen Le |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation |
The growing threat of money
laundering to Vietnam
The necessary of intensive countermeasures
Chat Nguyen Le
School of Law, University of Canterbury, Christchurch, New Zealand
Abstract
Purpose – The paper aims to sketch out the scenario of money laundering (ML) in Vietnam and the
harm ML may cause to the country.
Design/methodology/approach – This paper first, based on the general concept of ML, scrutinizes
actual and potential ML in Vietnam as well as ML threat to Vietnam. The typical cases of predicate
offences, which were associated with ML activity, will be provided to illustrate the fact. Then a brief of
Vietnam’s response to ML will be examined.
Findings – ML has actually occurred since early in Vietnam. The potential for ML in Vietnam is
substantial and poses growing harm to Vietnam in both the respects of economy and security.
Although Vietnam has the primary legal framework of AML and set out AML countermeasures, the
implementation has been hindered by several factors.
Originality/value – This paper would attract the attention of people who are concerned about ML in
Vietnam.
Keywords Money laundering,Vietnam
Paper type General review
1. Introduction
The geographical, economical and legal background of Vietnam creates several unique
attributes that make it an attractive destination of tainted money. For instance, Vietnam
is a largely cash-based economy surrounded by other neighbouring cash-based
countries (Cambodia, Laos and China). Cash is easily exchanged and moved throug h a
long Vietnamese border. In addition, being one of the fastest emerging economies in the
Southeast Asian region with lax legal system is another facilitator of ML. Vietnamese
competent authorities, however, have not yet conducted any comprehensive research
about actual ML, its typologies and its threat to Vietnam. The threat of ML to Vietnam
appears not to be weighed appropriately.
This paper will deal with the primary questions: how is the extent of ML in Vietnam
and its threat to Vietnam? And why does Vietnam need to more intensively respond to
ML?
2. An overview of money laundering in Vietnam
2.1 Conception of ML
It is noteworthy that the academic definition of ML remains to be elusive; however, ML
can be identified and distinguished clearly from other illegal activities by its main
purposes.
The term “money laundering” is considered to have been originally used by
American police in the 1920s in the USA with reference to Al Capone and other Chicago
gangsters (Lilley, 2006, p. 5). It is also argued to have first appeared in connection with
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1368-5201.htm
Journal of Money Laundering Control
Vol. 16 No. 4, 2013
pp. 321-332
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/JMLC-05-2013-0014
Growing threat
of ML to
Vietnam
321
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