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Monday, June 17, 2024

Vietnam strives to be removed from money laundering grey list

By Nguyen Tan

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HCMC – The Vietnamese Government is actively pursuing measures to remove the country from the Financial Action Task Force (FATF) grey list, also known as Jurisdictions Under Increased Monitoring.

Following Vietnam’s inclusion in the FATF’s grey list in the middle of this year, Deputy Prime Minister Le Minh Khai convened a meeting of the Anti-Money Laundering Steering Committee on October 18 to address the issue.

The Vietnamese Government had previously presented a commitment to the FATF chairman, outlining action plans in response to FATF recommendations. These plans encompass 17 actions to be implemented over a two-year period.

The Asia Pacific Group on Money Laundering (APG) conducted a working visit to Vietnam with the aim of assisting the country in being removed from the FATF’s list of Jurisdictions Under Increased Monitoring.

Following discussions with the APG, the State Bank of Vietnam (SBV) has presented an action plan for the Steering Committee’s consideration.

The inclusion of Vietnam in FATF’s watch list has had adverse effects on the country’s banking system, economy, trade, investment, and international cooperation, according to the Vietnam News Agency. It has also negatively impacted Vietnam’s political standing and global reputation.

Vietnam will face a risk of being placed on the FATF’s Black List if it fails to demonstrate effective cooperation and implementation of FATF’s recommendations. Such a move could lead to increased business costs and operational disruptions for local enterprises, as was seen in Myanmar in 2022.

Deputy Prime Minister Le Minh Khai emphasized the utmost importance of complying with FATF’s recommendations and urged the SBV to finalize the draft plan and Vietnam’s commitments. These will then be submitted to the Government for consideration and approval before the necessary actions can be undertaken.

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