HANOI: On December 12, Deputy Prime Minister Ho Duc Phoc urged ministries and sectors to intensify efforts to implement the Financial Action Task Force (FATF)’s 17 recommendations aimed at removing Vietnam from the FATF’s grey list of jurisdictions under increased monitoring for money laundering.
Vietnam was added to this list in June 2023. In response, the State Bank of Vietnam (SBV) developed a National Action Plan approved by the Prime Minister to address the country’s commitments in combating money laundering, terrorism financing, and the proliferation of weapons of mass destruction.
Phoc, who leads the Anti-Money Laundering Steering Committee, emphasized the importance of prioritizing resources for the action plan and ensuring accurate and detailed reporting to the FATF. He also highlighted the need for technical support from the Asia/Pacific Group on Money Laundering (APG) and ongoing communication with international bodies to track progress.
The Deputy Prime Minister stressed that ministries and sectors should closely examine the FATF’s recommendations and the required actions, preparing detailed reports to be submitted periodically to the FATF/APG.
In addition, Phoc tasked the SBV with compiling reports from all relevant ministries and sectors for submission to the Prime Minister on a quarterly basis. He also encouraged collaboration with countries that have been added to or removed from the grey list to share insights and best practices.
Phoc directed the Ministry of Foreign Affairs and other relevant bodies to assign qualified personnel to translate specialized documents accurately, ensuring effective communication with international stakeholders.
Despite efforts, SBV Deputy Governor Pham Tien Dung noted that as of the second Progress Report (PR2) in September 2024, eight out of 17 actions had missed their deadlines. The APG’s evaluation indicated that 16 actions remained incomplete, with only one partially completed. Consequently, there are concerns that Vietnam may be placed on the FATF’s list of high-risk jurisdictions, subject to a Call for Action, also known as the “blacklist.”
At a recent meeting, ministries discussed ongoing coordination efforts, legal improvements, public awareness initiatives, and methods for strengthening the fight against financial crimes, including money laundering. The government aims to align with global standards and further enhance the prevention of money laundering, terrorism financing, and the funding of weapons proliferation.
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