Dirty money threat leaves a dark stain

Vietnam’s largely cash economy makes it difficult to combat the threat

According to the United Nations Office on Drug and Crime (UNODC), money from the US, Canada and Australia is also finding its way into the country. Currently, the UNODC has no concrete figures on money laundered through Vietnam. “The number could be quite high,” said Narumi Yamada, UNODC’s Vietnam representative.
“The problems with Vietnam are just emerging. UNODC’s assistance is looking to help Vietnam build capacity to counter money laundering via the development of a national strategy on combating the issue,” said Yamada.
Last week, the UNODC teamed up with the Ministry of Public Security by launching a joint project against money laundering and setting up Vietnam’s first national committee on the issue.
The three-year project, financially backed by the UK and Canadian embassies aims to increase detection, investigation, prosecution and trial capacities of law enforcement and the judiciary.
“The government is committed to combating this crime. The development of the committee and national strategy will strengthen relevant authorities to tackle money laundering offences,” said major general Nguyen Hoa Binh, police deputy director general.
Owen said that the assistance from the UK embassy was directly related to problems that have recently come to the surface in the UK.
According to London Metropolitan Police, Vietnamese organised crime in the country became a serious problem in 2005 and had increased dramatically since then.
A team of London Metropolitan Police is currently working with Vietnamese security personnel in tracking down the source of $1.5 million laundered from the UK to Vietnam.
“The case is ongoing and should be taken to court soon,” said Owen.
According to UNODC, one of the biggest obstacles in the tracing the origins of money in Vietnam laid in the high “cash economy” of the country where cash transactions account for 82-83 per cent of all purchases.
Money laundering is a global phenomenon that impacts on rapidly developing economies with strong foreign investment and high cash economies like Vietnam. The International Monetary Fund estimates that money laundered worldwide could make up 2-5 per cent of global gross domestic product.