Necessary measures to combat money laundering | Company


Illustrative photo

Money laundering practices

Mr. Nguyen Minh Duc, Vice Chairman of the National Defense and Security Committee of the National Assembly of Ho Chi Minh City, drew attention to seven very common money laundering practices that are adopted today today. First, a person sets up a business as a front to buy and sell property, which is then used to launder money. Second, the person can withdraw money through online gambling platforms, usually through electronic games or by organizing online gambling up to billions of dong, as in the case of Phan Sao Nam and Nguyen Van Duong. In this way, players use money to exchange cards, also called slot machines, to participate in the game. After the game is over, the card is removed and exchanged for money.

Third, the money is hidden in funds for charity and travel purposes. Fourth, transfers are made to heirs living outside the country. Fifth, the person can ask his relatives to buy, sell, transfer, donate or donate real estate. Sixth, the person covers all these activities by buying and selling stocks and bonds. Seventh, the person can provide virtual currency services such as Bitcoins.

Although the law in force in Vietnam does not accept virtual currency, there are still associations and organizations that carry out this activity despite everything. This is done the same way as online games by using real money to buy virtual money and then exchanging it again for real money. According to Mr. Nguyen Minh Duc, the seven money laundering tricks commonly used today should be seriously evaluated and monitored very closely when amending the bill in the National Assembly.

During the discussion, Prime Minister Pham Minh Chinh also said that the amendment to the law on preventing and combating money laundering must take into account the damage caused by the use of virtual currency. Because little attention has been paid to it, people continue to use it to their advantage. Prime Minister Pham Minh Chinh pointed out that when discussing with the government, there are two factors to consider, that of regulations and those not specified in the law. The Prime Minister has proposed government regulations on control and sanctions for dealing with electronic and digital-related currencies.

Referring to issues related to cryptocurrencies, Mr. Tran Tuan Anh, a representative of Khanh Hoa province and head of the Central Economic Commission, said that it is a concept that is not yet in legal regulations, but which is actually widespread in many companies. operations. The economies of many countries have already recognized the role of cryptocurrencies and have even adopted regulations to ensure the legal use of cryptocurrencies. Therefore, the bill should clearly define and stipulate its use in the country.

In addition, the committee responsible for drafting the new law must also study a number of contents related to cryptocurrencies that are used for money laundering of entities with foreign elements, especially in countries and territories that have legally recognized cryptocurrencies.

Necessary countermeasures

In order to fight against money laundering, the draft bill provides for the application of temporary measures such as the postponement of transactions and the blocking of accounts, the sealing, the freezing, and even the seizure of assets. According to point b, clause 1, article 44, the delay of transaction is carried out at the request of a competent public body in accordance with the applicable laws.

However, Mr. Nguyen Minh Duc pointed out that these regulations are not clear enough and do not cover a wide spectrum, and agencies can also ask to delay a transaction. This greatly affects production, business and many other economic activities. Therefore, it should be clearly stated that it must be conducted at the request of relevant government agencies that can process criminal prosecutions, investigate, verify, report crimes, investigate, prosecute and even hold a trial.

According to Mr. Tran Tuan Anh, a representative of the National Assembly, the committee in charge of drafting the bill must clarify a reasonable basis for doubting and delaying a transaction, otherwise, it will be very easy to abuse it. Mr. Anh thinks it is better to have specific provisions in the draft law to guarantee human rights without restriction while complying with the 2013 constitutional laws. He suggested that the draft also needs more regulations. authority, responsibility, conditions for delayed transactions, freezing of accounts, sealing, freezing and seizure of assets to ensure transparency and clarity and avoid abuse of power.

Mr. Bui Si Hoan, a representative from Hai Duong Province, said that the ownership and disposition rights of the individual owner are stipulated in the 2013 Constitution and the 2015 Civil Code. Therefore, in order to avoid abuse or arbitrary application of interim measures without a legal basis, and to ensure accuracy when applying interim measures, it is necessary to study additional regulations on the responsibilities of competent authorities.

Mr. Nguyen Minh Duc, another representative of the National Assembly, suggested that in order to prevent investigators from misusing, abusing or exceeding their responsibility, the draft should supplement with the provision that the procedures criminal cases handled by the competent authorities should be held responsible for delays in transactions. These regulations must be strictly adhered to and not affect economic activities, and at the same time raise the question of the liability of prosecuting agencies.

Saigon Investment

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