Strengthening financial crime prevention capacity with data

Attending the seminar, on behalf of the Anti-Money Laundering Department, State Bank of Vietnam, there was: Ms. Nguyen Thi Minh Tho, Deputy Director. On behalf of the Vietnam Banks Association (VNBA), there was: Mr. Nguyen Thanh Son - Director of Training Center. On behalf of LUCID Company, there were: Mr. Tuck Chan - CEO - LUCID Company; Ms. Ngo To Anh - Regional Director. On behalf of Dow Jones Company, there was: Mr. Cliff Lim - Director of Risk and Compliance Solutions. On behalf of Ho Chi Minh Securities Company HSC, there was: Mr. Tong Cong Cuong - Executive Director of Risk Management and Compliance.

In his opening speech, Mr. Nguyen Thanh Son - Director of VNBA Training Center - affirmed that data is becoming an essential resource in the national digital transformation process, especially in the field of finance and banking. According to him, the importance of data has been emphasized in Resolution No. 57-NQ/TW of the Politburo, identifying data as the "center of digital transformation", the "bloodline of the digital economy", and one of the four strategic pillars to promote the country to enter the era of development. In the context of increasingly complex financial crime, especially in cyberspace, effective analysis and application of data play a core role in early detection of unusual behaviors, supporting investigations and ensuring compliance with the law. Vietnam is gradually perfecting the legal corridor and data infrastructure to enhance the effectiveness of financial crime prevention. On January 6, 2022, the Prime Minister issued Decision No. 06/QD-TTg approving the Project on developing population data applications, identification and electronic authentication to serve national digital transformation in the period of 2022 - 2025, with a vision to 2030. Recently, the Governor of the State Bank of Vietnam approved the Banking Sector Digital Transformation Project under Decision No. 67/QD-NHNN, aiming to synchronize the banking system with the National Population Database. Accordingly, 100% of customer data at the Vietnam National Credit Information Center (CIC) will be verified through the population data system; all transactions of account opening, card issuance, e-wallet and e-payment will also be biometrically identified to control risks from the root.

Mr. Nguyen Thanh Son emphasized that the Seminar is an important forum for managers, experts and businesses to share, update information and propose practical solutions. He expected that the results of the Seminar will contribute to improving the effectiveness of law enforcement, promoting a transparent and safe financial environment, and strengthening domestic and international cooperation in the fight against financial crime.

Speaking at the event, the CEO of Lucid Groupe, Tuck Chan, said that, in today’s rapidly evolving regulatory landscape, the challenges of identifying and mitigating financial crime risks are more complex than ever.

“Financial institutions are on the front lines, tasked with navigating intricate webs of regulations, sanctions lists, politically exposed persons, and adverse media. At the heart of this challenge lies the fundamental need for accurate data and robust screening,” Chan said.

According to Chan, the quality of data becomes non-negotiable. An accurate, reliable and comprehensive list of names is not just a compliance checkbox. It is a foundamental element of an effective anti-money laundering programme.

At the Seminar, Ms. Nguyen Thi Minh Tho - Deputy Director of the Anti-Money Laundering Department, State Bank of Vietnam presented the legal framework related to financial crime prevention. According to her, this activity is currently regulated by a strict legal system including the Penal Code, the 2022 Anti-Money Laundering Law and accompanying decrees and circulars. She also pointed out common money laundering methods today such as taking advantage of the banking system, securities, insurance, real estate, payment intermediary services, and even professions such as accounting, lawyers, and notaries. The source of "laundered" money often comes from serious crimes such as fraud, drug trafficking, embezzlement, gambling, smuggling and tax evasion...

Sharing at the event, Mr. Cliff Lim - Director of Risk and Compliance, Southeast Asia of Dow Jones - warned about the trend of money laundering through trade, with identifying signs such as over-declaration or undervaluation of goods, transactions with related parties without clear economic reasons, or "ghost" shipments that do not exist. According to him, organized crime and terrorist groups are increasingly taking advantage of trade to transfer illegal money flows through high-risk areas such as the Golden Triangle, the Middle East or South Asia. To cope, he recommended that financial institutions need to improve their ability to review partners, integrate market data and strengthen links between monitoring, sanctions and control listings systems.

The seminar also recorded many opinions and shared experiences from representatives of some companies such as HSC, LUCID and international experts in deploying anti-money laundering technology, integrating international warning lists and applying data analysis software in risk management. Opinions were unanimous that leveraging data is a mandatory requirement in legal compliance and a strategic task to protect organizations from financial threats in the context of globalization and digital transformation.

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