Commercial banks should mitigate business risks and ensure theirreputations by strictly implementing the Government's regulations on theprevention of money laundering and terrorist financing, heard a seminarheld in Ho Chi Minh City on May 8.
Effective deployment ofmeasures to fight money laundering and terrorist financing was essentialto banks in international operation, Nguyen Van Ngoc, director of theState Bank of Vietnam's Anti-Money Laundering (AML) Department, said.
TheVietnamese Government's laws to fight money laundering and financingfor terrorists became effective in January and October last year,respectively, Ngoc said.
Most banks have issued internalregulations on anti-money laundering and terrorist financing in linewith the Government's Decree 74 on AML released in 2005, he told theseminar, which was organised by the Vietnam Banks Association andtechnology consulting firm Komtek.
However, banks shouldcarefully study current regulations and international standards to helpthem map out appropriate internal regulations for the effectivedeployment of anti-money laundering methods, Ngoc said.
Inaddition, banks should improve training for their staff, especiallythose who work directly with customers, to raise their awareness of AMLissues and enhance their ability to detect suspicious transactionsinvolved in money laundering and terrorist financing.
In addition, updating customer information is an important step to detect behavior related to money laundering.
"Banksshould select the appropriate information technology solutions tofilter and analyse transactions in an aim to prevent and fight moneylaundering and other risks," he said.
Filtering software can help banks recognise those on black lists and AML risks, he added.
Moreover,he said banks must issue daily reports of large value transactions(equal to or greater than 300 million VND or 14,285 USD) to the StateBank of Vietnam, as required by law.
Jeremy Chan, regionalbusiness development director of Fircosoft, said that AML was animportant requirement by global regulators.
The CEO of AubChapman Consulting Service Co, Aub Chapman, said that the sharing ofinformation by peers across the industry would help regulators andcontribute to the national interest.
"Document what you are doingso you can demonstrate what you have done," he said, adding that AMLrisk management should remain relevant to the bank's business and moneylaundering risks.-VNA
Effective deployment ofmeasures to fight money laundering and terrorist financing was essentialto banks in international operation, Nguyen Van Ngoc, director of theState Bank of Vietnam's Anti-Money Laundering (AML) Department, said.
TheVietnamese Government's laws to fight money laundering and financingfor terrorists became effective in January and October last year,respectively, Ngoc said.
Most banks have issued internalregulations on anti-money laundering and terrorist financing in linewith the Government's Decree 74 on AML released in 2005, he told theseminar, which was organised by the Vietnam Banks Association andtechnology consulting firm Komtek.
However, banks shouldcarefully study current regulations and international standards to helpthem map out appropriate internal regulations for the effectivedeployment of anti-money laundering methods, Ngoc said.
Inaddition, banks should improve training for their staff, especiallythose who work directly with customers, to raise their awareness of AMLissues and enhance their ability to detect suspicious transactionsinvolved in money laundering and terrorist financing.
In addition, updating customer information is an important step to detect behavior related to money laundering.
"Banksshould select the appropriate information technology solutions tofilter and analyse transactions in an aim to prevent and fight moneylaundering and other risks," he said.
Filtering software can help banks recognise those on black lists and AML risks, he added.
Moreover,he said banks must issue daily reports of large value transactions(equal to or greater than 300 million VND or 14,285 USD) to the StateBank of Vietnam, as required by law.
Jeremy Chan, regionalbusiness development director of Fircosoft, said that AML was animportant requirement by global regulators.
The CEO of AubChapman Consulting Service Co, Aub Chapman, said that the sharing ofinformation by peers across the industry would help regulators andcontribute to the national interest.
"Document what you are doingso you can demonstrate what you have done," he said, adding that AMLrisk management should remain relevant to the bank's business and moneylaundering risks.-VNA
