What is money laundering? Crime of money laundering under the Criminal Code of Vietnam

What is money laundering? What are the frames for the crime of money laundering under the Criminal Code of Vietnam? — Nhat Nam (Khanh Hoa, Vietnam)


What is money laundering? Crime of money laundering under the Criminal Code of Vietnam (Internet image)

1. What is money laundering?

According to Clause 1, Article 4 of the Law on Prevention of Money Laundering 2012, money laundering is the acts of the individuals and organizations in order to legalize the origin of the property created by the crimes including:

- The acts are regulated in the Criminal Code of Vietnam;

- Supporting the organizations and individuals related to the crime in order to avoid the legal liability by the legalization of the property origin generated by the crime;

- Possessing the property if at the time of receipt of the property being aware of that property due to criminal activity to legalize the origin of property.

2. Crime of money laundering under the Criminal Code of Vietnam

The crime of money laundering in Vietnam is specified in Article 324 of the Criminal Code 2015 (amended in 2017) with the following penalty frame:

* Frame 1

A person who commits any of the following acts shall face a penalty of 01 - 05 years' imprisonment:

- Directly or indirectly participating in finance transactions, banking transactions, or other transactions to conceal the illegal origin of the money or property obtained through his/her commission of a crime, or obtained through another person's commission of a crime to his/her knowledge;

- Using money or property obtained through his/her commission of a crime or obtained through another person's commission of a crime to his/her knowledge for doing business or other activities;

- Concealing information about the true origin, nature, location, movement, or ownership of money or property obtained through his/her or commission of a crime or obtained through another person's commission of a crime to his/her knowledge, or obstructing the verification of such information;

- Committing any of the offences specified in Point a through c of this Clause while knowing that the money or property is obtained through transfer, conversion of money or property obtained through another person's commission of a crime.

* Frame 2

This offence committed in any of the following circumstances carries a penalty of 05 - 10 years' imprisonment:

- The offence is committed by an organized group;

- The offender misuses his/her position or power to commit the offence;

- The offence has been committed more than once;

- The offence is committed in a professional manner;

- The offence involves deceitful methods;

- The illegal money or property is assessed at from VND 200,000,000 to under VND 500,000,000;

- The illegal profit earned is from VND 50,000,000 to under VND 100,000,000;

- Dangerous recidivism.

* Frame 3

This offence committed in any of the following circumstances carries a penalty of 10 - 15 years' imprisonment:

- The illegal money or property is assessed at ≥ VND 500,000,000;

- The illegal profit earned is ≥ VND 100,000,000;

- The offence has a negative impact on security of the national currency or finance system.

* Preparing for the commission of this offence

A person that prepares for the commission of this offence shall face a penalty of 06 – 36 months’ imprisonment.

* Additional penalties

The offender might also be liable to a fine of from VND 20,000,000 to VND 100,000,000 or prohibited from holding certain positions or doing certain jobs for 01 - 05 years or have part or all of his/her property confiscated.

* Violation of corporate legal entity in Vietnam

Punishments incurred by a corporate legal entity that commits any of the offences above:

- A corporate legal entity that commits this offence in any of the circumstances specified in Frame 1 shall be liable to a fine of from VND 1,000,000,000 to VND 5,000,000,000;

- A corporate legal entity that commits this offence in any of the circumstances specified in Frame 2 shall be liable to fine of from VND 5,000,000,000 to VND 10,000,000,000;

- A corporate legal entity that commits this offence in any of the circumstances specified in Frame 3 shall be liable to a fine of from VND 10,000,000,000 to VND 20,000,000,000 or has its operation suspended for 01 - 03 years;

- A corporate legal entity that commits this offence in the circumstance specified in Article 79 of Criminal Code 201 of Vietnam shall be permanently shut down;

- The violating corporate legal entity might also be liable to a fine of from VND 1,000,000,000 to VND 5,000,000,000, be banned from operating in certain fields or raising capital for 01 - 03 years.

Diem My

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