Methods of national assessment of money laundering risk in Vietnam

Methods of national assessment of money laundering risk in Vietnam

Pursuant to the provisions of Decree 19/2023/ND-CP, the scoring method is used in national assessment of money laundering risk.

According to the scoring method, a scoring toolkit shall be used to score each of the criteria mentioned in Article 4 of this Decree on a scale of 1 to 5 in the following specific manners:

- For the subset of money laundering risk, the scores, including 5, 4, 3, 2, and 1, indicate the levels of risk, including high, fairly high, medium, fairly low, and low, respectively; 

- For the subset of appropriateness of anti-money laundering policies and measures, the scores, including 5, 4, 3, 2, and 1, indicate the levels of appropriateness, including low, fairly low, medium, fairly high, and high, respectively;

- For the subset of consequences of money laundering, the scores, including 5, 4, 3, 2, and 1, indicate the levels of consequence, including high, fairly high, medium, fairly low, and low, respectively; 

- For the subset of national money laundering risk, the scores, including 5, 4, 3, 2, and 1, indicate the levels of national risk, including high, fairly high, medium, fairly low, and low, respectively.

Information, figures and data of national assessment of money laundering risk are specified in the Appendix to Decree 19/2023/ND-CP.

The State Bank of Vietnam shall provide a scoring toolkit conforming to international standards on prevention and combat of money laundering.

Methods of national assessment of money laundering risk in Vietnam (Internet image)

Principles of national assessment of money laundering risk in Vietnam

Pursuant to Article 3 of Decree 19/2023/ND-CP, the national assessment of money laundering risk in Vietnam is carried out according to the following basic principles:

- National assessment of money laundering risks must be carried out by competent state agencies according to the criteria and methods prescribed by law, and in conformity with international standards and practical conditions of Vietnam.

- National assessment of money laundering risks is required to identify the level of money laundering risk to the nation.

- National assessment of money laundering risks serves as a basis for developing a post-assessment action plan and updating corresponding anti-money laundering policies and strategies over periods of time.

- Information, documents and data serving the needs of national assessment of money laundering risks shall be collected from databases of competent authorities, reporting entities, domestic and foreign research papers according to the principles of public disclosure, transparency, and assurance of compliance with regulations on protection of state secrets.

Mai Thanh Loi

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