US embassy cable - 04HANOI2860

UNCLAS HANOI 002860 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
 
STATE FOR EB/ESC/TFS, S/CT, EAP/BCLTV, INL/C, IO/PHO 
TREASURY FOR OFAC 
 
E.O. 12958: N/A 
TAGS: KTFN, KVPR, PTER, EFIN, ETTC, PREL, VM, FINREF, CTERR 
SUBJECT: VIETNAM: TERRORIST FINANCE COORDINATION 
 
REF: (A) HANOI 02744 (B) STATE 201391  (C)HANOI 01940 
 
1. (U) As a follow-up to the meeting described in ref A, 
Hanoi's full TFC team met on October 7, 2004 to clarify and 
coordinate Post's position on terrorist financing. While 
terrorist financing and money laundering are similar, these 
two issues are treated separately by the Government of 
Vietnam. 
 
2. (U) In visits detailed in ref C to the State Bank of 
Vietnam (SBV), the Ministry of Public Security (MPS) and the 
Ministry of Justice (MOJ), Econ Assistant learned from 
officials at all three organizations that they believe that 
the current strict controls governing the financial sector 
are sufficient protection and deterrence against terrorist 
financing activities. 
 
3. (U) Vietnamese officials are also confident that the new 
anti-money laundering decree will provide them with adequate 
authority to combat money laundering, both internal and 
international.  However, this decree is in draft only and 
Post has received no response to a June 22 official request 
for a copy of the draft version. A recent query resulted in a 
promise that our office would be notified if the drafters 
received permission to release a copy. 
 
4. (SBU) The future problem may be establishing Vietnamese 
authority for cooperation. The MPS currently possesses no 
practical ability to support international money laundering 
investigations in conjunction with DEA or any foreign law 
enforcement agency. Even when the official decree on anti- 
money laundering is in effect, it will not cover the 
terrorist finance issue. The SBV cooperates by investigating 
the names designated by the United Nations and has reported 
that they found no evidence of financial activity; but if in 
the future a name produces results, further cooperation might 
be limited. 
 
5.  (U) As reported ref C, more visits by Treasury officials 
to Hanoi in order to encourage development of regulations and 
competent authorities, to educate and to explain potential 
problems and to coordinate technical assistance would be 
helpful and well-received. Technical assistance could pave 
the way for effective cooperation. 
 
MARINE