US embassy cable - 05HANOI641

UNCLAS HANOI 000641 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
 
STATE FOR EAP/BCLTV; EB/ESC/TFS DAVID NELSON 
STATE FOR S/CT TODD KUSHNER; IO/PSC JOLEEN SCHWEITZER 
TREASURY PLEASE PASS TO JUAN ZARATE 
TREASURY ALSO FOR OFAC ROBERT WERNER; EB/EPPD CAROL THOMPSON 
 
E.O. 12958: N/A 
TAGS: KTFN, KVPR, PTER, EFIN, ETTC, PREL, CVIS, VM, CTERR, FINREF 
SUBJECT: VIETNAM TERRORIST FINANCE: 2005 UPDATE NO. 2 
 
REF: STATE 32688 
 
1. (SBU) The following paragraphs contain answers to reftel 
questions and provide an evaluation of Vietnam's ability to 
cooperate in disrupting terrorism financing. 
 
2. (SBU) The Government of Vietnam (GVN) has not frozen, 
forfeited or seized any assets pursuant to UNSCR Resolutions 
1267 and 1373. 
 
3. (SBU) The USG has not requested GVN cooperation in co- 
sponsoring any designations.  There are no evident 
impediments to further cooperation on counterterrorism 
finance. 
 
4. (SBU) The GVN is in the initial stages of development of 
anti-terrorist financing regimes.  Although the GVN 
recognizes the need for legislation and development of 
administrative measures regarding Anti-Money Laundering 
(AML), they still assess the possibility of terrorist finance 
activities in Vietnam as negligible.  Post believes that the 
GVN would be very willing to accept USG training and 
technical assistance but would be much more open to an offer 
from a combined AML/TF perspective.  The GVN is more likely 
to accept a USG assessment of training needs if the 
assessment is the initial part of an agreed-upon arrangement 
for training or technical assistance.  Priority assistance 
needs in Vietnam include raising awareness of signs of money 
laundering and encouraging development of an anti-terrorist 
regime, including Financial Intelligence Unit equipment and 
training. 
 
5.  (SBU) The GVN has recently begun to take concrete steps 
toward the prevention and control of money laundering.  A new 
AML decree is expected to be passed in 2005. However, 
Vietnamese legal provisions on counter terrorism financing 
are covered in various legal documents. They have not yet 
established a separate legal document governing the 
prevention and suppression of terrorism financing. The GVN 
believes and Post agrees that the risk of terrorist threats 
emerging from the Vietnamese population is very low. Post 
believes that the risk that VN will be used as a site for 
significant fund raising is low.  Although the government 
monitors international financial transactions in Vietnam 
closely, it is not clear whether the procedures will 
effectively preclude money laundering or terrorism financing. 
Post believes there is a low risk that Vietnam would be a 
site for significant banking services for terrorists, however 
there is a higher risk for other money laundering. For 
example, there are significant documented instances of drug 
money laundering. 
 
MARINE