US embassy cable - 05HOCHIMINHCITY328

UNCLAS HO CHI MINH CITY 000328 
 
SIPDIS 
 
SENSITIVE 
 
TERREP 
 
Department for DS/IP/EAP, EAP/BCLTV and INL 
 
E.O. 12958: N/A 
TAGS: ASEC, PREL, KCRM, SNAR, PTER, EFIN, AS, VM, CNARC, TIP 
SUBJECT: TRANSNATIONAL CRIME IN VIETNAM - HCMC CONSULATES GENERAL 
COMPARE NOTES 
 
 
1. (SBU) Key Ho Chi Minh City consulates met March 23 for the 
second quarterly, informal discussion of transnational crime 
issues.  Australia National Police rep has organized this group in 
an effort to foster law enforcement cooperation between key 
countries and Vietnam. Participation includes consuls general and 
officers responsible for law enforcement from the consulates of 
Thailand, UK, Canada, France, Australia and the United States. 
CG, RSO and DHS/ICE attache attended the meeting at the Thai 
consulate, which covered narcotics, money laundering and human 
trafficking. 
 
2. (SBU) Money Laundering:  Australian Federal Police rep said 
that Vietnam receives approximately USD three billion annually in 
remittances via wire transfer.  The Australians estimate that 
perhaps 10 percent of this total represents profits from illegal 
activity to be banked or laundered in Vietnam.  Australia finds 
that the GVN is keenly interested in increasing remittances but is 
not interested in the source of the funds. This gives organized 
crime a good opportunity to launder "proceeds of crime."  AFP rep 
observed that while there was no evidence of terrorist networks 
laundering funds in Vietnam, the ease of doing so made it likely 
that this could, or would occur.  Australian rep noted that he 
would be focusing on money laundering over the next twelve months. 
Several participants observed that the WTO accession process 
provides an opportunity to press Vietnam to implement anti-money 
laundering (AML) measures.    (Comment:  Embassy Hanoi has been 
working with a number of GVN interlocutors for nearly a year on 
AML.  At this point,  a major obstacle to improved cooperation is 
the GVN's failure to issue its AML decree, which would designate 
the lead agency on this issue.  A number of donors are working on 
this issue in Hanoi.  End comment.) Australia observed that UNODC 
has an on-going project with the State Bank of Vietnam. 
 
3. (SBU) Narcotics:  Australia's efforts to share narcotics 
intelligence with the GVN is yielding some results and has helped 
to reduce heroin smuggling from Vietnam into Australia.  AFP rep 
said there was no indication that any information provided to the 
Vietnamese had been leaked.  The Australians also said that they 
are establishing two document fraud laboratories and providing 
training at the airports in Hanoi and Ho Chi Minh City.  French 
gendarmerie rep noted problems with legal prescription drugs from 
France being illegally smuggled into Vietnam.  He also mentioned 
that France has had some success in interdicting Vietnamese 
traveling to France with illegal documentation for purposes of 
prostitution. 
 
4. (SBU)  Comment:  The Australian CG founded this informal group 
to support Australian Federal Police efforts to advance law 
enforcement cooperation with Vietnam.  The local AFP rep appears 
to be making steady if slow progress in working with GVN law 
enforcement counterparts and is prepared to assist and support law 
enforcement efforts by United States and others.  AFP's view of 
the ease and potential volume of laundering "proceeds for crime" 
is worrisome.  Most of theGVN-reported USD three to four billion 
in annual remittances to Vietnam appear to be effected by wire 
transfer or by physically carrying cash.  Knowledgeable bankers 
have told us that the formal and informal money transfer system 
can deliver cash (to the recipients' home) in Vietnam within hours 
of deposit in the United States with few, if any, questions asked. 
WINNICK