US embassy cable - 05HANOI988

UNCLAS SECTION 01 OF 02 HANOI 000988 
 
SIPDIS 
 
SENSITIVE 
 
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: MEETING WITH MINISTRY OF PUBLIC 
SECURITY TO DELIVER AML/CTF POINTS 
 
REF: A) STATE 66723 
 
1.  This cable contains sensitive information.  Please 
do not post on the Internet. 
 
2.  (SBU) Summary: Econ/C delivered reftel points on 
AML/CTF to officials at the Ministry of Public 
Security (MPS). Econ/C reminded MPS of his December 
2004 letter requesting the answers to several specific 
questions on AML/CTF and asked advice on how to 
proceed. Econ/C also explained that U.S. law 
enforcement agencies would very much like to meet with 
MPS and establish a mechanism for regular cooperation. 
MPS officials expressed willingness to meet with U.S. 
law enforcement officials and government agencies, as 
well as to answer any questions presented in writing 
and a desire for U.S. technical assistance in this 
complex area.  End Summary. 
 
3.  (SBU) Econ/C, accompanied by Econ Assistant, met 
with Mr. Tran Van Trinh, Deputy Director, 
International Cooperation Department, MPS, to discuss 
AML/CTF. Also present were several experts from other 
departments such as Police Investigations, Economic 
Security, and Criminal Investigations.  Trinh observed 
that Vietnam's shift to a market economy had exposed 
it to new crimes like money laundering about which 
even experienced police officials know little.  He 
acknowledged that the threat of money laundering is on 
the rise and is a concern, especially because Vietnam 
is still largely a cash-based economy. 
 
4.  (SBU) Trinh explained that Article 251 of the 
Penal Code defines the crime of money laundering. 
Several articles in other legislation such as the Anti- 
Drug Law and the Law on Credit Institutions also refer 
to money laundering. He noted that MPS has not had 
direct exposure to this type of crime.  He also 
expressed concern that auditing, inspections and 
financial supervision in Vietnam are not yet governed 
in a unified or comprehensive way, a deficiency that 
causes problems for identifying and combating money 
laundering. 
 
5.  (SBU) Econ/C mentioned that the United States has 
experts in corresponding agencies, such as the U.S. 
Department of Homeland Security (DHS) and the U.S. 
Drug Enforcement Agency (DEA), who are available to 
share their expertise. Trinh stated that the Economic 
Police, the department responsible for money 
laundering crimes, lack experience and technical 
infrastructure, so they welcome and appreciate any 
offer of assistance from U.S. law enforcement or 
government officials.  Econ/C suggested that U.S. 
experts could provide comments on the draft AML decree 
and that in the interim DEA/DHS officers could meet 
with MPS to discuss AML/CTF issues and possibly set up 
a mechanism for regular cooperation.  In response to 
the suggestion that U.S. officials could meet with the 
AML decree drafting team, Trinh countered that an even 
better idea would be for the USG to organize and 
sponsor a study tour for appropriate officials from 
MPS, the State Bank of Vietnam (SBV) and the Ministry 
of Justice to visit the United States and learn about 
the U.S. system.  He expressed great appreciation for 
past and current law enforcement assistance provided 
by many U.S. agencies, and indicated that it would be 
an honor if the USG could initiate other workshops and 
training, especially in the United States. 
 
6.  (SBU) Trinh stated that Vietnam is actively 
participating in workshops to prepare for accession to 
the Asia Pacific Group. He also noted that MPS set up 
an internal unit in cooperation with UNODC to cover 
anti-drug trafficking. 
 
7.  (SBU) As a final response to Econ/C's offer of 
assistance, Trinh requested that the USG send 
reference material relating to AML/CTF.  He suggested 
that they would appreciate a copy of the U.S. law 
governing AML and any other legal documents that 
describe crimes relating to AML/CTF.  He opined that 
the government might assign MPS or SBV to be the 
coordinator of continued cooperation, but stated that 
if MPS receives such documents they will be happy to 
circulate them among the relevant ministries.  Trinh 
also stated that MPS is willing to respond to any 
official requests for information when the request is 
presented in writing and that his department will be 
the coordinator of such requests and for meetings.  He 
asked ECON/C to resubmit the questions sent earlier 
and promised a response.  The International 
Cooperation Department also has an officer dedicated 
to drug trafficking issues who can serve as a contact 
point, he said.  Noting that mixing aspects of 
different legal systems was likely to produce a flawed 
law, Econ/C encouraged Trinh to consider having USG 
experts come to Vietnam to offer advice on this 
complex issue. 
 
MARINE