At a conference of the Steering Committee for Money Laundering Prevention and Combat on October 18, Deputy Prime Minister Le Minh Khai asked relevant ministries and agencies to spare no effort in implementing an action plan recommended by the International Monetary Fund (IMF)’s Financial Action Task Force (FATF) over two years so that Vietnam can be removed from an increased monitoring list referred to as the “grey list”.

Speaking at the conference, Deputy Governor of the State Bank of Vietnam (SBV) Pham Tien Dung pointed out the negative impacts from the FATF officially including Vietnam on its “grey list” since June 2023. As a result, more costs may be incurred on loans and for investment and trade activities, thus making some foreign investors hesitate.

According to Mr. Dung, investment has fallen in almost all countries included on the IMF’s “grey list”, with the average reduction accounting for 7.6 per cent of GDP and representing a decline in FDI capital equal to 3 per cent of GDP on average.

Vietnam may be named on the EU’s list of high-risk country jurisdictions in terms of money laundering and on the FATF’s “black list” if it fails to prove that it is cooperating in implementing the latter’s recommendations, Mr. Dung explained, warning that particularly serious consequences would follow if that was to be the case, forcing companies to pay more for business expenses or even to suspend operations.

According to Deputy Prime Minister Khai, the Asia Pacific Group on Money Laundering (APG) recently came to work with the SBV and relevant agencies to identify ways to help remove Vietnam from the “grey list”.

He said Vietnam has integrated into the world and must comply with common international standards. Numerous solutions are needed to have the country removed from the list, and the most complex issue relates to institutional reform.

The FATF requirements are now urgent, and Vietnam has a very short time to carry them out. If it does not make proactive or effective moves, the situation will become more complicated.

The Deputy Prime Minister asked the SBV, the standing body of the steering committee, and related ministries and sectors to carry out tasks at the earliest possible time.