Vietnam's banking industry is planning to meet the international standards for operation risk management and anti-money laundering (AML), reported the Saigon Times.
At a recent conference held by the State Bank of Vietnam (SBV) and the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), financial institutions and experts talked about of the challenges for risk management in Vietnam, trends and influences of factors such as IT development, and external factors affecting the sustainable development of the banking industry.
Against the backdrop of Vietnam's global economic integration, money laundering and terrorism financing activities are becoming increasingly complicated and difficult to control, said experts. According to financial crime expert Hinke Visser, fraudsters and criminals are constantly using new methods to swindle money and avoid being detected.
Vietnamese banks are thus urged to increase their risk management capabilities and compliance with international anti-money laundering and anti-terrorism financing practices, as well as invest in screening tools, to enable them to integrate with global banks.
One bank that has invested in mechanisms, personnel and IT infrastructure to strengthen its anti-money laundering and counter terrorist financing (CFT) efforts is VietinBank. By developing an organisational structure comprising three monitoring rounds and processes for reporting, and refreshing customer data, the bank is now able to better measure and monitor operational risks, said VietinBank deputy general director Bui Nhu Y.