Vietnam uncovers $1.2 billion money-laundering scheme tied to online gambling

Jenny Ortiz January 24, 2025

SiGMA news

Vietnamese authorities have dismantled a large-scale money-laundering operation that funnelled $1.2 billion into the Southeast Asian country. According to media reports, the money-laundering network, active between 2022 and 2024, involved fraudulent activities linked to online gambling and other illicit operations abroad.

Police investigations revealed that the ring utilised forged identification documents and counterfeit bank seals to establish 187 shell businesses and open over 600 corporate bank accounts. These accounts served as a conduit for transferring and legitimising funds obtained through illegal means, including gambling.

Arrests in Da Nang

The operation culminated in the arrest of five individuals, including a bank employee, in the coastal city of Da Nang. Vietnamese authorities described the case as the largest of its kind uncovered in the city and across Vietnam. Police seized a trove of evidence, including 122 fake seals and original business registration certificates for 40 companies. This discovery highlights the advanced tactics employed by the group to conceal their activities and evade detection.

Online gambling’s role in money laundering

The reports said that the investigation revealed a close connection between the laundered funds and online gambling activities. Vietnam, like many other countries, has faced challenges in regulating online gambling due to its potential to facilitate financial crimes. This case underscores how online gambling platforms can be exploited as avenues for money laundering, with criminals leveraging digital transactions to obscure the origins of illicit funds.

A broader context of financial crime

The case also draws attention to other high-profile money-laundering incidents in Vietnam. Last October, property tycoon Truong My Lan was sentenced to life imprisonment for her involvement in a separate money-laundering case. She had previously been handed the death penalty for fraud worth $27 billion.

Strengthening financial oversight

The uncovering of this operation demonstrates the importance of robust financial regulations and law enforcement in addressing modern financial crimes. Vietnam’s largest-ever money-laundering case linked to online gambling is a reminder of the need for vigilant monitoring, stronger oversight of financial institutions, and enhanced international cooperation to combat such activities effectively.

Recently, the Association of Southeast Asian Nations (ASEAN) which Vietnam is a member, has pledged to address the growing threats of transnational crime and online scams in the region. The member states emphasised the importance of collaboration to enhance security and proposed new initiatives, including a working group on money laundering and a regional cybercrime task force.

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