Money laundering risks associated with financial inclusion products in Vietnam and management policy

Abstract

Financial inclusion plays an outstanding role in improving access and usage of financial products and services for individuals and businesses, contributing to promoting economic growth, sustainable development, and poverty reduction across countries. Besides its positive impacts, the advancement of science and technology harbors inherent risks of money laundering and terrorist financing, presenting new challenges for regulatory bodies and financial institutions. This paper, drawing upon a review of relevant literature and legal documents, delves into the money laundering risks associated with financial inclusion products (such as information security breaches, difficulties in identity verification) and Vietnam’s current practices in Vietnam. Based on this analysis, the paper proposes policy recommendations aimed at legal framework, management capacity and technology application to mitigate money laundering risks posed by financial inclusion products, contributing to financial security in Vietnam.