Showing Page:
1/17
2021-2022 INTERNATIONAL REGULATION OF FINANCIAL ORGANIZATION AND PROFESSIONAL
OBLIGATIONS part 1
1
INTERNATIONAL REGULATION OF FINANCIAL
ORGANIZATION
AND PROFESSIONAL OBLIGATIONS
INTRODUCTION
Our course is dealing with international regulations and professional obligations in the field
of financial activities in Vietnam, France, EU, USA and most of the economically developed
countries.
Banking is an international activity in the context of globalization. They are an essential point
of transit because they manage transactions and means of payment.
Today they act in a large range of complex transactions: currency exchange, circulation and
negotiation of means of payment, loans to public borrowers (State, Administrations) and
private borrowers (companies, individuals). They manage cash exchanges and interest rates.
They finance huge projects such as mergers, industrial investments, etc.
In carrying those activities, they may have concerns about corruption and criminal
enterprise.
One of the concerns of nearly all countries is preventing money laundering, terrorist
financing, corruption and insider trading.
Since 1990, anti-money laundering national legislations to prevent financing of terrorism
have regularly been extended, in particular so as to implement the recommendations of the
Financial Action Task Force (FATF), the international institution against money laundering
and terrorist financing.
For example, the EU passed a 5th Anti-Money Laundering Directive on June 19, 2018. On 24
July 2019, the European Commission adopted a Communication entitled "Towards better
implementation of the EU's anti-money laundering and countering the financing of terrorism
framework" accompanied by four reports. On 7 May 2020, the European Commission
adopted an action plan for a comprehensive Union policy on preventing money laundering
and terrorism financing built on six pillars. To gather the views of citizens and stakeholder on
these measures, the Commission launched a public consultation in parallel to the adoption
of this action plan. On 16 September 2020, the European Commission adopted a report
assessing whether Member States have duly identified and made subject to the obligations
Showing Page:
2/17
2021-2022 INTERNATIONAL REGULATION OF FINANCIAL ORGANIZATION AND PROFESSIONAL
OBLIGATIONS part 1
2
of Directive (EU) 2015/849 all trusts and similar legal arrangements governed under their
laws. Directive (EU) 2015/849 (the 5
th
anti-money laundering Directive) indeed extended to
trusts and similar legal arrangements the transparency rules and obligations applicable to
legal entities, requiring Member States to identify and notify trusts or trust-like
arrangements governed under their legal framework.
On July 20, 2021, The European Commission presented an ambitious package of legislative
proposals to strengthen the EU’s anti-money laundering and countering the financing of
terrorism (AML/CFT) rules. The package harmonises AML/CFT rules across the EU. It also
proposes the creation of a new EU authority to fight money laundering.
(see : https ://ec.europa.eu/info/business-economy-euro/banking-and-finance/financial-supervision-and-risk-
management/anti-money-laundering-and-countering-financing-terrorism_en)
Vietnam, which joined the World Trade Organisation (WTO) in 2008, is also involved in anti
money laundering. We will study the Vietnamese Law entered into force in 2018, the
Vietnamese Criminal Code and the measures adopted to identify capital and freeze terrorist
assets promptly, as well as the measures taken to drive up standards in customer due
diligence and reporting obligations.
(please read this article : https://tapchicongthuong.vn/bai-viet/anti-money-laundering-via-in-banking-
transactions-regulations-shortcomings-and-solutions-81734.htm)
***
In the 1rst part, we will study the professional ethics of bankers and financial institutions
staff (I), including mainly professional secrecy (confidentiality) and conflicts of interest. We
will also focus on some financial infractions, such as insider trading.
In the 2nd part, we will study anti money laundering (AML) regulations (II).
In the 3
rd
part, we will speak about the international organizations in the field of anti money
laundering, such as the Financial Action Task Force, the Autorité des marchés financiers
[French Financial Markets Authority], the Securities and Exchange Commission (SEC, United
States) and the Asia Pacific Group on Money Laundering (APGML) (III).
Finally, in the 4
th
part, we will study the USA OFAC rules (Office of Foreign Assets Control) which
concerns all countries dealing with US Dollars or any US interest (IV).
Showing Page:
3/17
2021-2022 INTERNATIONAL REGULATION OF FINANCIAL ORGANIZATION AND PROFESSIONAL
OBLIGATIONS part 1
3
Showing Page:
4/17