The International Anti-Money Laundering Regime and Its Adoption by Vietnam

Abstract

The international anti-money laundering (AML) regime has developed and diffused rapidly in the last two decades. Most developing countries have engaged with the international AML regime under pressure from other states rather than on a voluntary basis.1Establishing the national AML regime in these countries in compliance with international standards is very expensive, while the benefits are elusive.2This paper reveals that the adoption of basically similar AML norms by many developing countries results from the global diffusion of the international AML regime through two major mechanisms: coercion (by powerful economies and international institutions) and socialization (through tactical communications). This paper points out that although the AML regime of Vietnam was established under external coercion and socialization, domestic factors determine the extent of compliance with international standards. In Vietnam, a determinative factor is the political willingness of the Communist Party in fighting money laundering.