Police in Vietnam have broken up a large illegal betting operation while simultaneously stopping a huge money laundering scheme.
Vietnamese authorities have dismantled a massive money laundering network and an illegal sports betting ring in separate, high-profile operations.
The news comes as the country steps up efforts to combat financial crime and gambling-related offences. Police in Dong Nai Province have uncovered an illegal online sports betting operation led by a suspect identified as Tran Trung Hieu, also known as Hieu De.
The operation, active since 2023, generated VND1.2tn (approximately $50.5m) in betting revenue. Authorities arrested Hieu De and 15 others involved in the network and seized more than VND1.1b in cash during the raid.
According to investigators, the betting ring operated on an international scale, primarily focusing on football betting. Police described the network as highly organised, employing advanced technological methods to execute its operations and evade detection.
Online gambling is prohibited in Vietnam, yet the black market for such activities remains substantial, estimated to be worth VND250.6tn.
This is fuelled by growing demand and the ease of access to online betting platforms.
Football betting in particular dominates the illegal gambling scene, as Vietnamese law restricts legal sports betting to specific land-based casinos and imposes strict regulations on wagering activities.
Authorities in both cases have stated that investigations are ongoing, with efforts focused on identifying additional suspects and tracing the origins of the laundered and illegally wagered funds.
Mainstream money laundering rampant
In a separate operation on 23 January, police in Da Nang announced the arrest of five individuals linked to a sophisticated money laundering operation. The scheme funnelled approximately VND30tn ($1.2bn) in illicit funds into Vietnam between 2022 and 2024.
This would put it almost on par with Singapore’s major money laundering scandal from two years ago.
Described as the largest money laundering case in Da Nang’s history, the operation involved creating 187 fraudulent businesses with 600 corporate bank accounts.
Investigators revealed that the suspects used fake identification documents, counterfeit business registration certificates, and falsified bank seals to establish the businesses.
These accounts were then used to launder funds generated from offshore gambling operations and other fraudulent activities.
The arrested suspects included individuals with banking connections, who played key roles in facilitating the illicit financial transactions.
This discovery comes as Vietnam continues to strengthen its financial crime prevention measures, including the enforcement of new laws aimed at enhancing anti-money laundering (AML) practices and improving transparency in banking.
Calls for legal sports betting reforms
The illegal betting operations highlight the limitations of Vietnam’s current sports betting regulations, governed by Decree 6 of 2017.
This law allows for legal sports betting under tightly controlled conditions, including a maximum bet limit of VND1m per day and restrictions to specific provinces. The ban on online and mobile betting has further driven bettors to the black market.
Experts and industry insiders have criticised Decree 6 as outdated and overly restrictive.
At a November 2024 conference organised by the Vietnam Association of Foreign Invested Enterprises (VAFIE), calls for reform were renewed, with participants emphasising the need to modernise regulations to reflect current betting trends and consumer behaviour.
Recommendations for legal reforms are expected to be submitted to the Ministry of Finance later this year.
Strengthening financial crime prevention laws
The recent crackdowns are part of Vietnam’s ongoing efforts to combat financial crimes and enhance regulatory frameworks.
In March 2023, the Anti-Money Laundering Law 2022 came into effect, introducing more robust AML monitoring mechanisms and compliance requirements for financial institutions.
Among the changes to the law was a requirement that gaming-related entities begin to adhere to the country’s existing AML reporting guidelines, something they didn’t have to do previously.
This was followed by the implementation of the Law on Credit Institutions in July 2024, which was designed to improve transparency and risk management in the banking sector.
Further legislative measures are on the horizon, with new regulations targeting the real estate sector having taken place this month.