Vietnam’s largest currouption scandals in the banking space has recently come to light in Vietnam Construction bank scandal. Fraudulent loans is one way to remove or extract money from a bank; To take out loans with a practice, bankers who would be more than willing or ready or eager to give support or confidence if they knew that the money will be just repaid or payback in full with interest. A fraudulent or cheated loan nevertheless is one type in which the borrower is a business entity or organization controlled by a dishonest or fraud bank officer or an accomplice who means someone who helps another to commit a crime; the borrower who receives something then declares or proclaims bankruptcy or also vanishes and the money is dead or extinct. The borrower might even be a not existing or not real or present entity and the loan purely a clever or cunning devices or expedient to hide a theft of a large sum of cash or currency from the bank. This can also be seen as a part or element of a larger whole withinmortgage or fake fraud.
Two of main responsible officers in Vietnam Commercial bank were those detained who were one of the Bank’s former chairman’s and also its CEO was said by online police in newspapers.
Nine of them are accused of the using the power and rights while performing public duties and one among them was Pham Cong Danh who is one among the list of Property Tycoon.
Fraudulent loan applications are those which lays or captures or gains a number of forms that differs from individuals or single member of a class using incorrect information to keep out of sight a credit history also filled with financial difficulties or problems and unpaid or outstanding loans to large company or group of companies using accounting wrongful or criminal deceptionto overstate or exaggerate profits in order to make a risky or high-risk loan which appears to be a sound investments for the bank.
Forged or fraudulent documents are often used to prevent (something) from being known about other thefts; Banks generally incline to determine their money showing great attention to each details so every penny must be accounted or considered for. A document that is claiming or we can say formally request or demand that a sum of money has been borrowed or acquired as a loan or withdrawn by an individual depositor or mortgagorwho transferred or invested can be valuable to those or someone who still wishes to hide or conceal the minor or smaller details that the bank’s money has in fact been stolen and taken and is now considered as gone.
Wire transfer fraud networks are such that for example the internationalSWIFTinterbank fund transfer system that are tempting or appealing to or attracting someone, even if wrong or unwise as much as targets such as once the transfer is made its difficult or almost impossible to reverse it. To settle accounts with each other with rapid and overnight wire transfer of large amounts of money that are common place, such networks are used by banks; though the banks have put certain checks and balances in place there is always the risk that the insiders or directors might try to attempt to use fraudulent or sometimes forged documents which claims to request that a bank depositor’s money be wired to another bank which is often or certainly an offshore account in some or one of the distant foreign country. One big scam is the Vietnam Construction back scandal.
There is always a very high risk of fraud when dealing with certain types of unknown or uninsured institutions.
But when the deal is with the offshore, the risk is greatest. Also dealing with Internet banks has risk such as it allows all choice of countries along with the banking regulations but not by any means limited to the institutions and organizations. A person might send a wire transfer from one country to another country. This all surely takes some days for the transfer to get it cleared along with be also available to be withdrawn by the other person which might still be able to get withdraw from another banks. The corrupted officers might approve the withdrawals but it shows that it is in pending status also then the other person might cancel the wire transfer along with the bank institution would take a monetary loss.