Central bank directs gold sellers to report transactions exceeding $16,500

By Quynh Trang December 29, 2023 | 03:07 am PT

A person arranges gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

The State Bank of Vietnam has requested gold sellers to strictly comply by a regulation to report transactions of VND400 million ($16,500) or higher to identify possible money laundry.

It made the order Thursday as gold trade surged with gold bar prices fluctuating around a historic peak.

Vietnam gold bar prices have been posting strong changes this week. After reaching a new height of VND80.3 million on Tuesday, gold has now slipped to around VND76 million Friday afternoon.

Gold and jewelry sellers and payment firms need to gather and confirm information on their customers so authorities can trace their assets and reduce the risks of money laundering.

The regulation on reporting transactions of VND400 million came into effect earlier this month.

A similar regulation has been imposed since 2005 but the minimum value has been raised several times, from VND200 million to VND300 million and VND400 million now.

Industry insiders, however, say that the biggest gold traders often do not show themselves at the store and can complete a transaction through just a phone call.