Central bank to inspect major gold sellers for compliance with laws

By Minh Son   May 23, 2024 | 06:52 pm PT
Central bank to inspect major gold sellers for compliance with laws
A person holds gold bars at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
The State Bank of Vietnam has announced that it will inspect the gold business of four large jewelers Saigon Jewelry Company (SJC), DOJI, Phu Nhuan Jewelry and Bao Tin Minh Chau, for compliance with the laws.

It will also inspect the business of two lenders, TPBank and Eximbank. The 45-day audit would cover their business in the last four years until May 2024, the central bank said in a statement Thursday.

The inspectors will look for compliance with gold trading laws and anti-money laundering regulations, use of invoices and fulfillment of tax obligations.

The team was formed by the central bank last month by drawing officials from the Government Inspectorate and Ministries of Public Security, Finance and Industry and Trade.

Pham Quang Dung, deputy governor of the SBV, said more companies would be inspected if necessary.

The central bank plans to tighten management of gold trading and increase bullion supply to narrow the gap between domestic and global prices, he added.

Gold prices surged to a new peak of VND92.4 million ($3,627.86) earlier this month before falling back 2.81% to VND89.8 million.

But it is still around 23% higher than the global rate.

Analysts at the Institute of Economic and Policy Research and Think Future Consultancy believe that administrative measures such as inspections, mandating the use of electronic invoices and investigations into price manipulation will be effective in stabilizing the gold market.

The SBV has been auctioning gold bullion to increase supply, selling 48,400 taels of 37.5 grams or 1.2 ounces each.

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