Gold Auction Set to Resume as Central Bank Seeks Support from Police and Finance Ministry

On April 15, 2024, the SBV sent a document to the relevant Ministries and agencies requesting their coordination in implementing the Prime Minister's instructions on gold market management. At the same time, it also issued a directive to the SBV branches in provinces and centrally run cities and the licensed credit institutions and enterprises to perform the tasks assigned by the SBV.

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Specifically:

At document number 3102/NHNN-QLNH, the SBV proposed the Ministry of Finance to coordinate:

1. Implement assigned functions, tasks, and authorities in Resolution No. 24/2012/ND-CP dated April 3, 2012 of the Government on the management of gold trading activities; The tasks, solutions for stabilization and management of the gold market are assigned in the Prime Minister’s official dispatches.

2. Request organizations trading in buying and selling gold, especially those trading in buying and selling gold bars, to strictly implement the application of electronic invoices in transactions of buying and selling gold to enhance transparency, improve the effectiveness of supervision and regulation, and ensure that the gold market operates safely, effectively, publicly, and transparently; strictly handle enterprises that do not comply with this provision.

3. Continue to provide information on gold smuggling and illegal transportation cases across the border so that the SBV can promptly grasp market information to develop effective gold market management plans.

4. Support the SBV in carrying out customs clearance procedures for imported gold for bidding.

Besides, the SBV issued document number 3003/NHNN-QLNH to the Ministry of Public Security proposing the coordination:

1. Implement assigned functions, tasks, and authorities in Resolution No. 24/2012/ND-CP; The tasks, solutions for stabilization and management of the gold market are assigned in the Prime Minister’s official dispatches.

2. Perform tasks in Official Dispatch No. 23/CD-TTg dated March 20, 2024 on strengthening measures to manage the gold market, in which the Prime Minister has directed the Ministry of Public Security to preside over and coordinate with the SBV and relevant inspection, examination, law enforcement agencies, and functional agencies to promptly implement measures in accordance with regulations to strictly handle violations of the law related to the gold market and gold trading activities, especially smuggling, manipulation, and profiteering, driving up the price of gold bars…

3. Coordinate with the SBV in organizing the auction of SJC gold bars to ensure the safety and effectiveness of the auction.

At document number 3104/NHNN-QLNH, the SBV proposed the Ministry of Industry and Trade to coordinate:

1. Implement assigned functions, tasks, and authorities in Resolution No. 24/2012/ND-CP dated April 3, 2012 of the Government on the management of gold trading activities; The tasks, solutions for stabilization and management of the gold market are assigned in the Prime Minister’s official dispatches.

2. Direct functional units to strengthen market management work; promptly detect acts of suspected violations and provide information to competent agencies for strict handling in accordance with legal provisions.

On the same day, the SBV issued document number 3145/NHNN-QLNH, in which the SBV directed credit institutions, enterprises licensed to buy and sell gold bars to strictly perform the following tasks:

1. Strictly comply with the regulations on management of gold trading activities in Resolution No. 24/2012/ND-CP dated April 3, 2012 of the Government on the management of gold trading activities (Resolution 24), Circulars guiding Resolution 24, relevant legal provisions, and directives of the Prime Minister to ensure that the gold market operates safely, effectively, and in accordance with legal regulations, without profiteering, speculation, manipulation, or price gouging.

2. Correctly implement the invoice and voucher regime in accordance with the regulations of the Ministry of Finance; apply electronic invoices in the implementation of gold buying and selling transactions to enhance publicity and transparency in gold buying and selling activities, especially buying and selling gold bars.

3. Comply with laws on anti-money laundering and counter-terrorism financing; Strictly implement Official Letter No. 10064/NHNN-TTGSNH dated December 28, 2023 of the SBV on compliance with laws on anti-money laundering and counter-terrorism financing.

Following that, the SBV issued document number 3146/NHNN-QLNH, directing the SBV branches in provinces and centrally-run cities to urgently perform a number of tasks:

1. Coordinate with relevant local agencies (Market Management Department, Department of Science and Technology, Public Security…) to strengthen supervision, inspection, and examination of the gold trading activities of units; Promptly handle violations of gold trading activities within their competence (if any).

2. Require credit institutions, enterprises licensed to buy and sell gold bars in the area to strictly comply with regulations on the management of gold trading activities under Resolution 24/2012/ND-CP (Resolution 24) dated 03 /04/2012 of the Government, Circulars guiding Resolution 24 and other relevant legal documents; Strictly comply with the invoice and voucher regime in accordance with the regulations of the Ministry of Finance; Comply with laws on anti-money laundering and counter-terrorism financing.

3. Based on functions and tasks, regularly monitor, manage, and closely supervise the situation of gold trading activities in the area.

Previously, on January 17, 2024, the State Bank of Vietnam sent a series of official letters to the Ministry of Finance, Ministry of Industry and Trade, and Ministry of Public Security regarding coordination in the management of the gold market. This is the second time this year that this agency has requested the involvement of relevant ministries and departments to rectify the gold market.

SOURCEcafef
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