City forms task force to enhance monitoring of gold bar transactions

HCM City authorities have formed a task force to improve oversight of gold bar transactions and curb speculation. — VNA/VNS Photo

HCM CITY — HCM City authorities have established a task force aimed at enhancing the monitoring of gold bar transactions in the city to tackle speculation.

Led by a city police representative, the task force comprises representatives from the central bank, Anti-Money Laundering Department, Market Surveillance Department, and Tax Department.

Its main function will be to collect data regarding individuals involved in the buying and selling of gold bars at retail points operated by the Saigon Jewelry Company (SJC) and four State-owned commercial banks.

The data will be communicated to the police on a daily basis, which will assist them in identifying potentially suspicious speculative activities.

Specifically, a central bank representative in HCM City will oversee the daily information collection for the police.

An Anti-Money Laundering Department official will verify the sources of funds for gold purchases; and a Tax Department representative will monitor tax evasion and gold smuggling indicators.

The agency will also oversee businesses engaged in the production and sale of gold bars and jewelry.

There has recently been a surge in demand for gold at retail points operated by SJC and the four State-owned commercial banks across the country.

Some individuals have resorted to hiring others to stand in long queues at these locations to purchase gold, resulting in chaotic situations, local media reported.

In the first seven months, city authorities seized nearly 1,600 gold and jewelry items found to be in violation of regulations, with an estimated total value of VNĐ14.2 billion.

Authorities have also identified nearly 200 violations of the law, the majority of which involved gold jewelry lacking clear provenance or bearing counterfeit branding.

Việt Nam has recently intensified security measures at gold selling points to prevent price manipulation, as rumours of gold shortages have led to market instability.

The central bank has been urged since the end of last year to implement measures to manage the gold market to ensure that gold bar prices do not exceed global rates.

With huge discrepancies between domestic and international gold prices, profit-driven smuggling has increased, causing losses of State revenue, as well as posing risks to foreign exchange rates.

In June, the central bank appointed four State-own commercial banks to sell SJC-branded gold bars with strict conditions for buyers in order to tackle speculation.

This helps significantly narrow the price gap between domestic and global gold prices from VNĐ17 million several months ago to VNĐ6 million. — VNS