Vietnam to confiscate gold bullion traded at unlicensed shops

The government’s Decree No. 340, which takes effect on February 9, stipulates administrative sanctions in the monetary and banking sector and introduces strict measures against the illegal production and trading of gold bullion and raw gold.

The move is aimed at enhancing market transparency, combating smuggling, and stabilizing the domestic gold market.

Under the decree, serious violations such as producing or trading gold bullion without a license issued by the State Bank of Vietnam, illegally exporting or importing raw gold or gold bullion, or conducting other gold-related business activities without proper authorization will be subject to fines ranging from VND300 million (US$11,455) to VND400 million ($15,270).

Apart from monetary penalties, authorities can impose supplementary sanctions, including confiscation of all illegally traded gold, suspension of gold bullion trading activities, suspension of raw gold imports, or revocation of business licenses in cases of serious or repeated violations.

For violations involving gold trading transactions, including gold bullion, which are not settled through bank accounts, applicable to transactions of VND20 million ($764) or more per day, fines of VND10-20 million ($382-764) will be imposed.

Meanwhile, failure to publicly list buying and selling prices of gold bullion, jewelry, or fine-art gold products, producing gold jewelry, fine-art gold, or gold bullion without disclosing applicable standards, or failing to label goods in accordance with regulations will result in fines of VND30-50 million ($1,150-1,910).