Vietnam’s 3 major gold trading firms fined over $230,000 for multiple violations

The State Bank of Vietnam’s (SBV) Inspectorate announced their violations on Friday following an extensive audit of their compliance with gold trading laws and anti-money laundering regulations.

At Saigon Jewelry Company (SJC), the country’s largest gold trading firm, the SBV Inspectorate found that while the company largely adhered to legal requirements for gold bullion trading and reporting, it also committed several significant violations.

These include excessive or misleading information in reports, signs of unfair competition, and internal procedural flaws in gold pricing.

Specifically, SJC’s general director independently set gold prices without internal rules, benchmarks, or separated responsibilities among departments, creating risks for both the company and the broader market, given SJC’s large market share.

The inspection also revealed violations in anti-money laundering practices.

SJC failed to identify politically exposed persons, report large transactions, or implement adequate internal audits and anti-money laundering training.

Also, it issued unauthorized invoices and engaged in tax violations.

As a result, the case was referred to the Ministry of Public Security for further investigation into possible criminal offenses.

SBV’s chief inspector decided to levy an administrative fine of VND2.14 billion ($82,400) on SJC.

Similarly, Bao Tin Minh Chau Company was found to have sold gold products above listed prices, failed to comply with e-commerce regulations, and lacked essential consumer protection policies on its website.

Bao Tin Minh Chau also neglected anti-money laundering obligations, such as identifying high-risk customers and reporting large transactions.

At Phu Nhuan Jewelry Joint Stock Company (PNJ), inspectors flagged misleading product information, violations in gold jewelry labeling, tax compliance issues, and multiple anti-money laundering failures.

Both PNJ and Bao Tin Minh Chau were referred to police for suspected criminal violations, including improper accounting and tax practices.

According to SBV’s chief inspector, PNJ received an administrative fine of VND1.34 billion ($51,600), while Bao Tin Minh Chau was fined VND2.64 billion ($101,700).

The Vietnamese central bank urged all three gold trading firms to immediately halt violations and strictly comply with regulations on gold trading, anti-money laundering, accounting, and taxation.