The State Bank of Vietnam (SBV) Inspectorate has just issued a Notice of Inspection Conclusion on compliance with policies and laws in gold trading activities at the Export-Import Commercial Joint Stock Bank of Vietnam (Eximbank).
The conclusion shows that, in addition to complying with some regulations, Eximbank still has many significant violations and shortcomings, especially in gold bar trading and money laundering prevention and control.
According to the conclusion of the inspection agency, in compliance with legal policies on gold trading activities, the inspection results showed that Eximbank employees had shortened the operations during the counting and delivery of gold, receiving gold; at the same time, shortened the counting, collection and payment of VND to customers.
The VND difference arising from gold trading transactions on the same day when customers deposit or withdraw cash from VND payment accounts has created conditions for customers to conduct buying and selling transactions with the same quantity of gold bars at the same time. However, in reality, Eximbank's customers and transaction staff do not make transfers of gold and money (only sign the receipt of gold and money), but only trade the gold price difference for the purpose of making a profit.
This activity has increased Eximbank's gold bar sales. According to records, 3 customers accounting for 15% of total gold bar sales during the inspection period have continuously conducted buying and selling transactions with the same quantity and at the same time at Eximbank. This does not accurately reflect the nature of the bank's gold bar trading activities.
Regarding compliance with legal regulations on money laundering prevention and control, Eximbank was determined to have violated regulations when it did not report on some large-value gold buying and selling transactions in accordance with regulations.
In addition, the bank also violated regulations on accounting regimes, issuance and use of invoices and documents; declaration and performance of tax obligations. Eximbank did not establish invoices for some transactions of selling gold bars to customers and there were cases of issuing invoices at the wrong time as prescribed.
Regarding the reason, the SBV Inspectorate believes that the direction and management of the Board of Directors, the Supervisory Board and the Executive Board of Eximbank during the inspection period did not strictly comply with legal regulations in gold trading activities, leading to violations and shortcomings. Some individuals and departments at Eximbank units/ branches have not fully complied with legal regulations in this field over time.
Based on the discovered violations, the Chief Inspector of the State Bank issued a decision to administratively sanction Eximbank. The bank was fined VND400 million for violating legal regulations on money laundering prevention and control.
Along with administrative sanctions, the SBV Inspectorate also made many recommendations for handling. In particular, it is recommended that relevant ministries and branches consider and handle according to their authority, based on legal regulations on shortcomings and violations in the field of state management.
At the same time, Eximbank is required to immediately stop administrative violations related to money laundering prevention and control; strictly comply with regulations related to money laundering prevention and control, terrorist financing, and sponsorship of the dissemination of weapons of mass destruction; promptly correct and correct the violations mentioned in the inspection conclusion.
The SBV Inspector also requested Eximbank to terminate the purchase and sale of the same amount of gold bars at the same time without performing gold and money delivery (only signing documents), only making cash transactions based on the difference of gold price, because this does not reflect the nature of gold bar sales. At the same time, Eximbank must organize the review of violating organizations and individuals in shortening the tallying, delivery and receipt of gold and collection - expenditure of VND with customers.
