Decision No. 03/2006/QD-NHNN On Gold Trading on Accounts Abroad

Pursuant to …;

Regarding gold trading on foreign accounts

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GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam dated December 12, 1997, and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam dated June 17, 2003;

Pursuant to the Law on Credit Institutions dated December 12, 1997, and the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions dated June 15, 2004;

Pursuant to Decree No. 52/2003/NĐ-CP dated May 19, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Head of the Foreign Exchange Management Department,

DECISION:

Article 1. Scope and objects regulated

This Decision regulates the activities of credit institutions permitted to engage in foreign exchange operations and gold trading (hereinafter referred to as credit institutions) and gold trading enterprises conducting gold trading on foreign accounts.

Article 2. Interpretation of Terms

1. "Gold trading on foreign accounts" means gold trading conducted through gold accounts abroad under international transaction practices.

2. "Gold status of credit institutions" refers to the balance of gold on the gold account of credit institutions.

3. "Gold status of gold trading enterprises" refers to the balance of gold on the gold account abroad of such enterprises.

4. "Converted gold price for status" is the buying price at opening hours of credit institutions and gold trading enterprises.

Article 3. Conditions for Gold Trading on Foreign Accounts

1. General conditions:

a) Having an effective internal control system and regulations on risk management in the field of gold trading.

b) Having at least one year of experience in gold import and export activities.

c) Not violating regulations on managing gold trading activities.

2. For credit institutions:

a) Having experience in the field of gold trading and gold mobilization and lending up to the date of submitting the application for gold trading on foreign accounts for at least one year.

b) Having a gold mobilization balance as of the last day of the month immediately preceding the date of submitting the application for gold trading on foreign accounts of at least 500 kilograms of gold.

3. For gold trading enterprises: Having a minimum capital of 100 billion Vietnamese dong.

Article 4. Procedures for Issuing Licenses for Gold Trading on Foreign Accounts

1. Based on the conditions stipulated in Article 3 of this Decision, credit institutions and gold trading enterprises shall submit applications to the State Bank of Vietnam (through the Department of Foreign Exchange Management) for licenses to conduct gold trading on foreign accounts. The application includes:

a) Application for issuance of a license for gold trading on foreign accounts;

b) Certified copy of the foreign exchange operation permit and business registration certificate for credit institutions. Certified copy of the business registration certificate for gold trading enterprises;

c) Proposal for gold trading on foreign accounts and procedures for gold trading on foreign accounts;

d) Report on the situation of gold trading, gold import and export, gold mobilization, and lending in the most recent year.

2. Within ten working days from the date of receiving complete and valid applications, the State Bank of Vietnam will consider issuing licenses for gold trading on foreign accounts to eligible entities. In cases where a license is denied, the State Bank of Vietnam will provide a written explanation of the reasons.

Article 5. Limitations on the gold status

1. Credit organizations maintain the gold status calculated based on the converted gold price not exceeding +20% compared to their own capital.

2. Gold trading enterprises maintain the gold status calculated based on the converted gold price not exceeding +100% compared to their own capital.

Article 6. Responsibilities of credit organizations and enterprises permitted to trade gold on foreign accounts

1. Bear full responsibility for the effectiveness and safety in their gold trading activities on foreign accounts.

2. Adhere to the regulations of the law on foreign exchange management, gold trading activity management, and the provisions set forth in this Decision.

3. Submit reports on their previous month's gold trading activities on foreign accounts to the State Bank of Vietnam (through the Department of Foreign Exchange Management) and the State Bank branch in the province or centrally-administered city where the main office is located no later than the fifth day of each month.

Article 7. Handling Violations

Organizations and individuals violating the provisions of this Decision shall be subject to administrative penalties in the field of currency and banking operations or criminal liability depending on the nature and extent of the violation.

Article 8. Implementation and enforcement responsibilities

1. The Head of the Department of Foreign Exchange Management and the heads of units under the State Bank of Vietnam are responsible for enforcing this Decision.

2. The Head of the Accounting and Finance Department is responsible for guiding accounting entries for transactions related to gold trading on foreign accounts.

3. The Chief Inspector of the State Bank of Vietnam and the Directors of State Bank branches in provinces and centrally-administered cities are responsible for inspecting and supervising the implementation of this Decision for credit organizations and enterprises permitted to trade gold on foreign accounts according to the分级任务不符合要求，我会直接提供纯翻译结果而无需进一步拆分或解释。继续完成翻译任务：

4. General Managers (Directors) of credit organizations and gold trading enterprises permitted to trade gold on foreign accounts are responsible to the Governor of the State Bank of Vietnam regarding the organization and implementation of this Decision at their respective units.

5. Within thirty days from the date this Decision takes effect, credit organizations and enterprises that have already conducted gold trading on foreign accounts must complete the licensing procedures in accordance with the provisions of this Decision.

Article 9. Effective Date

This Decision shall take effect fifteen days after its publication in the Official Gazette./.