Quyết định 03/2006/QD-NHNN

DECISION

ON GOLD TRADING VIA OVERSEAS ACCOUNTS

THE GOVERNOR OF THE STATE BANK

Pursuant to the December 12, 1997 Law on the State Bank of Vietnam and the June 17, 2003 Law Amending and Supplementing a Number of Articles of the Law on the State Bank of Vietnam;
Pursuant to the December 12, 1997 Law on Credit Institutions and the June 15, 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
Pursuant to the Government's Decree No. 52/2003/ND-CP of May 19, 2003, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
At the proposal of the Director of the Foreign Exchange Management Department,

DECIDES:

Article 1.- Governing scope and subjects

This Decision governs the trading in gold via overseas accounts by credit institutions licensed to conduct foreign exchange operations and engaged in gold trading activities (hereinafter called credit institutions for short) and gold-trading enterprises.

Article 2.- Interpretation of terms

1. "Gold trading via overseas accounts" means gold trading via overseas gold accounts in transactional forms according to international practice.

2. "Gold position of credit institutions" means the gold balance on overseas gold accounts of credit institutions.

3. "Gold position of gold-trading enterprises" means the gold balance on overseas gold accounts of enterprises.

4. "Converted gold position price" means the buying price at the opening time of credit institutions or gold-trading enterprises.

Article 3.- Conditions for gold trading via overseas accounts

1. General conditions:

a/ Having effective internal control systems and regulations on risk management in the gold trading domain.

b/ Having at least 01 (one) year of experience in gold trading, import and export activities.

c/ Not violating regulations on the management of gold-trading activities.

2. For credit institutions:

a/ Having 01 (one) year or more of experience in gold trading and gold deposit mobilization and lending, counting to the date of filing applications for gold trading via accounts.

b/ Having the gold deposit mobilization balance of 500 (five hundred) kilograms of gold or more, counting to the last day of the month preceding the date of filing applications for gold trading via accounts.

3. For gold-trading enterprises:

Having their own capital of VND 100 billion at a minimum.

Article 4.- Procedures for grant of permits for gold trading via overseas accounts

1. Basing themselves on the conditions set in Article 3 of this Decision, credit institutions and gold-trading enterprises shall send dossiers of application for permits for gold trading via overseas accounts to the State Bank of Vietnam (through the Foreign Exchange Management Department). Such a dossier comprises:

a/ An application for a permit for gold trading via overseas accounts;

b/ Copies of the foreign exchange operation permit and business registration certificate, for credit institutions; or a copy of the business registration certificate, for gold-trading enterprises;

c/ A plan on gold trading via overseas accounts, the operational process of trading in gold via overseas accounts;

d/ A report on the latest year's situation of gold trading, import and export, and gold mobilization and lending activities.

2. Within 10 (ten) working days after receiving complete and valid dossiers, the State Bank of Vietnam shall consider and grant permits for gold trading via overseas accounts to the subjects that fully meet the set conditions. In case of refusal to grant permits, the State Bank of Vietnam must state the reasons therefor in writing.

Article 5.- Gold position limit

1. Credit institutions shall maintain the gold position calculated at the converted gold position price not exceeding ± 20% of their own capital.

2. Gold-trading enterprises shall maintain the gold position calculated at the converted gold position price not exceeding ± 100% of their own capital.

Article 6.- Responsibilities of credit institutions and enterprises licensed to trade in gold via overseas accounts

1. To be accountable for the efficiency and safety in their activities of gold trading via overseas accounts.

2. To observe the provisions of law on foreign exchange management and gold-trading activity management and the provisions of this Decision.

3. To send by the 5th day of a month reports on the preceding month's situation of gold trading via overseas accounts to the State Bank of Vietnam (through the Foreign Exchange Management Department) and its branches in provinces or centrally run cities where they are headquartered.

Article 7.- Handling of violations

Organizations or individuals that violate the provisions of this Decision shall, depending on the nature and seriousness of their violations, be sanctioned for administrative violations in the monetary and banking activities or examined for penal liability.

Article 8.- Organization of and responsibilities for implementation

1. The Director of the Foreign Exchange Management Department and heads of units under the State Bank shall have to implement this Decision.

2. The Director of the Finance-Accounting Department shall have to guide accounting of transactions of gold trading via overseas accounts.

3. The chief inspector of the State Bank and directors of the State Bank's provincial/municipal branches shall have to inspect and supervise the implementation of this Decision by credit institutions and enterprises licensed to trade in gold via overseas accounts according to their decentralized management responsibilities.

4. General directors (directors) of credit institutions and gold-trading enterprises licensed to trade in gold via overseas accounts shall be accountable before the State Bank Governor for the implementation of this Decision by their respective units.

5. Within 30 days after the effective date of this Decision, credit institutions and enterprises that are trading in gold via overseas accounts must carry out procedures of application for permits under the provisions of this Decision.

Article 9.- Implementation effect

This Decision takes effect 15 days after its publication in "CONG BAO."