First, regarding compliance in gold trading regulations, SJC had policies in place. However, during transactions, staff often accepted verbally provided ID numbers from customers rather than physically verifying identity cards. This led to errors, such as misrecorded or incorrect ID information.

To address this, SJC updated its policies. Staff are now required to obtain a photocopy of the customer’s identity card to verify address details. The revised procedure was reported to the SBV on June 10.

Second, in terms of regulatory reporting, SJC is now fully compliant, submitting daily and weekly reports to the SBV’s Foreign Exchange Reserve Management Department using the appropriate templates.

Third, regarding anti-money laundering (AML) compliance, SJC previously had informal policies but lacked formalized structures as required. The company has since paid a penalty and submitted a request for guidance from the SBV’s AML Department. That department has dispatched officials to train SJC staff and help establish robust AML procedures.

Fourth, on accounting and invoicing compliance, early missteps occurred when SJC introduced electronic invoicing. Staff were unclear on how to correct errors in digital documents. The company is now developing clear guidance for handling invoice mistakes. Additionally, some gold processing transactions were mistakenly recorded as sales, leading to accounting discrepancies, which have now been corrected.

Fifth, regarding internal processes for setting daily gold buying and selling prices, SJC has issued a new pricing framework based on the Price Law dated June 19, 2023. The company uses comparative pricing methods to determine daily rates.

According to Dao Cong Thang, SJC has resolved nearly all the issues raised. Only the AML processes and electronic invoice handling protocols remain under final development.

SJC emphasized that the SBV’s inspection findings identified operational shortcomings, not legal violations. “Some aspects of the audit report have been forwarded to investigative authorities. But at this point, I can confirm that SJC has not committed any violations - only deficiencies,” Thang stated.

In May, the State Bank of Vietnam released an inspection report assessing SJC’s compliance with gold trading regulations.

Tran Chung