Early detection of abnormal signs

With the task of advising on ensuring the safety of the capital's economy , upon receiving information that the State Bank of Vietnam, through four state-owned commercial banks, and Saigon Jewelry Company Limited (SJC) were selling SJC gold bars to the public, the Economic Security Department of the Hanoi City Police predicted potential risks to public order and monetary security in the capital.

This could involve groups of people who benefit from the price difference between domestic and international gold, or individuals and organizations who may use their personal names to purchase large quantities of SJC gold.

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Authorities inspecting a gold and silver business discovered violations. Photo: CACC

On June 7th, the State Bank of Vietnam sent a document requesting the Hanoi City Police to direct relevant units to verify the spread of information that banks were short of gold to sell; and that at many gold selling points, individuals were hiring people to queue up to buy up gold with the goal of driving up prices, profiting from the difference, causing instability in the market and damage to the economy.

At the same time, it is proposed to implement coordinated solutions to ensure security at gold selling locations of state-owned commercial banks and Saigon Jewelry Company Limited (SJC), limiting the situation where individuals with malicious intentions hire people to queue up to buy up gold, causing a disruption of public order and security.

Numerous groups of people have been seen lining up to rent or buy gold at 'stabilized prices'.

Through investigation and verification, the task force of the Economic Security Department identified several individuals suspected of hiring people to queue up to buy gold at some branches of Vietcombank, Agribank , etc., which were authorized to sell "stabilized" gold in Hanoi.

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SJC gold is being sold to unlicensed gold and silver businesses at a higher markup compared to the price offered by state-owned commercial banks. Photo: CACC

Initial investigations revealed approximately 4-5 separate groups, each with an individual responsible for collecting the gold after the customers (suspected to be hired) completed their gold transactions with the bank.

These groups all operate by transferring money to group members in advance; after obtaining a queue number, they wait their turn to trade and buy gold.

After receiving the gold from the bank, the buyers would gather to hand over the gold to the main buyer. Some buyers would move to other locations to continue queuing to buy gold.

By tracking the movements of the key suspects, the detectives determined their destination was gold and silver trading establishments.

For example, at the BTTH gold and silver shop in Nhan Chinh ward (Thanh Xuan district, Hanoi), owned by Ms. D.TT, there were 4 people queuing to buy gold.

Besides Mrs. T.'s husband, there were 3 other individuals who lined up to buy gold at state-owned commercial banks. At these gold selling points, these 3 individuals purchased 4 taels of gold, then moved to the BTTH store. Initial verification determined that the individuals associated with this store had lined up to buy a total of 14 taels of SJC gold.

On June 17th, following the directives of the Hanoi City Police Department, the Economic Security Department, in coordination with the Hanoi Market Management Department, established three working groups to inspect compliance with legal regulations regarding the buying and selling of gold by organizations and individuals engaged in gold trading in Hanoi.

An inspection at the BTTH store revealed that Mrs. T.'s husband was purchasing 1 tael of SJC gold from an individual for 81 million VND/tael, paying via bank transfer without any receipt or documentation. The BTTH gold and silver business is not licensed to buy and sell SJC gold bars.

At the time of inspection, the store was unable to produce invoices or receipts for some of the jewelry items on display. The inspection team drew up a report and temporarily seized the administrative violation items, including 1 SJC gold bar, 232 gold-colored rings, and 48 white-colored rings.

At Ha Trung Street, Task Force No. 3 of the Economic Security Department and the Market Management Department conducted an inspection at TL Gold and Silver Trading Company Limited. During the inspection, they discovered the company was purchasing 1 tael of SJC gold from an individual for 81 million VND/tael, payable via bank transfer. The inspection team drew up a report and temporarily seized the evidence of the administrative violation.

"The case of buying gold at a higher price than the bank's selling price shows that there is a phenomenon where gold and silver shop owners are willing to pay the difference to buy SJC gold bars, going against the State Bank's stance on stabilizing the gold market," observed Lieutenant Colonel Nguyen Dac Tai, Head of the Currency Security Team of the Economic Security Department.

Most of these establishments are not licensed to trade SJC gold bars or foreign currency, but they are always ready to buy SJC gold bars at high prices for hoarding, then sell them at even higher prices, causing instability in the gold market.

In the coming period, the Economic Security Department will continue to gather information on the gold market situation, coordinate with the State Bank of Vietnam and the Market Management Department to inspect gold and foreign exchange trading points in the city, provide accurate forecasts, and thereby advise relevant authorities on solutions to stabilize the gold market.