Gold Bar Serial Number Management: A Solution to Trace Gold Origin

Record the serial number to trace the origin of the gold.

Regarding the draft amendment to Decree 24 on the management of gold trading activities, the Ministry of Public Security noted that the State Bank of Vietnam (SBV) has not yet issued specific regulations on managing the serial numbers of gold bars, including the serial numbers of newly produced gold bars, damaged gold bars that have been reprocessed, serial numbers in buying and selling transactions, or serial numbers when gold bars are converted into raw materials.

Therefore, the Ministry of Public Security proposes that the State Bank of Vietnam add a regulation mandating the recording of gold bar serial numbers on transaction documents.

Đề xuất triển khai mô hình — The Ministry of Public Security has proposed that the State Bank of Vietnam add a regulation requiring the recording of gold bar serial numbers on transaction documents.

Speaking with a reporter from Nguoi Lao Dong Newspaper, Ms. Nguyen Thi Phuong, former Deputy General Director of the Agricultural and Rural Development Bank ( Agribank ), said that from June 30, 2024, the State Bank of Vietnam (SBV) allowed four major commercial banks (Agribank, Vietcombank, VietinBank, BIDV) along with Saigon Jewelry Company (SJC) to directly participate in the retail gold market.

All transactions here are fully documented, from the serial number of the gold bars to the buyer's national identity card number. This means each gold bar is clearly identified, making it easy for authorities to trace when necessary.

However, in reality, this practice is only implemented at large banks and units designated by the State Bank of Vietnam. At many private gold trading businesses, the failure to record serial numbers or buyer identities remains common. This loophole makes inspection and supervision by authorities difficult, especially when verifying the origin of gold or the flow of funds in transactions with suspicious characteristics.

Therefore, Ms. Phuong agrees with the Ministry of Public Security's proposal to add a mandatory requirement to record the serial number of gold bars on invoices and transaction documents. She believes that the serial number, especially for SJC gold, should be considered a form of "identification code" linked to the personal information of the buyer. Storing the complete serial number along with the customer's citizen identification card would make the market more transparent and effectively support investigations, anti-money laundering efforts, and control of illegal money flows.

Implementing the "gold account" model

Beyond simply physically identifying gold bars, a long-term solution proposed by Ms. Phuong is to implement a "gold account" model, similar to a securities account, at banks and gold trading businesses.

Gold transactions will be conducted through an exchange directly connected to the State Bank of Vietnam, where all information is digitized and centrally stored. When needed, authorities can simply access the customer's ID card to obtain a detailed transaction history, serial number, time, and value of each purchase and sale.

This view has received support from businesses. Mr. Tran Huu Dang, General Director of Asia Gold, Silver and Gemstone Joint Stock Company (AJC), believes that the gold account model not only helps the State Bank of Vietnam control market supply and demand transparently but also creates a foundation for timely intervention and regulation when unusual fluctuations occur. This is also a necessary step to modernize gold trading activities in Vietnam, in line with the development trends of advanced financial markets around the world .

Source: https://nld.com.vn/de-xuat-trien-khai-mo-hinh-tai-khoan-vang-196250718103034276.htm