Early detection of abnormalities

With the mission of being an advisory agency to ensure the safety of the capital's economy, when there was information that the State Bank, through 4 state-owned commercial banks and Saigon Jewelry Company Limited - SJC, sold SJC gold bars to the people, the Economic Security Department of Hanoi City Police predicted the risks to security, order, and monetary security that could occur in the capital.

Among them, there may be groups of people who benefit from the difference in domestic and international gold prices or individuals and organizations that can use their personal names to buy large quantities of SJC gold.

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Authorities inspect a gold and silver business and discover violations. Photo: CACC

On June 7, the State Bank of Vietnam sent a dispatch requesting the Hanoi City Police to direct relevant professional units to verify the spread of information that banks were short of gold for sale; at many gold selling points, there were subjects hiring people to queue up to buy gold with the goal of pushing up prices, taking advantage of the difference, causing instability to the market and causing damage to the economy.

At the same time, it is recommended to deploy coordinated solutions to ensure security at gold selling locations of State-owned commercial banks and Saigon Jewelry Company Limited - SJC, to limit the situation of subjects with bad intentions hiring people to queue up to buy gold, causing disorder.

Many groups of people lined up to rent and buy 'stabilized' gold

Through the process of investigation and verification, the working group of the Economic Security Department identified a number of subjects who showed signs of hiring people to queue up to buy gold at some branches of Vietcombank, Agribank... to sell "stabilized" gold in Hanoi.

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SJC gold is sold to unlicensed gold and silver trading establishments at a higher price than that sold by state-owned commercial banks. Photo: CACC

Initially, it was determined that there were about 4-5 separate groups and in each group there was a subject who collected the gold after the customers (suspected to have been hired) completed the gold purchase transaction with the bank.

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

After receiving gold from the bank, the buyers will focus on delivering gold to the main subject. Some subjects move to other points to continue lining up to buy gold.

Tracking the movements of the main subjects, the scouts determined the destination to be gold and silver trading establishments.

Typically, the BTTH gold and silver store in Nhan Chinh ward (Thanh Xuan district, Hanoi) owned by Ms. D.TT had 4 people lining up to buy gold.

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

On June 17, implementing the direction of the City Police Department, the Economic Security Department coordinated with the Hanoi Market Management Department to establish 3 working groups to inspect the compliance with legal regulations on gold buying and selling activities for organizations and individuals trading gold in Hanoi.

Checking at the BTTH store, it was discovered that Ms. T's husband was purchasing 1 tael of SJC gold from an individual for 81 million VND/tael, paid by bank transfer, without any invoices or documents. The BTTH gold and silver store is not licensed to buy and sell SJC gold bars.

At the time of inspection, the store could not present invoices or documents for some of the jewelry items being sold. The inspection team drew up a record and temporarily seized the administrative violation evidence of 1 tael of SJC gold, 232 gold jewelry rings, and 48 white jewelry rings.

At Ha Trung Street, Working Group No. 3 of the Economic Security Department and the Market Management Department conducted an inspection at TL Gold and Silver Trading Company Limited. At the time of the inspection, it was discovered that the company was purchasing 1 tael of SJC gold from an individual for 81 million VND/tael, paid by bank transfer. The inspection team drew up a record and temporarily seized the administrative violation evidence.

“The incident of buying gold at a higher price than the bank sells shows that there is a phenomenon of gold and silver shop traders willing to pay the difference to buy SJC gold bars, which goes against the State Bank's view of stabilizing the gold market,” said Lieutenant Colonel Nguyen Dac Tai, Head of the Monetary Security Team of the Economic Security Department.

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

In the coming time, the Economic Security Department will continue to grasp information about the gold market situation, coordinate with the State Bank and the Market Management Department to inspect gold and foreign exchange transaction points in the city, make realistic forecasts, thereby advising all levels to have solutions to stabilize the gold market.