Vietnam Central Bank fines FX & Gold Trading Companies

Vietnam’s central bank has imposed stiff penalties on two companies and a university in Hanoi for violating regulations on U.S. dollar trading and illegally listing prices in the foreign currency.

The combined fine of VND650 million (US$30,940) showed that the State Bank of Vietnam is getting more serious about tightening control over the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market.

Central bank inspectors said Ngoc Long Co., a gold trader, has engaged in illegal dollar trading. It was fined VND100 million and ordered to hand in US$12,195 to the authorities. The company was also asked to sell to a commercial bank a dollar amount worth $10,000 that its director voluntarily reported to inspectors.

Another gold trading company, My Phuong, was caught by inspectors attempting to sell $1,000 to a client. It has also been ordered to sell the amount to a commercial bank and pay a fine of VND50 million.

Meanwhile, the central bank fined FPT University VND500 million for publishing tuition fees in dollars. The information technology school has been told to stop advertising and listing fees in the foreign currency.

Vietnam last month increased penalties for foreign currency and gold trading violations, raising the maximum fine to VND500 million (US$23,860).

Vietnam recently made amendments to FX trading fund transfer.

Forexmagnates team will be covering the Vietnamese FX space in the next quarterly report.