Originally published 9 April 2010
Keywords: Vietnam, banks, offshore gold accounts, gold trading
On 26 March 2010 the State Bank of Vietnam ("SBV") issued Circular No. 10/2010/TT-NHNN amending Articles 2.2 and 2.3 of Circular No. 01/2010/TT-NHNN dated 6 January 2010 ("Circular 01") which repealed Decision No. 03/2006/QD-NHNN dated 18 January 2006 on gold trading on offshore accounts ("Decision 03") and Decision No. 11/2007/QD-NHNN dated 15 March 2007 ("Decision 11").
For further information about Circular 01, see JSM's 19 January 2010, Client Alert "Vietnam Authorities Taking Steps to Close Gold-Trading Floors".
In implementation of the directives of the Prime Minister in Notice No. 315/VPCP-KTTH of the Government Office dated 25 March 2010, the SBV amends Articles 2.2 and 2.3 of Circular 01 as follows:
"2. Credit institutions and enterprises currently trading gold on offshore accounts shall be responsible to finalise transactions and close such accounts prior to 30 June 2010.
3. Licences to trade gold on offshore accounts issued by the State Bank to credit institutions and gold traders pursuant to Decision 03 and Decision 11 shall no longer be valid as from 30 June 2010."
The Head of the Office, the Head of the Foreign Exchange Control Department, heads of State Bank entities, directors of State Bank branches in provinces and cities, credit institutions and entities trading gold on offshore accounts are responsible for implementation of this Circular.
The Circular takes effect from 26 March 2010.
Learn more about our Vietnam offices and Banking & Finance practice.
Visit us at www.mayerbrown.com
Copyright 2010. JSM, Mayer Brown International LLP and/or Mayer Brown LLP. All rights reserved. Mayer Brown is a global legal services organization comprising legal practices that are separate entities ("Mayer Brown Practices"). The Mayer Brown Practices are: JSM, a Hong Kong partnership, and its associated entities in Asia; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales; and Mayer Brown LLP, a limited liability partnership established in the United States. The Mayer Brown Practices are known as Mayer Brown JSM in Asia.
This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein. Please also read the JSM legal publications Disclaimer.
