Gold Bar Serial Number Management: Solution for Gold Traceability

Record serial number to trace gold origin

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

Therefore, the Ministry of Public Security proposed that the State Bank add a mandatory regulation to record information on gold bar serial numbers on transaction documents.

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

Speaking to a reporter from Nguoi Lao Dong Newspaper, Ms. Nguyen Thi Phuong, former Deputy General Director of the Bank for Agriculture and Rural Development ( Agribank ), said that from June 30, 2024, the State Bank of Vietnam has allowed 4 major commercial banks (Agribank, Vietcombank, VietinBank, BIDV) and Saigon Jewelry Company (SJC) to directly participate in the gold retail market.

All transactions here are fully recorded, from the gold bar serial number to the buyer's citizen identification card (CCCD). This means that each gold bar is clearly identified, making it easy for management agencies to trace when necessary.

However, in reality, this is only done at large banks and units designated by the State Bank. At many private gold trading enterprises, the situation of not recording serial numbers or buyer identities is still common. This loophole makes inspection and supervision by authorities difficult, especially when it comes to verifying the origin of gold or cash flow in transactions showing signs of irregularity.

Therefore, Ms. Phuong agrees with the proposal of the Ministry of Public Security to add a mandatory regulation 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" associated with the personal information of the buyer. At that time, storing the full serial number and the customer's ID card will help the market become more transparent, while effectively supporting the investigation, prevention of money laundering and control of illegal money flows.

Deploying the "golden account" model

Not stopping at physically identifying gold bars, a long-term solution proposed by Ms. Phuong is to deploy a "gold account" model, similar to a stock account, at banks and gold trading enterprises.

Gold transactions will be conducted through an exchange directly connected to the State Bank, in which all information is digitized and centrally stored. When looking up, the authorities only need to access the customer's ID card to clearly understand the 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 Jewelry Joint Stock Company (AJC), said that the gold account model not only helps the State Bank control market supply and demand in a transparent manner but also creates a foundation for timely intervention and regulation when unusual fluctuations occur. This is also an inevitable step to modernize gold trading activities in Vietnam, in line with the development trend of advanced financial markets in the world .

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