The crackdown on gold trading violations begins tomorrow as authorities launch a coordinated, multi-agency inspection and enforcement campaign targeting illegal practices in the gold market. This new initiative responds to recent concerns about volatility, unlawful trading, smuggling, and lack of regulatory compliance in the gold sector, aiming to restore transparency, financial security, and market stability.
Background and Scope of the Crackdown
Deputy Prime Minister Nguyen Hoa Binh has issued a directive for the Government Inspectorate to lead the crackdown, backed by cooperation among the Ministry of Industry and Trade, Ministry of Finance, Ministry of Public Security, and the State Bank of Vietnam. The inspection team will officially form on September 9, 2025, the day the crackdown begins, to enforce compliance with gold trading laws and related financial regulations.
The investigation will examine compliance with anti-money laundering laws, proper issuance and use of invoices, tax obligations, and other legal requirements. Any violations discovered during inspections must be promptly reported to police authorities. The inspection results are expected to be reported to the Prime Minister by the end of September 2025, underscoring the government’s urgency in addressing these market issues.
Government Goals
The government emphasizes the need for a safe, transparent, and sustainable gold market. It stresses that fluctuations in gold prices must not destabilize broader financial markets or threaten macroeconomic stability. The State Bank of Vietnam has been tasked with implementing strict regulatory oversight measures and must submit weekly market reports to government leadership, indicating ongoing supervision beyond the initial crackdown phase.
The Ministry of Public Security is also involved to coordinate enforcement actions against those engaged in illegal activities such as gold smuggling, fraud, tax evasion, profiteering, hoarding, and market manipulation. The government’s stance is firm, with a zero-tolerance policy toward violations, insisting on enforcement “without compromise” to protect the integrity of the gold market.
Context: Issues in Gold Trading
The gold market has experienced significant volatility, speculative trading, and opaque pricing practices. Previous crackdowns highlighted the challenges of fluctuating prices that do not align with global gold rates or currency exchange movements. In some cases, gold traders have not adopted modern documentation or computerized sales systems, contributing to irregularities and difficulties in tracking legitimate transactions. Consumers often face confusion regarding gold quality, and some small traders lack integration with tax reporting systems.
Law enforcement agencies have previously arrested traders implicated in illicit gold dealings, hoarding, and unreported sales, yet follow-through on promised reforms by trade bodies has been inconsistent. The Federal Investigation Agency and security officials have stressed the importance of increased transparency, formalizing trading practices and discouraging speculation fueled through informal channels like social media groups.
International and Regional Connections
This crackdown aligns with broader global efforts where key gold trading hubs and market regulators have tightened scrutiny to combat money laundering, smuggling, and unethical sourcing of gold. For example, the London Bullion Market Association has pushed trading centers worldwide, including major hubs like the UAE, China, Switzerland, and India, to enforce regulatory standards to ensure responsible gold supply chains. Those failing to meet standards risk exclusion from the mainstream bullion market.
Other countries have also intensified their responses. Ghana’s Gold Board recently seized significant amounts of gold and cash from illegal traders and imposed stricter penalties on foreign nationals involved in unlawful gold dealings. These enforcement actions highlight the widespread international commitment to cleaning up gold trading markets.
Statements from Authorities
Deputy Prime Minister Nguyen Hoa Binh emphasized the government’s commitment to thoroughly inspect the gold trading sector, asserting that any signs of legal violations must be swiftly acted upon by transferring evidence to law enforcement. He underscored that the health of the gold market is vital to broader financial and macroeconomic stability.
Sammy Gyamfi, Managing Director of Ghana’s Gold Board, referred to illegal gold traders as “enemies of the state,” citing their detrimental impact on foreign exchange resources and national economic development. Ghana’s stringent measures, including arrest and possible imprisonment of offenders, serve as a strong example of enforcement intent and national interest protection.
In Pakistan, similar concerns have led authorities to crack down on illegal gold smuggling and speculation. Efforts include bringing gold traders into the tax system, developing computerized trading systems, and increasing cooperation among intelligence and law enforcement agencies to curb instances of market manipulation and black market dealings.
Expected Impact and Future Measures
The crackdown aims to stabilize the gold market through improved legal compliance and transparency. As traders are brought under stricter regulatory control and documentation requirements, the government expects a reduction in illicit activities, which distort prices, harm consumer confidence, and threaten fiscal revenues.
Additional measures may include the establishment of dedicated oversight bodies involving trade representatives to monitor daily rate issuance, enforce quality controls, and prevent speculative and illegal market activities. Encouraging computerization and integration with tax systems for gold retailers also forms part of the long-term governance strategy.
Moreover, the crackdown’s success will depend on sustained government vigilance, close coordination with law enforcement, and active cooperation from the gold trading community to induce cultural shifts towards legal and transparent business practices.
Conclusion
Starting tomorrow, the crackdown on gold trading violations represents a critical step by the authorities to address long-standing problems in the sector, including smuggling, fraud, tax evasion, and market destabilization. Led by the Government Inspectorate with interagency collaboration, the operations will rigorously enforce laws governing gold trade, aiming to protect financial stability and uphold consumer interests. The initiative reflects a global trend toward stricter regulation of precious metals markets as governments seek to combat illegal activities and promote transparency in gold trading.
AML Editor’s article was originally published in vietnamnet on Sep, 8 2025