A new decree issued by the Government on Oct. 21 increases punishmentsfor administrative violations in the financial and banking sector.
Decree 95 imposes the highest penalties on administrative violations ofregulations relating to foreign currency and gold trading management.This will be a seven-fold increase from the current 70 million VND(3,330 USD) to 500 million VND (23,800 USD).
The listing oradvertising of prices for commodities, properties, services in foreigncurrencies, or gold, will be penalised by between 300 million VND - 500million VND.
A 50 million VND - 100 million VND fine isstipulated for violations in using gold to pay for commodities andservices, and for gold trading activities.
In the past, such practices were not penalised.
The new decree also stipulates fines of 300 million - 500 million VNDfor illegal foreign exchange activities as well as illegal import andexport of foreign currencies and gold. This marks a seven-fold increasefrom current fines of 45 million VND and 70 million VND per case.
Those who illegally transport foreign currencies beyond borders, or useforeign currencies for paying commodities and services breaking currentregulations will be fined 50 million VND - 100 million VND, up from 5million VND - 12 million VND.
People who engage in illegalforeign currency and gold trading activities, or use foreign currenciesand gold for paying for commodities and services without authorisedagencies' permission can also have their business licences revoked.
Despite the Government's ban on listing prices in foreign currencies,especially US dollars, and the threat of stricter enforcement againstviolations, many businesses still list the prices of their goods andservices in dollar or gold.
This is particularly common at travel companies, tourist resorts, beauty parlors and motorbike shops.
Listing the prices of goods and services in foreign currencies not onlygoes against the law but also hurts the interests of consumers.
According to current State Bank of Vietnam regulations, except forcredit institutions, customs agencies and airports, no transactions,price listing and advertisements by local residents and non-residentsare to be conducted in foreign currencies.
In other words,businesses and companies are not allowed to quote their prices in aforeign currency or even mention it next to the local currency. Peoplewho encounter such practices are asked to inform the State Bank, marketcontrol agencies, economic management police or relevant authorities.
Before they are allowed to list prices in foreign currencies,businesses must first seek the approval of the State Bank Governor byproving the listing is reasonable and necessary. To date, no suchspecial permission has been granted./.
Decree 95 imposes the highest penalties on administrative violations ofregulations relating to foreign currency and gold trading management.This will be a seven-fold increase from the current 70 million VND(3,330 USD) to 500 million VND (23,800 USD).
The listing oradvertising of prices for commodities, properties, services in foreigncurrencies, or gold, will be penalised by between 300 million VND - 500million VND.
A 50 million VND - 100 million VND fine isstipulated for violations in using gold to pay for commodities andservices, and for gold trading activities.
In the past, such practices were not penalised.
The new decree also stipulates fines of 300 million - 500 million VNDfor illegal foreign exchange activities as well as illegal import andexport of foreign currencies and gold. This marks a seven-fold increasefrom current fines of 45 million VND and 70 million VND per case.
Those who illegally transport foreign currencies beyond borders, or useforeign currencies for paying commodities and services breaking currentregulations will be fined 50 million VND - 100 million VND, up from 5million VND - 12 million VND.
People who engage in illegalforeign currency and gold trading activities, or use foreign currenciesand gold for paying for commodities and services without authorisedagencies' permission can also have their business licences revoked.
Despite the Government's ban on listing prices in foreign currencies,especially US dollars, and the threat of stricter enforcement againstviolations, many businesses still list the prices of their goods andservices in dollar or gold.
This is particularly common at travel companies, tourist resorts, beauty parlors and motorbike shops.
Listing the prices of goods and services in foreign currencies not onlygoes against the law but also hurts the interests of consumers.
According to current State Bank of Vietnam regulations, except forcredit institutions, customs agencies and airports, no transactions,price listing and advertisements by local residents and non-residentsare to be conducted in foreign currencies.
In other words,businesses and companies are not allowed to quote their prices in aforeign currency or even mention it next to the local currency. Peoplewho encounter such practices are asked to inform the State Bank, marketcontrol agencies, economic management police or relevant authorities.
Before they are allowed to list prices in foreign currencies,businesses must first seek the approval of the State Bank Governor byproving the listing is reasonable and necessary. To date, no suchspecial permission has been granted./.
