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Legal Update

Vietnam Allows Banks More Time to Close Offshore Gold Accounts

9 April 2010
Mayer Brown Legal Update

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amending Articles 2.2 and 2.3 of Circular No. 01/2010/TT-NHNN dated 6 January 2010 ("Circular 01") which repealed Decision No. 03/2006/QD-NHNN dated 18 January 2006 on gold trading on offshore accounts ("Decision 03") and Decision No. 11/2007/QD-NHNN dated 15 March 2007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.

For inquiries related to this Client Alert, please contact:

Dao Nguyen ( )

Thinh Dan ( )

Learn more about our Vietnam offices and Banking & Finance practice.

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