Vietnam: Severe fine for failing to establish systems for internal control in transactions via mercantile exchange

According to Clause 8 Article 77 of Decree No. 98/2020/NĐ-CP of Vietnam’s Government, a fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed upon the mercantile exchange for committing one of the following violations:

- Using forged documents in the application for issuance, modification or re-issuance of the license for establishment of the mercantile exchange;

- Approving membership of a trader that fails to meet eligibility requirements;

- Failing to provide or improperly providing margins for transactions as prescribed;

- Failing to establish systems for internal control, risk management and supervision and prevention of interest conflicts inside the mercantile exchange and in transactions with concerned parties in a necessary manner;

- Allowing a person who membership has been terminated to carry out trading in goods via the mercantile exchange;

- Failing to give notification to competent authorities when organizing transactions in goods which are not prohibited goods, restricted goods or conditionally sold goods;

- Failing to comply with regulations on total maximum limit on transactions or transaction limit;

- Failing to comply with trading methods or order matching rules or regulations on publishing of transaction-related information;

- Organizing transactions in goods which are prohibited goods, restricted goods or conditionally sold goods without obtaining permission from competent authorities.

View more details at the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, effective from October 15, 2020.

Le Vy

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