Company found illegally transferring money abroad

Created 28 July 2011
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A company in the Mekong Delta province of Dong Thap has been found illegally mobilizing money and transferring it to the US.

Nguyen Ngoc Thach, director of the Dong Thap branch of the State Bank of Vietnam (SBV), said Diamond Holiday JSC had persuaded locals to pay US$371 as reservation for accommodation at one of the company’s three-star hotel partners if they were to travel domestically or abroad.

More than 1,000 Dong Thap residents sent money to the company and were asked to recommend more people to join the program as they would receive a commission of 5 to 13 percent of a new customer’s joining fee.

But a representative from the company said if customers did not travel within a year after their registration, they would lose their advances.

Lawyer Tran Dinh Trien was quoted by Thanh Nien Newspaper as saying that Diamond Holiday’s business was a form of illegal capital mobilization.

“In the first stage, the company would use money of the new customers to offer commissions for the previous ones, but they would later swindle all of the money,” Trien told Thanh Nien.

Diamond Holiday however said it only played the role of an agency and had nothing to do with customers’ advances.

All of the customers’ money would be transferred to Diamond Holiday’s parent company in the US, the company’s representative said.

But the SBV’s Foreign Exchange Department said it had never granted any license to the company to transfer money abroad.

This means Diamond Holiday has violated the foreign exchange regulation as it is against the law to transfer foreign currencies abroad without the central bank’s license.

“If Diamond Holiday fails to present their license this week, the central bank will audit it and stop this illegal business,” Thach said.

Source: tuoitrenews

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