The London Bullion Market Association (LBMA) has concluded an incident review of the Perth Mint’s practices which began in March amid a gold-doping scandal.
The LBMA will retain the Perth Mint on its list of approved refiners; however, has also requested a strengthening of management systems in order to prevent future issues.
The LBMA’s investigation focused specifically on whether the Perth Mint conformed with the Responsible Gold Guidance, which sets standards for combating money laundering and terrorist financing practices.
“LBMA did not find any instances of zero-tolerance non-conformance. There are elements of the Perth Mint’s management systems that are being strengthened through a Corrective Action Plan (CAP) to be audited by a third-party auditor,” the LBMA said in a statement.
“LBMA reserves the right to re-visit this conclusion if new information relating to the Perth Mint becomes available.”
Chief executive Jason Waters said the Perth Mint was committed to completing the Corrective Action Plan.
“The Perth Mint has embarked on a comprehensive, fully-funded program to remediate our anti-money laundering processes and ensure best practice in everything we do,” Waters told the ABC.
“The mint is well aware that the LBMA will reopen its incident review if any new information comes to light, so there’s a lot at stake here.”
Good news
Gold Corporation is the parent company of the Perth Mint, the largest processor of newly mined gold in the world. The mint is owned by the Government of Western Australia.
Nathan Lynch, a financial regulation expert for Thomson Reuters, said the findings from the LBMA was a significantly positive outcome for the Perth Mint.
“The LBMA review has been very quick, considering the complexity of these issues around money laundering, terrorism financing, sanctions, and environmental standards,” Lynch said.
“It’s a good outcome for Gold Corporation and gives them a window of opportunity now to push ahead with the work they’re doing to rebuild their governance framework. That work on developing a sophisticated risk culture cuts across the entire organisation.”
The controversy surrounding the Perth Mint ignited in early March when the ABC’s Four Corners program published a report detailing a potential $9 billion bullion recall involving the Shanghai Bullion Exchange.
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