INTERNATIONAL REGULATIONS
The procedures for large Au transactions must
comply with the new international banking regulations as of 17-08-2013 (Basel
3 Banking Laws) for commodity transactions.
The Seller must submit a complete FCO with Seller coordinates attached, plus
their passport copy. The FCO must fit the operating procedures of the Buyer.
No Instrument can be issued until full and proper verification of the product has
been provided by the authorized Seller, who must be the legitimate title holder,
and must be approved by the Buyers Bank.
This is in response to the International Convention on International Commodity
Fraud. Banks have to become fully compliant with the new regulations. Should
a Bank fail to recognize the new legislation then the consequences are a fine of
up to US$10,000,000.
All offers received by the Buyer, Buyers Mandate and Operational Staff shall
and will be rejected, that does not have fully verifiable POP.
Any offer received or presented that requires a NCNDA / IMFPA ahead of any
POP shall and will be rejected.
It is the responsibility of the receiver on behalf of the Buyer to make sure that
the offer fits the operational procedures of the Buyer. There will be no exceptions.
INTERNATIONAL PRECIOUS METALS LEGISLATION ALSO ANSWERS TO
THE REQUIREMENTS OF THE PATRIOT ACT I AND ACT II
The procedures listed here are specific as to what was issued by the U.S. Federal
Reserve Bank (FED) and the World Gold Council on June 6th, 2007 as what are
required by law and now to be followed on all Gold (AU) transactions. The specific
guidelines as set forth by these two agencies exactly as required now to do AU
transactions and you will probably want to keep a copy of this for your records as it
is the only legal way of doing these transactions now.
As the stage of Bank Officer to Bank Officer it can also be set up as a Table Top
Meeting at the bank if the seller and buyer wish, or a ledger inter-bank contract
transaction Bank Officer to Bank Officer.
THE REQUIREMENTS OF THE PATRIOT ACT I AND ACT II
The procedures listed here are specific as to what was issued by the U.S. Federal
Reserve Bank (FED) and the World Gold Council on June 6th, 2007 as what are
required by law and now to be followed on all Gold (AU) transactions. The specific
guidelines as set forth by these two agencies exactly as required now to do AU
transactions and you will probably want to keep a copy of this for your records as it
is the only legal way of doing these transactions now.
As the stage of Bank Officer to Bank Officer it can also be set up as a Table Top
Meeting at the bank if the seller and buyer wish, or a ledger inter-bank contract
transaction Bank Officer to Bank Officer.
U.S. FEDERAL RESERVE BANK & WORLD GOLD COUNCIL
INTERNATIONAL PROCEDURE
1-The Seller or his Mandate issues a Full Corporate Offer. All AU metal offers must
show the seller clearly.
2-Only the Seller or his legal Mandates may issue an AU Offer and if it is the
mandate issuing it, it must be accompanied by the letter evidencing the receipt of
mandate authorization from the seller. All offers received from non-authorized
intermediaries will be automatically rejected.
3-The International Precious Metals Legislation does not allow buyers to first send a
letter of purchase intent because it is considered soliciting and is strictly forbidden.
4-Seller or Seller's mandate must move first with an offer which should include
metal license details and banking.
5-The Buyer/Buyer's Mandate submits a Letter of Intent RWA (Ready, Willing and
Able).
6-The Seller and Buyer exchange signed and sealed contract.
7-Seller extends an invitation for the Buyer to contact the Bank or LBMA Approved
Storage Facility to arrange a meeting between Seller’s and Buyer’s bullion officer.
8-After confirmation of the existence of an account, the Buyer initiates the contact
with the Seller's bullion officer.
9-Upon receipt of the SWIFT proof of existence of the AU metal and the certificate
of authority to sell, the Buyer bullion officer to confirm the availability of funds to
be used as payment when the gold is transferred.
10-The Buyer and the Seller agree on a window time for exchange. The payment to
the Seller will be disbursed within 24 hours against the transfer of ownership of the
metal. Commissions will be paid immediately and without delay to each appointed
paymaster. Paymasters must provide BUYER with their written procedures and
release of liability.
11-A Separate Master Fee Protection Agreement (MFPA) must be accomplished
between each Paymaster groups and each intermediary group. All transfer and
other related fees will be deducted from each Paymaster group.
12-The Paymaster will likewise pay to the intermediaries their earned commission
immediately upon receipt of funds.
INTERNATIONAL PROCEDURE
1-The Seller or his Mandate issues a Full Corporate Offer. All AU metal offers must
show the seller clearly.
2-Only the Seller or his legal Mandates may issue an AU Offer and if it is the
mandate issuing it, it must be accompanied by the letter evidencing the receipt of
mandate authorization from the seller. All offers received from non-authorized
intermediaries will be automatically rejected.
3-The International Precious Metals Legislation does not allow buyers to first send a
letter of purchase intent because it is considered soliciting and is strictly forbidden.
4-Seller or Seller's mandate must move first with an offer which should include
metal license details and banking.
5-The Buyer/Buyer's Mandate submits a Letter of Intent RWA (Ready, Willing and
Able).
6-The Seller and Buyer exchange signed and sealed contract.
7-Seller extends an invitation for the Buyer to contact the Bank or LBMA Approved
Storage Facility to arrange a meeting between Seller’s and Buyer’s bullion officer.
8-After confirmation of the existence of an account, the Buyer initiates the contact
with the Seller's bullion officer.
9-Upon receipt of the SWIFT proof of existence of the AU metal and the certificate
of authority to sell, the Buyer bullion officer to confirm the availability of funds to
be used as payment when the gold is transferred.
10-The Buyer and the Seller agree on a window time for exchange. The payment to
the Seller will be disbursed within 24 hours against the transfer of ownership of the
metal. Commissions will be paid immediately and without delay to each appointed
paymaster. Paymasters must provide BUYER with their written procedures and
release of liability.
11-A Separate Master Fee Protection Agreement (MFPA) must be accomplished
between each Paymaster groups and each intermediary group. All transfer and
other related fees will be deducted from each Paymaster group.
12-The Paymaster will likewise pay to the intermediaries their earned commission
immediately upon receipt of funds.
GOLD/AU TRANSACTION (SINCE 1.8.2006)
Under the new guidelines recently set forth by the Federal Reserve for Gold AU
metal it is required by the bank officers to do standard FED compliance on the
metal and the seller/beneficial owners of the metal on a bank to bank basis before
any contracts can be signed.
Anything outside of a strict Swiss procedure of POP with Sellers client info sheet
and passport is now illegal to even attempt to transact. The seller, if they are
legitimate, must be ready, willing and able to submit this information directly by
SWIFT to the Buyer's Bank Officer for standard banking compliance under the new
regulations.
Upon completion of this compliance the buyer's bank officer will then respond with
POF including the Buyer's client info sheet and passport information for the seller's
bank officer to do their compliance as well. If the seller is not willing to comply with
the new guidelines, we are sure there is no transaction worth going to jail over.
These guidelines are to be used to provide security and procedural guidance to
sellers interested in doing business with BUYER. This is based on the requirements
of the FED and WGC. In addition to this is additional security requirements from
BUYER to ensure credibility of offer submitted to BUYER.
Under the new guidelines recently set forth by the Federal Reserve for Gold AU
metal it is required by the bank officers to do standard FED compliance on the
metal and the seller/beneficial owners of the metal on a bank to bank basis before
any contracts can be signed.
Anything outside of a strict Swiss procedure of POP with Sellers client info sheet
and passport is now illegal to even attempt to transact. The seller, if they are
legitimate, must be ready, willing and able to submit this information directly by
SWIFT to the Buyer's Bank Officer for standard banking compliance under the new
regulations.
Upon completion of this compliance the buyer's bank officer will then respond with
POF including the Buyer's client info sheet and passport information for the seller's
bank officer to do their compliance as well. If the seller is not willing to comply with
the new guidelines, we are sure there is no transaction worth going to jail over.
These guidelines are to be used to provide security and procedural guidance to
sellers interested in doing business with BUYER. This is based on the requirements
of the FED and WGC. In addition to this is additional security requirements from
BUYER to ensure credibility of offer submitted to BUYER.