The London Bullion Marketing Association (LBMA) has initiated an official investigation into the Perth Mint following allegations made by Four Corners on Monday night.
The first claim is that the Perth Mint was not complying with strict anti-money laundering and counter-terrorism funding regulations, which could result in significant fines. The report also alleges that the Perth Mint sold gold to the Shanghai Gold Exchange that did not meet the exchange’s purity standards.
The Perth Mint is a member of the LBMA, which sets global standards for gold purity and provides a “good delivery list refiner” accreditation, making it an attractive destination for investors. An incident review process has been initiated to investigate the activities that led to Four Corners’ claims.
If the investigation results in a negative outcome, the Perth Mint’s accreditation and LBMA membership could be revoked, which would be detrimental to its viability. However, the mint welcomed the announcement and said it is committed to working openly and transparently throughout the process.
The LBMA investigation is incredibly serious, but the real issue is anti-money laundering compliance, according to Thomson Reuters financial crimes expert Nathan Lynch. The Perth Mint is allegedly not performing basic checks on high-risk individuals and is dealing with banks that are operating out of tax havens.
The mint’s issues prompted calls by the opposition for a Royal Commission into its operations, but Racing and Gaming Minister Reece Whitby said the two issues were “not comparable”. Royal commissions are appropriate, but he believes that some people call for them at the drop of a hat, and that is not helpful.
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