LBMA Gold Guidance procedures 2012

The London Bullion Market Association
Responsible Gold Guidance
About the London Bullion Market Association
The LBMA is the international trade association that represents the market for gold and silver bullion, which
is centred in London but has a global client base, including the majority of the central banks that hold gold,
private sector investors, mining companies, producers, refiners and fabricators. The current membership
includes 129 companies which are actively involved in the loco London bullion market, including trading
houses, banks, refiners, miners and fabricators as well as those providing services to the market such as
consultants, supervisors and assayers. The membership encompasses a total of 22 countries. The LBMA was
formally incorporated in 1987 at the behest of the Bank of England to take over the roles previously played
by two separate organisations, the London Gold Market and London Silver Market, whose origins go back
to the mid-nineteenth century.
The LBMA Good Delivery List
In the refining industry, the LBMA Good Delivery List includes the world’s pre-eminent refiners of gold and
silver, located in 31 countries. The List is widely recognized as the de facto standard for the quality of gold
and silver market bars. This recognition is based on the stringent criteria that applicants must satisfy before
being listed, as well as the regular proactive monitoring of accredited refiners by the LBMA. In addition to
satisfying the LBMA’s technical standards, a refiner seeking LBMA accreditation must meet a number of
non-technical criteria in relation to ownership, tangible net worth and operating history. In response to the
Dodd-Frank legislation on conflict minerals emanating from the DRC, the LBMA has informed all gold
refiners on the List that in order to maintain their Good Delivery status, they will have to demonstrate that
their refined output is conflict-free. To allow them to do this, the LBMA has developed a Responsible Gold
Guidance Scheme.
LBMA Responsible Gold Guidance
The LBMA will require that, from 1st January 2012, all LBMA Good Delivery Gold Refiners comply with
the LBMA Responsible Gold Guidance. Listed refiners have been sent a draft of the Guidance in September,
2011 and during the final quarter of the year they will be consulted before the final version is issued. The
current draft can be obtained from the LBMA Executive or via the LBMA website (www.lbma.org.uk). The
final version will also take account of the rules to be announced by the SEC as well as the OECD guidance
on gold supply chains.
The LBMA Guidance is based on anti-money laundering principles as well as the five steps framework for
risk-based due diligence of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals
from Conflict-Affected and High Risk Areas. The LBMA guidance is intended to provide a flexible
framework for carrying out due diligence in this area and thus to minimise the cost of compliance for
refiners, whilst ensuring that their feedstock and thus their output remains conflict-free.
OECD Due Diligence for Responsible Supply Chains – Gold Supplement
The LBMA supports the work of the OECD in the area of supply chain due diligence and has been
actively involved in drafting the Gold Supplement section of the OECD Guidance. A number of
members, both banks and refiners have contributed to this work and Ruth Crowell, the LBMA’s
Commercial Director, is the co-facilitator of the OECD Gold Guidance Drafting Committee and the
LBMA’s main contact for Responsible Gold.
The London Bullion Market Association
13-14 Basinghall Street London EC2V 5BQ
Tel: +44 20 7796 3067 Fax: +44 20 7796 2112 http://www.lbma.org.uk email: ruth.crowell@lbma.org.uk

click on the link to download the documentLBMA Gold Guidance 2012

 

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Guinea Gold & Diamond Scam

We have uncovered a very famous scammer who claims to be from Guinea, West Africa and to be the former defence minister of the last dictator. He goes by the name of Diallo or Camara or Hamza. However, when we approached the Ministry of Defence in Guinea, we got a reply from them stating that this guy is a scammer. We also received a reply from African Union Chamber of Commerce that this group which is using the documents ( attached in this posting ) are scammers.

This scammer will call use a company name as COD-EXPORTS, the link of his company at Linkedin is as below

http://www.linkedin.com/pub/cod-exports-international/21/867/899

Please note such information on a networking portal anyone can generate and is not required any authentication by the website.

However, this scammer will call from his telephone several times in order to win your confidence. He will call you one day from Mali, other day from Togo and he will say he is very busy concluding deals and therefore calls you from different west African countries. He speaks English & French.

To convince you in paying upfront is his main task.

Given below are the excerpts of the email response.

Dear Sir /  we contacted the Ministry of Defence Guinea , the Minister confirmed that he never issued any contract for Gold, and that it is a scam, we therefore request that you send us the details of the suspect , as it is a gainst the Guinean Law, to pretend to be a Government Official. DO NOT PAY ANY FEES. In future for any deal concerning diamonds or gold, please contact the Safety & Security Department, they are representing legimitate suppliers of gold and diamonds,in Africa, which are members to the union.  

 

Sincerely

 

T.M. Kaurul

Director Security

 

 

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Gold scam exposed in Ghana

The Ghana Chamber of Mines announced here on Thursday that it had uncovered a scam involving a firm that had been using the name and corporate logo of Goldfields Ghana limited, one of its member companies, to dupe foreign gold buyers.

These criminals lured their unsuspecting victims with offers of gold dust and bars produced in Ghana, the chamber said in a statement.

It urged the public to report any fraudsters to the police for actions, saying that:

“Anyone who receives a notification for the sale of gold dust or gold bars purported to be coming from Goldfields Ghana limited or any other mining company should not only disregard the said offers but also report the incident to the police.”

Reiterating that its members were committed to good corporate governance practices, the chamber made it clear that “in the sale of gold our members do not seek out individual buyers or users.”

Gold is one of the major foreign exchange earners of the West African country, formerly known as Gold Coast.

The Ghana Chamber of Mines is the main minerals industry association in Ghana, representing the collective interests of companies involved in mineral exploration, production and processing in the country.

Fraudsters and con artists have for some time invaded the gold industry and were using the internet and e-mail to dupe prospective gold buyers.

Perpetrators of business fraud in Ghana, especially the prevalent gold scams, often target foreigners.

Several foreign businessmen had reportedly been defrauded in diverse ways as a result of the activities of the fraudsters.

Gold merchants, who claim to be in possession of large quantities of gold dust or gold bars, offer to sell them below market prices.

These fraudsters like to tell their business partners that they had jewelry shops all over Europe and wanted them to buy gold from Ghana.

Most of them also advertise the availability of the commodity in bulk quantities for sale on the internet and other specially and carefully designed websites.

In Ghana, all gold agents must be licensed and transactions certified by the precious minerals marketing company before businesses are transacted.

Gold is normally sold in Ghana in the smelted form, that is bars, and very rarely in the dust form.

American businessmen have reported substantial financial losses from questionable transactions involving gold and other precious metals in Ghana in recent years, according to the U.S. Department of State.

These scams typically begin with an unsolicited communication (usually by e-mail) from an unknown individual who describes a situation that promises quick financial gain, often by assisting in the transfer of a large sum of money or valuables out of the country.

A series of “advance fees” must be paid in order to conclude the transaction, such as fees to open a bank account or to pay certain taxes.

The final payoff does not exist, and the purpose of the scam is simply to collect colossal amount of money from the victim.

Fraud warning from the U.S. State Department regarding gold offers from Ghana
Strict customs regulations govern temporary importation into or export from Ghana of items such as gold, diamonds and precious natural resources. Only agents licensed by the Precious Metals and Mining Commission, telephone (233)(030) 266-4635 or 266-4579, may handle import-export transactions of these natural resources. Any transaction without the commission’s endorsement is illegal and/or fraudulent. All transactions must be completed through the commission at the price set daily by the London exchange. Any transaction that discounts this price, or includes a previously negotiated price, is either illegal or fraudulent. Export of gold dust is rare as it encourages dangerous and environmentally destructive practices, and transactions involving the export of gold dust are probably fraudulent. Attempts to evade regulations are punishable by imprisonment. It is advisable to contact the Embassy of Ghana in Washington, D.C., or one of the Ghanaian consulates in the United States, for specific information regarding customs requirements.

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African Gold Dust / Diamonds Scam

African Gold dust scam and African rough diamonds scam has duped hundreds of people world-wide, not only do ignorant poor people get ripped off their savings of seeing a profitable deal , but also many businessmen have turned bankrupt and lost their wealth, the fact I am still unable to understand, why do people fall into such scams.

The Scammers are basically from the west african nations of Guinea, Sierra Leone, Ghana, Nigeria, Senegal, Cameron, Mali and Burkina Fasso to list a few. The scammers always use telephone numbers/ mobile numbers which are not traceable. Victims usually come across such scammers through unsolicited emails and text sms. The scammers declare that they are in possession of Gold dust/ Gold dory bars / rough diamonds / or other precious metals / stones that will be sold at almost 50% to 70% lesser than the market price and that way the buyer has an opportunity to sell it with good profits. The Scammers do provide all the certifications , licences, insurances papers, Kimberley Process Certificates, invoices to the sellers which is all fake but nothing more than a Photoshop creation of these certifications. The seller will always throughout the communications with their victims use various telephone numbers. The scammers will also do phone calls to the sellers as they use illegal telephone lines, his somehow convinces the buyer that the seller in Africa is a real person. The seller will ask for maximum information from the buyer, like bank account numbers, address, telephone numbers, passport copies etc. However, the seller will never provide the buyer with such information and even if provided it will be a fake.

There is always an initial amount that the buyer will have to pay for some registration, tax, paperwork etc., which could be from $200 to maximum any amount.  This money will never be returned to the buyer and eventually the buyer will never see the Gold or rough diamonds.

On many occasions the seller will invite the buyer to Guinea, Ghana, Mali or any other African country to conclude the deal. I have known of many such incidents when the buyer has travelled to Africa and found himself being kidnapped by these scammers. The next step from these scammers will be to hold the victim hostage and ask for ransom from hostage’s family members. Few victims do end up getting back to their home country, but few are left dead.

Never travel to Africa to conclude such deals from unknown / invisible scammers/ exporters.

Never send money to these scammers, especially they will ask through Western Union or any other money transfer office.

Never declare your personal details , bank account , passport copies to these scammers.

Always verify each document / telephone numbers if you are getting tempted to do any such business deals with the scammers ( Or you may ask us ).

Victims never think from where these exporters got the Gold / Rough diamonds in the first place and why aren’t they selling in the real market. Are not such industries controlled by the respective governments with proper laws & regulations. Why did the scammer contact the victim and how on earth the scammer thought that the victim will buy the merchandise.

The Gold & Diamond industries in west Africa remain handicapped due to unstable Governments. The traditional mining does have two channels in west Africa, through legal methods of trade and the illegal method of trade. Its better that the buyers study in depth about this and don’t get involved in the illegal method of trade or get duped by the scammers. Export & trading of gold especially in Guinea is free and does not have any restrictions. No approval , no licence is required to sell, buy, export or hold gold and diamonds in Guinea. The best way is to follow the Central Bank of Guinea’s procedures to do such trade. In west Africa fraud cannot be controlled in mining and precious metals/stones trading. Therefore, the victims must not pursue their lost money and even Interpol cannot do much in this situation.

Sierra Leone – Sierra Leone’s customs authorities enforce strict regulations concerning the export of gems and precious minerals, such as diamonds and gold. All mineral resources, including gold and diamonds, belong to the State and only the government of Sierra Leone can issue mining and export licenses. The legal authority for the issuance of licenses is vested in the Ministry of Mines and Mineral Resources. Failure to comply with relevant legislation can lead to serious criminal penalties. For further information on mining activities in Sierra Leone, contact the Ministry of Mines and Mineral Resources: The Director of Mines, Ministry of Mines and Mineral Resources, Fifth Floor, Youyi Building, Brookfields, Freetown, Sierra Leone; tel. (232-22) 240-420 or 240-176; fax (232-22) 240-574

Ghana -

Gold Operations in Ghana are in two Sectors

–The big mining companies; and the small-scale sector. PMMC is responsible for the small-scale, which is comprised of individuals, small and medium size mining companies.
–Generally, any mining operation with concession up to 25 acres is considered a small-scale mine. PMMC purchases glod from small-scale miners and in turn export abroad. PMMC already has an existing contract to sell its gold to an overseas gold refinery, however applicants with favourable terms may be considered.
–Overseas Buyers seeking to purchase gold from Ghana may contact other licensed gold buyers. However, any offers received from suppliers are to be confirmed with PMMC for advice on genuineness of transaction.
–Overseas Buyers of gold are strictly advised NOT to pay cash directly to any local suppliers of gold
Bank of Ghana regulations require that payment for gold suppliers are made by Bank-to-Bank transfer via Bank of Ghana (i.e. The Central Bank of Ghana).

EXPORT PROCEDURES

1. The gold to be exported shall be delivered by the licensed Gold Buyer to PMMC premises by 9.00 a.m for assaying on the day of export, if already smelted. Otherwise the unsmelting gold a day before the dayh of export.

2. PMMC shall issue Assay Invoice which will indicate the weight and the purity of gold to be exported.

3. The gold to be exported shall be sealed and secured in metal/wooden specie boxes on the day of export by PMMC in the presence of the following group of officers.

–Ghana Customs Officers
–PMMC Officials
–The Licensed Gold Buyer who has requested for the gold export.

4. PMMC will complete the Bank of Ghana and Ghana Custom export documents on behalf of the Local Seller/Gold Buyer.

5. The Licensed Gold Buyer will be required to supply the full address and the telephone number of the overseas destination for the export.

6. PMMC will be responsible to transport the gold to Kotoka International Airport, Accra for delivery to the airline (currently KLM).

7. The Licensed Gold Buyer and the Overseas Buyer shall be responsible for the Insurance and Airfreight charges of the gold to be exported.

8. The gold to be exported will be accompanied by the following documents:-

PMMC Assay invoice which will indicate:

• Purity (i.e. Gold content).
• Quantity in ounces and kgs.
• Value in both US Dollars and Local Currency.

The value of the gold will be based on the spot price of the London Metal Exchange (LME) on the day of export.

• Bank of Ghana and the Ghana Customs export documents.
• Airway Bill.

9. Funds in US Dollars representing the export value of the gold should be transferred to PMMC account at the Bank of Ghana (i.e. The Central Bank of Ghana), with The Licensed Gold Buyer noted therein as the beneficiary, prior to the export of the gold. PMMC will provide the Bank transfer instructions to the exporter for the information of the overseas buyer to facilitate the transfer of fund.

10. PMMC fees for the export of gold are :-

–Shipment charges : – 0.50% of the export value of the gold
–Assay charges : – $50.00 per bar of 5kgs
–Smelting charges : – $20 per kg. Of gold
–These fees are payable on the day of export of the gold

I request readers who intend to do business with such entities should be careful and if any further information is required on this trade please comment here with your email address and we shall be happy to assist you.

 

Thanks

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