03 Industry Harmonisation

Transcription

1 Update for Good Delivery Refiners Ruth Crowell Deputy Chief Executive, LBMA 11 th September, 2012 Scope 01 Responsible Gold SEC Update OECD Update 02 Responsible Gold Audit Guidance Recommended Auditors 03 Industry Harmonisation Mutual Recognition Page 2 1

2 SEC & OECD Update 01 SEC Rules Finalised August 2012 The LBMA has played a leading role in ensuring that the global gold market will be able to continue to function smoothly once these rules are in place. Primarily achieved by the implementation of the Responsible Gold Guidance. The OECD Guidance & Gold Supplement were repeatedly endorsed in the SEC Rules. The LBMA led the industry involvement in this work by acting as co-chair of the OECD Working Group on Gold, the Gold Supplement Drafting Committee and most recently the OECD Guidance Governance Group. Page 4 2

3 GUIDANCE OECD OECD 5 Steps + KYC, AML = Responsible Gold The OECD has stated that the LBMA Responsible Gold Guidance operationalises the OECD Due Diligence Guidance for Gold. The final OECD Gold Supplement was adopted by OECD Member Countries in July The final OECD Gold Supplement reduced refiner obligations regarding due diligence for transport companies. The LBMA has therefore amended the Responsible Gold Guidance to reflect this reduction of requirements. The OECD Gold Supplement also made provisions to allow the use of production from Artisanal & Small-scale Miners. The LBMA has modified the Responsible Gold Guidance accordingly. Page 5 Next Steps - Auditing 02 3

4 LBMA GUIDANCE Audit Implementation Audit Guidance Project KPMG & UL Resourcing Consulting are working with the LBMA to develop those further implementation documents. The Audit Guidance will provide transparency and consistency for the Responsible Gold programme. A draft version will be circulated in September for comment by GD Refiners and other relevant organisations (e.g. RJC, WGC, EICC, OECD as well as various exchanges and other representative bodies). Once finalised, this document will be publicly available and can be used as a best practice guidance for refiners wishing to adopt the OECD Guidance Page 7 LBMA GUIDANCE Audit Implementation List of Recommended Auditors The LBMA will publish a list of Recommended Auditors. However any independent, certified auditors are eligible to conduct the LBMA audit, provided they have the required credentials. Where applicable, authorised government institutions may also carry out audits. Page 8 4

5 GUIDANCE Audit Implementation Timetable: Jan 2012 LBMA Responsible Gold Guidance became a formal requirement of Good Delivery September 2012 LBMA Audit Guidance to be finalised. 31 Dec* 2012 First Voluntary** GD Refiner Audit Reports for 2011 Due 31 Dec* 2013 First Mandatory GD Refiner Audit Reports for 2012 Due Timeline gives refiners two years to produce an audit summary report. This audit summary report will be reviewed by the LBMA Physical Committee. *For some Refiners this may be 30 April 2013, as an LBMA Audit Report will be due no later than one year after the closing of the refiner s financial books. **While an audit report for a refiner s 2011 production is not mandatory, it is encouraged especially for refiners who need to meet EICC requirements. Page 9 INDUSTRY INITIATIVES HARMONISATION Avoiding Audit Duplication 03 5

6 INDUSTRY INITIATIVES Harmonisation London Bullion Market Association (LBMA): is requiring third-party audit of all accredited refiners of gold bullion who are on the London Good Delivery list. Responsible Jewellery Council (RJC): Chain-of-Custody certification available for responsibly-produced and conflict-free gold, and conflictsensitive sourcing practices. World Gold Council (WGC): developing Conflict-Free Standard for gold mining companies operating in conflict-affected areas. Can support refiner due diligence. Electronics Industry Citizenship Coalition (EICC): audit protocol for gold refiners to assist the electronics sector with Dodd Frank reporting. Page 11 INDUSTRY INITIATIVES Harmonisation LBMA RJC WGC EICC Applies to Refiners All supply chain Mining companies Refiners Focus OECD + KYC and AML OECD; Code of Practices OECD; Conflictfree Country of origin; Dodd Frank Act Audit outcome Good Delivery Accreditation CoC Certification 3 rd party assurance of due diligence Validated Smelter/ Refiner list Harmonisation LBMA will recognise RJC and EICC audits. WGC supports mined gold due diligence for LBMA audit. RJC CoC recognises LBMA & EICC conflictfree audits. WGC supports mined gold due diligence for CoC. Supports refiner due diligence for mined gold under LBMA, RJC, EICC. EICC will recognise RJC and LBMA audits Page 12 6

7 Questions & Answer Session GD Refiners are invited to ask questions Contacts 7