Bullion vaulting obligations require physical backing, reconciliation, safeguarded custody, and accountability for delivery to beneficial owners. Vault Managers must hold bullion only in recognised vaults, ensure prescribed quality standards, and refrain from creating electronic bullion receipts or ... Summary
Bullion vaulting obligations require physical backing, reconciliation, safeguarded custody, and accountability for delivery to beneficial owners.
Vault Managers must hold bullion only in recognised vaults, ensure prescribed quality standards, and refrain from creating electronic bullion receipts or deposit records without underlying physical bullion. They must maintain secure records, data-recovery systems, internal controls and periodic reconciliation between physical bullion and relevant electronic records. Discrepancies must be resolved promptly, failing which the Vault Manager is liable. Delivery must meet bullion delivery standards, and a Vault Manager refusing withdrawal must prove a lawful excuse.
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