Concerned that the precious metals business may not have complied with regulations, including the reporting of suspicious matters, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has mandated that the Western Australian State Government-owned Perth Mint find and hire an auditor.
“AUSTRAC identified compliance concerns following a period of engagement with the Australian-based Gold Corporation, which has resulted in the order to appoint an external auditor,” the regulator stated.
Gold Corporation, which trades as The Perth Mint, has been given 180 days from once the auditor has been appointed, to address the concerns.
According to AUSTRAC chief executive officer Nicole Rose the organisation “will continue to work closely with Gold Corporation to address compliance concerns.”
Adding that, “all businesses regulated by AUSTRAC must comply with their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act.”
The scope of the auditor’s investigation will be decided by AUSTRAC, and the costs associated with it will be paid by Gold Corporation.
AUSTRAC will be informed by the results of the audit as to whether any further regulatory action is necessary, which will help Gold Corporation comply with its duties in future regarding the prevention of money laundering.
The Perth Mint, which has been in operation for the last 120 years, is the only precious metals business that is owned and guaranteed by the government.
Strong sales of physical gold and silver
On a more positive note, in July 2022, The Perth Mint sold 79,305 ounces (oz) of gold and 2,465,513oz of silver in minted product form.
This was a 12% increase from the same time last year for gold and a whopping 89% rise in demand for the ‘poor man’s gold’, silver.
Perth Mint’s general manager of minted products Neil Vance said the start of the new financial year was characterised by strong interest in Australian gold bullion products.
“Rebounding demand was especially noticeable out of North America, which compensated for the slowdown in the German market we noted in June,” he said.
“We continued to experience extremely strong demand for physical silver … even with a strong month for output, silver coins remain subject to allocation,” he added.
