Regulation
Allocated Bullion Exchange Ltd (“ABX”) is a company incorporated in Australia and governed by Australian law.
ABX is regulated and subject to the oversight of the Australian Securities and Investments Commission (ASIC) and is required, pursuant to the Corporations Act 2001, to publish annually audited financial statements.
In Australia, the sale and purchase of investment-grade physical precious metal bullion (gold, silver and platinum) does not require an Australian Financial Services License (‘AFSL’). We have confirmed this with independent third party advice.
No “financial products” (as defined under Australian financial services law) are offered or traded through ABX. No derivatives are offered through ABX and there is no capability for short-selling through ABX.
In addition, there is no legal requirement under Australian law for persons or organisations buying or selling physical precious metal bullion on ABX, or giving advice regarding using the service of ABX to buy or sell physical precious metal, to hold an AFSL.
ABX operates a range of “hubs” in key locations around the world where precious metal bullion may be bought, sold and stored. ABX provides independent prices for the purchase and sale of allocated precious metal bullion in these locations.
The sale of allocated investment-grade precious metals is treated in the same way in all major financial centres in which we operate. We regularly work with clients to ensure that any regulatory concerns they may have are addressed before we allow them or their clients to trade through our system.
Exchange Rules and Governance
We have a detailed Quality Assurance Framework which provides further information regarding the operation of the exchange, our vaulting and delivery system, custodian arrangements, precious metal contracts and other details. The QAF can be provided on request.
Our Customer Account Agreements, details of which can be found here, provide the contractual terms governing the participation on our exchange by members and other market participants.
AML CTF
As a Reporting Entity engaging in a designated service under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML Act), ABX is required to maintain a comprehensive AML program to ensure the mitigation and reporting of all money-laundering and terrorism-financing activities. ABX has implemented a comprehensive customer due diligence program to identify, verify and monitor its market participants in accordance with the AML Act.
The governmental body charged with regulating and ensuring compliance with the AML Act is the Australian Transaction Reports and Analysis Centre (AUSTRAC). AUSTRAC is a member of the international Financial Action Task Force (FATF) initiative which is the foremost inter-governmental body developing and promoting policies to combat money-laundering and terrorist-financing.
ABX regularly monitors changes in regulation and policy impacting our AML CFT obligations.