❓ Mr. Love questions the Premier about potential penalties and costs related to Perth Mint's regulatory failures and gold bar standards. The Premier outlines actions taken to address AUSTRAC audit findings, US commodity code compliance, and Shanghai Gold Exchange concerns, emphasizing past government oversights and current rectification efforts.
AnsweredQoN 110Legislative Assembly
QuestionView source ↗
GOLD CORPORATION — GOLD BAR CONTENT
110. Mr R.S. LOVE to the Premier:
I
refer to revelations of at least 5 000 instances of Perth Mint's
failure to register as a remittance provider international movements of
money and of $8.7 billion of gold bars produced that may not meet the standard
of its customer.
(1) Has the
Premier sought or been provided with formal advice on what likely penalties and
costs may be?
(2) With Gold
Corporation holding little or no contingency reserves, what is the government
setting aside as contingency to cover possible fines or costs incurred?
110. Mr R.S. LOVE to the Premier:
I
refer to revelations of at least 5 000 instances of Perth Mint's
failure to register as a remittance provider international movements of
money and of $8.7 billion of gold bars produced that may not meet the standard
of its customer.
(1) Has the
Premier sought or been provided with formal advice on what likely penalties and
costs may be?
(2) With Gold
Corporation holding little or no contingency reserves, what is the government
setting aside as contingency to cover possible fines or costs incurred?
AnswerView source ↗
(1)–(2) In terms of the issues outside the alloying issue
that we dealt with earlier, the AUSTRAC audit, as I outlined to the
member earlier, is around the systems and processes of the Perth Mint. The
issue has been around since 2006. It was an issue for the final years of the
Carpenter Labor government, the entirety of the Barnett Liberal government and
the first few years of this government. When it was brought our attention and
identified, we announced $34 million last year to put in place the appropriate
systems to ensure that it was compliant.
In terms of the other issue the
Leader of the Opposition may have been referring to—I cannot quite
understand from his question—the US model state commodity code
prohibits the sale and offer of commodities to persons for investment or
speculative purposes unless a relevant exemption applies. From 1998, the Perth Mint has been involved in the US
gold market. Compliance with the model state commodity code should have
therefore commenced in 1998. This government identified there was an issue,
and, therefore, the Perth Mint has taken steps to comply with the US model
state commodity code. The issue was around
for the Court Liberal government, the Gallop and Carpenter Labor governments
and the Barnett Liberal government. It came to notice during this
government, and we put in place measures to ensure that it complies. The Perth
Mint is confident no US investors have been harmed by this oversight.
In
terms of the other issues the Leader of the Opposition identified with
Shanghai, which I think is a different issue from those ones, the issue
was identified by some customers of the Shanghai Gold Exchange that there was
two parts per 100 000 more silver than they would like; therefore, the Perth
Mint changed its practices and reduced that two parts per 100 000 of silver to
the five parts per 100 000 or less that the Shanghai Gold Exchange expects.
Since then, I am advised that many tonnes of gold have been sold to the
Shanghai Gold Exchange. In other words, it was happy with the rectification
measure and very happy with the gold that has been provided since then.
that we dealt with earlier, the AUSTRAC audit, as I outlined to the
member earlier, is around the systems and processes of the Perth Mint. The
issue has been around since 2006. It was an issue for the final years of the
Carpenter Labor government, the entirety of the Barnett Liberal government and
the first few years of this government. When it was brought our attention and
identified, we announced $34 million last year to put in place the appropriate
systems to ensure that it was compliant.
In terms of the other issue the
Leader of the Opposition may have been referring to—I cannot quite
understand from his question—the US model state commodity code
prohibits the sale and offer of commodities to persons for investment or
speculative purposes unless a relevant exemption applies. From 1998, the Perth Mint has been involved in the US
gold market. Compliance with the model state commodity code should have
therefore commenced in 1998. This government identified there was an issue,
and, therefore, the Perth Mint has taken steps to comply with the US model
state commodity code. The issue was around
for the Court Liberal government, the Gallop and Carpenter Labor governments
and the Barnett Liberal government. It came to notice during this
government, and we put in place measures to ensure that it complies. The Perth
Mint is confident no US investors have been harmed by this oversight.
In
terms of the other issues the Leader of the Opposition identified with
Shanghai, which I think is a different issue from those ones, the issue
was identified by some customers of the Shanghai Gold Exchange that there was
two parts per 100 000 more silver than they would like; therefore, the Perth
Mint changed its practices and reduced that two parts per 100 000 of silver to
the five parts per 100 000 or less that the Shanghai Gold Exchange expects.
Since then, I am advised that many tonnes of gold have been sold to the
Shanghai Gold Exchange. In other words, it was happy with the rectification
measure and very happy with the gold that has been provided since then.
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