❓ A WA parliamentary question on notice regarding the Gold Pass app, Perth Mint Gold Tokens, and Gold Corporation's compliance with AML/CTF regulations. The Minister provides data on app usage, clarifies risk assessment processes, and addresses concerns about AML/CTF compliance and remediation costs.
AnsweredQoN 652Legislative Assembly
QuestionView source ↗
(1) I refer to the Gold Pass application and ask will the Minister please provide the number of downloads of the Gold Pass app and active users for the financial years: (a) 2018-19; (b) 2019-20; (c) 2020-21; and (d) 2021-22? (2) For each financial year in 1, will the Minister please detail: (a) The number of downloads by country of origin; (b) The number of active users or accounts by country; and (c) The number of total active accounts as at 29 November 2022? (3) I refer to Question on Notice number 593 and ask: (a) What is the difference between a risk rating at an enterprise level and at a business unit level; (b) Since March 2017 and until March 2021 were the Gold Corporation Management and the responsible Minister aware that Gold Corporation operations fell under the Anti Money Laundering and Counter Terrorism Financing (AMLCTF) regime; and (c) Since 2017 was the responsible Minister or their office aware that Gold Corporation operations fell under the Anti Money Laundering and Counter Terrorism Financing (AMLCTF) regime? (4) I refer to the launch of both the Gold Pass Application and the Perth Mint Gold Tokens and I ask: (a) How much gold, and at what value has, purchased in both Australian and US Dollars; (b) What is the total value of Perth Mint Gold Tokens purchased; (c) In what countries have Perth Mint Gold Tokens been purchased; (d) How many Perth Mint Gold Tokens have been bought back by Perth Mint and were these bought back at a loss; and (e) When was the decision made to develop and launch the Perth Mint Gold Tokens, and who authorised the development and launch: (i) Prior to this decision being made, was legal advice sought regarding compliance under AMLCTF and other relevant legislation including in the USA; and (ii) Was the Minister or his office notified about the decision to develop and launch the Perth Mint Gold Tokens; if so: (A) When did this occur? (B) In what form did this occur (email, phone, text, in person)? (5) What is the forecast cost of remediation of Gold Corporation if they fall foul of any AUSTRAC findings? (6) Does the Gold Corporation have a contingency reserve and if so, what is the balance of that reserve? (7) Has Gold Corporation got self-insurance? (8) Was AUSTRAC consulted prior to the launch of the Gold Pass App or Perth Mint Gold Tokens?
AnswerView source ↗
Answered
14 February 2023
Responded by
Minister for Mines and Petroleum
Response time
1 days
(1)
(a) 2018-19: 4344 downloads, 1488 verified/open accounts
(b) 2019-20: 13,609 downloads, 8459 verified/open accounts
(c) 2020-21: 21,775 downloads, 10,666 verified/open accounts
(d) 2021-22: 8,272 downloads, 4545 verified/open accounts
Note: Downloading the Gold Pass app and opening an account are separate processes, and not all downloads lead to the user opening an account. A user with an account that is verified/open can trade, but the user may elect to not be “active”.
(2)
(a) See table below
(b) See table below
Financial year
Downloads
Verified/Open Accounts
Australia
USA
Australia
USA
2018/2019
1923
1
1487
1
2019/2020
10288
440
8229
266
2020/2021
11599
1952
9752
914
2021/2022
5194
297
4400
145
(c) 26,700
(3)
(a) The difference relates to which party undertakes the risk rating, i.e. each individual business unit within the organisation, or a centralised team that operates across the organisation.
(b) During that period Gold Corporation management were aware. Management continued with established processes and procedures which had been in place since before 2017.
(c)
The question of Gold Corporation’s coverage by Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislation is a question of law, and therefore in accordance with Standing Orders I cannot be asked to answer.
However, Gold Corporation’s compliance with AML/CTF requirements has been a high priority for me since I became Minister. For this reason, I engaged with both the Auditor General of Western Australia and AUSTRAC to seek reassurance regarding this compliance, as I have outlined to the Legislative Assembly on 22 November 2022, 21 September 2022, 20 September 2022, and 26 May 2022.
I continue to work with Gold Corporation and external agencies, including Treasury, to improve Gold Corporation’s compliance with all obligations.
(4)
(a) Not applicable - the purchase of a unit of Perth Mint Gold Token entitles the holder to the equivalent value in physical gold, which is securely stored by Gold Corporation. Each Perth Mint Gold Token is ultimately backed by the gold inventory of Gold Corporation
(b) As of 30 December 2022, total issued supply was 1,192.91043 Perth Mint Gold Token at an approximate value of AUD 3,193,661 / USD 2,171,884.
(c) Australia and United States of America
(d) Gold Corporation has not bought back any Perth Mint Gold Tokens and has not had any losses.
(e) Perth Mint Gold Token is the result of a commercial partnership between Gold Corporation and an Australian company, Trovio. Perth Mint Gold Token utilises the Gold Pass app and The Perth Mint branding.
Following discussions between Trovio and Gold Corporation, authorisation for Gold Corporation to collaborate with Trovio was provided by the then CEO and Board of Gold Corporation in August 2019. Trovio launched Perth Mint Gold Token in October 2019.
(i) No
(ii) No
(A) Not applicable
(B) Not applicable
(5) Gold Corporation is investing in a remediation program to strengthen its compliance with AML/CTF obligations. This program is currently underway and will continue regardless of any findings by AUSTRAC. This remediation program is budgeted to cost $34 million over three years.
(6) No
(7) Gold Corporation maintains a comprehensive external insurance program that covers the entity’s most significant risks. As with all insurance arrangements, there are thresholds and exclusions which the external insurance does not cover, and for which Gold Corporation would meet the relevant liability.
(8) No, the question misunderstands the functions of AUSTRAC. AUSTRAC is a government regulator and does not provide approvals of individual products issued by any financial institution.
(a) 2018-19: 4344 downloads, 1488 verified/open accounts
(b) 2019-20: 13,609 downloads, 8459 verified/open accounts
(c) 2020-21: 21,775 downloads, 10,666 verified/open accounts
(d) 2021-22: 8,272 downloads, 4545 verified/open accounts
Note: Downloading the Gold Pass app and opening an account are separate processes, and not all downloads lead to the user opening an account. A user with an account that is verified/open can trade, but the user may elect to not be “active”.
(2)
(a) See table below
(b) See table below
Financial year
Downloads
Verified/Open Accounts
Australia
USA
Australia
USA
2018/2019
1923
1
1487
1
2019/2020
10288
440
8229
266
2020/2021
11599
1952
9752
914
2021/2022
5194
297
4400
145
(c) 26,700
(3)
(a) The difference relates to which party undertakes the risk rating, i.e. each individual business unit within the organisation, or a centralised team that operates across the organisation.
(b) During that period Gold Corporation management were aware. Management continued with established processes and procedures which had been in place since before 2017.
(c)
The question of Gold Corporation’s coverage by Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislation is a question of law, and therefore in accordance with Standing Orders I cannot be asked to answer.
However, Gold Corporation’s compliance with AML/CTF requirements has been a high priority for me since I became Minister. For this reason, I engaged with both the Auditor General of Western Australia and AUSTRAC to seek reassurance regarding this compliance, as I have outlined to the Legislative Assembly on 22 November 2022, 21 September 2022, 20 September 2022, and 26 May 2022.
I continue to work with Gold Corporation and external agencies, including Treasury, to improve Gold Corporation’s compliance with all obligations.
(4)
(a) Not applicable - the purchase of a unit of Perth Mint Gold Token entitles the holder to the equivalent value in physical gold, which is securely stored by Gold Corporation. Each Perth Mint Gold Token is ultimately backed by the gold inventory of Gold Corporation
(b) As of 30 December 2022, total issued supply was 1,192.91043 Perth Mint Gold Token at an approximate value of AUD 3,193,661 / USD 2,171,884.
(c) Australia and United States of America
(d) Gold Corporation has not bought back any Perth Mint Gold Tokens and has not had any losses.
(e) Perth Mint Gold Token is the result of a commercial partnership between Gold Corporation and an Australian company, Trovio. Perth Mint Gold Token utilises the Gold Pass app and The Perth Mint branding.
Following discussions between Trovio and Gold Corporation, authorisation for Gold Corporation to collaborate with Trovio was provided by the then CEO and Board of Gold Corporation in August 2019. Trovio launched Perth Mint Gold Token in October 2019.
(i) No
(ii) No
(A) Not applicable
(B) Not applicable
(5) Gold Corporation is investing in a remediation program to strengthen its compliance with AML/CTF obligations. This program is currently underway and will continue regardless of any findings by AUSTRAC. This remediation program is budgeted to cost $34 million over three years.
(6) No
(7) Gold Corporation maintains a comprehensive external insurance program that covers the entity’s most significant risks. As with all insurance arrangements, there are thresholds and exclusions which the external insurance does not cover, and for which Gold Corporation would meet the relevant liability.
(8) No, the question misunderstands the functions of AUSTRAC. AUSTRAC is a government regulator and does not provide approvals of individual products issued by any financial institution.
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