Legal Agreements for Gold Custody

Why Gold Custody

Purchase & Custody Agreements: Key Legal Features

Every gold custody process begins with a Purchase & Custody Agreement. This document secures legal ownership rights, defines settlement terms, and ensures compliance with international standards. Full agreements are provided to clients upon request through our compliance team.
Agreement-Driven Process

Step-by-Step Custody Framework Under Legal Agreements

A Purchase & Custody Agreement governs every stage of the custody process — from settlement to reporting. Each step is defined in the agreement to secure ownership rights, ensure compliance, and confirm independent verification.
01

Agreement

A Purchase & Custody Agreement is signed with the client, establishing legal ownership rights, defining settlement conditions, and setting compliance obligations.
02

Settlement

Transactions via SWIFT, SEPA, or approved digital assets are executed strictly under AML/KYC standards, with settlement terms specified in the agreement.
03

Custody & Proof

Gold bars are allocated in segregated vaults (Dubai or Hong Kong). The agreement ensures that barlists with serial numbers and insurance confirmations are issued as binding proof of holdings.
04

Reporting

Reporting obligations are embedded in the agreement. Clients gain continuous digital access to statements, audit confirmations, and independent verification throughout the custody period.
Custody Assurance

What Is a Purchase & Custody Agreement?

A Purchase & Custody Agreement is a binding legal document signed directly with the client. It establishes the legal title to bullion, defines the conditions of settlement, and outlines compliance and reporting obligations. Unlike private storage arrangements, custody agreements are recognized across jurisdictions, making them suitable for corporate governance, balance sheet reporting, and institutional audits.

Key Provisions of the Agreement

Ownership Rights

The agreement secures the client’s direct ownership of allocated bullion, segregated from other assets in global vaults.

Settlement Terms

Settlement channels such as SWIFT, SEPA, or approved digital assets are specified in the agreement, ensuring that all transfers comply with AML/KYC regulations.

Compliance Standards

The document incorporates AML/KYC procedures and LBMA custody standards, aligning each transaction with international regulations.

Insurance Coverage

Insurance obligations are included, confirming that every holding is covered by comprehensive all-risk policies arranged with top global insurers.

Reporting Framework

Reporting clauses guarantee 24/7 access to custody data, periodic statements, and independent audit confirmations.

Legal agreements are the cornerstone of gold custody. They:

  • Provide an enforceable framework for ownership and settlement.
  • Ensure that custody can be audited and reported under international accounting standards.
  • Enable family offices, funds, and corporate treasuries to treat bullion as a regulated and transparent financial instrument.
  • Reduce operational and compliance risks by documenting every stage of the custody process.

Agreement-Driven Custody Workflow

Every stage of custody is defined within the Purchase & Custody Agreement:

  1. Agreement – signing secures ownership rights, settlement terms, and compliance obligations.
  2. Settlement – funds are transferred via approved channels under AML/KYC standards.
  3. Custody & Proof – bullion is allocated in Dubai or Hong Kong vaults, with barlists and insurance confirmation issued.
  4. Reporting – continuous access to statements, independent audits, and verification is provided as contractual obligations.

This legal framework ensures that the custody process is transparent, enforceable, and recognized internationally.

Access to Agreements

Purchase & Custody Agreements are not published publicly. Full documentation is available to clients upon request and provided through our compliance team as part of the onboarding process. This ensures confidentiality, regulatory alignment, and tailored provisions for institutional or private requirements.

CTA: Request Full Agreement

Conclusion

The Purchase & Custody Agreement transforms gold from a physical store of value into a fully accountable, legally recognized, and globally compliant asset. By defining ownership rights, settlement conditions, insurance coverage, and reporting obligations, the agreement creates the legal foundation for secure and transparent gold custody.

F.A.Q.

Frequently asked questions

Who signs the Purchase & Custody Agreement?
The agreement is signed directly between the client and Golden Ark Reserve, ensuring legal enforceability and recognition of ownership rights.