Custody Agreement Template for Gold Holdings

Custody Agreement Template for Gold Holdings
Agreement Framework

Custody Agreement Template: Core Legal Structure

A custody agreement provides the foundation for secure and transparent gold custody services. It defines the relationship between the client and custodian, outlining ownership rights, settlement procedures, insurance coverage, and reporting standards.

At Golden Ark Reserve, agreement templates are provided upon request for review by clients, banks, and regulators. These templates are designed in line with international best practices and regional compliance standards, ensuring clarity, accountability, and legal protection.

Parties to the Agreement

The agreement is concluded between the client — an individual, corporation, or institution — and Golden Ark General Trading FZC, Sultanate of Oman. It specifies the legal identity of both parties and confirms recognition under international custody standards.

Scope of Custody Services

Defines the services covered by the agreement, including allocated storage, global insurance, compliance with AML/KYC, independent audits, and periodic reporting. All bullion is stored in segregated form, with ownership fully retained by the client.

Settlement & Payments

Outlines settlement methods such as SWIFT, SEPA, and approved digital assets. All transactions are processed under AML/KYC procedures. Settlement is deemed complete only once compliance checks are confirmed, ensuring full regulatory alignment.

Insurance & Risk Allocation

Specifies that all bullion is protected by international all-risk insurance programs. Liability and risk-sharing clauses define custodian obligations and clarify coverage in case of loss, theft, or external intervention.

Proof & Reporting

Provides clients with barlists including serial numbers, insurance certificates, and audit confirmations. The agreement guarantees access to regular reports through secure channels for corporate governance and external audits.

Termination & Governing Law

Details the conditions for termination of the agreement, mandatory notification periods, and procedures for asset withdrawal. Governing law is that of the Sultanate of Oman, with disputes resolved through arbitration under recognized standards.

Step-by-Step Custody Agreement Process

The custody agreement provides a structured process that ensures legal clarity, compliance, and transparency from the moment of signing to continuous reporting.

Onboarding
The custody process begins with signing the Purchase & Custody Agreement, confirming ownership rights, insurance coverage, and compliance obligations.
Verification
Payments are executed through SWIFT, SEPA, or approved digital channels. Settlement is finalized only after AML/KYC verification.
Monitoring
Allocated bullion is stored in insured vaults, barlists with serial numbers are issued, and insurance certificates are provided.
Reporting
Clients receive custody statements, barlists, and audit confirmations through secure reporting channels for transparency and regulatory compliance.

Custody Agreement Template in Gold Custody

Why a Custody Agreement Matters

A custody agreement is the legal foundation of every gold custody service. It formalizes the relationship between the client and the custodian, defines the scope of services, and ensures that ownership, insurance, and reporting obligations are clearly established. For regulators and banks, it provides documented proof that custody operations meet compliance standards and international legal requirements.

Core Legal Structure

The agreement sets out the rights and responsibilities of both parties. Clients retain full legal ownership of their bullion, while Golden Ark Reserve assumes responsibility for safekeeping, insurance, compliance with AML/KYC, and transparent reporting. Settlement procedures, liability allocation, and dispute resolution mechanisms are clearly defined, ensuring enforceability across jurisdictions. Liability is limited to the insured value of the bullion, with exclusions for force majeure and regulatory interventions, providing clarity and predictability for both parties.

Alignment with International Standards

Golden Ark Reserve agreements are designed under Omani law and recognized in international practice. They align with:

– FATF guidelines for AML/KYC obligations.

– UAE financial regulations, ensuring compatibility with regional compliance.

– Hong Kong oversight for custody and storage of precious metals.

– Global audit standards, with recognition by independent inspectors and regulators.

Value for Clients and Institutions

For clients, the agreement guarantees that assets remain allocated, insured, and fully transparent. For financial institutions and auditors, it provides a reliable framework for accounting, audit-ready reporting, and regulatory reviews. This reduces the compliance burden during inspections and supports corporate governance standards required by international institutions.

Conclusion

The Custody Agreement Template is available for review by clients, banks, and regulators on request. It demonstrates the structure and legal safeguards of the full contract while protecting sensitive clauses that are only disclosed to verified clients. The template is illustrative and does not substitute for the complete agreement. This transparency builds trust, reduces legal uncertainty, and ensures that gold custody services remain enforceable, compliant, and institutionally recognized.

Frequently asked questions

Institutional-Grade Security
Can I request the full custody agreement?
Yes. A full version of the custody agreement is provided during the onboarding process, once AML/KYC verification is completed.