Risk Management in Gold Custody

Risk Controls

Risk Management in Gold Custody: Core Safeguards

Gold custody risk management combines comprehensive insurance, AML/KYC compliance, vault segregation, and independent audits. These measures protect client holdings, reduce operational risks, and ensure alignment with international standards.

Comprehensive Insurance

All holdings are protected under global all-risk insurance programs, covering loss, theft, and damage.

AML/KYC Compliance

Each transaction follows strict AML/KYC standards, reducing legal and regulatory risks across jurisdictions.

Vault Segregation

Bullion is fully segregated in Brinks (Dubai) and Guardforce (Hong Kong) vaults, eliminating counterparty and pooling risks.

Independent Oversight

External inspectors such as SGS and Alex Stewart verify holdings, confirming accuracy of records and storage conditions.

Legal & Regulatory Alignment

Custody operations follow LBMA standards and international regulations, ensuring compatibility with institutional governance.

Continuous Monitoring & Reporting

A 24/7 reporting framework tracks holdings, audits, and insurance coverage, providing constant visibility for clients.
Independent Oversight

Step-by-Step Risk Management Process

A structured risk management framework secures gold custody through insurance, compliance, and continuous oversight. Each stage reduces exposure and ensures institutional-level protection.
01

Risk Identification

Custody risks are assessed at onboarding, including operational, legal, and compliance exposure, forming the basis for controls.
02

Insurance & Compliance Framework

All holdings are protected by global insurance policies and regulated under strict AML/KYC standards across jurisdictions.
03

Independent Verification

External auditors verify barlists, insurance certificates, and compliance procedures, confirming that risk controls are effective.
04

Continuous Monitoring & Reporting

24/7 reporting tracks holdings, audits, and insurance coverage, providing clients with real-time visibility into risk management.
Custody Assurance

Risk Management in Gold Custody

Effective risk management is the foundation of institutional gold custody. Beyond secure vaults, custody requires insurance coverage, compliance with AML/KYC, and independent oversight. Risk controls ensure that every holding is protected, auditable, and aligned with international governance standards.

Why Risk Management Matters

Gold in custody must be more than safely stored — it must be legally recognized, insured, and independently verified. Risk management transforms physical bullion into a reliable financial instrument by reducing exposure to operational, legal, and regulatory risks. For institutions, this framework provides confidence that assets are fully protected and compliant.

Key Elements of Custody Risk Management

Insurance Programs
All bullion is covered by global all-risk insurance policies against loss, theft, or damage. Certificates are issued for each allocation.

AML/KYC Compliance
Transactions and settlements are monitored under strict AML/KYC standards, reducing regulatory risk across jurisdictions.

Vault Segregation
Allocated bullion is held separately in Brinks (Dubai) and Guardforce (Hong Kong) vaults, eliminating pooling or rehypothecation risks.

Independent Oversight
External auditors such as SGS and Alex Stewart confirm accuracy of records, barlists, and insurance coverage.

Legal & Regulatory Alignment
Custody operations follow LBMA custody standards and international regulations, ensuring recognition for corporate governance and reporting.

Continuous Monitoring
24/7 reporting provides visibility into holdings, audits, and insurance, allowing clients to track risk controls in real time.

Institutional Confidence Through Controls

Risk management ensures that custody is not only operationally secure but also institutionally accountable. Insurance programs, compliance frameworks, and independent audits reduce exposure at every stage. This makes custody suitable for corporate treasuries, funds, and family offices that require legally recognized and fully transparent asset protection.

Conclusion

Risk management integrates insurance, compliance, oversight, and reporting into a single framework. Each control reduces exposure, ensures transparency, and builds institutional confidence. Through these safeguards, gold custody becomes a resilient and globally compliant system for protecting client assets.

F.A.Q.

Frequently asked questions

What risks are covered under gold custody insurance?
All holdings are protected under comprehensive all-risk insurance, covering loss, theft, and physical damage in vaults.