Kazakhstan [private export after NBK refusal] → Canada (refine) → United Kingdom · Loco London OTC sale and settlement

Identify the customer and report purchases/sales of precious metals of 50,000,000 KZT or more (cash or non-cash) to the AFM; jewellery threshold 5,000,000 KZT; pawnshops 3,000,000 KZT

Who

Individual entrepreneur or company trading precious metals domestically

Issues

Report to the AFM on an operation subject to financial monitoring

• Law 191-IV, art. 4

Extract gold ore within the licensed plot under a mining licence

Who

Holder of a mining licence for solid minerals (industrial gold miner)

Needs

Mining licence for solid minerals

Form

Ore (in situ / run-of-mine) → Concentrate / black sand

[unconfirmed] The held Subsoil Code text is the FAOLEX consolidation (Russian), older than the text in force; amendments made since then are not checked, because the official Adilet text is a wall.

• Code of the Republic of Kazakhstan on subsoil and subsoil use (articles in refs), Subsoil Code art. 202

  “По лицензии на добычу твердых полезных ископаемых ее обладатель имеет исключительное право пользоваться участком недр в целях проведения следующих операций”

• Code of the Republic of Kazakhstan on subsoil and subsoil use (articles in refs), art. 202(1)

  “добыча твердых полезных ископаемых (извлечение)”

Process on site (gravity, leaching, smelting) into doré, cathode metal or zinc precipitate; the mining licence covers use of the subsoil space for mining and mine-processing production, and mining includes leaching and the collection, storage, crushing and sorting of the extracted minerals on the mining plot

Who

Holder of a mining licence for solid minerals (industrial gold miner)

Form

Concentrate / black sand → Doré bar - unstamped

Technology is industry practice. [unconfirmed] The held Subsoil Code text is the FAOLEX consolidation (Russian), older than the text in force; amendments made since then are not checked, because the official Adilet text is a wall.

• Code of the Republic of Kazakhstan on subsoil and subsoil use (articles in refs), Subsoil Code art. 202

  “По лицензии на добычу твердых полезных ископаемых ее обладатель имеет исключительное право пользоваться участком недр в целях проведения следующих операций”

• Code of the Republic of Kazakhstan on subsoil and subsoil use (articles in refs), art. 202(2)

  “использование пространства недр в целях проведения горных работ, размещения горнодобывающего и (или) горно-перерабатывающего производств”

• Code of the Republic of Kazakhstan on subsoil and subsoil use (articles in refs), art. 202, definition of mining

  “химическому и бактериальному выщелачиванию”

Contract with a producer on the authorised body's list for refining (tolling) or sale; mined gold and raw materials must go to Kazakh producers for processing/refining (nuggets not subject to refining excepted)

Who

Holder of a mining licence for solid minerals (industrial gold miner)

Issues

Refining (tolling) or purchase agreement with a listed Kazakh refiner

• Law 444-V 'On precious metals and precious stones', art. 8(1)

Record the transfer of ownership (or pledge) of raw materials before refining under the authorised body's rules on recording such transactions

Who

Holder of a mining licence for solid minerals (industrial gold miner)

Issues

Record of a transaction transferring ownership of (or pledging) mineral raw materials before refining

Only art. 4(10-1) delegating the rules was read; how and by whom the record is made is not confirmed.

• Law 444-V 'On precious metals and precious stones', art. 4(10-1)

Move doré under secure escort from the mine to the refinery

Who

Secure carrier (cash-in-transit / valuables logistics)

Weigh, sample and assay the incoming doré; agree the outturn

Who

Subject of production of precious metals on the authorised body's list (refinery)

Refine to 99.99% gold (standard 12 kg bars, 100 g-1 kg bars or granules); LBMA Good Delivery-listed refiners stamp bars of international standard

Who

Subject of production of precious metals on the authorised body's list (refinery)

Issues

Refiner's quality certificate / bar list for refined gold (999.9)

Form

Doré bar - unstamped → 999.9 kilobar

• Law 444-V 'On precious metals and precious stones', art. 8(1)

Sign the foreign-trade contract with a specification (full assortment, quantity, mass) and issue the invoice or value-confirmation document with the precious-metal content calculation

Who

Exporter of precious metals or raw materials (notified entity holding a per-contract export licence)

Issues

Foreign-trade contract with specification (submitted for licence and state control act); Invoice or value-confirmation document

• Order of the Minister of Industry and Construction No. 375 of 29.10.2024, para. 18

Obtain the document confirming the NBK's refusal to exercise the priority right on the refined gold

Who

Exporter of precious metals or raw materials (notified entity holding a per-contract export licence)

Needs

Document confirming NBK refusal to exercise the priority right on refined gold

Issues

Document confirming NBK refusal to exercise the priority right on refined gold

• Order of the Minister of Industry and Construction No. 375 of 29.10.2024, para. 19

Obtain a laboratory document on precious-metal content from an accredited testing laboratory

Who

Exporter of precious metals or raw materials (notified entity holding a per-contract export licence)

Issues

Accredited testing laboratory document on precious-metal content

• Order of the Minister of Industry and Construction No. 375 of 29.10.2024, para. 18

Obtain an export licence for the foreign-trade contract from the authorised body

Who

Exporter of precious metals or raw materials (notified entity holding a per-contract export licence)

Needs

Notification of start/cessation of activity with precious metals (import/export); Foreign-trade contract with specification (submitted for licence and state control act)

Issues

Export licence for precious metals / raw materials (per foreign-trade contract)

Issuing procedure and EAEU basis (EEC Decision 30) not read.

• Order of the Minister of Industry and Construction No. 375 of 29.10.2024, paras 17-18

Assign a registration number to the currency contract where it meets the NBK monitoring criteria

Who

Kazakh commercial bank servicing the currency contract

Issues

Registration (accounting) number of a currency contract

Threshold is set in NBK rules, not read.

• Law 167-VI, arts 13-14

Apply through the e-government portal for the act of state control, presenting the whole batch and the licence, contract, specification, invoice, content calculation, notification, ownership documents and laboratory document

Who

Exporter of precious metals or raw materials (notified entity holding a per-contract export licence)

Needs

Export licence for precious metals / raw materials (per foreign-trade contract); Foreign-trade contract with specification (submitted for licence and state control act); Invoice or value-confirmation document; Accredited testing laboratory document on precious-metal content; Notification of start/cessation of activity with precious metals (import/export); Document confirming NBK refusal to exercise the priority right on refined gold

• Order of the Minister of Industry and Construction No. 375 of 29.10.2024, paras 9, 18, 19, 21

Carry out control testing of samples when the content documents do not match the contract or technical documentation

Who

National Bank of Kazakhstan (state buyer, priority right)

Issues

NBK control test result on samples (Cash Operations and Valuables Storage Centre)

• Law 444-V 'On precious metals and precious stones', art. 7(1)

Issue the act of state control for the shipment (content, source, market valuation, compliance with contract); refuse if documents incomplete or price below metal value

Who

Authorised body for precious metals (Ministry of Industry and Construction)

Issues

Act of state control of precious metals, issued per shipment

• Order of the Minister of Industry and Construction No. 375 of 29.10.2024, para. 10

Obtain a certificate of origin if the buyer or destination requires it

Who

Exporter of precious metals or raw materials (notified entity holding a per-contract export licence)

Issues

Certificate of origin (general form) for exported goods

Not researched; included because hand-off checks may ask for it.

Lodge the export goods declaration with the state control act and export licence; customs releases the goods

Who

Exporter of precious metals or raw materials (notified entity holding a per-contract export licence)

Needs

Act of state control of precious metals, issued per shipment; Export licence for precious metals / raw materials (per foreign-trade contract)

Issues

EAEU goods declaration for export (ДТ)

• Order of the Minister of Industry and Construction No. 375 of 29.10.2024, para. 17

Ship the bars to the foreign buyer

Who

Secure carrier (cash-in-transit / valuables logistics)

Needs

EAEU goods declaration for export (ДТ)

Issues

Air waybill for export shipment

Order 375 governs release; carriage arrangements are industry practice.

Hold a Business Number with RM import-export program account, registered in the CARM Client Portal (and optional RPP financial security)

Who

Importer of record (doré, scrap or bars for refining)

Present the shipment for release: classify doré as 7108.12.00.22 (bars 7108.12.00.11/.21, scrap 7112.91) - all Free under MFN and every preferential tariff; no import permit; gold goods from Russia or a person in Russia (Schedule 9) and precious-metal scrap from Russia (Schedule 13) are prohibited; goods produced wholly or in part by forced labour are prohibited

Who

Licensed customs broker

Needs

Export customs declaration accepted by the dispatching country's customs; Commercial invoice; Air waybill

Issues

Commercial invoice from the foreign shipper

Forced-labour prohibition: Customs Tariff item 9897.00.00 (ca.src-tariff-ch98). MFN is not available for goods of Belarus, North Korea or Russia (guide-3).

• Customs Tariff; SEMA (Russia) Regulations, Tariff item 7108.12.00; SEMA (Russia) ss.3.11, 3.16

Account for the goods on a Commercial Accounting Declaration (Type C at release, or Type AB within five business days of release under RPP) and pay duties and taxes on the statement of account; imported precious-metal bars are non-taxable for GST, and doré, unwrought gold, scrap and concentrates imported to be refined are non-taxable

Who

Importer of record (doré, scrap or bars for refining)

Needs

Commercial invoice from the foreign shipper

Issues

Commercial Accounting Declaration

• Customs Act; Accounting for Imported Goods and Payment of Duties Regulations; Excise Tax Act; Non-Taxable Imported Goods (GST/HST) Regulations, Customs Act s.32; SOR/86-1062 s.10; ETA Sched VII s.8; SOR/91-31 s.3(a), (b)

Keep import records for 6 years; self-correct within 90 days; CBSA may verify origin, value and classification for 4 years

Who

Importer of record (doré, scrap or bars for refining)

Needs

Commercial Accounting Declaration

90-day correction duty read in Customs Act s.32.2(2); six-year retention and four-year verification from CBSA guide-7 and D17-1-21 (the regulation fixing the period was not read).

Onboard the supplier: KYC, OECD five-step risk assessment, sanctions/PEP/adverse-media screening, confirm gold is not imported, purchased or acquired from Russia or a person in Russia

Who

Private LBMA Good Delivery refiner in Canada

Needs

Refining (toll) agreement, mine - Canadian refiner; Origin country's export authorisation for the gold (permit, licence or clearance issued by the mining or trade authority)

Issues

Supplier KYC pack and acknowledgement of the refiner's procurement policy; Onboarding and daily screening record; non-Russian origin confirmation

[inferred] SEMA element is law; KYC and OECD process are LBMA/refiner practice, not a Canadian statute for refiners.

• SEMA (Russia) Regulations s.3.11; LBMA RGG; OECD DDG, s.3.11

Receive, weigh, melt and sample the lot; assay in the refinery lab and issue the outturn

Who

Private LBMA Good Delivery refiner in Canada

Needs

Supplier KYC pack and acknowledgement of the refiner's procurement policy; Onboarding and daily screening record; non-Russian origin confirmation

Issues

Refiner outturn assay and settlement statement

Refine to 999.9 (or 999.99) and cast LBMA Good Delivery 400 oz bars, 100 oz or 1 kg bars bearing the refiner's mark

Who

Private LBMA Good Delivery refiner in Canada

Issues

Bar list of refined bars (GD 400 oz, 100 oz, kilobars)

Form

Doré bar - stamped/exporter-sealed → LBMA Good Delivery 400oz bar

Settle outturn with the supplier: credit fine metal to its metal account or buy the metal, with final invoice

Who

Private LBMA Good Delivery refiner in Canada

Needs

Refiner outturn assay and settlement statement

Issues

Refiner's final invoice / metal-account credit against outturn

First supply of the refined bars by the refiner (or the owner on whose behalf they were refined) is zero-rated for GST/HST; refining fees charged to the metal owner are generally taxable

Who

Private LBMA Good Delivery refiner in Canada

Issues

Invoice for sale of refined bars (zero-rated first supply by the refiner / exempt resale)

Refining-fee taxability is CRA guidance (17-1 para 35), not a specific statutory provision.

• Excise Tax Act, s.123(1) 'precious metal'; Sched VI Part IX s.3

For any purchase or sale of $10,000 or more as a dealer in precious metals: verify identity, keep records, report cash of $10,000+ (LCTR), virtual currency (LVCTR) and suspicious transactions

Who

Private LBMA Good Delivery refiner in Canada

Issues

Record of $10,000+ purchase or sale and client identification; Large cash transaction report; Suspicious transaction report; Large virtual currency transaction report

s.65(2) excludes purchases/sales in connection with extracting precious metals from a mine or manufacturing a product; its application to refiners buying doré is not settled in the texts read.

• PCMLTF Regulations, ss.65, 66, 126, 148

Optionally hold refined bars in allocated (segregated, identified bars) or unallocated storage at the Royal Canadian Mint vaults in Ottawa or Winnipeg (institutional clients only), with semi-annual counts

Who

Royal Canadian Mint (federal Crown corporation: refinery and vault)

Needs

Bar list of refined bars (GD 400 oz, 100 oz, kilobars)

Issues

Allocated weight list / unallocated account statement

Re-export imported or toll-refined bars: file CERS export declaration (non-US destinations, CAD 2,000+) and hand the proof of report number to the carrier

Who

Exporter of record (mine, refiner or bullion trader)

Needs

Commercial Accounting Declaration

Issues

CERS export declaration and proof of report number

Carry the re-exported bars under air waybill

Who

Secure precious-metals carrier / airline

Needs

CERS export declaration and proof of report number

Issues

Air waybill

Apply customer due diligence to the foreign seller before buying (identity, beneficial owner, purpose, risk assessment, sanctions/PEP screening)

Who

Bullion dealer / trader (importer of record, usually an LBMA member)

Issues

Supplier KYC pack received by the UK buyer; MLR customer due diligence file

[unconfirmed] Whether a non-bank wholesale bullion trader paid by wire is within the MLR at all (e.g. as a financial institution under reg 10) - consolidated MLR not held. [not-read] Reg 27 quoted via WebFetch; MLR not held.

• Money Laundering Regulations 2017, reg 27

Establish that the gold is not Russian-origin gold exported from Russia on or after 21 Jul 2022, not relevant processed gold incorporating such gold, and not Russian gold jewellery exported on or after 29 Oct 2022; check where the goods were originally consigned or exported from; if Russian origin is possible, apply to DBT's Import Sanctions Team for a licence or contact it; declare document code 9022 (not subject to / exempt from sanctions) or 9011 (licence) on CDS and keep the evidence to produce on demand

Who

Bullion dealer / trader (importer of record, usually an LBMA member)

Needs

Export customs declaration accepted by the dispatching country's customs

Issues

Importer's Russia-sanctions origin evidence file

[inferred] The guidance and tariff do not list specific evidence documents; the required kinds are this module's inference.

• Russia (Sanctions) (EU Exit) Regulations 2019 as amended by SI 2022/850 and SI 2022/1110, regs 46Z11, 46Z16B, 46Z16C

Fly the bars into the UK as valuable cargo (typically Heathrow) under an air waybill

Who

Secure valuables carrier

Issues

Air waybill, inbound valuables consignment

UK valuables-cargo handling not researched in this pass.

Submit a full import declaration on CDS (procedure code, commodity code 7108 12 00 00 for unwrought gold, DUCR, consignor/consignee, value, licences; EORI); declare sanctions document code 9022 or 9011; claim the investment-gold VAT exemption with additional code VATE where the bars are 995+ of a weight accepted by the bullion markets

Who

Customs agent / declarant using CDS software

Needs

EORI number of importer/exporter; Importer's Russia-sanctions origin evidence file; Air waybill, inbound valuables consignment; Air waybill; Commercial invoice; Bar list (serials, weights, fineness)

Issues

CDS full import declaration

[conflict] gb.div-cpc-chief - VAT Notice 701/21 s.8.1 still gives CHIEF CPC 40 00 073; the tariff (28 Sep 2026) shows the exemption as additional code VATE. [not-read] The CDS procedure code and DE 1/10-1/11 entries for investment gold not read (UK Trade Tariff Vol. 3 listed in gb-fetch.tsv).

Account for import VAT: exempt for investment gold (additional code VATE); 20% standard rate (code 03020) on non-investment gold (dore, grain, scrap, sub-995 bars, non-qualifying coins); customs duty 0.00% (third-country rate on 7108 12, S.I. 2020/1430)

Who

Bullion dealer / trader (importer of record, usually an LBMA member)

Needs

CDS full import declaration

• VAT Act 1994 Sch 9 Group 15; VAT Notice 701/21, Notice s8.1, s10.7

Clear the goods (CDS message when cleared), or ask for supporting documents for a customs check; for 7108 the Russia/Belarus measures read "Import allowed after control"; HMRC enforces trade sanctions at the border

Who

HMRC (customs and VAT authority)

Needs

CDS full import declaration

Issues

CDS clearance notification (goods released)

Give the custodian written notice of the deposit (amount, Availability Date, and the carrier and packing for physical delivery, or the source account for book-entry); advise the vault manager of the vehicle registration and driver's identity

Who

Bullion dealer / trader (importer of record, usually an LBMA member)

Needs

CDS clearance notification (goods released)

Issues

Deposit notice to London custodian

• LPMCL Allocated Account Agreement; LBMA Good Delivery Rules, Allocated cl. 3.3 (Unallocated cl. 3.2); GD Rules Annex B s.2

Weigh the bars under the London weighing procedures (the receiving party may charge for weighing if not weighed by an Approved Weigher) and produce the machine-readable, dated weight list stating whether an Approved Weigher weighed the metal; a copy travels with the bars

Who

LBMA Approved Weigher

Issues

Machine-readable LBMA weight list accompanying the delivery (dated, approved-weigher status)

• LBMA Good Delivery Rules, Annex B

Receive bars on pallets; before crediting, verify compliance with the Rules and weigh them per LBMA practice against the notified amount; the vault manager may refuse bars not meeting Good Delivery standards and may ask LBMA to appoint independent inspectors

Who

London commercial vault / custodian (typically a clearing or custodian bank)

Needs

Deposit notice to London custodian; Machine-readable LBMA weight list accompanying the delivery (dated, approved-weigher status)

• LPMCL Allocated/Unallocated Account Agreements; LBMA Good Delivery Rules, Allocated cl. 3.1(b), 3.4, 3.5; Unallocated cl. 3.1(b), 3.3, 3.4; GD Rules 2.4 and Annex B

For bars of the six suspended Russian refiners: accept only bars produced while the refiner was listed and already in the loco London/Swiss markets before 7 Mar 2022; clearing banks attest conformity

Who

London commercial vault / custodian (typically a clearing or custodian bank)

Needs

Machine-readable LBMA weight list accompanying the delivery (dated, approved-weigher status)

Separately, UK law bans import of Russian gold exported from Russia on or after 21 Jul 2022. [unconfirmed] GD Rules 2026 s.1.4 says bars of a refiner moved to the Former List for sanctions reasons may lose Good Delivery status; LBMA's specific Russian-bars page keeps pre-7 Mar 2022 loco London/Swiss stocks as Good Delivery - the model follows the specific page.

• LBMA Good Delivery List suspension notice (7 Mar 2022)

Credit the client: an allocated account (specific bars, title stays with client, weight list issued) or an unallocated account (a metal debt claim on the custodian); statements at least annually

Who

London commercial vault / custodian (typically a clearing or custodian bank)

Needs

Machine-readable LBMA weight list accompanying the delivery (dated, approved-weigher status)

Issues

Allocated weight list (bar number, gross weight, fineness, fine weight, brand) or unallocated balance statement

• LPMCL Account Agreements, Allocated cl. 2.3, 7.3 and Schedule (bar numbers, purity, gross and fine weight, brand); Unallocated cl. 1.1, 2.3, 3.3

Central-bank channel: hold Good Delivery bars in an allocated account at the Bank of England (off the Bank's balance sheet)

Who

Bank of England (gold custodian)

Form

LBMA Good Delivery 400oz bar → Monetary gold (central bank reserve)

Monetary state applies when held as reserves by a monetary authority.

Report month-end holdings to LBMA (London vault data) and, from Dec 2026, aggregated vault data into the Gold Bar Integrity database (bar-level reporting planned from 2027)

Who

London commercial vault / custodian (typically a clearing or custodian bank)

Issues

Custodian holdings return to LBMA (London vault data / GBI)

Onboard the counterparty: MLR customer due diligence and sanctions representations in the account agreement

Who

LPMCL clearing member bank

Issues

MLR customer due diligence file

[not-read] MLR reg 27 quoted via WebFetch; MLR not held.

• MLR 2017; LPMCL account agreements, MLR reg 27; LPMCL Allocated cl. 10 / Unallocated cl. 8

Agree the OTC trade (spot/forward) under the 1994 International Bullion Master Agreement (IBMA) or an ISDA Master Agreement with the 1997 ISDA Bullion Definitions; LBMA Members must comply with the Global Precious Metals Code

Who

Bullion dealer / trader (importer of record, usually an LBMA member)

Needs

MLR customer due diligence file

Issues

OTC bullion trade confirmation (IBMA 1994 / ISDA Bullion Definitions 1997)

Apply the VAT treatment: investment gold between LBMA members is zero-rated (TMO); gold held in the UK between central banks, or between a central bank and an LBM member, is zero-rated (VATA Sch 8 Group 10); investment gold between an LBMA member and a taxable non-member is standard-rated under the special accounting scheme (the buyer accounts for the VAT); to private individuals it is exempt; other investment gold is exempt unless the supplier has opted to tax; standard-rated gold (fine gold, grain, scrap, opted investment gold) between VAT-registered traders goes under the compulsory special accounting scheme

Who

Bullion dealer / trader (importer of record, usually an LBMA member)

Needs

OTC bullion trade confirmation (IBMA 1994 / ISDA Bullion Definitions 1997)

[conflict] gb.div-tmo-member-category. [not-read] TMO arts 3-7 and VATA s.55 not held; the member/non-member rule is from VGOLD1600 ("Supplies of investment gold between members and non-members who are taxable persons are now standard-rated") and Notice 701/21 ss. 11.2, 11.5.

• VAT (Terminal Markets) Order 1973; VATA 1994 s.55, Sch 8 Group 10, Sch 9 Group 15

Settle loco London: book transfer between unallocated accounts through LPMCL members (client instructions by 16:00, inter-member by 16:30 London), or transfer of specific allocated bars

Who

LPMCL clearing member bank

Needs

OTC bullion trade confirmation (IBMA 1994 / ISDA Bullion Definitions 1997); Allocated weight list (bar number, gross weight, fineness, fine weight, brand) or unallocated balance statement

Issues

Loco London settlement: transfer between unallocated accounts via LPMCL members, or allocated bar transfer

Cut-offs (client instructions until 4.00pm, LPMCL members until 4.30pm London time) confirmed in the held 2017 OTC Guide; the current web section not held.

Pay the cash leg against metal settlement

Who

LPMCL clearing member bank

Needs

Loco London settlement: transfer between unallocated accounts via LPMCL members, or allocated bar transfer

Issues

Cash-leg payment for the metal

Cash-leg timing and DvP arrangements not documented in the sources read.

For exempt investment gold: issue an invoice with a unique number and the prescribed details for each sale over GBP 5,000 (or smaller sales once a customer passes GBP 10,000 in 12 months); keep the accounting and customer records (identity from one List 1 and one List 2 document) for at least 6 years; notify HMRC in writing within 28 days of the first exempt supply over GBP 5,000 or when supplies to one customer exceed GBP 10,000 in 12 months; failures attract a penalty normally of 17.5% of the transactions' value

Who

Bullion dealer / trader (importer of record, usually an LBMA member)

Needs

Loco London settlement: transfer between unallocated accounts via LPMCL members, or allocated bar transfer

Issues

Investment gold invoice (VAT tertiary legislation s.3 / VAT Regs reg 31A); Investment gold customer records and identity evidence; Notification to HMRC of exempt investment gold dealing (within 28 days)

Tertiary legislation (force of law, held). [unconfirmed] The general 6-year retention and the 17.5% penalty are in Notice 701/21 ss. 7.7 and 9.4, outside the passages marked as having force of law.

• VAT Regulations 1995; VAT tertiary legislation (gold), reg 31A

Keep MLR records 5 years; nominated officer files a suspicious activity report where there is suspicion

Who

LPMCL clearing member bank

Needs

MLR customer due diligence file

Issues

Suspicious activity report to the National Crime Agency

MLR record-keeping regulation not held; 5 years from the end of the relationship or completion of the transaction per HMRC guidance.

Repatriate the proceeds to a Kazakh bank account within the term of the currency contract; the bank monitors the contract

Who

Exporter of precious metals or raw materials (notified entity holding a per-contract export licence)

Issues

Receipt of export proceeds on the exporter's Kazakh bank account

Threshold and exact deadline rules are in NBK export-import currency control rules (not read). No mandatory sale of FX proceeds found in the law.

• Law 167-VI, art. 9