CAUTION NOTICE :IT IS A SERIOUS OFFENSE IN HONG KONG NOT BEING CAPABLE OF EVIDENCING FUNDS OR EVIDENCING GOLD. FAILURE OF THE PART OF THE BUYER OR SELLER TO PERFORM IS CONSIDERED TO BE FRAUD WHICH WILL LIKELY LEAD TO ARREST AND PROSECUTION. HKMA FACTS AND PROCEDURES DURING THE PAST WEEK, TIME HAS BEEN SPENT WITH COMPLIANCE (LEGAL)OFFICERS AND BULLION OFFICERS OF BANKS IN HONG KONG CAPABLE OF PROCESSING GOLD TRANSACTIONS INVOLVING BILLIONS OF EURO/USD. THESE MEETINGS WERE TO CLARIFY BULLION BANKS POSITIONS WITH EXPECTATIONS OF GOLD SELLERS, MANDATES, AND INTERMEDIARIES. THE POSITIONS OF THE BANKS WERE THAT THEY WOULD NOT: 1) ISSUE BCL(BANK COMFORT/ BANK CAPABILITY ) LETTERS. 2)ISSUE SWIFT MT600 OR ANY FORM OF SWIFT. 3) ISSUE POF LETTERS OF ANY OTHER ACCOUNT INFORMATION OF CUSTOMERS 4)ISSUE ANY OTHER FORM OF DOCUMENT/LETTER THAT INVOLVES BANK RESPONSIBILTY, IT ALSO WAS CONFIRMED THAT LOI, LOR, RWA, MOU HAVE NO ROLE IN GOLD TRANSACTIONS. ONLY ONE ITEM OF PAPERWORK IS REQUIRED. AN INVITATION LETTER TO SIGN A SALES AND PURCHASE AGREEMENT AND A FEE PAYMENT AGREEMENT AT A SECURE LOCATION IN HONG KONG, SALES AND PURCHASE AGREEMENT/FEE PAYMENT AGREEMENT WILL ONLY BE SIGNED IN HONG KONG. ASSAYERS AND BULLION OFFICERS CAN INSPECT GOLD IN SAFEKEEPING IN OTHER COUNTRIES. SELLERS OF GOLD CAN ELECT ONE OF THE FOLLOWING TWO PROCEDURES, THESE TWO PROCEDURES ARE SIMPLE, EFFICIENT, AND QUICK , CHOICE IS THE PREROGATIVE OF THE SELLER,OR MANDATE.

1. HKMA FACTS AND PROCEDURES
DURING THE PAST WEEK, TIME HAS BEEN SPENT WITH COMPLIANCE (LEGAL)OFFICERS AND BULLION OFFICERS
OF BANKS IN HONG KONG CAPABLE OF PROCESSING GOLD TRANSACTIONS INVOLVING BILLIONS OF EURO/USD.
THESE MEETINGS WERE TO CLARIFY BULLION BANKS POSITIONS WITH EXPECTATIONS OF GOLD SELLERS,
MANDATES, AND INTERMEDIARIES.
THE POSITIONS OF THE BANKS WERE THAT THEY WOULD NOT:
1) ISSUE BCL(BANK COMFORT/ BANK CAPABILITY ) LETTERS.
2)ISSUE SWIFT MT600 OR ANY FORM OF SWIFT.
3) ISSUE POF LETTERS OF ANY OTHER ACCOUNT INFORMATION OF CUSTOMERS
4)ISSUE ANY OTHER FORM OF DOCUMENT/LETTER THAT INVOLVES BANK RESPONSIBILTY,
IT ALSO WAS CONFIRMED THAT LOI, LOR, RWA, MOU HAVE NO ROLE IN GOLD TRANSACTIONS.
ONLY ONE ITEM OF PAPERWORK IS REQUIRED.
AN INVITATION LETTER TO SIGN A SALES AND PURCHASE AGREEMENT AND A FEE PAYMENT AGREEMENT AT A
SECURE LOCATION IN HONG KONG,
SALES AND PURCHASE AGREEMENT/FEE PAYMENT AGREEMENT WILL ONLY BE SIGNED IN HONG KONG. ASSAYERS
AND BULLION OFFICERS CAN INSPECT GOLD IN SAFEKEEPING IN OTHER COUNTRIES.
SELLERS OF GOLD CAN ELECT ONE OF THE FOLLOWING TWO PROCEDURES, THESE TWO PROCEDURES ARE
SIMPLE, EFFICIENT, AND QUICK , CHOICE IS THE PREROGATIVE OF THE SELLER,OR MANDATE.
EFFECTIVE OCTOBER 14TH
, 2011 THE ONLY TWO HKMA PROCEDURE OPTIONS ARE AS FOLLOWS:
OPTION ONE
SIMULTANEOUS EXCHANGE OF EVIDENCE OF FUNDS AND GOLD
1) SELLER INVITES BUYER TO SIGN A SALES AND PURCHASE AGREEMENT/FEE PAYMENT AGREEMENT IN HONG
KONG.
2) SELLER INVITES BUYER TO A TABLETOP MEETING IN THE SECURITY WAREHOUSE WHERE THE GOLD IS IN
SAFEKEEPING.
3)BUYERS BANK BULLION/BANK OFFICER EVIDENCES PURCHASE FUNDS TO SELLER AND SELLERS WAREHOUSE
OFFICER AND/OR BANK OFFICER. THIS IS A COMMITMENT SAME AS A BANK PURCHASE ORDER.
4) SELLER RECEIVES EVIDENCE OF PURCHASE FUNDS AT THE SAME TIME AS SHOWING SAFEKEEPING RECEIPT
AND ALLOWING INSPECTION OF THE GOLD.
OPTION TWO
1) SELLER INVITES BUYER TO SIGN A SALES AND PURCHASE AGREEMENT/ FEE PAYMENT AGREEMENT IN HONG
KONG.
2) BUYER AND SELLER LODGE AGREEMENTS WITH THEIR RESPECTIVE BANKS.
3) BUYER AND SELLER MEET IN SECURITY WAREHOUSE TO INSPECT SAFEKEEPING RECEIPT AND GOLD. BUYERS
AND SELLERS BANKERS OR BULLION OFFICERS ARE IN ATTENDANCE.
4)BUYER AND SELLER RETIRE TO BUYERS BANK TO COMPLETE TRANSACTION BY EXCHANGING GOLD FOR FUNDS.
PROPER PROCEDURES MEAN FEES ARE USUALLY PAID WITHIN ONE WEEK OF CONTRACT SIGNING.
CAUTION NOTICE
IT IS A SERIOUS OFFENSE IN HONG KONG NOT BEING CAPABLE OF EVIDENCING FUNDS OR
TO BE FRAUD WHICH WILL LIKELY LEAD TO ARREST AND PROSECUTION.
EVIDENCING GOLD. FAILURE OF THE PART OF THE BUYER OR SELLER TO PERFORM IS CONSIDERED