June 18, 2021

Krygyzaltyn – Incident Review Process

11-step Incident Review Process

LBMA takes very seriously the recent allegations relating to Krygyzaltyn, one of its Good Delivery refiners.

The robust, 11-step Incident Review Process has been invoked for Krygyzaltyn in response to issues concerning delivery and the potential for fraud. The process is being followed to ensure a thorough and fair review, and involves follow ups with various parties, including the refiner, before determining the relevant next steps. Those could include no action or potential sanctions (see GDL Rules Section 1.4: Enforcement). Currently Kyrgyzaltyn remains on the Good Delivery List.

This is a high priority, as any incident or issues that may impact the credibility of the Good Delivery List and the wholesale precious metals market are treated very seriously. Further updates will be provided as soon as is possible. At this point, it is difficult to commit to a timeline, given the process involves numerous stakeholders in being able to verify the information.

LBMA takes this opportunity to invite Kyrgyzaltyn to actively engage with the incident. LBMA urges the refiner to provide transparency on the allegations reported in the media and to, in as far as possible, disclose the challenges and identified risks, and how those risks have been mitigated, as well as what further action Kyrgyzaltyn is taking.