LBMA Annual Report 2024

Governance and Oversight

Board Composition and Leadership

Following a comprehensive process to appoint a new Independent Non-Executive Director, we are pleased to announce that Peter Zoellner joined the Board on 1 December 2024. Peter brings expertise from his previous role as BIS Head of Banking Department and his experience as a member of the Governing Board and Executive Director for Financial Market Operations at the Central Bank of the Republic of Austria (OeNB).

We are pleased to announce that Peter Zoellner joined the Board on 1 December 2024 as a new Independent Non-Executive Director.

The Board election process saw Raj Kumar, Head of Strategic Development at Morgan Stanley, re-elected as a Market Making Member. Praveen Baijnath, Chief Executive of Rand Refinery and Director of Prestige Bullion, and Wenjian Fang, CEO of Bank of China (UK) Limited, were reappointed for further terms. We welcomed Robin Kolvenbach, Co-Chief Executive Officer of Argor-Heraeus SA, to the Board.

The Board marks the retirement of Hitoshi Kosai, whose exemplary dedication and tireless service to LBMA has spanned eight years on the Board and over twenty years on the Referees. His profound industry knowledge and unwavering commitment have been instrumental in shaping LBMA’s development. While stepping down from the Board, we are delighted that he will continue to serve on the Referees, ensuring his valuable expertise remains within the LBMA community.

The Board meets quarterly to set our strategic and business vision and scrutinises LBMA's performance. The Board is supported by a number of sub-committees which advise on specific areas of expertise.

The LBMA Sub-Board was created to reassure and reinforce the independence of LBMA. Its purpose is to review matters arising in relation to incidents and enforcement with regards to LBMA Members and Good Delivery List Refiners. Any decision by this Group is considered final.

Strategic Direction and Governance

The Board continues to play a vital role in shaping LBMA’s strategic direction, and this year has been particularly significant as we develop and implement our new Three-Year Strategy. This strategic framework will guide our priorities and initiatives through to 2027, ensuring we remain responsive to market evolution while maintaining the highest standards of governance.

The Sub-Board Group, comprising independent Non-Executive Directors, Chief Executive, and Executive Directors, continues to strengthen our governance framework. This Group exercises delegated authority in reviewing matters related to Incidents or Enforcement regarding members, particularly where potential conflicts of interest may exist for elected Board Members.

Risk Management and Compliance

In 2024, the Board has enhanced its overall risk management work and conducted thorough policy reviews, particularly focusing on cyber risk management, anti-bribery measures, and travel policies to ensure they remain appropriate for our evolving business environment, set out in the Responsible Gold Guidance and the LBMA Rules for Members.

Incident Review Process

An Incident Review Process (IRP) is launched when LBMA becomes aware of allegations of criminal activity and/or potential serious breaches of the Responsible Gold Guidance or Responsible Silver Guidance.

Escalation to an IRP may come from a variety of sources, such as industry press and civil society, as well as LBMA’s own proactive monitoring achieved through our internal due diligence procedures.

The failure to appropriately adhere to the Responsible Gold Guidance or Responsible Silver Guidance may result in the Refiner being removed from the Good Delivery List, following LBMA’s robust Incident Review Process.

In 2024, LBMA engaged one Refiner and one Affiliate Member to address either potentially serious sourcing issues or a failure to meet the standards set out in the Responsible Gold Guidance and the LBMA Rules for Members.

PT ANEKA TAMBANG TBK (LOGAM MULIA)

An IRP was launched against PT Aneka Tambang Tbk (Logam Mulia) in June 2024 following the launch of a criminal investigation by the Indonesia Attorney General’s Office. The investigation is looking into concerns about the actions of former general managers relating to the Refinery’s brand stamping operations from 2010 to 2021.

The IRP is ongoing at the time of writing and LBMA will provide further updates once the review process has concluded. The Refiner is cooperating fully with LBMA.

VPOWER FINANCE SECURITY (HONG KONG) LTD

In June 2024, LBMA moved to immediately revoke the membership of VPower after its designation on a Russia-related sanctions list maintained by the US Office for Foreign Asset Controls (OFAC).