BANK to BANK PROCEDURES
GOLD BULLION SALES & PURCHASE PROCESS
1. Buyer accepts Seller SCO by signing and stamping. Then completing LOI and CPO templates provided and returning all the 3 documents back to seller mandate or facilitator for review before submission to Seller for approval
2. From the information provided in the SCO + LOI + BPDA, the Seller will issue Draft SPA to the Buyer
3. The Buyer completes, signs and stamps the Draft SPA - FIRST and returns to the Seller who completes SECOND and issues a Final SPA in secure PDF copy format for the Buyer and Seller to lodge with their respective banks and bank officers
4. The bank officers assigned will oversee the lodged SPA and conduct the necessary DD and verifications on Buyer and Seller + all the documents submitted by each party as part of the requirements including POF and POP
5. When all is in order the bank officers will agree to proceed with the transaction and follow the procedures in the SPA
6. The Bank will reject the SPA if all the necessary requirements are not met by either party and the transaction will not proceed
There is no third party due diligence by buyer mandates or lawyers necessary or required in a Bank to Bank process since all is conducted by the respective bank officers and are in possession of all the necessary documents submitted the by Buyer and Seller with the Final SPA . The respective banks provide full bank responsibility once the transaction is agreed upon and proceeds, hence they are very stringent and detailed in the process in a safe, secure, private and confidential manner to the benefit of both the Buyer and the Seller and hence the preferred method.
TERMS & TRANSACTION PROCEDURES
The Seller and Buyer solemnly agree as follows for FOB or CIF xxxxxxx
a) After mutual agreement with the final SPA, the Buyer completes (First) and the Seller completes (Second) will sign and seal this Sales and Purchase Agreement with their full banking coordinates within the SPA, including the NCNDA and IMFPA.
b) Seller and the Buyer will lodge the completed set of contract documents with their respective banks and Bank Officers, immediately within 2 Banking days of mutual Signature.
c) The Buyer will then instruct his Bank to send to Seller’s Fiduciary Bank the Swift Payment Guarantee receiving to the Bank Account in xxxxxxxxx Bank on behalf of the Buyer, for the amount of xxxxxxxxxxxxxxx (USD) based on the value of the Each Tranche delivery of xxxxxxx GOLD BULLION. The value of the payment guarantee shall be adapted to the value of each following delivery quantity mutually confirmed and accordingly to the Delivery Schedule, which is part of this SPA contract.
d)Upon receiving, verifying, authenticating, and validating the Payment Guarantee at the Seller’s Fiduciary bank, Seller shall then authorize the Seller’s Gold Bullion Custody Bank Officer to issue Proof of Product with the POP/SKR Certificate, with Full Bank Responsibility in the Buyer’s name, which will activate the payment guarantee in the Custodian Bank. The Seller´s Bank officer will then send Swift MT 600/POP SKR Certificate to the Buyer´s Bank Officer.
e) THE BUYER CAN REQUEST TO SEND THE GOLD TO A MUTUALLY RECOGNIZED REFINERY FOR ASSAY AT THE BUYER’S COST. The Seller shall arrange through its own logistics partners and no other third parties, the transportation of the gold to the refinery, the total cost of which shall be borne by the Buyer and directly payable to the logistics partners. The refinery costs also shall be borne by the Buyer and shall be payable directly to the refinery by the Buyer.
f) The Seller will deliver the weekly/monthly tranche of xxx MT of Gold Bullion bars. When the Buyer has settled the cost of the weekly tranche of xxxMT Gold Bullion Bars with the Seller, the Title of Ownership of equal quantity of the weekly tranche of xxxMTGold Bullion Bars will be transferred to the Buyer. The same process will apply to subsequent delivery tranches for the remaining period of the contract.
g) Buyer’s Swift Payment Guarantee shall be used for the subsequent tranches and the value of the payment guarantee shall be adapted to the tranche quantity of the mutual agreed delivery schedule between Buyer and Seller and following the same process
h) Full payment for the subsequent tranches of Gold Bullion Bars (via MT103 or T/T) will be completed in three (3) Banking days after Title Transfer of Ownership of the delivery for each tranche of Gold Bullion Bars to the Buyer.
i) The commissions due (total 3%), will be paid by the Seller’s Bank Officer immediately and without delay to each appointed Paymaster or Beneficiary after each tranche. The Terms and Conditions within this SPA include the IMFPA/NCNDA, which forms part of this Agreement.
NARGIS Commodities - Gold Bullion procedures 2025