Bullion failures. ASIC disregards Senate and ignores whistleblower evidence

Senators continue to probe the investigation into ABC Bullion by ASIC and auditors Deloitte, querying the methods used and why whistleblower evidence seems to have been ignored. Kim Wingerei with the story.

Australian bullion companies have had a rough ride lately. Last year, Perth Mint operators, the Gold Corporation, accepted an ‘Enforceable Undertaking‘ after a lengthy investigation by AUSTRAC found that the company had failed to comply with anti-money laundering and counter-terrorism financing (AML/CTF) laws. East Coast competitor ABC Bullion was cleared by ASIC earlier this year after an investigation into its bullion storage practices, while another Pallion Group subsidiary, since liquidated, was in ATO’s crosshairs for years for GST fraud. The case is now closed.

ASIC engaged ‘Big 4’ auditor Deloitte to conduct an audit of ABC Bullion. Economist and bullion dealer John Adams, who instigated the ASIC inquiry, believes the audit process was inadequate, a sentiment echoed by Senator Roberts.

On September 10, Malcolm Roberts asked why “ASIC did not physically inspect any ABC Bullion or Pallion group facility for 9½ months.” He went on to state that “a mere 3½ weeks after the ASIC investigators tipped off ABC Bullion that it was under investigation, ABC Bullion moved an undisclosed quantity of physical bullion from a tiny room in the Sydney CBD to an industrial building located in Marrickville.”

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