IFSCA Mandates Ethical Gold Sourcing and Traceability for Bullion Exchange Integrity
SDG 8: Decent Work and Economic Growth | SDG 16: Peace, Justice and Strong Institutions
Institutions: International Financial Services Centres Authority (IFSCA) | India International Bullion Exchange (IIBX) | Ministry of Finance
The International Financial Services Centres Authority (IFSCA) has released a Consultation Paper outlining the proposed IFSCA Good Delivery Guidelines 2025. The central objective is to permit gold refined by any Indian or global refinery to be delivered on the India International Bullion Exchange (IIBX), provided it adheres to best practices and is audited on responsible sourcing. This initiative, rooted in making India a price setter in the global precious metals market , seeks to enhance transparency and integrity in the bullion market ecosystem at GIFT IFSC.
The proposed guidelines mandate that every Accredited Refiner establish and maintain a Risk-Focused Regulatory Compliance Framework (RFRC Framework) and a Risk-Based Operational Excellence Framework (RBOE Framework). Compliance is structured around the OECD’s 5-Step Framework , requiring refiners to implement robust due diligence on all gold sources—whether from Medium/Large-Scale Mines (LSM), Artisanal and Small-Scale Mining (ASM) , recycled material, or mixed gold. Crucially, the guidelines mandate Enhanced Due Diligence (EDD) where sourcing involves Conflict-Affected and High-Risk Areas (CAHRAs), including rigorous origin tracing and mitigation measures against conflict financing and financial crimes. All transactions with suppliers must be routed through formal banking channels, and cash transactions are not permitted.
Policy Relevance
The introduction of these guidelines is of significant regulatory and international relevance, as it embeds global ethical and governance standards directly into India’s nascent international bullion exchange. By mandating strict adherence to OECD Due Diligence and AML-CFT standards—including mandatory Third-Party Audits (Limited Assurance annually and Reasonable Assurance triennially) , and the immediate termination of relationships confirmed to involve money laundering or human rights abuses —IFSCA is proactively safeguarding the IIBX and GIFT IFSC’s reputation, positioning India as a market maker and responsible global trade hub.
What is Responsible Sourcing of Gold?→ Responsible sourcing involves ensuring the gold supply chain adheres to ethical, sustainable, and socially responsible standards. This entails comprehensive management to prevent issues such as child and forced labor, human rights violations, and environmental degradation, often aligning with the OECD Due Diligence Guidance for minerals from conflict-affected and high-risk areas (CAHRAs). Only refineries complying with both technical and responsible sourcing standards are permitted on global Good Delivery Lists.
Follow the full news here: Consultation Paper on the Proposed IFSCA Good Delivery Guidelines 2025