The London Bullion Market Association has increased membership fees and introduced two-year advance payment options to strengthen its finances amid a costly legal challenge. Speaking at the LBMA's annual gathering in Sorrento, Italy, CEO Ruth Crowell stated the measures are necessary to continue the organization's mandate. The licensing and membership fees currently account for about 50% of the body's revenue. The LBMA is also exploring ways to generate more revenue from licensing its Good Delivery List of refiners. Futures exchanges owned by CME Group Inc. rely on this list to determine which processors can supply gold backing their contracts. The newly formed gold clearing system in Hong Kong also plans to use the list.
The association's finances have been strained by a lawsuit filed by the families of two men who died at Tanzania's North Mara gold mine in 2019. The LBMA has denied the claim and says it is confident it will successfully defend the case, which begins Wednesday in London. Its latest accounts show the organization had about £1.4 million ($1.9 million) in reserves at the end of 2025. It disclosed it could face £3 million of the claimants' legal costs if it loses. The association spent £2.4m on legal fees last year. Crowell also urged the Financial Action Task Force to implement more consistent reporting on precious metal laundering, noting the positive impact of its 'grey list' on reform.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing