EasyGold · A Structured Exception
Tri-Party CIF
On our Risks page, we name custody of collateral as a primary fraud risk. This page describes the one arrangement we consider an exception. It is not a standard offering. It is a specific structure, agreed with named institutions, and available for the right transaction.
When single custody or dual custody will not work
In a CIF transaction, the buyer advances significant funds before taking physical delivery of the gold. During that period, after the money has left and before the gold arrives at the destination, the buyer's entire financial exposure rests on one thing: the physical gold held in a vault. That gold is the collateral. Control over it is not a procedural detail. It is the central question of the transaction, because it determines what the buyer has to fall back on if anything goes wrong.
1
the advance
The buyer releases significant funds to the seller before the gold ships. From that moment, the money is no longer in the buyer's control. It is with the seller.
2
the collateral
In lieu of those funds, the seller provides the buyer with collateral to store in a secure vault. How access to that gold is controlled determines everything that follows.
3
single custody
The buyer holds sole access to the vault. This mirrors the control they had over their funds before the advance. It works when the seller has sufficient trust in the buyer. Not every seller will agree to it.
4
dual custody
Both parties hold a key or biometric credential. In theory, neither can act alone. In practice, the seller's existing relationship with the security company gives them the access advantage. The buyer is exposed on both sides. This is how most gold transaction scams in Kenya operate.
1
the advance
The buyer releases significant funds to the seller before the gold ships. From that moment, the money is no longer in the buyer's control. It is with the seller.
2
the collateral
In lieu of those funds, the seller provides the buyer with collateral to store in a secure vault. How access to that gold is controlled determines everything that follows.
3
single custody
The buyer holds sole access to the vault. This mirrors the control they had over their funds before the advance. It works when the seller has sufficient trust in the buyer. Not every seller will agree to it.
4
dual custody
Both parties hold a key or biometric credential. In theory, neither can act alone. In practice, the seller's existing relationship with the security company gives them the access advantage. The buyer is exposed on both sides. This is how most gold transaction scams in Kenya operate.
5
Tri-Party CIF
Where single custody is not granted and dual custody cannot be trusted, there is a third
arrangement. One where neither the buyer nor the seller holds any access credential
That arrangement is explained in the section below.
The mechanism
How Tri-Party CIF works
Three independent institutional parties. No single party can act alone. No party connected to the transaction holds either key.
The mechanism
How Tri-Party CIF works
Three independent institutional parties. No single party can act alone. No party connected to the transaction holds either key.
Practical considerations
What a buyer should know
The structure described on this page is not theoretical. The law firm is engaged. Absa Bank is the nominated institutional partner. The arrangement between both institutions is agreed and is ready to be activated for the right transaction.
There is one practical matter a buyer should understand from the outset. The cost of the arrangement covers the vault, the institutional administration, and the legal oversight. That cost is borne by the buyer. It is the price of a level of security that standard CIF cannot offer.
This is not a transaction model for every buyer. It is for the buyer who has considered the alternatives, understands what institutional custody means, and is prepared to structure a transaction accordingly. That conversation begins with a call.
To discuss
this further
Tri-Party CIF is not a product with a price and a booking form. It is a conversation. If you have reached this page, you are likely already thinking seriously about how a transaction can be structured with real institutional security. That is the right starting point.
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