Many gold buyers, especially foreigners are always warried of gold sellers in Kenya and sometime Africa at large. They put their suspicion first before anything else and the suspicion is normally based on such things as what they read somewhere or what they heard somewhere. Recently there has been a lot of cases where foreigners have been conned their huge sum of money on gold scam transaction thus precipitating the need to exercise due care and be alert to avoid being a culprit of these hungry hyenas skimming to reap where they did not sow. In this article we provide some of the due diligence process that you need to undertake in a gold dealing transaction in order to be safe.

It is important get a local attorney to assist with:

  1. requesting the registration documents of the entity alleging to supply or sell the yellow metal.
  2. Asking the Ministry of mining to validate the license/permit from supplier or seller.
  3. Asking for Tax certificate and Tax compliance certificate of the supplier or seller.
  4. Conducting an official search for incorporated entities if a company or a partnership.
  5. Requesting the Ministry of Mining to authenticate the seller and their license/permit provided.
  6. If possible, travel into the country and inspect business premise and consignment in question.
  7. Ask for analysis report or be present during analysis by the relevant authorities and ensure you have your attorney around.
  8. Have your attorney to guide you during the entire transaction up to the point of export.
  9. Do not transfer huge amount of money to the seller until you are sure the consignment is okay and safe for export. If possible, request your attorney to hold the funds until the consignment is delivered before he can release the funds to the seller or their authorized representative.
  10. Identify and select your own mode of export, whether by air or water as long as they can be trusted.
  11. Do not believe any promise to deliver the consignment after payment of the purchase price until you are 100% sure or actually received the goods.
  12. Ensure you have all the paperwork in place to avoid issues with the authorities and tax is paid promptly to the government.
  13. Ensure there is maximum security for the consignment.
  14. Ensure you deal with a reputable seller (ask your local attorney to ascertain this). And
  15. Ensure the seller has a clean title over the precious metal capable of being transferred to you.

Understand that all that glitters is not gold always seek legal assistance. Your attorney may uncover that which you may not have thought of and save you from losing billions.

At A.O.WANGA ADVOCATES we are happy to assist you in doing due diligence in all your transaction in Kenya. For more information contact us on info@aowangaadvocates.com or +254794600191

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