Gold worth billions smuggled out of Africa
NAIROBI, - Billions of dollars' worth of gold is being smuggled out of Africa every year through the United Arab Emirates in the Middle East – a gateway to markets in Europe, the United States and beyond – a Reuters analysis has found.
Reuters assessed the volume of the illicit trade by comparing total imports into the UAE with the exports declared by African states. Industrial mining firms in Africa told Reuters they did not send their gold to the UAE – indicating that its gold imports from Africa come from other, informal sources.
For example, Democratic Republic of Congo is a major gold producer but one whose official exports amount to a fraction of its estimated production: Most is smuggled into neighboring Uganda and Rwanda."It is of course worrisome for us but we have very little leverage to stop it," said Thierry Boliki, director of the CEEC, the Congolese government body that is meant to register, value and tax high-value minerals like gold.
The Dubai Customs Authority referred Reuters' queries to the UAE foreign ministry, which did not respond. The UAE government media office referred Reuters to the UAE federal customs authority, which also did not respond. Small-scale miners have long used mercury – easy to buy at around $10 for a thumb-sized vial – to extract flecks of gold from ore, before sluicing it away. Mercury's toxic effects include damage to kidneys, heart, liver, spleen and lungs, and neurological disorders, such as tremors and muscle weakness. Cyanide and nitric acid are also being used in the process, according to researchers and miners in Ghana.
Western investors want gold so they can diversify their portfolios; India and China want it for jewelry. But most Western companies – and the banks that finance them – avoid handling non-industrial African gold directly. They are unwilling to risk using metal that may have been mined to fund conflict or that may have involved human rights abuses in, for instance, DRC or Sudan. Various Uganda-based traders have been sanctioned for handling gold smuggled out of DRC.
The LBMA is"not comfortable dealing with the region" because of concerns about weaknesses in customs, cash transactions and hand-carried gold, its chief technical officer Neil Harby told Reuters. Investigators and people in the gold industry say the ease with which smugglers can carry gold in their hand-luggage on planes leaving Africa helps gold flow out unrecorded. And limited regulation in UAE means informally mined gold can be legally imported, tax-free.
Reuters presented its analysis to 14 African governments. Of them, five said it reflected an existing concern about gold being smuggled out of their countries that they are trying to address. One said they did not think gold smuggling was a problem for them. The rest declined to comment or did not respond.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Exclusive: Gold worth billions smuggled out of AfricaBillions of dollars' worth of gold is being smuggled out of Africa every ye...
Read more »
Gold worth billions smuggled out of AfricaData provided by governments to a U.N. database shows the UAE has been a prime destination for gold from many African states for almost a decade. Reuters analysis can now give an estimate of the scale of gold being smuggled out of the continent.
Read more »
Russia's thirst for gold is just a diversification play, central bank governor saysRussia's surge in gold buying over the past year is simply down to a wish to diversify its portfolio of reserves, the central bank governor told CNBC Friday.
Read more »
Why Gold Could Rise For The Next 10 YearsMy latest analysis shows a big opportunity for gold over the long-term, going against the bearish majority. Here are some important factors that are bullish for gold.
Read more »
Meet Charley Parkhurst: the Gold Rush's Fearless, Gender Nonconforming Stagecoach DriverStagecoach drivers were seen as the masculine ideal in the Old West. It was a profession demanding lots of skill, physicality, endurance and courage. Charley Parkhurst was one of the best, and unbeknown to his peers, he was assigned female at birth.
Read more »
China Buys Gold While Retail Investors Buy EquitiesChina has pushed the credit default cost lower by using its monetary policy tool and this triggered the risk-on trade on a global equity platform but the PBOC itself is buying gold. Should you be doing the same?
Read more »
Tax overhaul raises taxes for some Gold Star families on survivor benefitsPresident Donald Trump's tax overhaul is forcing some military families to pay thousands of dollars more in taxes on their survivor benefits, according to a nonprofit organization that helps those families.
Read more »
Cramer's lightning round: I'm sticking with this gold stock pickJim Cramer takes calls and gives his thoughts about different stocks in lightning speed.
Read more »
The 10 countries with the biggest piles of goldThe volume of gold bought by central banks in 2018 rose to its highest level since the end of the Gold Standard nearly a half a century ago.
Read more »
As gold hits lowest level of year, Standard Chartered predicts prices will rally through 2020As gold hits lowest level of year, Standard Chartered predicts prices will rally through 2020 via (CNBCFuturesNow and StephLandsman)
Read more »