Gold laundering is the process whereby illegally obtained gold is melted and recast into another form. The recasting is performed to obscure or conceal the true origin of the gold. The recast gold is then sold, thus laundering it into cash.
It may also refer to a money laundering transaction in which the exchanged good is gold.
There are several stages in the gold laundering process. The first is the acquisition of the gold, which may be from any combination of sources, at least one of which is illegal. This is then treated as scrap metal, melted, [1] then cast into a mold. This results in a transportable ingot, gold bar or other bulk form bullion.
In some cases, there is no gold involved in the laundering scheme. Colombia reported 70 tons of gold exports for 2012 despite production of only 15 tons. [2] This is a result of fictitious gold exports filed with the Colombian customs agency by drug cartels to import "cash from international drug deals". [2]
Acquisition of gold occurs in many forms.
Small-scale gold mining operations, particularly those with no permits or licences, [2] extract gold from areas unsuitable for large mining operations. Gold obtained in this fashion that is exported may not be traced or authenticated. [3] This includes artisanal mines operated by a few individuals, who then sell the gold to brokers. [1]
Another form of acquisition is theft. In the 1940s, Nazi Germany forcibly obtained the possessions of Jews, sometimes in collaboration with other parties. Most victims who died in death camps and Nazi concentration camps were robbed of all valuable property by the state, which was then sold or, in the case of bullion, sent to the Reichsbank. For example, in 1945 the Hungarian Gold Train was established to transport the property of Hungarian Jews to Berlin. Once the Jews had been deported to German concentration camps, the valuables were sorted into categories such that their owners could no longer be identified. [4] In the late 1930s and throughout World War II, Germany would increase its unofficial gold reserves by expropriating gold from foreign governments, including $223m from Belgium and $193m from the Netherlands. [5] Some of the Nazi gold was exchanged for cash, [6] and some deposited in financial institutions, including $316 million of the looted gold at the Swiss National Bank. [7] Of the nearly 100 tons of gold laundered through Swiss banks, only 4 tons were returned. [6] The Banco de Portugal, the central bank of Portugal, would regularly purchase Nazi gold held at the Swiss National Bank, according to a 1944 document from the American Overseas Special Services. [8] [9]
The scrap gold is then sold by brokers to smelters or refiners, who heat the gold to at least 1,064 °C (1,947 °F), its melting point. [10] This may include gold from numerous sources, including recycled and newly mined gold. Once melted, it may be purified by parting, which separates silver impurities, and the Miller process or Wohlwill process, depending on the desired level of purity and scale of operation.
Once refined, it is cast into a transportable form for further processing. Gold fingerprinting, that is identifying a particular source of gold based on its impurities or trace elements, may be possible if the impurities have not been removed via refining.
To prevent the laundering of gold and other metals (such as tantalum, tin, and tungsten), some nations have established systems and regulations. For example, Rwanda introduced regulations for mineral trade that require all ore extraction to be tagged, in part a response to the Dodd–Frank Wall Street Reform and Consumer Protection Act in the United States that requires companies to disclose the use of conflict minerals by publishing a supply chain audit. [11]
However, with only 100 government monitors overseeing 450 mining sites during typical business hours, smuggling still occurs, exacerbated by corrupt monitors illegally selling tags or failing to record transactions in logbooks. [11]
In 2013, Ghanaian President John Dramani Mahama announced that the government of Ghana would establish a task force to regulate the small-scale mining sector. [3] This was to ensure that gold produced in small-scale mines could be authenticated, and also to eliminate the use of heavy machinery that had become prevalent on such sites, which have caused environmental damage. [3]
The government of Uganda obtained $200 million in trade revenue from the sale of gold in 2012, but expects that to decrease in 2013 as a result of illegal mining operations. [12]
The group InSight Crime claims that illegal mining represents up to 30% of the revenues of the Revolutionary Armed Forces of Colombia (FARC). [1]
On 22 November 2000, the World Jewish Congress lawsuit against Swiss banks was settled, providing a fund of $1.25 billion for restitution to individuals whose property was confiscated by the Nazis during World War II.[ citation needed ]
The economy of Ghana has a diverse and rich resource base, including the manufacturing and export of digital technology goods, automotive and ship construction and export, and the export of resources such as hydrocarbons and industrial minerals.
The economy of Mali is based to a large extent upon agriculture, with a mostly rural population engaged in subsistence agriculture.
Mining is the extraction of valuable geological materials and minerals from the surface of the Earth. Mining is required to obtain most materials that cannot be grown through agricultural processes, or feasibly created artificially in a laboratory or factory. Ores recovered by mining include metals, coal, oil shale, gemstones, limestone, chalk, dimension stone, rock salt, potash, gravel, and clay. The ore must be a rock or mineral that contains valuable constituent, can be extracted or mined and sold for profit. Mining in a wider sense includes extraction of any non-renewable resource such as petroleum, natural gas, or even water.
Gold mining is the extraction of gold by mining.
Tarkwa is a town and is the capital of Tarkwa-Nsuaem Municipal district, a district in the Western Region southwest of South Ghana. Frequently dubbed as the "Golden City" by its indigenous populace, the region is characterized by a rich tapestry of Fante communities, among which include Efuanta, Tamso, Aboso, Akoon, Nzemaline, and Kwabedu.
Much of the focus of the discussion about Nazi gold concerns how much of it Nazi Germany transferred to overseas banks during World War II. The Nazis looted the assets of their victims to accumulate wealth. In 1998, a Swiss commission estimated that the Swiss National Bank held $440 million of Nazi gold, over half of which is believed to have been looted.
Galamsey refers to illegal small-scale gold mining in Ghana. The term is derived from the phrase "gather them and sell". Those involved in this practice are called galamseyers, and in neighbouring Francophone countries such as Ivory Coast and Burkina Faso, they are often referred to as orpailleurs. The practice is also referred to as illegal artisanal small-scale mining (ASM). Ghana's widespread illegal mining activities have caused extensive destructing to the gold-rich West African country's forests.
The Perth Mint is Australia's official bullion mint and wholly owned by the Government of Western Australia. Established on 20 June 1899, two years before Australia's Federation in 1901, the Perth Mint was the last of three Australian colonial branches of the United Kingdom's Royal Mint intended to refine gold from the gold rushes and to mint gold sovereigns and half-sovereigns for the British Empire. Along with the Royal Australian Mint, which produces coins of the Australian dollar for circulation, the Perth Mint is the older of Australia's two mints issuing coins that are legal tender.
Prestea is a town in the Western Region, in southwest Ghana and about 50 km north of the coast of the Atlantic Ocean. It lies on the west bank of the Ankobra River, about 60 mi (100 km) northwest of Cape coast. The town is part of the Prestea-Huni Valley District. Prestea is the forty-sixth most populous in Ghana, in terms of population, with a population of 35,760 people. A railway line connects Prestea to Tarkwa and beyond to the coastal city of Sekondi-Takoradi.
The Mining industry of Ghana accounts for 5% of the country's GDP and minerals make up 37% of total exports. Gold contributes over 90% of the total mineral exports. Thus, the main focus of Ghana's mining and minerals development industry remains focused on gold. Ghana is Africa's largest gold producer, producing 80.5 t in 2008. Ghana is also a major producer of bauxite, manganese and diamonds. Ghana has 20 large-scale mining companies producing gold, diamonds, bauxite and manganese; over 300 registered small scale mining groups; and 90 mine support service companies. Other mineral commodities produced in the country are natural gas, petroleum, salt, and silver.
Gold Mining often plays a significant role in Burkina Faso’s economy. Burkina Faso has become Africa's 4th biggest producer of gold in 2012. Production of mineral commodities is limited to cement, dolomite, gold, granite, marble, phosphate rock, pumice, other volcanic materials, and salt.
Mining in Ecuador was slow to develop in comparison to other Latin American countries, in spite of large mineral reserves. As late as 2012, according to the United Nations, Ecuador received less foreign direct investment per person than any other country in Latin America. During the 1980s, mining contributed only 0.7 percent to the Ecuadorian economy and employed around 7,000 people. Minerals were located in regions with little to no access, hindering exploration. Ecuador has reserves of gold, silver, copper, zinc, uranium, lead, sulfur, kaolin and limestone. The latter practically dominated the early industry as it was used in local cement plants.
Mineral industry of Colombia refers to the extraction of valuable minerals or other geological materials in Colombia. Colombia is well-endowed with minerals and energy resources. It has the largest coal reserves in Latin America, and is second to Brazil in hydroelectric potential. Estimates of petroleum reserves in 1995 were 3.1 billion barrels (490,000,000 m3). Colombia also possesses significant amounts of nickel and gold. Other important metals included platinum and silver, which were extracted in much smaller quantities. Colombia also produces copper, small amounts of iron ore, and bauxite. Nonmetallic mined minerals include salt, limestone, sulfur, gypsum, dolomite, barite, feldspar, clay, magnetite, mica, talcum, and marble. Colombia also produces most of the world's emeralds. Despite the variety of minerals available for exploitation, Colombia still had to import substances such as iron, copper, and aluminum to meet its industrial needs.
Artisanal and small-scale mining (ASM) is a blanket term for a type of subsistence mining involving a miner who may or may not be officially employed by a mining company but works independently, mining minerals using their own resources, usually by hand.
Ghana gained independence from the British on 6 March 1957. It is a member of the Commonwealth of Nations. The country became a republic on July 1, 1960.
Mining has been practiced in Taiwan for hundreds of years. Sulfur was an early important resource collected on the island. Coal mining expanded in the 19th century to keep up with demand from increased foreign trade. Heavy industry was further expanded under Japanese rule, but air raids towards the end of World War II decimated mining infrastructure, falling below 19th century production levels. Copper mining expanded in the mid-20th century, but ended in the 1980s following a global collapse in the price of copper.
Nova Dies is a British Virgin Islands (BVI) international business company (IBC) that functions as a business shell covering a consortium of international trusts and other asset managers investing in mining and shipping of natural resources. Its shares are controlled through a complex trust scheme and it is managed through a Management Company that is a subsidiary of Nova Dies itself. It has been speculated that Nova Dies scheme mostly covers investments of Colombian, Dutch, Greek and Congolese mining and shipping interests.
Tanzania is a land rich in minerals. Mining makes up more than 50% of the country's total exports, of which a large part comes from gold. The country has gold reserves of 10 million ounces, generating revenue of over a billion USD. Diamonds are also found in significant amounts. Since it was opened in 1940, the Williamson diamond mine has produced 19 million carats (3,800 kg) of diamonds. Gemstones, nickel, copper, uranium, kaolin, titanium, cobalt and platinum are also mined in Tanzania. Illegal mining and corruption are ongoing problems. In 2017, the government passed a series of bills aimed at increasing revenue from minerals after a scandal which caused the dismissal of the Minister for Energy and Minerals.
Illegal mining is mining activity that is undertaken without state permission. Illegal mining is the extraction of precious metals without following the proper procedures to participate in legal mining activity. These procedures include permits and licenses for exploration of the land, mining and transportation.
The mineral industry of Suriname makes up a large proportion of the country's economy. In 1916, the Aluminium Company of America began mining bauxite in the then Dutch colony of Surinam which over time became Suriname's main export.
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