Gold smuggling crisis prompts tougher controls by US, UK and UAE

Industry leaders warn that a surge in illegal gold flows, now valued at over $120 billion, is fueling armed conflict in Sudan and the Democratic Republic of Congo. The rapid rise in gold prices has spurred a boom in illicit mining, with refined bars easily concealed and used to launder money and fund criminal groups, including links to cryptocurrencies.

Governments in the United States, the United Kingdom and the United Arab Emirates are examining measures to curb the trade, such as installing metal detectors at airports and tightening provenance rules. In the US, a bipartisan bill would require the State Department to devise a strategy against illegal gold mining, including an investigation of activities in Venezuela. The UK’s deputy prime minister, David Lami, announced a forthcoming summit on illegal financing and a stricter regulatory stance. Ruth Crowell, chief executive of the London Bullion Market Association, called the situation an urgent crisis for the international community.