WGC and DMCC lead a new partnership with stakeholders
In a concerted effort to tackle the persistent trade of illicit hand-carried gold globally, the World Gold Council (WGC) and the Dubai Multi Commodities Centre (DMCC) have launched a strategic partnership to fortify and standardise international regulations and procedures and plug a critical gap in the responsible sourcing and trade of gold.
Under the new initiative, the WGC and DMCC will bring together a consortium of gold industry stakeholders to identify critical challenges associated with both legitimate and illegal aspects of hand-carried gold worldwide.
The collaborators will undertake comprehensive research and analysis to gauge the extent of illicit gold trade, explicitly focusing on the role of hand-carry methods.
The outcome of this initiative will be a set of policy recommendations designed to address the types of gold permissible for hand-carry, define acceptable personal limits, and establish standardised customs declaration and digital tracking processes.
Significant problem
Illicit gold trade is a significant problem worldwide, and according to Impact – an independent non-profit – gold is often favoured for money laundering and illegal trade as an alternative to paper currency.
It is a high-value, easy-to-transport mineral, making it vulnerable to smuggling and an ideal target for armed groups. The illicit gold trade has been tied to armed groups in the Democratic Republic of Congo, Mali, Venezuela, Colombia and more who use the proceeds from illegal gold to finance their activities.
Andrew Naylor, Head of Middle East and Public Policy at the World Gold Council, emphasised the importance of this collaboration: “While the majority of gold is responsibly traded through a formal network, hand-carried gold does play a role in illicit trade, and our cooperation with DMCC is pivotal in addressing that challenge to the integrity of the global gold market.
Framework target
“This is also an important component of our strategic Gold247 programme, focused on improving integrity and trust. Together, we aim to establish a framework that tackles the current challenges and paves the way for a more secure and responsible future in the gold trade.”
Ahmed Bin Sulayem, Executive Chair and CEO of DMCC, highlighted the urgency of stricter measures on hand-carried gold: “The positive impact that this initiative will have on the legitimate gold mining communities worldwide is immeasurable.
“This is a prime example of how the UAE demonstrates a true desire to enact positive industry reforms, so we are proud to be working alongside the World Gold Council on this crucial matter.”
Headquartered in London, UK, the WGC oversees a responsible and accessible gold supply chain worldwide. DMCC is a crucial trade and enterprise hub for commodities operating out of Dubai.
Featured image: The illicit trade of gold is a significant problem worldwide. Image: Anne-Nygard
