Gold,is the new currency converter! But it produces black money



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Hi, I am Rupeefy and I am telling you that gold has become the new favorite currency converter! Cross border transactions are multiplying the risk of money laundering exponentially. As banks in Switzerland reel under international pressure to disclose financial activity has revealed an interesting data recently. They have said that the quantum of gold that have left for the Indian shores from the country is a hopping over 11 billion Swiss francs (about 70,000 crore rupees). Gold exports from Switzerland to India in September alone stood at over 2.2 billion Swiss francs (about 15,000 core rupees). The Swiss Customs Administration says that this figure is double the previous month.

Some say that the surge in gold imports in India is because of Diwali. Others say that there is no reason to believe that the movement of the yellow metal has happened through fictitious accounts. But my point is without proper scrutiny gold can be harmful for India’s health.

Way back in the 90s there was an incidence in America. There was a company called E-Gold who used to act as a money service business. The business was running well, but one day it came under the hammer of the justice department. Online digital currency business E-Gold and its three principal directors admitted to laundering money and operating as an unlicensed money transmitting business. As part of the plea, E-Gold agreed to pay a penalty of $1.75 million and hire a consultant and auditor to aid it in crafting an AML program and monitor its accounts for suspicious activity. There were other penalties imposed as well. Court documents stated that because E-Gold “illegally failed to register,” the lack of oversight “created an atmosphere where criminals could use E-Gold…anonymously to further their illegal activities,” including child exploitation, investment scams credit card fraud and identity theft. That’s the power of gold.

Gold is a superb currency converter:

Indian banks do not have such strong Anti Money Laundering mechanism as US banks. Here we see scams surfacing ages after being done. I will not be surprised if someday I read in the newspaper that a shell company has shown import of gold as a legitimate business activity. The profits shown are white money. Thus they buy gold in dollars, bring them to India and pay in rupees for their operations here. What is the source of wealth? The same yellow metal. All the imports by the company have actually led to further its criminal activities. There will be a complex financial activity, but one cannot deny the fact that yellow metal has even played the role of a currency converter here.

Hence our financial institutions, regulators and the government of India need to step up to a higher level of monitoring of cross border gold transfers. There should be a mechanism that produces results swiftly. The yellow metal can, not just destabilize our economy but it can seriously damage our peace and harmony.

Keep in mind- Do not underestimate the power of Gold.