LBMA Aims to Curb Illegal Gold Production and Trading at Hubs

It must be noted that the UAE is one of the world's largest gold hubs.

SEATTLE (Scrap Monster): The London-based gold market authority has threatened to regulate flow of bullion from countries including the United Arab Emirates (UAE) into the mainstream market, if they are found to violate regulatory standards.

In a letter dated November 6^th, 2020, the London Bullion Market Association (LBMA) addressed to these countries that they must ensure that the regulations are met in those countries from which gold is sourced. This is the first move by the market authority aimed at addressing the illegal or unethical production and trading of gold.

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The letter is addressed to several countries identified as major gold centres, including China, Hong Kong, India, Japan, Russia, Singapore, South Africa, Switzerland, Turkey, UAE, the United Kingdom and the United States. Although any centre is not targeted in particular, unofficial sources suggest that LBMA intends to focus on the gold industry in Dubai.

Commenting on the letter, Ruth Crowell, Chief Executive, LBMA stated that the goal of the association is not to disengage from the key markets, but to indulge in more coordinated efforts with them in advancing global standards.

It must be noted that the UAE is one of the world's largest gold hubs. It exports bullion worth billions of dollars to refiners all over the world. LBMA action is on the grounds of investigation that pointed out that gold worth billions of dollars were being smuggled to Dubai from Africa.

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