Financial Crime World

Title: Lebanese Gold Firm in Liberia under Scrutiny: Money Laundering Allegations and Questionable Transactions

Suspicious Transactions between Golden Vision Trading and Kaloti

An investigation carried out over the past year has revealed questionable financial transactions between a Lebanese-owned Liberian gold firm, Golden Vision Trading, and a Dubai-based company, Kaloti. The transactions, which took place between 2012 and 2013, amounted to over $11 million and raised red flags with New York-based Standard Chartered Bank.

flagged Transactions and Regulatory Concerns

Records from Standard Chartered Bank indicate that Golden Vision Trading sent and received money from Kaloti during this period. The bank expressed concerns over:

  1. The precious metals industry’s high-risk status for money laundering.
  2. The use of high-risk jurisdictions, such as the UAE and Liberia.
  3. Round figure payments in suspicious transactions.

They identified 25 potentially suspicious transactions, totaling over $35 million, sent and received by Golden Vision Trading through an account at International Bank Liberia.

Golden Vision Trading’s Business Relationship with Kaloti

Background and Conflicting Statements

Golden Vision Trading’s spokesperson, Joe Aidibi, admitted to having a business relationship with Kaloti but stated that it had ended in 2013. He denied any knowledge of the transactions in question and emphasized the legitimacy of the company’s business practices.

Investigations into Kaloti

During the same period, the US Drug Enforcement Administration (DEA) investigated the Dubai-based Kaloti Jewellery Group for suspected money laundering. The investigation targeted companies involved in laundering drug money through gold. Despite no formal investigation into the Liberian gold company, its relationship with Kaloti and the controversies surrounding the Dubai-based firm have raised questions.

The Failure to Prosecute Cases

The Financial Intelligence Unit (FIU) in Liberia has expressed shock over the transactions and plans to launch an investigation. Central Bank officials, however, are unsure if the FIU was alerted about the suspicious transactions. The FIU was established in 2012 and has faced challenges, including a lack of independence and difficulties in prosecuting money laundering and terrorist financing cases.

Concerns Raised by the FIU Director General

FIU Director General Edwin W. Harris has expressed concern over the failure to prosecute cases and suggested that the Central Bank of Liberia reconsider its regulations and the FIU’s relationship with the judiciary. The FIU, a non-judicial agency, has filed 12 cases in the past nine months with the:

  1. Liberia Revenue Authority
  2. Police
  3. Ministry of Justice

However, there has been no progress on any of the cases.

Previous Accusations against Golden Vision Trading

This latest probe into Golden Vision Trading follows previous allegations that the company was indirectly involved in smuggling gold from Liberia and purchasing gold from illegal miners.

Alleged Gold Smuggling and False Declarations

In early 2019, one of the company’s directors, Hassan Aidibi, was arrested at Liberia’s international airport with over 1900 ounces of gold (nearly 60 kilograms), worth over $2 million. Despite denying the allegations, Aidibi’s gold was returned to him after questioning. Officials claimed that he had falsely declared the quantity of gold being exported, and the matter was settled out of court with the proper royalties paid to the Government of Liberia.

Purchases from Illegal Miners

Investigations have suggested that Golden Vision Trading purchases gold from illegal miners, including ex-combatants, operating in protected areas in violation of Liberia’s mineral development laws. The Ministry of Mines and Energy confirmed that Golden Vision Trading had been accused of evading taxes by purchasing gold from these sources. The Ministry requires companies to buy gold only from legitimate brokers and miners, making Golden Vision Trading’s actions a violation.

Golden Vision Trading’s Response

Golden Vision Trading has refuted these allegations, stating that all their gold is sourced legally within Liberia and that they comply with all tax and authorization requirements. However, miners in Gola Forest and Western Gbarpolu County have reportedly sold their gold to the company, raising concerns about the company’s commitment to following the law.

Kaloti’s Response

A spokesperson for Kaloti declined to comment on the transaction details with Golden Vision Trading when approached by media.