SwissAid Report Highlights Massive Gold Smuggling from Africa to UAE
Billions of dollars worth of gold are smuggled out of Africa every year, with most of it exported to the United Arab Emirates (UAE) for processing, according to a report by SwissAid.
The Bern-based non-governmental organization analyzed declared and undeclared gold imports over a ten-year period ending in 2022.
They estimate that the illicit trade amounts to between $23.7 billion and $35 billion annually based on current market prices. In 2022 alone, more than 435 tons of gold were smuggled out of Africa.
The revenue from this illegal trade fuels conflict, finances criminal and terrorist networks, undermines democracy, and facilitates money laundering, according to SwissAid.
The smuggled gold originates from 12 African countries, with significant amounts coming from Mali, Ghana, and Zimbabwe. Over the past decade, an estimated $115.3 billion worth of bullion entered the UAE.
The UAE has taken significant steps to address concerns about gold smuggling, recognizing the risks posed by such activities, the Ministry of Foreign Affairs said in an emailed response.
For instance, the number of suspicious activity reports related to the gold sector increased to 6,432 in 2022 from 223 in 2021. Additionally, UAE authorities have increased inspections for smuggled bullion and imposed fines totaling more than 78 million dirhams ($21.2 million).
The UAE Ministry of Economy stated that the country “cannot be held accountable for other governments’ export records, only our own, where we have sophisticated technologies and systems to track and verify the data.” The ministry also emphasized that the UAE has adopted measures to curb money laundering in the gold sector.
In 2023, the UAE suspended the accreditation of Emirates Gold DMCC, one of the country’s largest gold refineries, due to concerns that its owners had ties to alleged money launderers.
The report indicates that much of Africa’s illegally mined gold is transported to Dubai through refineries in countries like Uganda and Rwanda, often via private jet or hand luggage with false papers.
Dubai hosts at least 20 gold refineries and more than 7,000 traders in precious metals and stones. Smuggled gold is also sent to India and Switzerland, according to the report.
