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EY: Gold, drug money and a major auditor's 'cover-up'


A major accountancy firm covered up evidence of smuggling by an organised crime gang that was laundering British drug money, an investigation has revealed.
EY failed to report suspicious activity at one of the world's largest gold refineries and then altered a compliance report to hide the crime.
BBC Panorama found the gang laundered money by selling 3.6 tonnes of gold to the Kaloti refinery in Dubai.
Both EY and Kaloti deny any wrongdoing.
Twenty-seven members of the money laundering gang were jailed in France in 2017.
The gang had collected cash from drug dealers in the UK and other European countries. They then laundered the dirty money by buying and selling black market gold.
Documents seen by Panorama and French news agency Premieres Lignes show that Renade International - a company owned by a member of the money laundering gang - sold $146m (£114m) of gold to Kaloti in 2012 alone.
The following year the accountancy firm EY, formerly known as Ernst and Young, had been asked to conduct a review of Kaloti's compliance with rules designed to keep gold from illegitimate sources out of the global supply chain.

Smuggled gold

The auditors discovered that Kaloti had paid out a total of $5.2bn (£4bn) in cash in 2012, but failed to report suspicious activity to the money laundering authorities.
EY also helped to cover up a crime - the export to Dubai of gold bars that had been disguised as silver to avoid export limits on gold.
The audit team had been shown what appeared to be bars of silver from Morocco, but scratching the surface revealed they were really gold bars coated silver.

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