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4/3/18

More on the METALOR illegal gold story

Further to the news broken by Ojo Publico yesterday about the way Swiss precious metals refining giant METALOR has been accepting illegally produced gold from the Madre de Dios region of Amazon basin Peru, we have interesting information to pass on.

Canada's Scotia Mocatta does plenty of business with Peru produced gold and several businesses sell gold to the company, including METALOR. We hear from reliable sources that since last week  Scotia Mocatta has been withholding payments to all Peru domiciled suppliers of gold until further notice. Scotia Mocatta is demanding extra compliance work be done to guarantee the legal status of the gold it buys and is conducting its own DD on bonafides of the supply companies. In other words:
1) Word has been out in the bullion world on this Ojo Publico story for a few days, probably coming from the Peru customs and tax people.
2) Scotia Mocatta is now being very careful that it doesn't leave itself open to problems and quite right too. Canada has strict laws about knowingly trading in illegally mined products.
3) Most importantly, if you're METALOR this story is not going to go away. They are deep in the doo-doo and if Scotia Mocatta is doing this, you can bet that a lot of other financial houses are doing the same.

Again, congrats due to Ojo Publico for its great reporting and bringing METALOR to account.