Gold, Money Laundering Criminals and Scotiabank
Canada's Scotiabank is selling off it's gold buying business, ScotiaMocatta. The move is thought to be to distance itself from scandal and allegations related to lending money in dealings with the Dallas based Elemetal Mint.
Elemetal is facing big legal trouble as the result of a multibillion dollar money laundering scandal connected to one of its subsidiaries, National Trust Reserves.
NTR was illegally buying blackmarket gold from Peru and melting it down for resale. According to court documents the Elemetal subsidiary purchased 3.6 billion dollars worth of the shiny metal from the Latin American country between 2012-2015.
The gold was obtained by forcing poor people from the region to carry out the mining, often under inhumane and unsafe work conditions. The gold was taken and sold by criminal organizations that then used the money to obtain narcotics and firearms.
The lawsuit is ongoing and claims the Dallas based company forged import papers for US Customs and were fully aware of the money laundering, gold smuggling and illegal mining operations that were taking place.
Scotiabank is one of the five major bullion banks that trade gold on the LBMA in London. It's the largest gold market on the planet, settling contracts worth an estimated 5 trillion dollars every year.
Scotiabank and ScotiaMocotta is not apart of the lawsuit. The Mocatta part of the bank was purchased in 1997 but that name has been in the gold business since 1671.
Experts believe the new buyer could be from China. The Chinese have an insatiable appetite for buying gold and are already one of the big five traders in London, with the presence of the HSBC.
Elemetal is still in business but for how long noone knows? This lawsuit could be the straw that breaks the companies back.
Elemetal was kicked off the New York based futures exchange shortly after the lawsuit was filed. Demand for their products has been dropping steadily amidst these concerns. They've also recently been delisted as a "good deliverer" to the London Buillon market.
The two heads of the company, Sammer Barrage and Juan Granda pled guilty last month to charges of money laundering. Apparently both are now trying to work out plea deals.
I'll keep you updated on this as I get new information. I'd advise everyone to exercise caution and not order from their website. The company could fold anytime in the near future.
Thanks for reading,
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I once went into the downtown branch of Scotiabank here in Vancouver. For one oz of physical they wanted about $15 in service fees and i was told 3-6 weeks delivery. I never intended to buy from them, and still chuckle at my nerdy recognizance, but I chuckle even louder when i look at some of my old jm bars that have their logo stamped on the back.
Good post.
Most of their latest products are made by Valcambi out of Switzerland. Some are very sexy but like you, I won't pay extra to deal with them. Scotiabank is my personal bank too. Thx for checking out my post bud
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hey Golden Arms! Long time no see I haven't had much steemit time recently I bet I've missed slot of your posts I'm gonna have to catch up! This is crazy about Elemental I didn't realize it was that serious I hope they keep making silver, take care bud :-)
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I was reading about Elemental and their dealings. Some very serious stuff. I was going to buy from Scotia, but learned quickly they over priced. Anyway, I'm certain that the Chinese government will end up buying it.
My very first buy was from scotia online. 3 bars and 3 maples. Looking back it was expensive!
Wow. I have no words. Thank you for sharing. This is dirty money stuff.
Very interesting! I will definitely keep an eye on this. Shared on social media!