Money laundering ruling puts Turkish gold bar maker under pressure

gold bar

When purchasing investment gold from private investors, banks and dealers must already require proof of origin for amounts of EUR 2,000.

(Photo: dpa)

Zurich, Berlin It is not often that a verdict by a German provincial court causes unrest in Istanbul and London alike. At the beginning of December, the Darmstadt Regional Court found Mesut Pazarci, the longtime boss of the gold dealer Pim, guilty of serious fraud against thousands of small investors and of money laundering. The verdict, which the presiding judge Felix Diefenbacher presented, is now causing an uproar in the international gold business.

It’s not about cheating. It is the millions of dollars in money laundering identified by the court that raises many questions and causes debate. It has long been known that transactions with the precious metal are suitable for moving millions of euros across the globe.

The Ministry of Finance therefore tightened the transparency rules in August 2021. Since then, banks and traders have had to demand proof of origin from private investors when buying investment gold for amounts of 2,000 euros.

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