Post notes ban, laundering money via Gold purchase/sell sees huge boost

Mumbai: During an off record conversation with a senior Enforcement Directorate official here, it has come to light that the traditional modus operandi for laundering money by the medium of gold purchase/sell has seen a huge boost post demonetisation.

However, the ED is looking into the aspect that despite having almost nil demand post demonetisation why bullions were importing so much gold. The initial probe indicates a huge racket of money laundering in this trade.

As per the official, a total 66,000 kilograms of gold was imported in November all over the country, with Mumbai importing 1,250 kilograms and Delhi 25,000 kilograms, becoming the city with maximum gold being imported.

The ED suspects that diamond was also a mode of exchanging black money through shell companies.

According to ED sources, many diamond companies are being investigated for their transaction in the post demonetization period.

So far, no arrests have been made in this matter of gold and diamond transactions but ED is looking in it very minutely.

ED's job is made tougher by the organised manner in which the shell companies have been working.

Generally, ED comes to know about any suspicious transaction in 2 working days on an average but suspicious deposits are being rotated from one account to another in less time than that i.e. on a daily basis or on every alternate day, which makes it difficult for the ED to keep a track.

However, ED sources have claimed that they will soon unearth this racket of gold and diamond for money laundering.