By Travis Chase | HGP Nightly News|
GEORGETOWN, GUYANA — A sophisticated international smuggling ring has been dismantled after U.S. federal authorities linked a prominent Guyanese gold trading entity to a massive money laundering network that allegedly funded Hezbollah, the Lebanese militant group. The investigation, spearheaded by the U.S. Department of the Treasury and the Department of Justice, reveals a complex operation involving trade-based money laundering across Guyana, the United States, and the Middle East.
According to federal assessments, the company intentionally bypassed the global financial system and U.S. trade laws to move illicit proceeds under the guise of legitimate gold commerce.
Customs Fraud: The “Scrap Gold” Deception
Investigators found that the company engaged in a systematic effort to evade U.S. customs duties by misclassifying high-value exports.
- Misdeclaration: Shipments of semi-worked gold and finished jewelry—which typically attract a 5.5% import duty—were falsely declared as “non-dutiable scrap” or “waste gold.”
- Duty Evasion: By falsifying the nature of the commodity, the company avoided substantial federal payments while moving large volumes of precious metals into the U.S. market.
- Scale of Trade: Authorities estimate that at least 10,000 kilograms of gold were funneled through Miami and Dubai as part of this broader scheme, causing significant losses in royalties and taxes to both the U.S. and Guyanese governments.
Terror Financing: The Hezbollah Connection
The most alarming facet of the probe is the link to Hezbollah, a designated foreign terrorist organization. U.S. investigators tracked financial streams suggesting that gold was being used as a currency to bypass sanctions.
- Sanctions Evasion: The gold trade allegedly served as a “cleaning mechanism” for funds tied to Iranian-backed revenue generation schemes.
- Global Network: The network spanned multiple jurisdictions, with gold being converted into usable cash in Lebanon to sustain militant operations.
- Designations: The Office of Foreign Assets Control (OFAC) has signaled that these findings may lead to the “Specially Designated Global Terrorist” status for the entities involved, effectively severing their access to the international banking system.
Trade-Based Money Laundering (TBML)
Beyond terror financing, the investigation is examining how the gold trade laundered proceeds from various criminal activities, including:
- Narcotics Trafficking: Cleaning “dirty money” from the sale of illegal substances.
- Alien Smuggling: Moving funds derived from human trafficking operations.
- Contraband Trade: Laundering profits from the sale of counterfeit electronics and unmanifested cigarettes.
Impact on Guyana’s Gold Sector
The development follows the 2024 and 2025 sanctions of other high-profile Guyanese dealers, including Azruddin and Nazar Mohamed. This latest probe underscores an era of “heightened scrutiny” where foreign law enforcement agencies are no longer ignoring illicit financial flows coming out of the Caribbean’s fastest-growing economy.
Potential Consequences for the Dealer:
- Asset Forfeiture: Federal prosecutors are already seeking the seizure of millions in gold bars currently held in the U.S.
- Financial Exile: A Treasury designation would prohibit any U.S. person or bank from conducting business with the dealer, likely triggering a collapse of their international operations.
“The gold trade was used as a vehicle to launder illicit proceeds… connected to financing streams tied to Hezbollah,” the U.S. assessment concluded.
