Swiss gold industry oversight too weak, say auditors
The Swiss gold refining industry has once again come under scrutiny with a report that criticises the lack of control over imports of the precious metal. The Federal Audit Office says it is too easy for illegal imports to enter the country and that sanctions are inadequate.
This content was published on
3 minutes
When not covering fintech, cryptocurrencies, blockchain, banks and trade, swissinfo.ch's business correspondent can be found playing cricket on various grounds in Switzerland - including the frozen lake of St Moritz.
Most of the world’s gold passes through Switzerland to be transformed from raw material and refined. It’s a business that can range in value between CHF60 and CHF90 billion ($70-90 billion) every year.
Refineries insist they check the origins of the gold they receive to make sure it comes from well-regulated mines that respect human rights and workers’ health. But NGOs complain that laws are at best patchy, and leave too much discretion to the sector to self-regulate.
Now, state auditors say that Switzerland lacks a robust means of enforcing the laws that apply to the gold industry. Maximum fines of just CHF2,000 for accepting dirty gold are inadequate penalties, the body has said in a recently published report. In other words, monitoring gold is not a priority for customs officials.
Furthermore, the method of recording imports, which mixes up gold destined for banks with that being delivered to refineries, makes it hard to keep track of the overall picture.
External Content
Marc Ummel from the NGO Swissaid told Swiss public television RTS that routing gold from mines through third countries before it ends up in Switzerland obscures things further. For example, Venezuelan gold is channeled to Swiss refineries via the Caribbean island of Curaçao. “This detour makes it difficult to trace the origin of gold,” Ummel says.
The convoluted supply chain also provides unscrupulous traders the opportunity to mix dirty gold with clean shipments, according to NGOs.
More
More
Clean gold: How Switzerland could set new supply chain standards
This content was published on
Switzerland is the undisputed top dog of the global gold industry, refining a majority of the world’s gold, as well as being the leading exporter. But how seriously does the country take its responsibility to ensure sustainable mining and the protection of human rights? “This position of great global power comes with great responsibility because – here’s another thing too few people…
Both the Federal Customs Administration and the Swiss Association of Manufacturers and Traders in Precious Metals told RTS that they agreed with the broad thrust of the audit office report and said they would welcome a tightening of supervision – within reason. This would not include refineries agreeing to NGO demands to publish the names of gold mines they deal with.
The government has shown little appetite for tightening legislation surrounding the lucrative gold trade in Switzerland. The industry itself has made some moves towards self-regulation, such as the 2013 Better Gold Initiative.
Voters will meanwhile decide – either this autumn or early next year – on a “Responsible Business” initiative that would make Swiss companies legally accountable in Switzerland for the business they conduct abroad.
Switzerland abstains from vote on Palestinian bid for full UN membership
This content was published on
On Friday, Switzerland abstained from the vote at the General Assembly on granting the Palestinians new rights at the United Nations (UN).
Protein in abdominal fat could help shape obesity treatment
This content was published on
The study analysed fat cells from different locations in the body, and found that those in the abdomen have unique properties.
North African asylum claims fall after rapid Swiss processing
This content was published on
The accelerated procedure, now out of its test phase, has resulted in a significant drop in applications from North African countries.
This content was published on
The artist's song "The Code" focuses on their journey as a nonbinary individual. It is one of the favourites to win this year's contest.
Swiss climate activists block vehicles near Gotthard tunnel
This content was published on
Around ten climate activists briefly blocked the A2 motorway near the northern entrance of the Gotthard tunnel on Thursday.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Can Switzerland clean up the ‘dirty’ gold trade?
This content was published on
Our analysis of what the biggest global companies in Switzerland are up to. This week: dirty gold, climate change, Nestlé and looking ahead at WEF.
From Nazis to refineries: How Switzerland has handled the world’s gold
This content was published on
A new book exposes the dark history of gold laundering in Switzerland and the modern challenge of cleaning up a lucrative industry.
A death blow or a new lease on life for the responsible business initiative?
This content was published on
Our regular analysis of what the biggest global companies in Switzerland are up to. This week: parliament, illegal cocoa and palm oil deals.
Clean gold: How Switzerland could set new supply chain standards
This content was published on
Switzerland is the undisputed top dog of the global gold industry, refining a majority of the world’s gold, as well as being the leading exporter. But how seriously does the country take its responsibility to ensure sustainable mining and the protection of human rights? “This position of great global power comes with great responsibility because – here’s another thing too few people…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.