EY failed to report suspicious activity to money laundering authorities
Ernst & Young office in London | Image Credit: Shutterstock

Recently, Ernst & Young received a backlash from many people on social media over its training seminar that trained women how to act ‘nicely’ around men. Now, once again Ernst & Young is in the picture for a wrong reason. It has been reported that a multinational professional services firm has failed to report evidence of crime gang's smuggling; the gang allegedly collected cash from drug dealers across Britain and Europe before laundering it by buying and selling black market gold.

A British accountancy firm failed to report the suspicious activity to the authorities, with $146 million (£114million) of that cash going to Renade.

The company (Renade International) was owned by the members of gang, sold 3.6 tonnes of gold to the refinery and the trading business Kaloti Group in 2012. The same year EY was asked to carry out a review of Kaloti's compliance, later it was discovered that Kaloti had paid out $5.2billion (£4.1billion) in cash.

It is believed that firm helped to cover up the export to
Dubai of gold bars disguised as silver bars to avoid export limits on gold.

While EY denies the allegations, a lead auditor in Dubai at
time, Amjad Rihan says he wanted to report the suspicious activity but was
stopped by his bosses.

Just like EY, Kaloti also denies wrongdoing and claims it
had conducted all appropriate anti-money laundering checks. Cash payments were
common in Dubai, but it no longer buys gold for cash, Kaloti further added.

Kaloti wouldn’t enter into a trading relationship with any party in the knowledge that such party had been engaged in financial impropriety or criminal activity of any kind, a spokesman told.

Source - Mail Online

Latest Posts

Subscribe to Newsletter

Enter your email address below to subscribe to newsletter