The Financial Action Task Force and the Asia/Pacific Group on Money Laundering issued a report on money laundering risks from gold.
The report warned that organized crime may operate cash-for-gold businesses in order to launder funds. These businesses are attractive because of little oversight and licensing, coupled with high-volume, low-value transactions. Organized crime can integrate illicit proceeds into the business and use gold to make payments.
The report notes that gold transactions are usually anonymous–a feature that makes it attractive as an alternative to cash. Gold also is a reliable investment.
The report also describes how gold is disguised in order to be shipped around the world. For example, gold can be melted and reshaped into souvenirs, bolts, and belt buckles, which are then transported into a country and used as alternative forms of payment.
The report contains lists of red flags for individuals, corporations, trade-based money laundering, product differentiation, payment behavior, and money laundering predicate crimes.