In recent years, we have seen an increase in the number of consultations regarding deals in which people offer to purchase large quantities of gold or to conduct direct relative transactions.
Many of these deals involve the following risks:
・ Legitimacy of the transaction and source of funds is unclear
・ Official certification and trading rules are not in place
・ High possibility of violating international and national laws and regulations
Why are they risky?
The possibility of misuse as a means of money laundering or sanctions evasion
Legitimate funds/transactions are generally purchased on legitimate markets or licensed exchanges. For deals that emphasize relative transactions, the legitimacy of such transactions should be questioned.
・Possibility of violating international law, foreign exchange laws, and trade control regulations
If a transaction is found to be illegal, there will be serious consequences, including criminal penalties, asset freezing, and loss of credibility.
Risk of nonpayment and trade fraud
Cases have occurred where a company says it will purchase a large amount of goods but has no ability or intention to pay, resulting in trouble after the contract is signed.
Commonly used dangerous lure
The formal contract can wait. Let’s proceed with the transaction first.“
- ”It’s a relative transaction, so taxation and regulations are not involved.“
- ”We will prepare a special route for you since you are a large lot.”
Such explanations are often used to justify illegal or fraudulent transactions.
Finally.
Gold trading is subject to strict international rules.
To avoid being involved in illegal or fraudulent transactions in the name of relative trading, please refrain from trading if you have any suspicions and consult an expert or our company.
We will support you in making sound and safe business choices.