The United Arab Emirates is one of the world’s major importer and fourth-biggest exporter globally. During the COVID-19 pandemic, international demand has surged. But as Reuters reported in 2019, much of this is smuggled from West Africa and produced by artisanal and small-scale mining, a trade that funds armed conflict, costs producing countries in lost tax revenue and has significant consequences on public health and the environment.trading hubs. In 2019, it was the fifth-biggest
This is a story that has long been in the public domain: In 2020, the Financial Action Task Force published a report that stated: “The UAE’s understanding of the risks it faces from money laundering, terrorist financing and funding of weapons of mass destruction is still emerging … The risks are significant, and result from the UAE’s extensive financial, economic, corporate and trade activities, including as a global leader in oil, diamond and exports.”
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In 2018, a UN report stated, “In every state [in the Economic Community of West African States region], it was reported that most of the exported from the region is destined for . Most of this is thought to be exported by plane; is thought to be smuggled, for the most part, out of the region through airports.”
called on them to ensure income from the trade is not used to finance terrorism. In December 2020, the UK Home Office national risk assessment stated: “These deficiencies expose , and other countries, to abuse by international controller networks which continue to launder the proceeds of crime to and from countries including the UK. These criminal networks exploit features of the UAE’s laws and systems, in order to move cash and easily into and out of the country, as well as engage in money laundering through property market, international trade, and newer areas such as crypto assets.”authorities have been facing increasingly strenuous calls to clean up their trade. In 2019, an International Crisis Group report
Last year, the London Bullion Market Association (LBMA), the world’s most influential threatened to stop from entering the mainstream market if it failed to meet regulatory standards. Since was the UAE’s largest export after oil in 2019, a trend that in a post-oil age looks only set to grow, the authorities responded by quickly pledging support for an LBMA initiative in December 2020 to crack down on illegal trading and improve regulation around issues like money laundering and unethical sourcing.market authority,
Gold Discovered in India
But recent developments in a court case in discovered over 30 kilograms of worth — at the official market rate — more than $2.1 million. The was found in diplomatic baggage addressed to Consulate-General Office in Thiruvananthapuram, the capital of the southern Indian state of Kerala; it had been listed as bathroom fittings, noodles, biscuits and dates. The subsequent investigation has opened a Pandora’s Box of organized crime that has already led to around 30 arrests, including a host of alleged facilitators, financiers, traders, former employees of Consulate and a principal secretary to the Kerala chief minister.are once again calling into question the UAE’s commitment to clean up its trade. In June 2020, Indian customs
The National Investigation Agency (NIA), which is India’s counterterrorism task force, and at least four other central government agencies are now conducting separate but related investigations into a US dollar smuggling operation from Thiruvananthapuram airport to Cairo via Muscat. The operation was allegedly run by the former Consulate Finance Department head, Khaled Ali Shoukry, an Egyptian national. The other investigations involve corrupt schemes related to various local government projects in Kerala, including the Wadakanchery LIFE Mission housing project, which is funded by Red Crescent, and the Kerala Infrastructure Investment Fund Board.
This is the first timediplomats have ever been publicly implicated in smuggling. Emirati authorities have promised to cooperate, claiming they were duped by their Indian and Egyptian staff. But the former consul general, Jamal Hussain al-Zaab, and Admin Attaché Rashed Khamis Ali Musaiqri both fled home last year before they could be questioned and are now claiming .
However, a steady stream of information has been coming to light through disclosures in Kerala High Court. The NIA said 150 kilograms of was smuggled through Thiruvananthapuram airport in the last six months in a similar fashion, and most of the money was used for funding terrorism. According to sources quoted in Indian media, over 20 such consignments allegedly came to from since September 2019, around 19 of which were addressed to consul general and one was in the name of the admin attaché. At the same time, senior Indian politicians linked to the case were enjoying five-star trips to .
In March, the political temperature rose significantly when two of the key accused, Indian nationals employed in the consular office, testified that consul general was personally involved in the criminal enterprise. Swapna Suresh, formerly the consul general’s Arabic-language translator, and another employee, Sarith P.S., stated in an affidavit that the consul general, as well as several senior Indian politicians, were aware of the and dollar smuggling activities and were coordinating illegal financial dealings under the cover of various projects run by the state government.
“Swapna and Sarith [the accused] stated that it was a common practice among foreign nationals, including diplomats working at said.Consulate, to carry currency notes above permitted limits. We suspect that they were engaged in hawala activities to fund smuggling of from to Kerala. Similarly, they also smuggled goods from abroad using diplomatic privileges and sold them in the Kerala market. Many Indian employees of the consulate were aware of such activities and they will be questioned soon” an Indian customs official reportedly
alleged, split a 3-million dirham ($817,000) commission for the Wadakkanchery project three ways between himself, Shoukry and her. Another accused claimed the consul general and Shoukry were carrying out illegal smuggling activities while working in Mission in Vietnam before coming to Thiruvananthapuram.consul general, Swapna
The Indian Ministry of External Affairs recently issued permission to arraign the former consul general and admin attaché who served at said.Consulate in Thiruvananthapuram. “Both of them assisted Swapna Suresh and Sarith PS to clear the baggage containing that arrived from . They also were receiving remuneration as per the quantity of smuggling on 21 occasions. They are equally involved as other accused persons,” an Indian customs official reportedly
The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy.
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