The Guyana Gold Board is moving to bring illegal gold-buying establishments in compliance with the laws, General Manager of the Board Anantram Balram says. “We are asking them to desist and this is breaking the law and they should stop it,” he said, adding that the agency will take stern action that could see the dealers being shut down.
All mined gold must be sold to the Guyana Gold Board or any licensed dealer since any other form of gold trade is illegal, the Board warned yesterday in newspaper ads, while announcing that a campaign will be launched to ensure compliance.
It said, “severest of penalties will be instituted on both buyers and sellers that are involved in these types of activities.”
The Board said that it has seen with deep concern, the proliferation of illegal establishments advertising themselves as “licensed or authorized buyers of gold” to the public. It said that this seems to be targeted towards the new and very small miners. “We wish to inform the public that all gold mined (raw gold) must be transacted by selling to the Guyana Gold Board or any licensed dealer (licensed to possess, sell or export gold). Any other form of gold trade is illegal,” the ad said. “Also, the acquisition of raw gold, by the goldsmiths, for fabrication of jewellery must be obtained from the Guyana Gold Board. It is necessary that all mined gold be properly declared to ensure the necessary royalties and taxes are remitted,” the ad said. The Board appealed to the illegal establishments to immediately cease their activities and make every effort to contact the agency “in understanding what is needed to ply their trade in accordance with the relevant laws.”
Balram said that the gold-buyers who hang up signs saying that they are licensed to buy gold are deceiving the public and pointed out that the gold sold “has to be going somewhere” and this could mean that taxes and royalties are not being paid.
He noted that selling to the Board and licensed dealers would ensure that the relevant taxes are paid.
With regards to whether the unlicensed buyers could gain licences, the general manager said that they have to comply with regulations and once they are willing to do so, they can apply for the licences. He said that they are inviting those establishments to the agency so that they can be educated on what they need to sort out.
Gold is a mainstay of the local economy and gold declarations are currently 33 percent higher than last year, according to Minister of Natural Resources and the Environment, Robert Persaud.
