Lenders, investors globally have lost money in vulnerable sector

"A diamond worth $1,000 could be put in the books for $100,000, and financing can be raised against that value," said Ms Reshmi Khurana from Kroll, a risk management firm. Determining the parties involved in transactions can be done, but it is hard f
"A diamond worth $1,000 could be put in the books for $100,000, and financing can be raised against that value," said Ms Reshmi Khurana from Kroll, a risk management firm. Determining the parties involved in transactions can be done, but it is hard for most people to determine the value of each item.ST PHOTO: ZAIHAN MOHAMED YUSOF

In the world of precious stones and metals, all that glitters might not be gold.

Recent high-profile fraud cases indicate the sector's continued vulnerability to money laundering, said Ms Reshmi Khurana from Kroll, a firm that helps clients make risk management decisions.

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A version of this article appeared in the print edition of The Straits Times on January 22, 2019, with the headline 'Lenders, investors globally have lost money in vulnerable sector'. Print Edition | Subscribe