A new report from the FACT Coalition, Addressing Illegal Gold Mining in the Western Hemisphere: New Approaches for US Policy, urges the US to take stronger action against the rapidly expanding illegal gold trade—now more lucrative than cocaine for organized crime in some South American countries. Fueled by record-high gold prices, the trade is driving environmental destruction and enabling money laundering. FACT calls for tougher enforcement, targeted legislation, gold-specific sanctions, and enhanced transparency to help dismantle this growing criminal economy. As the report states:
Illegal gold mining has become one of the largest and fastest-growing illicit economies in the Western Hemisphere, with devastating impacts for regional security, human rights, and the environment. As both a major destination for laundered gold and a central node in global finance, the United States holds powerful tools to disrupt illicit gold networks. […]
“Illegal gold mining is a regional crisis that undermines the rule of law, damages the environment, and fuels organized crime,” said Julia Yansura, Program Director for Environmental Crime and Illicit Finance at the FACT Coalition. “With significant gaps in our anti-money laundering regulations and trade policies, the U.S. has become a hub for the proceeds of this crime, empowering criminal networks and authoritarian regimes in the process.”
One key example outlined in the report is Colombia, where illegal gold mining now generates more profit for organized criminal groups than cocaine. Much of this gold is laundered through shell companies and complicit refineries, then funneled into U.S. financial and real estate markets, exploiting opaque ownership structures to remain anonymous. The U.S. remains the largest purchaser of Colombian gold – with imports totaling approximately $1.4 billion in 2023 alone – 80 percent of which is estimated to be the product of illegal mining. […]
“Illegal gold mining is not just an environmental issue, it’s a security issue,” said Yansura. “The U.S. needs to take more decisive action to stop these illicit flows of gold that are funding criminal activity and authoritarian regimes.”
Read more here.