US authorities face growing pressure to confront the illegal gold trade, now one of the largest illicit economies in the Western Hemisphere.
Rising bullion prices have fuelled a mining and trafficking boom in South America that rivals the scale of the drug trade. The Financial Accountability and Corporate Transparency Coalition (FACT) released a report Wednesday urging swift US action.
According to FACT, illegal gold mining in Colombia and Peru has overtaken cocaine as the main source of revenue for organized crime.
Criminal networks rely on weak enforcement and soaring gold demand to expand their reach. The Washington-based advocacy group urged Congress to pass legislation that targets the environmental and social harms of illicit mining.
FACT also wants prosecutors to treat illegal mining as a predicate for money laundering charges and to include gold in cross-border currency reporting rules.
“By making illegal gold mining, trafficking and associated money laundering less profitable and more likely to result in serious consequences, the US can play a powerful role in reducing the financial incentives driving this devastating criminal economy,” FACT wrote in the report.
Behind the crisis is a tripling of gold prices over the past decade and lax enforcement. Authorities remain heavily focused on narcotics while criminal groups diversify. The Trump administration’s shifting priorities and staff reductions have further weakened America’s ability to respond.
FACT urged stronger prosecution of transnational criminal networks tied to illicit gold flows. Additionally, the group wants gold-specific sanctions, renewed funding for international projects, and tighter oversight of the US Mint. In addition, it recommended that authorities collect data on the true owners of companies linked to the gold trade.
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US must reduce profitability of illegal gold markets
Julia Yansura, FACT’s program director for environmental crime and illicit finance, said the issue resonates with Americans who worry about Latin American instability. “The recommendations are expected to resonate with folks in the US who are concerned about organized crime in Latin America — who see that as a threat to US interests and stability,” Yansura said in an interview.
Furthermore, FACT stressed that the US must reduce the profitability of illegal gold markets. Meanwhile, it warned that criminal networks will continue exploiting weak oversight if reforms stall. The report frames illegal gold as a growing geopolitical risk that the US can no longer ignore.
The Yanomami people in Brazil face one of the most severe crises caused by illegal gold mining. Thousands of miners, known as garimpeiros, have invaded their lands, bringing violence, mercury contamination, and disease. The influx has destroyed forests, poisoned rivers, and devastated traditional food sources. Children suffer from malnutrition while elders witness cultural erosion.
Additionally, criminal groups profit by controlling mining routes and supplying equipment. In addition, miners often trade gold through informal markets that bypass oversight. Furthermore, profits fuel corruption, making enforcement weak and sporadic. The Yanomami have repeatedly called for government protection, yet action remains inconsistent.
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