London Daily

Focus on the big picture.
Sunday, Apr 27, 2025

Gold exports ‘more attractive than cocaine’ to Colombia’s criminal gangs, research finds

Gold exports ‘more attractive than cocaine’ to Colombia’s criminal gangs, research finds

According to a study by Global Financial Integrity there is a vast difference between the value of gold exports declared by Colombian traders and the equivalent import figures in the US.

Nearly 11 tonnes of Colombian gold exports to the US were misinvoiced between 2010 and 2018, new research suggests, prompting warnings that illicit metals trading is proving even more lucrative than cocaine to South America’s criminal gangs.

According to a study by Global Financial Integrity (GFI), a US-based think tank that tracks the illicit movement of goods and funds, there is a vast difference between the value of gold exports declared by Colombian traders and the equivalent import figures in the US.

The accumulated value gap over that eight-year period, both from over and under-invoicing gold trades, is estimated at around US$2.7bn. The value gaps for trade with India and Switzerland are also each over US$1bn.

With Colombia’s mining association estimating that 70% of gold exports derive from illegal activities, GFI reiterates warnings from US State Department officials that illicit gold trading can now provide criminal groups with higher and easier returns than trafficking cocaine.

“There are certain qualities inherent to gold that make it vulnerable to illegal extraction, trafficking and laundering,” GFI says in the report, which was co-authored with Colombia’s Alliance for Responsible Mining and Bogotá-based think tank Cedetrabajo.

“Not only tremendously valuable, it is also portable and largely untraceable. Unlike narcotics, gold is not inherently illegal, and differentiating between legally and illegally sourced gold can be difficult.”

With gold also easier to move across international borders than cash, the report says it is proving an attractive option “for Colombian criminal groups looking to maximise financial gains, shift profits from one jurisdiction to another, and minimise the risks of being caught”.

Not only is illegal or informal mining problematic in terms of contributing to deforestation, but it is also plagued by interference from organised criminals. In 2013 more than half of Colombia’s illegal mining activity was believed to be taking place in areas controlled by neo-paramilitary criminal groups, GFI says.

As well as their role in selling gold extracted illicitly, these groups often extort local artisanal operators and own heavy machinery being used. The report estimates criminal groups earn around US$2.4bn a year from illegal gold mining.

Though most illegally mined gold departs Colombia through smuggling, for example by small aircraft, boat, or carried on the person of an international traveller, the report says official trade channels are used in around a fifth of cases.

This typically involves large exporting firms setting up dozens of fake companies, registered with different chambers of commerce across Colombia, GFI says. It points out that the country’s authorities have levelled charges against several large firms for facilitating fraudulent exports.

For example, in a 2019 case against gold trader CIJ Gutiérrez, the Colombian Attorney General’s Office alleged that as much as US$650mn was laundered through a network of fictitious companies.

Informal mining


In Colombia, gold mining directly accounts for around 2% of GDP and 1.5% of employment nationally. However, its complexity as an industry has made it vulnerable to criminal activity and created barriers to becoming more formalised.

The country’s mining sector is populated by large numbers of smaller, artisanal operations, and so for buyers, it can be difficult to trace whether gold originates from legal or illegal sources.

The Alliance for Responsible Mining explains that there is a distinction between illegal mining, where extraction is not permitted at all by the relevant authorities, and criminal mining, which is used to finance criminal activity directly.

There are also informal producers, it says, which operate within the law but may not meet requirements around sustainability or safety.

Currently, informal miners are often forced to sell gold below market value – with local intermediaries, or compraventas, paying “barely 40% of the international standard” – in environments susceptible to asset laundering.

Comments

General Butler 4 year ago
The tyrants running this world world would make every bloody thing under the sun illegal if they could get away with it.

Newsletter

Related Articles

0:00
0:00
Close
Massive Explosion at Iran's Bandar Abbas Port Linked to Suspicious Chemical Shipments
Incident Reflection: A Harsh Reality Check
Pakistani migrants to Danish man: “ “We have 5 children while you have 1 or 2. In 10 years, there will be more Pakistanis than Danes here.“
Clashes Erupt in London as Tensions Rise Between Indian and Pakistani Communities
Specialized anti-drone weapons deployed among security personnel Ahead of Papal Funeral
How do you fix this culture?
Corrupted from Within: How Deep State Power and Unelected Judges Hijacked Democracy Against the Will of the People
President Trump and Ukrainian President Zelensky just held an impromptu discussion on the sidelines of Pope Francis' funeral in Rome.
World Leaders Gather in Rome for Pope Francis's Funeral
Pope Francis Laid to Rest in Rome as World Leaders Attend Funeral
Alberta's Push for Independence Raises Questions About Canada's National Unity
Virginia Giuffre, Prince Andrew and Jeffrey Epstein accuser, dies by suicide
"China has survived for five thousand years, most of it without the United States as a market, and it can easily continue to survive without the U.S. market for another five thousand years — no problem," said a China analyst.
Elites vs. America: How Democrats Lost the Plot and the People
Pam Bondi Details Wisconsin Judge’s Actions Before Arrest: 'Can't Make This Up'
Not Child’s Play: How Competitive Gaming Became a Global Economic Empire
California Surpasses Japan to Become the World’s Fourth-Largest Economy
Peter Navarro: The Man Behind Trump’s Tariff Madness
Milwaukee Judge Arrested on Allegations of Aiding Undocumented Immigrant’s Escape
Former U.S. Congressman George Santos sentenced to eighty-seven months for wide-ranging fraud
Trump administration moves to BAN essentially ALL artificial food dyes in the USA food supply at RFK Jr.'s direction
Woman slaps man at sports game and gets herself and husband beat up
Pope Francis: head of the Catholic church who pushed for social and economic justice
China do not pay these tariffs - you pay it. This is new 145% tax you pay to the US government.
Nightlife in the streets of Manchester
In God We Profit
Cultural Battles in the Vatican: The Candidates in the Battle for the Holy See and Pope Francis's Testament
Global Leaders Pay Tribute to Pope Francis Following His Death
Wild Chimpanzees Observed Bonding Over Alcoholic Fruit
US Federal Reserve Chair Issues Warning on Tariff Impact
UK Prison Officers Demand Electric Stun Guns Amid Safety Concerns
China, China, China!
Australian National Charged as Mercenary for Fighting in Ukraine
Israel Considers Limited Strikes on Iran's Nuclear Facilities Amid Diplomatic Efforts
Prince Andrew Joins Royal Family Attends Easter Sunday Service at Windsor Castle
Saudi Arabia Offers Max Verstappen Unprecedented Deal to Join Aston Martin
Global Pistachio Shortage Amid Rising Demand for 'Dubai Chocolate'
Trump is assembling a coalition of Western leaders aligned with the MAGA vision, strengthening a unified front for global change
IMF Predicts No Global Recession Amid Trade Tensions
Here’s a police officer with a brilliant gift for swift education
"Some complain that we put thousands in prison. In reality, we set millions free."
This is Vienna, Austria in 2025.
Boeing Jet Returns to US from China Amid Tariff War
Canadian Federal Election: Candidates' Positions on US-Canada Relations and Donald Trump
Resentencing Hearing for Menendez Brothers Who Killed Their Parents Delayed Amid Legal Disputes
Australian Woman Gives Birth To Stranger's Baby In IVF Mix-up
US Sets Deadline for Russia-Ukraine Peace Deal Brokerage
Italy Introduces 'Sex Rooms' in Prisons for Inmates
California Launches Legal Challenge Against Trump Administration's Tariffs
"Groundless": China Dismisses Zelensky's Claims It's Supplying Arms To Russia
×