Title: Organized Crime and Illegally Mined Gold in Latin America
Author/Institution: Global Initiative Against Transnational Organized Crime Publication
Year: 2016
The 2016 report Organized Crime and Illegally Mined Gold in Latin America by the Global Initiative Against Transnational Organized Crime provides one of the earliest comprehensive analyses of the links between mineral extraction and organized crime in the region. Based on investigative research across Colombia, Peru, and Brazil, the study documents how illegal gold mining has overtaken cocaine as a major source of income for criminal organizations. It highlights the criminal diversification strategies that allow cartels and armed groups to exploit gold’s high value and easy transportability, while embedding themselves in local economies and cross-border trade networks.
A central finding is the way criminal groups infiltrate and control entire supply chains, from mine sites to refineries and exporters. The report shows how illicitly mined gold is laundered through shell companies, fictitious paperwork, and complicit refineries, often blending seamlessly with legally sourced material. This practice not only undermines regulatory frameworks but also corrupts local governance, as politicians and security forces are drawn into protecting or profiting from these operations. The study emphasizes how weak institutional capacity and corruption create fertile ground for organized crime to flourish in resource- rich territories.
The report’s relevance today is clear: as demand for gold remains strong, the risks associated with illicit flows are magnified for communities, governments, and legitimate companies. By showing that illegal mining is not a marginal activity but part of well-organized transnational criminal economies, the study underscores the urgency of supply chain traceability, international cooperation, and governance reforms. Its conclusions directly support current discussions about the social license to operate in Amazonian mining zones—demonstrating that failure to address organized crime not only degrades the environment but also erodes trust in legal markets and state authority.