Colombia seeks US sanctions on illegal gold trade linked to cartel

Colombia’s defense minister has asked the US to impose financial sanctions on participants in the country’s illegal gold industry, arguing that the trade helps finance the Clan del Golfo criminal organization, according to a report by The New York Times.

The newspaper reported that Defense Minister Pedro Sánchez made the request to the Trump administration earlier this year through the US State Department.

Illicit gold mining has become a major source of funding for the Clan del Golfo, which the US has designated as a terrorist organization, according to the report. While Washington has already imposed sanctions on cartel leaders, Colombian authorities are seeking broader measures targeting illegal gold dealers.

The request comes despite allegations that the US has purchased gold originating from Colombia’s illegal mining sector. The New York Times reported in April that the US Mint, which operates under the Treasury Department, bought gold traced to an illicit mine controlled by criminal groups.

The report said the case highlights weaknesses in efforts to prevent illegally sourced gold from entering global supply chains. Colombian authorities have struggled to stop illegal mining operations that have expanded across large areas of the country, while international buyers and refiners have faced scrutiny for their sourcing practices.

“The harsh reality is that criminal mining is defeating the Colombian state,” Sanchez told The New York Times.

He added that in March he asked the US to sanction “those who participate in criminal mining.”

US financial sanctions can severely restrict an individual’s or company’s ability to conduct international business, according to the report. The Treasury Department declined to comment on whether it is considering Colombia’s request.

The New York Times said the case raises broader questions about the effectiveness of safeguards intended to distinguish legally sourced gold from gold linked to criminal activity and corruption.

ANEWS wp:paragraph