This Chatham House meeting is chaired by Dr. Christopher Sabatini from the Latin America programme. Also on the panel are: Ahmed Soliman (Senior Research Fellow, Chatham House Africa Programme) — focuses on Africa-related dynamics, such as in Sudan and Ethiopia.Marcena Hunter (Director of Extractives, Global Initiative Against Transnational Organized Crime — GI-TOC).Dr Dan Watson (IISS).Erich Adam Moreira Lima (Brazilian Federal Police)
Gold underpins global finance, but illicit trade channels link mining to criminal economies. These flows expand across borders, exposing gaps in regulation and data.
Weak oversight allows criminal networks to persist, highlighting the need for coordinated policy responses to protect markets and limit illicit financial activity.
This event discusses:
- What drives illicit gold flows across producer and consumer markets?
- How do criminal networks exploit gaps in regulation?
- What are the common transnational vulnerabilities afflicting authorities?
- What policy options might strengthen oversight and enforcement?
- How can governments and regulators coordinate more effectively?
Illicit gold accounts for more profit in Latin America than cocaine trafficking.
Illegal gold is driving the conflict in Sudan. There is an ongoing war in the country. 11-12 million people have been displaced. 30 million require humanitarian aid. Gold has become the most important element of the economy. The fragmented international economy means that there is no easy escape from the Sudan’s dependence on gold. It has to move from a war commodity to a development commodity.
We have to look not at producing countries but transit countries. It may seem far removed but even the London Gold market transits a huge amount. Due diligence is required and stronger regulations have to be in place.
Is there any plan to ensure that people in for example Peru, can detach from the illicit market? The markets and financing can be targeted. There is an industrialization of the informal sector. World Gold Council has been making efforts with regard to this challenge. There is a recognition that something has to be done.
Gold doesn’t necessarily cause conflict. There is a temptation for elites to use gold as a factional weapon. Cote D’Ivoire didn’t go the same way as Sudan. In Mali and Burkina Faso and in Myanmar and Sudan political and military systems can be dependent on gold.
They are trying to encourage people to formalize the trade.
In the UAE a lot of the financial networks have detrimental consequences. They have to think about sustainable futures.
The meeting made it clear how the trade in illicit gold needs some form of better control. The meeting was thorough and full of food for thought.
Leave a comment