A newly published report details how illegal networks are systematically exploiting artisanal and small-scale gold miners (ASM) to channel gold revenues toward war, terrorism, and organized crime. The findings shine a light on one of the most opaque corners of the global gold supply chain.
Artisanal and small-scale gold mining — loosely defined as low-technology, often informal gold extraction carried out by individuals or small groups — accounts for a significant share of global gold production. The sector employs millions of people across Africa, Latin America, and Asia, many of whom operate in regions with limited government oversight. That combination of scale and weak governance has made it a recurring target for exploitation by armed factions and criminal networks.
The report, drawing on evidence gathered across multiple conflict-affected regions, describes how armed groups levy informal taxes, take over mining sites by force, or launder illicit proceeds through gold traders and refiners. Because raw gold is easily transported, difficult to trace, and universally liquid, it functions as an ideal financial instrument for groups that need to move value across borders without leaving a paper trail.
For responsible market participants — from refiners and traders to institutional buyers and central banks — the challenge is establishing where metal comes from before it enters the formal supply chain. Gold that passes through even one legitimate refiner effectively loses its origin story, making upstream due diligence critically important. International standards such as the OECD Due Diligence Guidance for Responsible Supply Chains exist to address this, but compliance in remote, conflict-affected areas remains inconsistent.
The report also highlights the human cost. Artisanal miners themselves are frequently the primary victims: working under coercion, receiving below-market prices for their gold, and operating in dangerous conditions with no legal protection. Criminal control of mining sites perpetuates cycles of poverty and violence in some of the world’s most fragile communities.
The findings add pressure on the broader gold industry to strengthen traceability systems and enforce supply chain standards more rigorously. Several industry-led initiatives and government bodies have made progress on responsible sourcing frameworks, but advocates argue enforcement gaps remain wide, particularly in jurisdictions where rule of law is limited.
Supply chain transparency and responsible sourcing standards are likely to face renewed scrutiny as this report circulates among regulators, industry bodies, and institutional gold buyers.
