U.S. Treasury Bought Gold from Industry Colombia Asked to Sanction

Colombia’s defense minister asked the Trump administration early this year to place financial sanctions on the country’s illegal gold industry. The request targeted dealers whose purchases help finance the Clan del Golfo, a drug cartel already designated a terrorist group by the U.S. government.

The Treasury Department had, for many years, been buying gold that originated with the same industry Colombia sought to blacklist. Washington had previously placed cartel leaders on a financial sanctions list, but the new request would have extended restrictions to illegal gold dealers.

Colombian military efforts The Colombian military has been largely unable to prevent criminal groups from mining hundreds of square miles of land. Operations have included payments to cartel leaders and encroachment on a military base in search of gold.

U.S. gold supply checks The United States has conducted limited checks on its own gold supply. As a result, gold linked to the cartel reached Lady Liberty coins sold by the U.S. Mint. The sanctions request remains unacted upon and illustrates weaknesses at both ends of the illicit gold supply chain.