Illegal gold, deforestation and the impact on communities

This briefing provides an overview of the impacts of illegal gold mining on communities supported by CAFOD's partners in Brazil, Colombia and Peru, and on the precious biodiverse environments in which they live. It outlines how communities are resisting these incursions on their land and territory, with support in some places from the authorities though sadly not all.

Illegal gold mining is not only an environmental and human rights crisis; increasingly, it is also a financial crime issue. Gold extracted through environmental destruction, violence and criminal networks can enter international supply chains and eventually be traded through global financial centres.

This helps to explain recent record increases in the price of gold, reflecting both its value as a commodity and as a convenient vehicle for illicit financial flows, including sanctions evasion. It is clear that producing countries cannot solve this problem alone; we need to ask who is buying illegal gold, and what steps are needed to prevent it finding its way into mainstream markets.

Seventy per cent of the global gold trade takes place on the London Bullion Market, and as such the UK is uniquely placed to play a leading role in addressing this terrible situation. The inclusion of illegal gold in the UK’s Illicit Finance Summit, now scheduled for December 2026, together with the UK assuming firstly the Presidency of the Financial Action Task Force, and then the G20 in 2027, offer real opportunities for action. The paper concludes with a series of recommendations for both the UK government and the London Bullion Market.