The Royal Canadian Mint has launched a full review and suspended refining operations tied to a supply chain allegedly linked to Colombian drug cartels, following a New York Times report exposing connections to the Clan del Golfo.
The Mint acted swiftly to halt processing of materials from the implicated source, according to spokesperson Deneen Perrin, who confirmed the immediate suspension upon learning of the allegations.
Last year, the Mint refined over five million ounces of rough gold, with mixed material—where Colombian gold is blended with American gold by a Texas intermediary—accounting for just 5% of total volumes. Despite the small share, the revelation that some gold may originate from cartel-controlled mines in Colombia has raised serious concerns about supply chain integrity.
The issue extends beyond Canada’s borders. A parallel investigation into the US Mint revealed that roughly $1.5 billion of Colombia’s $4.1 billion in gold exports reached the US in 2024, making it the largest market for the country’s gold trade. Illegally mined gold, often controlled by armed groups and cartels, is reportedly laundered through intermediaries with falsified paperwork, infiltrating legitimate markets and even reaching investor-grade coin production.
READ: US Mint Under Scrutiny for Sourcing Gold Tied to Drug Cartels
In the US, federal law requires the Mint to use American-mined gold, but a 2024 watchdog report flagged a loophole allowing foreign material to be classified as domestic if offset by US purchases—a rule laxly enforced for over two decades. While the US Department of the Treasury disputes claims of legal breaches, it has initiated a review of procurement practices and introduced tighter sourcing standards.
The broader problem of illicit gold permeating North American markets is not new. Past enforcement actions have traced questionable shipments from Latin America, including Peru and Colombia, into refiners on the continent, often obscured by mixing with legitimate supply. A report by the World Wide Fund for Nature UK estimated that over 80% of US financial institutions face exposure to illegal mining in their gold dealings.
For now, the Royal Canadian Mint’s response marks a critical step, though the scale of the challenge remains evident. With both Canadian and US authorities scrutinizing their gold supply chains, the focus sharpens on eliminating illicit sources—a task complicated by the opacity of global trade networks.
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