US Mint gold source tied to criminal networks in Colombia: NYT

The United States is increasingly being drawn into the opaque supply chains of illicit mining after an investigation by The New York Times tied some of its gold supply to Colombian criminal networks.The United States is increasingly being drawn into the opaque supply chains of illicit mining after an investigation by The New York Times tied some of its gold supply to Colombian criminal networks. Drawing on interviews, trade records and field reporting, the NYT detailed how illegally mined gold in Colombia often controlled by armed groups and drug cartels is laundered through intermediaries and exported with seemingly legitimate paperwork before entering global supply chains.

In some cases, that gold made its way into the supply chain of the US Mint, which under federal law must use America-mined gold for its investor-grade coins.The report highlights a fragmented chain of accountability. When questioned by a Times reporter, the US Mint blamed its suppliers, who then deflected the responsibility to other intermediaries. All parties maintained they had stopped accepting Colombian gold.

The findings add to a growing body of evidence that illicitly mined gold has been penetrating formal US markets for years.The latest findings also further highlight the persistent challenges in achieving full transparency in gold supply chains, as well as the limitations of existing oversight mechanisms. Following the latest investigation, the Treasury said it is now reviewing the Mint’s procurement practices and has tightened its sourcing standards, the NYT report said.