Gold Industry Fails to Enforce Rules, Allowing Criminality and Child Exploitation

Gold industry regulators routinely fail to monitor certification processes, allowing organized crime and child exploitation to embed deeply in supply chains[1][2]. This inaction undermines global standards meant to ensure ethical gold sourcing[1].

This regulatory breakdown creates an environment where illicit gold enters the market, making it difficult for ethical businesses and consumers to trust the supply chain[2][6]. It also provides funds for criminal organizations and armed groups, posing a "serious global threat"[7][11].

What the records show

Layers of people certify gold as free from rights abuses and criminality, but these oversight mechanisms often remain inactive[1]. Organized crime groups are deeply embedded in gold supply chains, exploiting weak oversight and regulatory loopholes to launder illegally sourced gold[7][11]. This illicit trade funds other criminal activities and armed groups[7]. Child exploitation and hazardous working conditions are noted problems within the industry[6]. The informal artisanal and small-scale mining (ASGM) sector, responsible for 15 to 20 percent of annual newly mined gold, often operates outside legal frameworks, making it vulnerable to predatory actors[6][7]. Despite international frameworks like the OECD Due Diligence Guidance and the World Gold Council's Responsible Gold Mining Principles (RGMPs), practical oversight is failing[3][4][8][9].

The timeline

The OECD developed Due Diligence Guidance for minerals, including a gold supplement, to recommend risk mitigation in supply chains[3][4][5]. The World Gold Council launched its Responsible Gold Mining Principles (RGMPs) in 2019, aiming to provide a framework for responsible gold mining[9][10]. On November 18, 2024, the Rt. Hon Dominic Raab's "Silence is Golden" report warned that the illicit gold trade through ASGM presents a "real and present danger" to international security[7]. By May 20, 2025, the UN Office on Drugs and Crime (UNODC) confirmed organized crime's deep involvement in gold supply chains as a "serious global threat"[11].

What changed and for whom

For the gold industry, the persistent lack of enforcement means that illicitly sourced gold continues to circulate, blurring the line between legal and illegal metal[1][2]. This ongoing issue impacts vulnerable populations in mining regions, perpetuating human rights abuses and dangerous working conditions, including child exploitation[6][7]. The profits from this trade support criminal enterprises and armed conflicts, contributing to instability[7][11]. For ethical consumers and businesses, the integrity of gold as a responsibly sourced asset remains compromised[6].

What the subject has said publicly

Industry figures and international bodies have acknowledged the problem. The Rt. Hon Dominic Raab stated that "Governments, international organisations and the gold sector must work together to prosecute criminals, prevent illicit profiteering and integrate responsible ASGM into the legal and viable supply chain"[7]. The UNODC described organized crime's deep involvement in gold supply chains as a "serious global threat"[11]. The World Gold Council developed the RGMPs to address environmental, social, and governance issues in gold mining[8][9].

What we could not confirm

We could not confirm specific instances of successful prosecutions directly linked to systemic failures in gold industry oversight. We also could not confirm the exact number of children exploited within the gold industry's illicit supply chains. Additionally, we could not confirm concrete actions taken by specific certifying bodies to address their inactive oversight mechanisms.