In the dense forests of Venezuela’s Bolivar state, communities are grappling with the harrowing impacts of violence perpetrated by armed groups entrenched in the illegal gold trade. A chilling account from a 2020 investigation revealed the brutal reality faced by local miners. A 17-year-old boy recounted to Human Rights Watch witnessing members of a Venezuelan armed group inflicting severe punishment—amputating both hands of a miner accused of stealing gold. Sadly, such atrocities, including summary executions and forced child labor, continue to plague the region.
The gold extracted by these groups is often smuggled out of Venezuela, making its way through “transit countries” such as Colombia, Guyana, and Brazil, where it is laundered. Once the origins of this gold are obscured, it is sold to companies across the United States, Canada, the European Union, and beyond.
However, a glimmer of hope has emerged with a new requirement introduced by the London Bullion Market Association (LBMA), the world’s leading gold refinery industry organization. Starting in 2026, refiners will be mandated to publicly disclose the identities of their suppliers from “red flag locations.” These locations are defined as regions suffering from armed conflict, political instability, repression, institutional weakness, or widespread human rights violations.
This initiative comes as a significant development in the fight against the opaque supply chains that have long benefited armed groups in various parts of the world, including Venezuela, Sudan, and the Democratic Republic of Congo. By shining a light on these practices, the LBMA’s new rules could help dismantle the illicit networks that fuel violence and exploitation.
In a call to action, Human Rights Watch has urged the LBMA to ensure that refiners adhere to the Organisation for Economic Co-operation and Development’s (OECD) definition of “red flag” locations accurately. This includes recognizing countries like Brazil and the United Arab Emirates, where illicit gold frequently transits, in their disclosures. The organization has also advocated for the LBMA to require refiners, starting in 2027, to disclose the names and locations of all mines and suppliers, extending beyond just those classified as “red flag locations.” Human rights violations can occur in any context, and ensuring supply chain transparency is vital for identifying abuses and holding perpetrators accountable.
A more transparent gold trade is not just a regulatory measure; it is crucial to dismantling the financial underpinnings of armed groups and ending the cycle of violence and exploitation affecting vulnerable communities in Venezuela. By fostering public disclosures of refiners’ gold supply chains, we can expose and diminish the illegal networks that sustain these abuses and provide a path toward accountability and justice for affected residents.
As the world watches, this pivotal step in the gold industry could mark a turning point in the battle against the atrocities linked to the illegal gold trade, offering hope for a future free from the fear that has long haunted those living in the shadows of armed conflict.
