Study finds 229 tons of gold from suspicious source in Brazil

A study by Instituto Escolhas found that Brazil traded 229 tons of gold from 2015 to 2019 with signs of irregularities. The survey considered over 40 thousand recorded transactions and extraction images.

A third of this amount, 79, was sold by five companies that bought gold in the Amazon—F.D’Gold, Ourominas, Parmetal, Carol, and Fênix DTVM. These companies operate in all stages of the production chain of gold.

At least some of these firms are said to have possibly irregular prospects and sell gold to agents that pass it on to companies involved in manufacture and sales.

Also detected were links with refining, transport, and export businesses. This can be an issue, Instituto Escolhas reported, as it leads to a clash of interests “between those who should seek to purchase legal gold and those providing the information about the origin of the metal,” a note from the organization reads.

“The study shows that signs of irregularity are considerably bigger than imagined and confirms that this issue is recurrent. It stems from the utter lack of control over, and transparency on, the production chain of gold,” said Larissa Rodrigues, from Instituto Escolhas.

Measures

The study lists measures to fight noncompliance in gold trade, among them mandatory gold tracking. The association also argued for the end of the legal benefits favoring prospects and recommended earmarking funds for inspection in extraction and commerce.