February 4, 2025
Global Financial Integrity (GFI) and the Integrated Social Development Centre (ISODEC-Ghana) published a new report, Mapping of Illicit Financial Flows Risks Along the Supply Chain of Gold Mining in Ghana, which highlights the critical risks of illicit financial flows (IFFs) in the country’s mining industry. The report focuses on how supply chain vulnerabilities hinder domestic resource mobilization and threaten the integrity and future prosperity of the mining sub-sector.
The research identifies higher corruption risks among government agency officials as a key driver of illicit financial flows, with systemic weaknesses enabling the illicit outflows of resources. Furthermore, the role of multinational mining corporations and informal mining, popularly called “galamsey,” in exploiting weak regulatory frameworks exacerbates financial leakages. These findings highlight the urgent need for reforms to mitigate illicit financial practices within the sector.
The report provides key policy recommendations to address these risks across the supply chain of gold mining. During the extraction phase, the government must implement stringent monitoring and conduct frequent audits of mining activities while incorporating digital technologies to monitor ore extraction and production processes. Enhancing transparency can be achieved through the processing and strengthening of customs verification procedures, alongside the implementation of traceability systems like blockchain technology. Collaboration between regional entities across borders is crucial for tackling smuggling and underreporting.
Enhanced customs enforcement and the implementation of digital technologies, like GPS tracking for mineral shipments, can reduce illicit flows. Governments must align border controls and promote the utilization of formal transportation channels. At the marketing and sales phase, full transparency in transactions, including public disclosure of the beneficial ownership of companies involved in gold trading, must be ensured. Automated transaction monitoring systems are imperative to address undervaluation and mis-invoicing issues. Additionally, anti-corruption measures should be enforced with stringent penalties for illicit activities by the government.
This report highlights the urgent need for policymakers, industry stakeholders, and international partners to strengthen regulatory frameworks and address loopholes contributing to financial losses in Ghana’s mining sector. Addressing these challenges will enable the country to fully benefit from its extensive gold resources fully, thus improving economic growth and promoting sustainable development.
For media inquiries, please contact:
Dennis Kabia (GFI)[email protected]
About Global Financial Integrity:
Global Financial Integrity (GFI) is a Washington, DC-based think tank focused on illicit financial flows, corruption, illicit trade, and money laundering. https://gfintegrity.org/
About ISODEC
The Integrated Social Development Centre (ISODEC-Ghana) is an indigenous non-governmental organization that works for and in solidarity with those striving for economic and social justice towards a life of dignity for all by promoting rights, accountability and responsibility. https://isodec.org/