Â鶹ÒùÔº

Brazil police target illegal gold exports from the Amazon

Brazil's Federal Police on Wednesday were carrying out a court order to seize more than 2 billion reais ($384 million) related to about 13 tons of gold mined illegally in the Amazon rainforest, then exported through an unnamed U.S.-based company.

Police said in a statement they were also executing 27 search warrants and three arrest warrants in seven states and the Federal District related to the investigation. The operation forms part of a fresh crackdown on illegal Amazon gold mining in the wake of the government announcing a health emergency for Yanomami Indigenous people caused by prospectors.

Gold extracted from the Amazon is usually brought to nearby cities and sold to financial brokers that are regulated by Brazil's central bank. All that's required to transform the raw ore into a tradable asset is a handwritten document attesting to the specific point in the rainforest where the gold was extracted, but which is virtually impossible for the broker to verify.

The police statement said the criminal organization used shell companies to issue fraudulent receipts and lend the appearance of legality to purchases of gold in excess of 4 billion reais between 2020 and 2022.

The unnamed American company sold the gold onward to buyers in Italy, Switzerland, United Arab Emirates and Hong Kong.

There has been increasing awareness that the current lack of transparency surrounding the purchase of gold contributes to illegality. This week, Brazil's central bank told the Supreme Court that it is discussing a new system of oversight that would facilitate tracing the gold to its point of extraction, including adoption of electronic receipts.

Yanomami adults and children have suffered malnourishment, disease and even death as a result of illegal gold mining on their land. Prospectors leave pools that become breeding grounds for mosquitoes that spread illness, and use mercury that pollutes water used for fishing.